CIC, the official beginning

October 7, 2016

 

On the 6th of October Adaptive Martial Arts was successfully incorporated as a Community Interest Company (CIC) by Companies House. 

 

This marks the end of the work put in by our administrators to authenticate Adaptive Martial Arts (AMA) and marks the beginning of the next phase for AMA. 

 

What is a Community Interest Company (CIC)?

 

CIC's are limited companies which operate to provide a benefit to the community they serve. 

They are not strictly 'not for profit', and CICs can, and do, deliver returns to investors.

 

However, the purpose of CIC is primarily one of community benefit rather than private profit. Whilst returns to investors are permitted, these must be balanced

 

and reasonable, to encourage investment in the social enterprise sector whilst ensuring true community benefit is always at the heart of any CIC. 

 

For some CICs this is delivered through the provision of a service to a specific community, for example a welfare service to vulnerable people, in others it will be an activity that generates profits which are used to support a specific purpose such as a running a cafe where all profits generated are used to benefit the community.

 

Each CIC is required to submit on a yearly basis a report detailing the activities undertaken and how these have benefitted the community. This is an important document as it sets out publicly exactly how the CIC has met its obligations to deliver community benefits.