Creation

In order to obtain ministerial accreditation as a societal impact company, a company that has already been created or a company in the process of being incorporated must meet the following conditions:

Legal form:

The SIS accreditation is exclusive to:

  • public limited companies (sociétés anonymes - SA) 
  • limited liability companies (sociétés à responsabilité limitée - SARL) 
  • simplified limited liability companies (sociétés à responsabilité limitée simplifiées - SARL-S) 
  • cooperative companies (sociétés coopératives - SC) 

Corporate purpose:

The area of activity of the SIS is limited to the corporate purpose, which defines the activities that can be carried out during the corporate life of the company.
The corporate purpose of any societal impact company must:

o  provide support to persons considered to be vulnerable:

  • on account of their economic or social situation;
  • on account of their personal circumstances, particularly their state of health or their need for social or medical and social support - such persons may be employees, customers/clients, members, adherents or beneficiaries of the SIS);

or/and

o   contribute to:

  • preserving and developing social cohesion;
  • combatting health-related, social, cultural and economic exclusions and inequalities;
  • promoting gender equality;
  • maintaining and strengthening territorial cohesion;
  • protecting the environment;
  • developing cultural and creative activities;
  • developing initial or ongoing training.

All societal impact companies must specify their corporate purpose in their articles of association, detailing how their activity contributes to at least one of these two conditions.

In other words, they must disclose how they intend to achieve the social impact through their ongoing production or service activities.

 

 

Share capital:

The minimum share capital of a societal impact company is defined according to the rules applicable to the legal form of the company.

In accordance with the principle of limited profitability, it must be composed of:

o   at least 50% impact shares:

Owners of these shares have no right to any dividend distribution. The profit allocated to the impact shares is exclusively intended for the realisation of the corporate purpose and is to be fully reinvested in the continuation and further development of the SIS's activity.

o   at most 50% distribution shares:

Owners of these shares do have a right to a dividend distribution provided that the corporate purpose, as measured by performance indicators, has been effectively achieved.

  • All impact and distribution shares are registered shares and are issued with a nominal value.
  • Impact shares may not under any circumstances be converted into distribution shares.
  • Distribution shares may be converted to impact shares at any time.

Performance indicators:

All societal impact companies are required to assess how and to what extent their activity has led to social impact. They must therefore identify at least two performance indicators that quantify their social impact.

It is not a question of measuring the economic performance of its company, although it is recommended to monitor the economic health of the company.

Each indicator must have a name, a definition and a method of calculation or interpretation.

Other conditions:

o   Remuneration of employees:

The maximum gross annual remuneration of any employee must not exceed a ceiling which is currently set at 6 times the annual minimum social wage.

How?

Any applications for the SIS accreditation must be submitted, duly dated and signed, together with the supporting documents to the Ministry of Labour, Employment and the Social and Solidarity Economy via the following address: secretariat.sis@mt.etat.lu

If you would like to be accompanied in this process, take advantage of the personalised public service set up at the Social Business Incubator "SBI".

 

Last update