Somewhere between a private company and a charity, a CIC limited by shares is a non-profit organisation (i.e. its primary objective is something other than profit).

A community interest company (or CIC) is a special form of non-charitable limited company, which exists primarily to benefit a community or with a view to pursuing a social purpose, rather than to make a profit for shareholders.

A CIC limited by shares can have just one director and shareholder. A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three. Running a CIC is essentially the same as a limited company but with a couple of important restrictions: an asset-lock, and a dividend cap

CICs are designed specifically so that an individual, or a group of individuals, can set up a limited company in order to benefit the community. The philanthropic nature of such enterprises may make them appear similar to charities; however, there are several key differences which render CICs unique and which can often serve to make them a more attractive proposition.