Community Interest Companies
A Community Interest Company ('CIC') is a fairly new type of company which has been designed for social enterprises that want to use their profits and assets for the good of the public.
A CIC cannot be a charity. It will be constituted as a company limited by shares or guarantee. Therefore, a CIC is more lightly regulated than a charity but does not of course enjoy certain benefits that a charity would, such as tax-free status.
The key thing distinguishing CIC's is the asset lock. Only 35% of a CIC's distributable profits in any one year can be paid out as dividends to shareholders; the rest is locked in to further the CIC's objectives.
This type of company tends to be popular when bidding for government contracts on the basis that CIC's do not tend to be commercially driven.
At Auker Hutton, we are able to advise and assist with the set up of a CIC as well as provide ongoing support with all accounting and filing obligations.
Contact us today to arrange a free initial consultation to discuss your requirements.