A Limited Company set-up for the good of the community is deemed to be a Community Interest Company. Profits made by the business are reinvested for the benefit of the community.
Community Interest Companies are less strictly regulated than charities and have more flexibility in their operations. However, they need to fulfill the "community interest test" to show that they are carrying out business for the benefit of the community.
CIC Registration Includes
Drafting of "Asset Lock"
Drafting of "Community Interest Statement"
Guidance on the Community Interest Test
Registration With Companies House
Printed Copies of Your Memorandum & Articles of Association
If you are planning to start a company which might benefit the community by the distribution of profit (e.g. charity shops) or active involvement in the community (e.g. day centres for the elderly or special needs) then a Community Interest Company is the perfect legal entity.
A Community Interest Company is simply a standard limited company carrying out a social activity. They are of great benefit to the community and the Country as a whole.
Benefiting The Community
A Community Interest Company is required by law to act in a way which benefits the community and not in a way which would solely benefit a single individual.
This is ensured by the use of specific company articles drafted during registration preventing any of the company assets or profits being used in a way which is not in accordance with this purpose.
Registering a Community Interest Company
As well as getting a trade mark on a business or product name it is possible to register a trade mark on a logo. One of the most common reasons for trade mark applications being rejected is where a business name is not unique enough or being to general. In these cases it is often still possible to get some protection by getting a trade mark on the logo design which contains the business name.