.png)
Are you interested in making a social impact through business? This article explains how to start a social enterprise or a social company, the benefits it offers, and why it might be the right choice for you.
What Is a Social Enterprise/ Social Company?
A social enterprise/social company is an organization—often a limited liability company (LLC) or association—that operates with a primary purpose to benefit the community, while holding a special social enterprise certification.
Key Characteristics of Social Enterprises:
Promotes community engagement across economic, social, cultural, and political areas.
Limits profit distribution, prioritizing community reinvestment.
Pursues private, voluntary, and solidarity-based initiatives.
Eligible entities include:
Cooperative companies, associations, foundations, mutual aid organizations, agricultural cooperatives, and certain types of LLCs that comply with social economy principles.
Why Start a Social Enterprise?
Social companies benefit from incentives, including access to non-reimbursable funds and government programs, and offer unique ways to make a positive community impact.
Steps to Establish a Social Enterprise
Step 1: Choose the Right Organizational Form
The first step is selecting an approved entity type and registering it with the Trade Registry or other applicable public registers. Many social entrepreneurs opt for the LLC structure due to its flexibility.
Step 2: Align Founding Documents with Social Economy Principles
Your social enterprise’s constitutive documents must reflect social economy values, such as:
Prioritizing community benefit over profit.
Maintaining democratic control and fair wages for employees.
Reinvesting at least 90% of surplus into community or social purposes.
If you’re unsure about aligning your documents with these requirements, contact us at office@cristinatudor.ro.
Step 3: Obtain Social Enterprise Certification
To certify your enterprise, submit an application and required documents to your county or municipal employment agency. These may include founding documents, statutes, and proof of registration.
Certification Process
How to Apply: In-person or by post.
Required Documents: Certification application, founding documents (specific to entity type), and proof of legal registration.
Processing Time: 30 days, extendable by 15 days if necessary.
If you need help with certification, please reach out to us at office@cristinatudor.ro.
Benefits of Social Enterprises
Access to Funding: Social enterprises often qualify for grants and non-reimbursable funds through government programs.
Community Impact: Create a meaningful difference by addressing social, cultural, and economic issues in your community.
Tax Incentives: Depending on your jurisdiction, social enterprises may receive tax breaks or exemptions.
Additional Obligations: Certification Renewal
Social enterprises must renew certification periodically. The renewal process confirms that your enterprise continues to meet legal requirements.
For more information on starting a social enterprise, visit our website or contact our team of experts at office@cristinatudor.ro
.
Comments