Sole Survivor PTSD Support CIC converted from a Ltd Company to a C.I.C in 2021 after deliberating over which formation would work for us in the long term.
There is some confusion still as to what a CIC actually is by some banks, funders, trusts and the general public, so below is an explanation.
Introduced in 2005 in the UK, a community interest company is a type of company designed for social enterprises that want to use their profits and assets for the public good.
As a business, a CIC reinvests its surpluses to achieve its social objectives, rather than being driven by the goal of maximising profit for its shareholders or owners.
In order to register as a CIC, a business must apply to Companies House with a statement of its social objectives along with a legal declaration that its assets will only be used for these purposes. Therefore, there are strict limitations as to the amount of dividends or performance-related interest a CIC can pay its members or investors.