Community interest company (CIC)

Definition

A community interest company (CIC) is a special type of limited liability company that is designed specifically for social enterprises and community-oriented businesses in the UK. 

What is a community interest company?

CICs are established to operate primarily for the benefit of the community or to pursue charitable purposes, rather than for the sole purpose of generating profit for shareholders.

Like traditional limited liability companies, CICs offer limited liability protection to their directors and members. This means that the personal assets of individuals associated with the company are generally protected from the company’s liabilities.

One of the defining features of CICs is the “asset lock” provision, which prevents the distribution of profits or assets to shareholders beyond a certain limit. This ensures that any profits generated by the company are reinvested into the business or used to further its social mission.

CICs are regulated by the Office of the Regulator of Community Interest Companies, which oversees their formation, operation, and compliance with legal requirements. This includes ensuring that CICs adhere to their stated social objectives and maintain transparency in their activities.

While CICs are required to have a social purpose, they still have flexibility in their operations and business activities. They can engage in commercial ventures, generate revenue, and pursue growth opportunities, as long as these activities align with their social mission and do not compromise their community-focused objectives.

Example of a community interest company

A community interest company could be a social enterprise that operates a community-owned café in a rural area.

The CIC’s primary objective is to benefit the local community by providing a welcoming space for residents to socialise, access locally sourced food and drinks, and participate in community events and activities.

The CIC’s structure ensures that any profits generated by the café are reinvested back into the business or used to further its social mission, rather than being distributed to shareholders. Additionally, the asset lock provision ensures that the café’s assets are dedicated to serving the community.

Ready to grow your business?

Clever finance tips and the latest news

Delivered to your inbox monthly

Join the 95,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

We work with world class partners to help us support businesses with finance

Our offices:

Disclaimer: Swoop Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop Finance Limited is registered with the Financial Conduct Authority as an Account Information Services Provider (reference number 833145). Swoop Finance Limited is authorised as a credit broker under FCA registration number 936513. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions. Swoop Finance Ltd is registered with Companies House (company number 11163382, registered address The Stable Yard, Vicarage Road, Stony Stratford, Milton Keynes MK11 1BN). VAT number: 300080279

© Swoop 2025

Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop