A Community Interest Company (CIC) is a type of limited company that is
set up to provide community benefits or achieve a social purpose. Unlike
traditional companies, CICs must reinvest the majority of their profits into
supporting their chosen social cause.

CICs can engage in commercial activities and generate profits, but the majority of profits must be reinvested into the community or the CIC’s social objectives. They are businesses with a social mission and can raise money via investments and traditional trading.

CICs are regulated by the CIC Regulator and Companies House, and they are required to pass a ‘community interest test’ to ensure their activities benefit the community.

CICs must prepare an annual report to demonstrate their ongoing community benefit, and their regulation is much more light touch than the regulation of charities.