Starting a business is exciting. Starting one that exists to improve lives, strengthen communities, and create lasting social impact is even more rewarding.
If you’ve decided that a Community Interest Company (CIC) is the right legal structure for your organisation, you’re probably asking the same questions thousands of founders ask every year:
- How do I register a CIC?
- What is the CIC36 form?
- What is the asset lock?
- Should I choose shares or guarantee?
- Will my application be accepted?
The good news is that registering a CIC is a straightforward process when you understand what the Companies House and the CIC Regulator expect.
This guide explains the complete Community Interest Company formation process, helping you avoid common mistakes and giving your organisation the strongest possible start.
Quick Answer
If you’re looking for the short answer, here’s what you need to know.
A Community Interest Company (CIC) is a limited company created to benefit the community.
It is suitable for:
- Social enterprises
- Community organisations
- Sports clubs
- Training providers
- Wellbeing projects
- Environmental organisations
- Community cafés
- Arts organisations
To register a CIC, you’ll normally need:
- Company incorporation documents
- A completed CIC36 Community Interest Statement
- Articles of Association containing the CIC asset lock
- Director details
- Registered office address
Applications are submitted to Companies House and reviewed by the CIC Regulator.
Table of Contents
- What is a Community Interest Company?
- Who should register a CIC?
- Before you start
- Step-by-step registration process
- Common registration mistakes
- Frequently Asked Questions
- Why specialist support helps
- How we can help
What Is a Community Interest Company?
A Community Interest Company is a special type of limited company designed for organisations whose primary purpose is creating community benefit rather than maximising profits for shareholders.
Unlike a standard limited company, every CIC must satisfy the community interest test.
This means the organisation must demonstrate that its activities genuinely benefit the wider community.
One of the defining features of every CIC is the asset lock.
The asset lock helps protect company assets so they continue supporting the organisation’s social objectives.
A CIC can:
- Trade commercially
- Employ staff
- Own property
- Enter contracts
- Generate profits
However, it must continue operating primarily for community benefit.
Who Should Register a CIC?
A CIC is popular with founders who want to combine commercial activities with positive social impact.
Typical organisations include:
- Community centres
- Youth organisations
- Sports coaching businesses
- Mental health services
- Education providers
- Food projects
- Arts organisations
- Environmental initiatives
- Employment support organisations
If your organisation exists mainly to help people rather than maximise profits, a CIC may be an excellent option.
If charitable tax reliefs or charitable status are essential, you may also wish to compare a CIC vs charity before deciding.
Before You Start
Before beginning your application, take time to prepare properly.
Define Your Community Purpose
Ask yourself:
- Who will benefit?
- What problem are you solving?
- How does your work improve the community?
Your answers will form the foundation of your Community Interest Statement.
Decide Between Shares or Guarantee
You’ll normally choose between:
CIC Limited by Shares
Often used where:
- Investment is planned
- Share ownership is important
- Commercial growth is expected
CIC Limited by Guarantee
Often chosen by:
- Community organisations
- Grant-funded projects
- Membership organisations
- Non-profit style businesses
Choosing the right structure now can prevent costly changes later.
Choose Your Directors
Select directors who understand and support the organisation’s mission.
They’ll be responsible for helping the company meet its legal obligations.
Prepare Your Articles of Association
Your Articles must include the required CIC clauses, including the asset lock.
These Articles work alongside your Community Interest Statement and should consistently describe your organisation’s objectives.
Step-by-Step Community Interest Company Registration Process
Step 1 – Choose Your CIC Structure
Decide whether your company will be limited by shares or guarantee.
This decision affects governance, ownership and future funding options.
Step 2 – Complete the CIC36 Form
The CIC36 form explains:
- Your community purpose
- Who benefits
- What activities you’ll carry out
- How those activities create community benefit
This is one of the most important parts of the application.
Generic or vague wording often leads to unnecessary questions.
Step 3 – Prepare Company Documents
You’ll normally need:
- Director details
- Registered office
- Articles of Association
- Company name
- SIC code
Ensure every document supports the same community purpose.
Step 4 – Submit Your Application
Applications are submitted to Companies House.
The CIC Regulator reviews your Community Interest Statement and determines whether the organisation satisfies the community interest test.
Step 5 – Receive Approval
Once approved, your company officially becomes a Community Interest Company.
You can then begin trading under your new legal structure.
What Goes Wrong? Common Registration Mistakes
Many delays happen because founders rush the application.
Common mistakes include:
- Weak CIC36 wording
- Choosing the wrong structure
- Inconsistent Articles of Association
- Vague community objectives
- Copying generic templates
- Missing information
A Practical Point Many Founders Miss
Your:
- CIC36 form
- Articles of Association
- Business activities
should all describe the same community purpose.
If they appear inconsistent, the regulator may ask for clarification before approving the application.
Frequently Asked Questions About CICs
Can a CIC make a profit?
Yes.
A CIC can make profits, but it must continue operating primarily for community benefit.
How much tax does a CIC pay?
A CIC is generally subject to Corporation Tax in the same way as other UK limited companies.
Is it better to be a CIC or a charity?
Neither structure is automatically better.
The right choice depends on your objectives, funding plans and how you intend to operate.
Can I pay myself from a CIC?
Yes.
Directors can receive salary or remuneration, provided this complies with the relevant legal and tax requirements.
How many directors are needed for a CIC?
At least one director is generally required, although appointing additional directors can strengthen governance.
Why Specialist CIC Formation Support Helps
Many founders assume registering a CIC is simply about filling in forms.
In reality, good preparation can make a significant difference.
Professional support helps by:
- Reducing stress and mental load
- Preparing a strong CIC36 Community Interest Statement
- Making your organisation funder-ready
- Avoiding common application mistakes
- Providing fixed, transparent fees
- Giving long-term compliance support
Conclusion
Registering a Community Interest Company is the first step towards building an organisation that combines business with genuine social impact.
By preparing carefully, choosing the right structure, and submitting a well-prepared application, you’ll give your organisation the strongest possible foundation for future growth, funding, and community benefit.
How we can help
Setting up a Community Interest Company (CIC) is not just about registering a company — the wording of your Community Interest Statement (CIC36), the structure you choose, and how your social purpose is presented all have long-term regulatory and funding implications.
At KG Accountants, we draft your Community Interest Statement to meet CIC Regulator requirements while reflecting the language and priorities commonly expected by grant funders and local authorities. This gives your organisation a funder-ready foundation from the outset and reduces the risk of delays, clarification requests, or repeated rewrites when applying for grants or public funding.
Our fixed and transparent CIC fees remove uncertainty, allowing you to move forward with confidence and focus on running your organisation, not worrying about compliance or hidden costs.
Arrange a FREE CIC initial consultation
Call us on 0207 078 7477 or complete our enquiry form to book a FREE CIC consultation and discuss your plans with a specialist: