This
guidance will help you to decide if your practice or a consortium
of practices should form a Community Interest Company to run Practice
Based Commissioning or perhaps some elements of commissioning or community
services outside your Primary Care Organisation.
What
is a community interest company (CIC)?
A CIC
is a new type of company, designed for social enterprises that want
to use their profits and assets for the public good. CICs will be
easy to set up, with all the flexibility and certainty of the company
form, but with some special features to ensure they are working for
the benefit of the community.
What
is a Social Enterprise?
A social
enterprise is a business with primarily social objectives whose surpluses
are principally reinvested for that purpose in the business or in
the community, rather than being driven by the need to maximise profit
for shareholders and owners. Social enterprises tackle a wide range
of social and environmental issues and operate in all parts of the
economy. By using business solutions to achieve public good, the Government
believes that social enterprises have a distinct and valuable role
to play in helping create a strong, sustainable and socially inclusive
economy.
Social
enterprises are diverse. They include local community enterprises,
social firms, mutual organisations such as co-operatives, and large-scale
organisations operating nationally or internationally. There is no
single legal model for social enterprise. They include companies limited
by guarantee, industrial and provident societies, and companies limited
by shares; some organisations are unincorporated and others are registered
charities.
Why
were community interest companies needed?
Social
enterprises are an exciting and fast-growing sector. Yet some of the
legal forms were originally designed for completely different types
of organisation. The Government wants to support the sector by creating
a modern and appropriate legal vehicle and to help raise their profile.
What
will a community interest company do?
CICs
will be organisations pursuing social objectives, such as environmental
improvement, community transport, fair trade etc. Social enterprises
are playing an increasing role in regenerating disadvantaged areas,
empowering local communities and delivering new, innovative services
at local level.
The Government
does not intend that CICs should deliver essential public services
in core sectors such as hospitals and schools. Rather, CICs should
develop to meet the needs of local communities, complementing core
Government services in areas such as childcare provision, social housing,
leisure and community transport. The CIC is a flexible form that will
allow such enterprises to grow and expand their activities.
What
was wrong with the existing legal forms?
Currently
companies that do not have charitable status find it difficult to
ensure that their assets are dedicated to public benefit. There is
no simple, clear way of locking assets to a public benefit purpose
other than applying for charitable status. The Community Interest
Company will help to meet the need for a transparent, flexible model,
clearly defined and easily recognised.
Everything
you need to know about Community Interest companies and social enterprises
can be found on the website
of The Regulator of Community Interest Companies
The Regulator
of Community Interest Companies, Room 3.68, Companies House, Crown
Way, Cardiff, CF14 3UZ
Tel: 029 2034 6228 (Voicemail)
Fax: 029 2034 6229
E-mail: cicregulator@companieshouse.gov.uk
There
is a Frequently Asked Questions section which should answer the vast
majority of your questions, and there is a full set of Guidance
Notes Contents - clicking on each of the headings will take you
to a detailed explanation.
Annex
D of the Guidance Notes lists a number of examples of completed forms
so that you can see the type of information required to gain acceptance
of your application.
It is
understood that the people dealing with enquiries at the Regulator’s
Office are extremely helpful and will answer all of your questions.
