Community interest companies
In 2005/2006, a new form of limited liability company was created, the community interest company or ‘CIC’, for short.
What is a community interest company?
Community interest companies are like normal limited companies, but to set up a CIC you must be able to show that the CIC is for the benefit of the community – this is known as the ‘community interest test’. To satisfy the test, you must be able to show that a reasonable person would consider its activities as being carried on for the benefit of the community or a section of the community. Whether or not this test is satisfied is determined by the CIC Regulator.
Like a limited company, the community interest company will need a memorandum and articles of association to govern how the CIC is to be run. It is possible for an existing company to be re-registered as a CIC.
Legal advice on community interest companies
If you are looking to set up a CIC, or already run a CIC and are looking for advice, please feel free to call us for more information. Our business lawyers are experts in their fields and look forward to dicussing your needs with you!