Learn about the new Community Company

A guide to community companies

The community company is a type of company designed to assist community groups in managing what they own and their businesses. The community company is intended to be run as a business, but instead of individual owners benefiting from the success of the business, the community as a whole will benefit. The community company can in some cases be considered by existing groups as an alternative to charitable trusts and cooperatives.

Quick Summary

If you learn nothing else, this is what you need to know about community companies:

  • A community company must have a community interest, that is, where the community will benefit from the company’s activities.
  • Community companies cannot make any distributions of funds or pay any dividends to its shareholders. The community must receive the benefit.
  • Community companies cannot make loans to directors or shareholders.
  • There is a ‘lock’ on the disposal of assets of the community company.
  • Directors must prepare a report on the activities of a community company each financial year.


The goals of a community company

Why set up a community company? 

Basic requirements for setting up a community company

This section talks about what you need to set up a community company. Read more…..

What does a community mean?

This section describes what a community means under the law, and what it means when the law says the community company must be in the ‘community interest’. Read more…..

Who are the shareholders and directors?

Information about how to choose shareholders and directors.

Special rules for community companies

Because the company exists to benefit a community, there are some special rules to protect the community. Read more…..