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info@adeptaccountax.com
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Mon - Sat: 9:00 AM - 7:30 PM
info@adeptaccountax.com
Mon - Sat: 9:00 AM - 7:30 PM 
If you’re looking to start a business that benefits your local community while operating commercially, a Community Interest Company (CIC) could be the ideal structure.
A CIC is a special type of limited company designed for social enterprises. It allows you to trade, generate profits, and pay directors, while ensuring the company’s assets and profits are used primarily for the benefit of the community.
At Adept Accountax, based in Mitcham and serving clients across Greater London, we help entrepreneurs, charities, and social enterprises establish CICs and stay compliant with their legal and tax obligations from day one.
Before incorporating a CIC, consider whether your organisation’s primary purpose is to benefit the community rather than maximise profits for shareholders.
A CIC may be suitable if you:
If your organisation will rely mainly on donations and grant funding, a registered charity may be a more appropriate structure. (See our guide: [Charity vs CIC – Which Is Better?])
There are two types of Community Interest Company.
This structure has no shareholders and is commonly used by:
Instead of shareholders, it has members who guarantee a nominal amount (usually £1) if the company is wound up.
This structure has shareholders and can distribute limited dividends, subject to statutory restrictions.
It’s often chosen by social enterprises seeking external investment while maintaining a community-focused purpose.
Your chosen name must:
To register your CIC, you’ll need:
Every CIC must complete a Community Interest Statement (Form CIC36).
This document explains:
The CIC Regulator reviews this statement before approving the incorporation.
Your application is submitted to Companies House together with the Community Interest Statement.
Once approved:
Depending on your activities, you may need to register for:
Unlike charities, CICs generally pay Corporation Tax on their profits unless another relief applies.
A dedicated business bank account should be opened in the CIC’s name. This keeps company finances separate from personal funds and supports good financial governance.
Once established, a CIC has continuing legal responsibilities, including:
Failure to meet these requirements can result in penalties and, in serious cases, removal from the register.
Many new CICs encounter avoidable issues, such as:
Obtaining professional advice at the outset can save considerable time and expense later.
At Adept Accountax, we provide a complete CIC formation and compliance service, including:
Whether you’re launching a new social enterprise or transitioning from another structure, our Mitcham-based team can guide you through every stage of the process.
Setting up a Community Interest Company is about more than completing forms — it’s about choosing the right structure to achieve your social objectives while remaining legally and financially compliant.
If you’re considering establishing a CIC, Adept Accountax can help you register your organisation efficiently and provide ongoing support as your social enterprise grows.
Contact Adept Accountax today to discuss your CIC formation and compliance needs.
Adept Accountax Ltd | CIC Formation & Compliance Accountants in Mitcham, Greater London 📞 Call us today | 📧 Get in touch online
How long does it take to set up a CIC? Once your Community Interest Statement and incorporation documents are ready, Companies House and the CIC Regulator typically process applications within a few working days, though this can take longer if further information is requested.
How much does it cost to set up a CIC? There’s a small statutory registration fee payable to Companies House, plus professional fees if you use an accountant or formation agent to prepare your documents and Community Interest Statement correctly the first time.
Can a CIC change into a charity later? In some circumstances a CIC can convert to charitable status, though this involves a formal process and isn’t guaranteed. It’s best to choose the right structure from the outset — get advice before you incorporate.
Do I need an accountant to set up a CIC? It isn’t a legal requirement, but professional advice helps you avoid common mistakes — such as using the wrong Articles of Association or an inadequate Community Interest Statement — that can delay or block your registration.
This article is intended as general guidance and does not constitute professional or legal advice. Contact Adept Accountax for advice specific to your organisation’s circumstances.
