How to Set Up a CIC in 2026: My Top Tips After 14 Years in the Sector

If you are thinking about setting up a Community Interest Company in 2026, you are in the right place. After 14 years of running CICs and helping over 1,000 community organisations get set up and funded across the UK, here is exactly what I would do — and what has changed this year that you need to know about.

What Is a CIC and Is It Still Worth It in 2026?

Absolutely yes. A CIC sits in between a charity and a limited company, and that is exactly what makes it so powerful. Like a charity, it can apply for grant funding. Like a limited company, it can trade, sell services, win contracts, and generate income as a social enterprise. After everything I have seen over the years, I still think the CIC model is one of the best opportunities out there for community-driven founders. That has not changed.

Start With One Director — Here Is Why

This is my number one tip for 2026 and it is something a lot of people get wrong. Always set up your CIC with just one director to begin with, then add your additional directors afterwards.

Here is why. The digital ID verification process introduced by the government has made the setup more complex than it used to be. Every director needs to go through identity verification, and you simply do not know in advance whether someone's credit file will cause delays or complications with opening your bank account. If you try to register multiple directors at once and hit problems, your whole setup stalls.

The smarter approach is to get the CIC registered on Companies House, complete your ID verification, get your bank account open, and then recruit your two additional unrelated directors. Make sure they are genuinely unrelated — different surnames and different addresses. This keeps things moving and removes a huge amount of frustration from the process.

The Best Bank Accounts for CICs in 2026

Once your CIC is registered, opening the right bank account is your next priority. My top picks in 2026 are the NatWest Community Bank Account and the Co-operative Bank Community Bank Account. Both are free and — crucially — both are accepted by all major grant funders. Do not overlook this. Some grant funders will not accept applications from organisations using certain accounts, so getting this right from the start saves headaches later.

Start Your Community Engagement Immediately

This is the step most people delay and it is the one that costs them the most time. Start your community engagement as soon as your CIC is set up, not after.

The reason is the National Lottery Community Fund grant — the £20,000 grant that used to be relatively straightforward to obtain. In 2026 they are significantly more stringent. The most common reason for rejection now is insufficient evidence of community engagement. They want to know specifically who you have spoken to, how many meetings you have had, whether you have surveyed your community, and whether you have run any taster sessions.

Here is the strategy I recommend and that is currently getting results for our CIC Tribe members:

Run a community survey using Google Forms, which is completely free. Aim for at least 50 completed responses — this gives the grant funder something concrete they cannot dismiss. Then run a taster session and record the feedback on video. That combination of written survey data and video evidence brings your community need to life in a way that resonates with funders.

You also need to make sure your project aligns tightly with the Community Fund's current priorities. This used to be flexible. It is no longer. Read their priorities carefully and make sure your application speaks directly to them.

The Order to Apply for Grants

Once you have your community engagement evidence, submit your Community Fund application. Allow eight to ten weeks for a decision depending on the time of year.

While you are waiting, do not sit still. Start preparing for the bigger, more complex applications — the National Lottery Heritage Fund and Arts Council England. These require significantly more groundwork. You will need to build partnerships, hire artists or heritage specialists, and gather a much richer body of evidence. These are not quick applications, so starting early while your Community Fund decision is pending means you are not losing months of time.

Register for Easyfundraising Straight Away

This one is simple and most CIC founders overlook it. Register your CIC with Easyfundraising and start doing your everyday shopping online through the platform. Every purchase generates a small donation to your CIC at no cost to you. It is not a life-changing income stream, but it starts bringing money into your CIC from day one and demonstrates income activity to future funders.

Get Your CIC Insurance Sorted Early

Www.easyfundraising.org.uk/cic-tribe 

CIC Insurance

Make sure you have your CIC insurance in place — you will need at least £5 million public liability cover. This is a requirement for most grant applications and contracts, so the sooner you have it the better. www.kexx.co.uk/cicinsurance

Your 2026 CIC Setup Checklist

✅ Register your CIC on Companies House with one director

✅ Complete digital ID verification

✅ Open a NatWest or Co-op Community Bank Account

✅ Recruit two additional unrelated directors

✅ Start community engagement and collect survey evidence

✅ Run a taster session and capture video feedback

✅ Submit your National Lottery Community Fund application

✅ Begin groundwork for Heritage Fund and Arts Council applications

✅ Register with Easyfundraising Www.easyfundraising.org.uk/cic-tribe 

✅ Get your £5 million public liability insurance www.kexx.co.uk/cicinsurance

Ready to Get Started?

If you want a step-by-step guide that walks you through every single stage — from your governing documents to your first grant application — my flagship course How to Set Up a CIC and Get Funded in 4 Months has helped over 1,000 community organisations do exactly that. Join us and let's get your CIC set up and funded.

Visit www.kexx.co.uk/ciccourse