Social enterprises are businesses that trade to tackle social problems, improve communities, people's life chances, or the environment. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community. And so when they profit, society profits.
You must choose a business structure if you're starting a business that helps people or communities (a ‘social enterprise'):
- limited company
- charity, or from 2013, a charitable incorporated organisation (CIO is a new legal structure for charities)
- industrial and provident society
- community interest company (CIC) is a special type of limited company which exists to benefit the community rather than private shareholders
- sole trader or business partnership
- If you're setting up a small organisation like a sports club or a voluntary group and don't plan to make a profit, you can form an ‘unincorporated association' instead of starting a business
- Co-operatives and industrial and provident societies are both types of mutual. A mutual is an organisation owned by, and run for, the benefit of its members
Find out more at https://www.gov.uk/set-up-a-social-enterprise
The Social Investment Tax Relief (SITR) is the government's tax break for socialinvestment. Individuals making an eligible investment can deduct 30% of thecost of their investment from their income tax liability.
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This guide offers an overview of the UK’s social investment market in order to help organisations to establish whether and how they can make the most of social investment opportunities available to them.