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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. Contact Points Twitter: @cicregulator
Website:
Phone:
Address: Office of the Regulator of
Community Interest Companies,
2nd Floor,
Companies House,
Cardiff.
CF14 3UZ