Fiducia TogetherSocial enterprise and CIC
A business trading for a social purpose. Several legal forms, and the choice matters.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A social enterprise trades primarily for social or environmental purpose. Common forms include the community interest company, the charitable incorporated organisation, a company limited by guarantee, and a co-operative.
Why it matters
The form determines regulation, tax treatment, access to funding and what happens to assets. Changing it later is difficult.
What it looks like in practice
A CIC has an asset lock and a community interest statement, is regulated by the CIC Regulator, and can pay directors — but does not get charitable tax reliefs.\n\nA charity gets the reliefs and cannot pay trustees or trade substantially outside its purpose without a subsidiary.
What to watch out for
Choosing CIC for speed and later wanting charitable status and the reliefs. Converting is possible and is not straightforward.
Where to get proper advice
The CIC Regulator and the Charity Commission both publish comparison guidance. A specialist solicitor before incorporating.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.