Community Interest Companies

A community interest company (CIC) is a type of company designed for social enterprises that want to use their profits and assets for the public good.

Benefits of a community interest company:

• A clear commitment to social goals: CICs have an asset lock, which ensures that a CIC’s funds will be used for the benefit of the company’s social objectives rather than for individual shareholders. This can provide reassurance to investors and the wider public.

• Access to finance: Some donors will only give to charities or community interest companies, because of the protections these vehicles provide that funds will be used for stated purposes.

• Limited liability and protection : This provides an important element of security for those who own and manage the business. A CIC can be set up as a private company limited by shares, private company limited by guarantee or public limited company.

At DVR Accountancy we can advise on the very first steps of setting up a CIC to completing the annual statutory returns. For more information on setting up a CIC, contact DVR accountancy today.