How to set up a community interest company in the UK

Minimum capital: None for a private CIC; a community interest plc needs £50,000 allotted share capital

1. 1

   Check the community interest test

   Activities must benefit a community, not just members, employees or one organisation. Political parties and campaigning bodies are excluded. A CIC has a compulsory asset lock that cannot be removed.

2. 2

   Choose: limited by guarantee or by shares

   You cannot switch later. Shares allow investment but dividends to private investors are capped (maximum aggregate dividend cap of no more than 35% of profits). A community interest plc needs £50,000 allotted capital.

3. 3

   Choose a name ending 'CIC' or 'community interest company'

   A private CIC's name must end 'community interest company' or 'CIC' (Welsh companies may use 'cwmni buddiant cymunedol' or 'CBC'). A community interest plc uses 'community interest PLC'.

4. 4

   Nominate an asset-locked body

   Name in your articles the body (another CIC, charity, CIO or similar) that would receive assets if you close. Without a nomination, the CIC Regulator's consent is needed to transfer remaining assets.

5. 5

   Prepare CIC articles

   You cannot use ordinary Ltd model articles or default articles. Use the CIC Regulator's model constitutions (limited by guarantee, or limited by shares with Schedule 2 or 3 articles).

6. 6

   Complete form CIC36

   The community interest statement describes your activities, who benefits and how. It goes on the public record. Upload it as a separate PDF.

7. 7

   Verify directors and arrange registered office and email

   Each director verifies identity for a Companies House personal code. You need an appropriate UK registered office (no PO boxes) and a private registered email address.

8. 8

   Apply online or by post

   Online: £115 by card or PayPal, uploading CIC36 and the CIC articles as separate PDFs. Post: form IN01 (option 3 of section A8), memorandum, articles, CIC36 and a £139 cheque. No same-day service.

9. 9

   Wait for the Regulator and Companies House

   The CIC Regulator must decide the company is eligible before Companies House incorporates it. You then receive a certificate of incorporation as a CIC.

10. 10

    Set up CIC reporting

    Each year file accounts with a CIC34 community interest report (£15). Keep directors' pay reasonable and transparent and respect the asset lock.

• Form CIC36 (community interest statement), as a separate PDF
• CIC articles of association (not ordinary model articles), as a separate PDF
• Memorandum of association (created automatically online) and form IN01 for postal applications
• Statement of capital (shares) or statement of guarantee, and details of directors and members
• Asset-locked body nomination in the articles (recommended)
• Companies House personal code for every director (identity verification)
• Registered office address (appropriate UK address), registered email, SIC code(s), PSC details and the lawful-purpose statement
• £115 by card or PayPal (online) or a £139 cheque (post)

• Register for Corporation Tax within 3 months of starting to do business (online incorporation registers you automatically).
• Register as an employer for PAYE and for VAT (threshold £90,000) if they apply.
• Open a bank account in the CIC's name and keep accounting records.
• Prepare accounts and a CIC34 report each year; CICs file them using the online package accounts service, or on paper (not WebFiling).
• Keep to the asset lock and dividend cap and keep directors' pay reasonable and transparent.
• Diarise the confirmation statement and make sure directors and PSCs complete identity verification.

• Accounts and CIC34 report to Companies House within 9 months of the accounting reference date (21 months after incorporation for the first accounts if the first period is over 12 months): £15 fee. From 1 April 2028 they must be delivered as a package through the online package accounts service.
• Confirmation statement at least every 12 months (£50 online).
• Company Tax Return to HMRC within 12 months of the period end.
• Use the CIC Regulator's process for special resolutions that change your articles or asset-locked body nomination, and form CIC53 to transfer assets to a body not named in your articles.