Community Interest Companies
The question
To ask the Secretary of State for Business and Trade, whether his Department plans to allow not-for-profit Community Interest Companies to receive the associated advantages of non-profit organisations.
Answered by Justin Madders
While Community Interest Companies (CICs) must satisfy the Regulator that their primary purpose is to benefit a community, they can still generate profit, albeit with restrictions on profit distribution and as long as profits are primarily used to benefit the community.
CICs occupy a middle-ground between private enterprises and charities, providing unique advantages and opportunities. Compared to non-profit organisations, CICs have greater flexibility, no trustees, and can pay directors. CICs benefit from the risk-taking features of a company and access the debt market for loans. The Secretary of State does not intend to change the associated advantages of CICs.
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