At information sessions, the same questions about the social impact company accreditation often come up. Here are the six most frequent ones, with answers from the Social Business Incubator team.
1. Who can apply for accreditation?
SIS accreditation is reserved for commercial companies that comply with the principles of the social and solidarity economy. It is open to any natural or legal person who wishes to set up a company carrying out an economic activity pursuing social and/or environmental objectives.
2. Are specific articles of association required?
Yes. The articles of association of an SIS-accredited company must meet specific criteria, and the corporate purpose must be drafted with care: any later amendment requires the prior authorisation of the competent minister.
3. Impact shares or performance shares?
Impact shares do not entitle their holders to any dividend: the corresponding profits are reinvested in the company. Performance shares entitle their holders to part of the dividends, if the company has made a profit and achieved its corporate purpose. The choice depends on your project and your funders.
4. What share of the profits must be reinvested?
At least 50% of profits must be reinvested in the company: this is the principle of limited profitability.
5. How many indicators are needed?
The law requires at least two performance indicators to measure the social and/or environmental impact of the SIS. A few well-monitored indicators are better than many theoretical ones.
6. How long does the procedure take?
The time frame depends mainly on how complete the application is. The safest option is to have it reviewed by the SBI team before submitting it: they will give you an estimate suited to your situation.
