Setting up a social enterprise
You must choose a business structure if you鈥檙e starting a business that helps people or communities (a 鈥榮ocial enterprise鈥�).
If you want to set up a business that has social, charitable or community-based objectives, you can set up as a:
- limited company
- charity or charitable incorporated organisation (CIO)
- community interest company (CIC)
- sole trader or business partnership
If you鈥檙e setting up a small organisation like a sports club or a voluntary group and do not plan to make a profit, you can form an 鈥�unincorporated association鈥� instead of starting a business.
Community interest companies (CICs)
A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.
To set up a CIC, you鈥檒l need:
- a 鈥榗ommunity interest statement鈥�, explaining what your business plans to do
- an 鈥榓sset lock鈥�- a legal promise stating that the company鈥檚 assets will only be used for its social objectives, and setting limits to the money it can pay to shareholders
- a constitution - you can use the CIC regulator鈥檚 model constitutions
- to get your company approved by the community interest company regulator - your application will automatically be sent to them
The CIC regulator has guidance on setting up a CIC.
Set up a CIC online
with Companies House.
It costs 拢65.
You鈥檒l need to create sign in details for your company. You cannot use your personal sign in details.
Set up a CIC by post
Use the forms from the CIC regulator to register a CIC by post.
Further information
Get advice and case studies from and or download guidance on business structures for social enterprises.
Find out about legal forms for social enterprise.
There are also opportunities to invest in local enterprise with community shares or to bid to run a local service.