An Introduction to Community Interest Companies (CICs) Celebrating over 10 years in operation: 2005 -2016 Presented by: Anne Vincent Deputy Regulator of CICs

How it all began....Our Story Demanded by the Sector and received Cross-Party support: 1 July 2005 – Legislation came into force 25 July 2005 – CIC Office opened its doors

What is a CIC? It is an ordinary company with additional features It may be limited by guarantee or shares, private limited or PLC It has a defined community interest It has a compulsory asset lock It delivers transparency through the Community Interest Report

What’s the difference between a CIC and an ordinary company? CICs operate with a social purpose Profit is not the bottom line CICs are regulated The Asset Lock prevents asset stripping Dividend payments to shareholders are capped

What’s the difference.... Charities have greater regulation Charities run by board of trustees Charities receive tax benefits CICs are businesses and can make a profit Directors receive salaries, can pay dividends and give bonuses CICs have flexibility to change their objects

How CICs provide public services... Multi-million NHS spinouts - Bristol Community Health Public Transport - Isle of Skye Ferry Local Government Trading Arm – Culture & Sport, Glasgow

What are the benefits and advantages CICs are quick, easy and inexpensive to set up The CIC brand offers reassurance to stakeholders and the general public Provides the familiarity of the corporate model and limited liability for its members They have additional statutory clauses which cannot be removed

CICs and Funding Target the right funding bodies Have a strong business plan Know their market Have a unique selling point Understand their social impact Demonstrate corporate governance

Interesting Facts There are six times the number of CICs on the Register than forecast by Parliament Proportionally less CICs dissolve after 21 months than ordinary companies CICs operate in every economic sector with 62% in Health and Social Care 72% of CICs are limited by guarantee 31% of CICs are conversions

Global Interest The UK is recognised as having the most advanced social enterprise sector in the world. Increased interest from: Canada (British Columbia, Nova Scotia) China Denmark France Japan South Korea

The Regulators role Light-touch Regulator Considering CIC applications Encouraging the growth of the CIC model Maintaining confidence in the CIC model Exercising Regulators power of investigation & enforcement

The Future Investment opportunities: SITR E-enablement Blogs, Webinars and Social Media

Contact Points Twitter: @cicregulator Website: www.gov.uk/cic-regulator E-mail: cicregulator@companieshouse.gov.uk Phone: 029 2034 6288 Address: Office of the Regulator of Community Interest Companies, 2nd Floor, Companies House, Cardiff. CF14 3UZ