There are two main issues identified in this question, namely the overly focused test and the regulator's guidance on what constitutes a community interest company community. Regarding these two questions, the question would arise as to what the current criterion is and how it is applied. The discussion of the said issue will be discussed and evaluated below. WHAT ARE COMMUNITY INTEREST COMPANIES - It is general that a community interest company (CIC) is a hybrid of businesses and charities and must be a form of limited company. CICs are diverse. These include community enterprises, social enterprises, mutual organizations such as cooperatives and large-scale organizations operating on a local, regional, national or international scale. CICs vary in size, from small community organizations to multi-million dollar companies. Their areas of focus include physical wellbeing, radio and television, arts, education, health and social action. A CIC cannot be an excluded company; which is a company dedicated to political campaigning or rather, it may not be politically motivated at all. SO WHY NOT CHOOSE TO BE A CHARITY INSTEAD? Since the concepts of charity and CIC seem to be similar, why not choose to be a charity instead? This is notably explained by the advantage of limited liability mentioned above as well as the choice to receive a salary as a director. CICs are also less heavily regulated than charities, but do not benefit from the tax advantages that charities enjoy. It turns out that CICs are quite successful in obtaining the funding that is usually given to charities. A business would prioritize the goal of making a profit while a charity would focus solely on charitable projects ... middle of paper ..... . status carried by the company as being beneficial to the community. The similarity of the two is that both must register their accounts and be registered at Companies House and have directors like a regular limited company. However, a CLG does not have shareholders, like a regular corporation would. The main advantage of establishing a CLG is that, because it is a company, it has the advantage of limited liability, in which the people who run the company do not have to be personally responsible for the company's debts. In the event of dissolution of the CIC, members only pay a very symbolic sum, in the case of a CLG. The profits made by most companies limited by guarantee circulate the profits within the company itself and are not distributed to their members. It should be noted that there are only partners in the company and not shareholders...