Pre-certified enterprises of social economy are ones which meet the minimum legal requirements to be certified as an enterprise of social economy for realizing social benefits and creating profits through operating activities but they fail to meet full requirements so the head of local governments choose and allow some of them to complete needed requirements and be certified as enterprises of social economy
Accreditation requirements
- Form of organization
Corporations · associations in accordance with civil law, businesses in accordance with commercial law, organizations established in accordance with presidential decrees such as corporations or non-profit non-government organizations established in accordance with special law
- Employment of paid workers
Paid workers shall be employed in order to implement operating activities such as the production and the sales of goods and services
- Realization of social benefits
Enterprises of social economy shall pursue realizing social benefits such as providing social services or creating jobs for the disadvantaged or improving the quality of residents by making contribution to communities
- Decision making frames participated by interest groups
Decision making frames shall be formed with participation of interest groups including service beneficiaries and workers
- Profits from operating activities
Revenues from operating activities shall account for more than 50% of labor expenses
- Essential articles of association
Enterprises of social economy shall be equipped with articles of association or regulations in accordance with the Article 9 in Enterprises of social economy nurturing law
- Aim of using profits as social benefits of all
When profits occur and the profits can be distributed according to fiscal years, two-thirds of profits shall be used for social profits (businesses · limited partnership on commercial law)
Accreditation benefits
- Fiscal support (up to 2 years)
- Labor expenses for creating jobs
- Professional labor expenses
- Business development costs supporting projects
- Financial support: Small loans from micro-finance foundations, policy funds for SME, special guarantee for enterprises of social economy
- Tax benefits
- Special act on tax: the Clause 6 in the Article 85 (corporate tax reduction provided to enterprises of social economy and exemplary company with the physically challenged)
- Special local tax treatment control law: In terms of real estate gained to be directly used for certain business, acquisition tax shall be halved
- Management consulting
- Goods and services from government-owned companies are firstly purchased
- Finding new markets