A registered social enterprise is an entity to which the ministry has granted status on the basis that its main aim is to achieve a measurable positive social impact – most often by employing disadvantaged or vulnerable persons or by providing services of public benefit. A condition is that it reinvests most of its profit back into fulfilling this aim and involves stakeholders in its governance. Several advantages are linked to the status: compensation aid, employment contributions, preferential treatment in public procurement, a reduced value added tax rate on certain supplies, and better access to loans. Registration is administratively demanding, and the enterprise is subject to regular reporting and checks on the fulfilment of its social impact. Before submitting an application, it is therefore worth assessing whether the advantages outweigh the ongoing administrative burden linked to the status.
See also: Sheltered workshop, Grants for Social Services, Grants for Non-profit Organisations.
