Community enterprise does not have a distinct legal form in the UK, although most
operate as Companies Limited by Guarantee, with restrictions about the distribution of profits
enshrined in their Memorandum and Articles of Association. Many are also registered charities.
However, at the time of writing a Government bill which includes proposals to create a new legal
structure for community enterprises – Community Interest Companies (CICs) – is progressing
through Parliament. If, as expected, the bill becomes law, CICs will be subject to the same
legislation as corporations, but with a number of additional features in order to ensure they
remain community focused. To qualify for CIC status, which will offer organisations many of
the tax and other advantages of charitable status within a corporate framework, community
Community enterprise does not have a distinct legal form in the UK, although most
operate as Companies Limited by Guarantee, with restrictions about the distribution of profits
enshrined in their Memorandum and Articles of Association. Many are also registered charities.
However, at the time of writing a Government bill which includes proposals to create a new legal
structure for community enterprises – Community Interest Companies (CICs) – is progressing
through Parliament. If, as expected, the bill becomes law, CICs will be subject to the same
legislation as corporations, but with a number of additional features in order to ensure they
remain community focused. To qualify for CIC status, which will offer organisations many of
the tax and other advantages of charitable status within a corporate framework, community
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