How to Register a CIC: Step-by-Step
Setting up a Community Interest Company (CIC) is one of the clearest ways to legally establish your social mission. CICs are regulated to ensure they genuinely serve community benefit, so the registration process involves a few additional steps compared with forming a standard limited company.
Step 1: Choose Your CIC Name
Your chosen name must comply with Companies House naming rules. In most cases, CICs must include a descriptor such as “Community Interest Company” or the “CIC” suffix, although some exemptions exist.
Tip: Check for existing trademarks via the Intellectual Property Office database to avoid brand conflicts later.
Step 2: Select Your CIC Structure
CICs can be incorporated using one of two Companies House structures:
- Company Limited by Shares (CLS) – allows limited profit distribution through a regulated dividend cap.
- Company Limited by Guarantee (CLG) – typically used by non-profit and community-focused organisations.
Most new CICs use the CLG model, as it offers simpler governance and reinforces the not-for-profit ethos many social enterprises prefer.
Step 3: Prepare Your CIC Documents
To register a CIC, you must submit core documents to Companies House and the CIC Regulator. These include:
- IN01 – Standard company registration form
- CIC36 – Your Community Interest Statement explaining how your organisation benefits the community
- CIC Articles of Association – You must use CIC-specific templates (Model A, B, or C depending on your structure)
Download templates and guidance here: CIC Articles & Constitutions (Gov.uk)
Expert tip: Choose the correct model articles early. Using the wrong set is one of the most common reasons CIC applications are rejected.
Step 4: Write a Strong Mission Statement (Community Interest Test)
Your CIC36 form contains the most important part of your application: a clear explanation of your social mission. The CIC Regulator must understand:
- Who benefits from your activities
- What services or support you provide
- How profits, surpluses, and assets will be used for community benefit
Tip: Be specific and measurable. For example, instead of writing “we aim to improve mental health in our community,” state “we provide accessible counselling and peer support groups for young people aged 16–25 in [your location].”
Step 5: Register With Companies House
You can submit your CIC application using one of three methods:
- Online via Companies House (fastest)
- Through an Authorised Corporate Service Provider (ACSP) such as Formations Wise, who can prepare and file all CIC forms on your behalf
- By post (slowest and typically used only for complex CIC structures)
Once approved, you will receive:
- Certificate of Incorporation confirming your company exists
- CIC status confirmation from the CIC Regulator
Next step after incorporation: Ensure your CIC is set up for ongoing compliance, including annual accounts, the CIC report, and proper governance. We cover this later in the guide.
Ongoing CIC Compliance Requirements
Once your Community Interest Company is registered, you must meet ongoing reporting and governance obligations to maintain your legal status and demonstrate continued community benefit. Failure to comply can result in fines, loss of CIC status, or even the company being struck off.
Every CIC must file statutory annual accounts with Companies House. These accounts provide financial transparency and must follow the same format as a standard limited company’s accounts.
Tip: Late filing automatically triggers penalties, so it’s wise to set up reminders well ahead of your year-end.
2. CIC Annual Report
Your CIC Annual Report (form CIC34) outlines the social impact you delivered during the year. This includes:
- How your activities benefited the community
- Details of any dividends or interest paid (if applicable)
- Confirmation that the asset lock has been upheld
Guidance and templates: CIC Annual Report Guidance (Gov.uk)
3. Confirmation Statement
Filed annually, the Confirmation Statement verifies that your company information remains accurate (directors, registered office, PSCs, share structure, etc.). It replaces the old annual return and must be submitted even if nothing has changed.
Failure to comply can lead to:
- Financial penalties
- Dissolution by Companies House
- Potential removal of CIC status by the Regulator
Expert Insight: Many CICs choose to work with an accountant or ACSP to stay compliant year-round, especially as regulatory changes continue under the UK’s corporate transparency reforms.
Funding Options for Social Enterprises
Social enterprises benefit from a diverse range of funding opportunities – from grants and community investment to ethical loans and trading income. The right mix depends on your mission, structure, and delivery model.
Grants
Many funders support socially driven organisations, especially those delivering measurable outcomes. Popular UK grant providers include:
Tip: CICs are eligible for many but not all charitable grants. CIOs and charities generally have wider access to grant funding.
Social Investment & Ethical Loans
Social investors offer repayable finance designed specifically for purpose-led organisations. These often come with flexible terms and support packages.
Useful note: CICs often use social investment to scale trading activity or deliver long-term community projects.
Other Revenue Sources
A strong trading model is usually essential for long-term sustainability. Many social enterprises blend earned income with grants and investment.
- Trading activity (products, services, training, consulting)
- Membership fees and subscription-based models
- Sponsorship and CSR partnerships with businesses
- Corporate partnerships and social value procurement
Tip: Don’t overlook social value procurement. Under the UK Social Value Model, public sector buyers increasingly prioritise contracts with organisations delivering measurable community benefit – a major opportunity for social enterprises.
Tax Considerations
Social enterprises do not receive automatic charitable tax reliefs. Only organisations registered as a charity or Charitable Incorporated Organisation (CIO) with the Charity Commission qualify for exemptions such as Gift Aid, business rates relief, and certain VAT advantages.
Most CICs, CLGs, co-operatives, and mission-led limited companies are treated like standard businesses for tax purposes – although some may qualify for specific reliefs depending on their activities.
As a social enterprise, you may need to register for:
- Corporation Tax – required for all companies, including CICs and CLGs, within 3 months of starting trading.
- VAT – if your taxable turnover exceeds the current VAT threshold, or voluntarily to support your cost structure
- PAYE and payroll – if you employ staff, provide benefits, or pay directors above the thresholds (PAYE guidance)
Useful overview: HMRC: Setting up a social enterprise
Tip: CICs and mission-led companies often benefit from working with an accountant familiar with social enterprise tax nuances – especially around VAT, grant income, mixed trading, and project-based funding.
Top Tips for a Smooth Registration
Registering a social enterprise – especially a CIC – is straightforward once you understand what regulators are looking for. These practical tips will help you avoid common mistakes and strengthen your application from the outset.
- Define your mission before drafting any forms.
A clear social purpose underpins every part of the application. Write a short internal mission statement first, then shape your CIC36 around it. - Use the official CIC model articles.
Companies House rejects many applications simply because applicants used standard limited company articles.
Always select the correct CIC model (A, B or C) based on your structure. - Be detailed and specific in your CIC36 application.
Explain exactly who benefits, what activities you deliver, and how your community impact will be measured. Vague statements are a common cause of delays. - Plan your funding strategy early.
Grants, social investment, and trading income often require different governance, reporting, or budgeting approaches. Building a funding roadmap now ensures long-term sustainability. - Maintain clear and consistent records.
Good bookkeeping and impact tracking make annual reporting easier and strengthen your credibility with funders, partners, and regulators.
Tip: Consider getting a pre-submission review from a social enterprise advisor or an ACSP like Formations Wise – a quick check can prevent rejections and speed up approval.
Common Mistakes to Avoid
Even well-prepared founders can run into issues when setting up a social enterprise, especially a CIC. Avoiding the pitfalls below will save you time, prevent rejections, and strengthen your long-term governance.
- Choosing the wrong structure for your long-term goals.
Many founders default to a CIC without considering whether a CIO, CLG, co-operative, or mission-led Ltd might better suit their funding strategy, governance needs, or community model. - Providing weak or vague answers in the CIC36.
The CIC36 is the most scrutinised part of your application. Failing to clearly describe your activities, beneficiaries, and community outcomes is one of the leading reasons CICs are rejected. - Forgetting your asset lock obligations.
A CIC’s asset lock legally restricts the transfer of assets or profits for private gain. Breaching it – even accidentally – can result in regulatory action or removal of CIC status. - Underestimating the annual reporting workload.
CICs must file annual accounts, a confirmation statement, and the CIC Annual Report. Poor record-keeping or missed deadlines can lead to penalties or dissolution by Companies House. - Not using an ACSP for support when needed.
An Authorised Corporate Service Provider (ACSP), such as Formations Wise, can help ensure your documents, articles, and CIC36 are correctly structured – reducing delays and the risk of rejection.
Insight: Many founders find that investing time upfront in structure planning and documentation saves weeks of correction later.
Why Register Through an ACSP?
With Companies House’s new 2025 reforms tightening identity verification, raising transparency standards, and increasing scrutiny on new incorporations, Authorised Corporate Service Providers (ACSPs) now play an essential role in the formation process – especially for purpose-led organisations like CICs and social enterprises.
ACSPs are authorised and supervised professionals who can verify identities, submit formation documents, and ensure applications meet the latest regulatory requirements. As Companies House transitions toward a more secure, digitally verified system, working with an ACSP significantly reduces the risk of rejection or delay.
Using an ACSP gives you:
- Fully handled identity verification
ACSPs are approved to complete and certify ID checks for all directors, PSCs, and incorporators – a core requirement under the new regime. - Correct structure selection
Whether you need a CIC Limited by Guarantee, a CIC Limited by Shares, or another structure entirely, an ACSP helps you choose the model that aligns with your mission and funding strategy. - Accurate preparation of CIC paperwork
Your IN01, CIC36, and Articles of Association must meet strict standards. ACSPs ensure these are completed correctly and avoid the common submission errors that slow applications down. - Faster, cleaner approval
With expert preparation and direct submission channels, ACSP-filed applications typically experience fewer queries and quicker turnaround times. - Long-term compliance support
From annual CIC reports to Confirmation Statements and bookkeeping, ACSPs can help your social enterprise stay on top of its governance obligations.
Ideal for founders who want their social enterprise established correctly the first time – with no risk of rejected filings, incorrect articles, or compliance blind spots.
Final Considerations on Registering a Social Enterprise
Registering a social enterprise is about far more than simply forming a business. You’re creating the legal and operational framework that will carry your mission for years to come. The structure you choose, the clarity of your governance, and the care you take during registration all shape how effectively you can deliver impact, attract funding, and build public trust.
A well-structured social enterprise not only protects its purpose but also positions itself for long-term sustainability – whether through grants, social investment, or ethical trading income. Taking the time to get the process right ensures you can focus on what matters most: delivering meaningful, measurable benefit to the communities you serve.
Next steps: Once registered, prioritise strong financial management, clear impact reporting, and ongoing compliance. These foundations help your organisation grow confidently and fulfil its mission with accountability and credibility.
