The Department of Trade and Industry (DTI) has claimed that its plans to set up Community Interest Companies (CICs) have received “widespread support” from the small business community following a consultation period.

As reported by Startups.co.uk, the government announced proposals in March to create CICs across the UK, in order to boost disadvantaged areas.

Ministers claimed that CICs, set up in partnership between the DTI, Treasury and Home Office, will be easy to set up and will generally operate along the lines of a standard business.

There will be, however, several special features to the CICs which will ensure that they contribute towards the community in which they are based. The government said that the new companies will protect participating businesses’ assets, to make sure they are put forward for public use.

CICs will be aimed at entrepreneurs who want to contribute to their local area in a ‘hands-on’ manner, rather than simply supporting a charity.

The DTI said that it received over 130 responses to its consultation on the socially-aware enterprises, and claimed that there was “widespread support” for the plans.

The consultation found that there was strong business support for particular proposals on CICs, including:

  • Prospective CICs should be subject to an objective ‘community interest test’ before they are eligible.
  • An independent regulator would to approve any changes to a CIC once it has been set up.
  • Subject to controls, CICs should be able to transfer assets to other suitable organisations.
  • CICs should be allowed to issue tradable shares to encourage investment, without undermining their focus on community benefit.


Jacqui Smith, the company law minister, said that the government will “press ahead” with legislation to creates CICs as soon as parliament time allows.

“The level of support and enthusiasm for the concept of the new Community Interest Company has been extremely encouraging.

“I am very grateful to everyone who took the time to give such detailed, considered responses to our consultation.

“The new company form will provide a platform for dynamic and sustainable businesses with strong social objectives.

“CICs will play an important role in creating opportunity for all and a strong, inclusive economy. The sooner we can make this happen the better,” she said,

Fiona Mactaggart, minister for civil renewal, claimed that CICs are an “excellent example” of how the government help communities to help themselves.

“CICs offer a radically new way for organisations to pursue enterprise in the public interest, dedicating their profits to the public good, and creating real opportunities for people in areas where they are needed most,” she said.

For more information on CICs, click on www.dti.gov.uk/socialenterprise

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