A clear and unique legal framework in Europe
Approval as a social impact company (SIC) is reserved for commercial companies that adhere to the principles of the social and solidarity economy. The social impact company offers numerous advantages for the concerned structure, including a clear and precise legal framework, an adapted tax regime, and access to national or European public markets.
The ministerial approval ‘SIC’ is intended for both existing companies or organisations and project initiators who wish to launch an economic activity with a social or societal purpose. The approval is guided by the Law of December 12, 2016, on social impact companies. This text not only creates a model of company, hitherto unprecedented and unique in its kind, but, more interestingly, defines legally the boundaries of the impact economy:
‘(…) The social and solidarity economy is a mode of enterprise adhered to by legal entities of private law that cumulatively meet the following conditions:
Engage in a continuous activity of production, distribution, or exchange of goods or services.
Primarily meet one or both of the following conditions: They aim to provide, through their activity, support to individuals in situations of fragility, either due to their economic or social situation, or due to their personal situation, particularly their health or social or medico-social support needs. These individuals can be employees, clients, members, affiliates, or beneficiaries of the enterprise; They aim to contribute to the preservation and development of social ties, the fight against exclusions and health, social, cultural, and economic inequalities, gender equality, the maintenance and strengthening of territorial cohesion, environmental protection, the development of cultural or creative activities, and the development of initial or continuing training activities.
Have autonomous management in the sense that they are fully capable of choosing and revoking their governing bodies as well as controlling and organizing all of their activities.
Apply the principle that at least half of the profits realized are reinvested in maintaining and developing the company’s activity.
(…)’
Thus, the social impact company constitutes the link between the world of distributed profit and that of disinterested action. It will quickly become the spearhead of the impact economy and the essential working tool in the hands of ULESS.
