Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Community interest company definition

What does Community interest company mean? A community interest company (CIC) is a limited company used to run activities for community benefit rather than private gain. It is a UK statutory corporate form created by the Companies (Audit, Investigations and Community Enterprise) Act 2004 and the Community Interest Company Regulations 2005 (as amended), overseen by the Regulator of Community Interest Companies and otherwise governed by the Companies Act 2006. Key legal features include: - Community interest test on incorporation or conversion. - An asset lock restricting distributions and transfers of assets outside the community purpose. - May be limited by shares or by guarantee. - Restricted dividends and interest...

Community Interest Companies in the UK: formation, regulation, asset lock, dividends, governance, reporting, conversion and dissolution—A guide for lawyers

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Practice notes

What is a Community interest company?

A community interest company (CIC) is a form of Limited Liability company created to carry on business for social aims or to benefit a community. CICs must meet ordinary UK company law obligations and are also overseen by additional rules to ensure their assets, income and profits are applied for the community they are set up to serve. A CIC is a social, profit-making enterprise. It is not a ‘not-for-profit’ organisation; it must generate profit to remain solvent, but those profits are committed to its community purpose rather than private gain.

Legal framework

The principal legislation governing CICs comprises:

the Companies Act 2006 (CA 2006) and subordinate legislation
the Companies (Audit, Investigations and Community Enterprise) Act 2004, Part 2 and Schedules 3 to 7 (C(AICE)A 2004)
the Community Interest Company Regulations 2005, SI 2005/1788 (the CIC Regulations)
the Community Interest Company (Amendment) Regulations 2014, SI 2014/2483
the Companies (Miscellaneous Reporting) Regulations 2018, SI 2018/860

A CIC takes the form of a limited liability company...

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Web page updated on 21/05/2026

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