Want to start up a not-for-profit, community benefit organisation?
You must choose a business structure if you’re starting a business that helps people or communities (a ‘social enterprise’).
If you want to set up a business that has social, charitable, or community-based objectives, you can set up as a:
- limited company
- charity, or from 2013, a charitable incorporated organisation (CIO)
- co-operative
- community interest company (CIC)
- sole trader or business partnership
If you’re setting up a small organisation like a sports club or a voluntary group and do not plan to make a profit, you can form an ‘unincorporated association‘ instead of starting a business.
A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.
To set up a CIC, you’ll need:
- a ‘community interest statement’, explaining what your business plans to do
- an ‘asset lock’- a legal promise stating that the company’s assets will only be used for its social objectives, and setting limits to the money it can pay to shareholders
- a constitution – you can use the CIC regulator’s model constitutions
- to get your company approved by the community interest company regulator – your application will automatically be sent to them
The CIC regulator has guidance on setting up a CIC.
Set up a CIC online
Register your CIC online with Companies House.
Useful Guides
https://www.socialenterprise.org.uk/app/uploads/2022/07/Start-your-social-enterprise-guide-1.pdf
https://www.the-sse.org/resources/starting/start-social-enterprise-10-steps/
Useful Websites
https://businesswales.gov.wales/socialbusinesswales/
https://www.socialenterprise.org.uk
https://www.findingfinance.org.uk/location/denbighshire/charitable-ventures/