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“What do I need to think about if I want to set up a Community Interest Company?
How do I actually start a CIC?”
The Headlines
A CIC (Community Interest Company) is ideal if you have a brilliant idea that benefits the community but also keeps the business engine ticking. It’s a social enterprise- a mash up between the social and community benefit and the enterprise- operating as a business. You can absolutely pay yourself (and others) but it’s less "money-grabbing CEO" and more "ethical, community-loving entrepreneur with business game." Let's break down how to get started if you want to set up a CIC. (If you're looking for a guide to writing your CIC36 form instead, click here.)
5 things to have in place to start your CIC
1. Vision Board Time
Before diving in, get your core concept clear. What problem are you solving in your community? This forms the base of your CIC's social purpose, its reason for being. It may be that the business side of things is about generating profit to fund the community focused activity, or they might be directly linked e.g. a coffee shop which also provides training to support ex-offenders back into work in the hospitality industry.
2. Assemble the A-Team
Now that you know your "why," it's time to find your "who." You'll usually want some amazing people to run the show with you and act as directors of the company. We also have a how-to guide on finding people for your board. Grab their details; you'll need them later for registration.
3: Drafting the Rulebook
Every organisation needs a governing document, and your CIC is no different. This document outlines how things will run- what your organisation is for, how the directors will make decisions and what their powers are, what to do if you need to change things or close the organisation. It doesn’t go into detail about the day to day running of the organisation- it’s more like a recipe than detailed cooking instructions. There are templates provided on the gov.uk website so you don’t need to write this from scratch.
4: The CIC36 Form
Here's where the magic happens and as with all important documents it has a catchy name. The CIC36 form helps Companies House to understand your CIC's social mission and you’ll attach it to your application to form the company. This form is essentially a detailed explanation of how your company will benefit the community and the activities you'll undertake to achieve that goal. Be sure to clearly explain what makes your CIC different from a regular company offering similar services. There's a full how-to guide for writing your CIC36 form here.
5. Sign up and set up
With your purpose, people, governing document, and completed CIC36 form in place, it's registration time. You'll be registering with Companies House, the official keeper of companies in the UK. Don't forget to include the CIC36 form along with the other required documents.
What next?
The gov.uk website has lots of official info on setting up a CIC which is pretty user friendly. I've got a guide to writing your CIC36 form here.
If you want someone to talk you through the process I have instant training on setting up an organisation here. This includes an overview of different organisation structures, if you’re not 100% sure whether a CIC is for you, plus links to the documents you need and how to get registered.
You also get access to my Q&A community where you can post any questions following the training.
Once you have your organisation up and running come and join the squad and get a monthly dose of free support.