Page 192 - Social Enterprise A New Business Paradigm for Thailand

Thai law that engages in the production or distribution of goods or services, with social objectives
as its primary purpose, and is registered as a Social Business Group under this Act.

While both forms share a social mission, they differ in that a Social Enterprise must be a legal

entity, such as a company, registered partnership, or other legal entity under Thai law, and must
be registered with the Office of Social Enterprise Promotion. A Social Business Group, in contrast,
may or may not have legal entity status but must still be registered with the Office. Notably,
eligibility for the benefits provided under this law, including tax incentives and government
procurement advantages, is limited to registered Social Enterprises.

2. Conditions for Registration as a Social Enterprise

To register as a social enterprise, a business must have social objectives as its primary purpose

and meet the criteria outlined in Section 5 of the Social Enterprise Promotion Act, B.E. 2562
(2019). For example, its primary aim may be to promote employment for groups requiring special
support, address or improve community, social, or environmental issues, or provide other public
benefits or return value to society, as determined by ministerial announcement, as described
earlier in Chapter 1.

To clarify which types of businesses qualify as providing public benefit or returning value to
society, the Office of the Prime Minister issued the Announcement on Defining the Characteristics
of Businesses with the Primary Objective of Public Benefit or Returning Benefit to Society, B.E.

2565 150 (2022). This announcement was intended to encourage more social enterprises to
participate in the registration system. It designates the following types of businesses as eligible
to apply for registration as social enterprises:

(1) Businesses that focus primarily on Sustainable Development Goals (SDGs)
(2) Businesses engaged in research, development, or innovation in science, technology, or
medicine aimed at prevention, problem-solving, or development at the community, social,
or environmental level
(2) Businesses that promote the transfer of knowledge or the preservation of Thai art, culture,

and traditions, such as museums, art galleries, cultural centers, master teachers’ houses,
or learning centers on local ways of life
(3) Businesses that promote, support, or develop the operations of social enterprises or help
social business groups transition into registered social enterprises

3. Types of Social Enterprises

150 Announcement of the Office of the Prime Minister on Defining the Characteristics of Activities with the Primary
Objective of Public Benefit or Giving Back to Society, B.E. 2565 (2022), announced on September 29, 2022.
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