The Societal Impact Company (SIS)

A clear and precise legal framework that emphasizes the social and/or societal purpose of any commercial company and offers many advantages:

1. RECOgnition and credibility

All societal impact companies set up a transparent and responsible governance system, both on a financial and extra-financial level. It is primarily directed at its beneficiaries, but also at funders and even potential investors and clients.

The companies are subject to annual monitoring by the Ministry of Labour. They are therefore bound by obligations in terms of transparency and governance.

Measuring their impact through performance indicators is an integral part of this.

2. Self-financing capacity

All societal impact companies can combine several sources of financing:

  • Capital contribution from shareholders/partners
  • Loans from credit institutions/SNCI
  • Donations and participatory financing
  • Calls for projects
  • European co-financing

They can also bid for national or European tenders, either alone or in collaboration with other SISs.

They can also apply for the general grants for SMEs and benefit from the employment grants and incentives:

  • Aid for young enterprises
  • Investment aid
  • Consultancy services for SMEs
  • Aid for first-time participation in national fairs
  • Aid to mitigate damage caused by certain natural disasters
  • Re-employment support
  • Support for the recruitment of older unemployed people
  • Aid for the creation of a work-integration job for a long-term unemployed person

3. Donations

All societal impact companies whose share capital consists exclusively of impact shares are recognised as being of public utility similarly to non-profit associations (asbl) and foundations.

This means that all donors can deduct cash donations from their total net income for tax purposes.

4. Subsidisation

a)      Nationally:

All societal impact companies can apply to the Œuvre Nationale de Secours Grande-Duchesse Charlotte for funding of a project in any of the following fields: social, cultural, environmental, sports and health or memory.

Some calls for projects from the State or communes can be linked to an activity of general interest or public utility. Any societal impact company can participate in such a call for tender and submit an application. Public funding then takes the form of compensation for the provision of a service of general (economic or not) interest.

b)      At European level:

All societal impact companies can benefit from financial support to test out new ideas, implement innovative technologies, and experiment and innovate (employability of jobseekers, regional development, etc.). They can thus obtain the necessary resources to achieve objectives that are in line with public planning

5. Taxation

All societal impact companies whose share capital consists of 100% impact shares benefit from:

  • an exemption from the local authority income tax;
  • an exemption from municipal business tax;
  • an exemption from wealth tax.

Any societal impact company can also benefit from VAT exemptions if its activities meet the conditions established by the provisions of Article 44(1), points m), o), p), q), s), t), u) and v) of the VAT law.

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