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What are the benefits of a CIC company formation? The community interest companies (CICs) are growing rapidly, with nearly 10,000 community interest companies on the Regulator's register. This isn't surprising considering the wide ranging benefits of registering a CIC company, together with the fact they are quick, easy and inexpensive to set up and are specifically designed for social enterprise.
The register of a CIC company is done through the normal route of setting up a limited company (public community interest company, CIC company limited shares or community interest company limited by guarantee), providing a community interest statement and passing the "reasonable person" test that your CIC is in the community or wider public interest and meets its purposes. Once everything is in order, the regulator advises Companies House, who will then give you a certificate to confirm your community interest company status. Then the registration of a community interest company is complete.
A community interest organisation not only provides you with a great brand and reassurance to stakeholders (as the asset lock and community purpose are regulated), but it also offers transparency of directors remuneration and use of assets. It also provides limited liability for its members and can access the debt markets for loans and bonds – really taking advantage of a company's risk-taking features.
Legislation related to community interest company and company form are already well understood by the business community, meaning you won't be treading any unknown paths. CICs also have to provide a public report and make sure no "windfall" profits are paid out to members or directors.
The majority of community interest companies are currently in third sector activities such as health and social care, but an ever growing amount are trading in the traditionally private sector such as in finance and property. The vast range of benefits and growing popularity of CICs make them the best choice for anyone thinking of registering a social enterprise company.