The law from the 12th December 2016 regarding the creation of social impact companies (acronym in French: “SIS”) grants an official recognition to the social and solidarity-based economy in Luxembourg.
The SIS/social impact companies’ regime offers numerous advantages (a better legal safety, an optimal tax frame, an access to public procurement, etc.), assorted with strict constraints in terms of transparency and governance. Through an initial requirement of a ministerial approval and an annual supervision of activities, the new SIS/social impact companies regime aims not only to guarantee a good financial management of social and solidarity-based economy companies working under this new legal regime, but also the primacy of the social or societal purposes on the distribution of potential benefits.
The SIS/social impact companies’ regime has also as a goal to encourage the development of new dynamics in the field of sustainable finance. The distribution of possible benefits to the private investors stays however strictly framed and subjected to the achievement of social or societal objectives.
The social and solidarity-based economy umbrella organisation (ULESS) and the Government jointly express the wish that trough the implementation of this law and the numerous measures that actually goes with it, social economy entrepreneurs and the existing social and solidarity-based economy organisations in Luxembourg will find means to familiarise with the SIS/social impact companies’ regime and will contribute to the necessary diversification of our economy.