Page 193 - Social Enterprise A New Business Paradigm for Thailand

Section 6 of the Act outlines two types of social enterprise registration:

(1) Social enterprises that do not intend to distribute profits to partners or shareholders
(2) Social enterprises that intend to distribute profits to partners or shareholders

A social enterprise that does not intend to distribute profits to partners or shareholders may be
established as a registered partnership or limited company under the Civil and Commercial Code,
or as a public limited company under the Public Limited Companies Act. In such cases, using
profits for social purposes is considered an acceptable form of profit allocation under the
enterprise’s activities.

Businesses seeking registration as social enterprises must submit an application to the Office of
Social Enterprise Promotion, following the criteria, procedures, and forms prescribed by the

Office. Registration as a social enterprise or as a social business group can be completed online,
and no application fee is charged. Once the Registrar (the Director of the Office of Social
Enterprise Promotion or a designated representative) determines that the business meets the
objectives and criteria set by law, the Registrar will approve the registration, issue a registration
certificate, and publicly announce the registration.

Registered entities may include the term “social enterprise” in their official name. No individual
or entity may use the term “social enterprise” in their business name without official registration;
violators are subject to an administrative fine of up to 20,000 baht.

An application for registration must include a letter of intent and details about the business, which

must have been in operation for at least one year 151 .

The Social Enterprise Promotion Act also establishes the Office of Social Enterprise Promotion
(OSEP) as a government agency that is neither a government department nor a state enterprise.
The Office has legal entity status and operates under the supervision of the Prime Minister. Its

responsibilities include promoting, supporting, assisting, and developing social enterprises and
social business groups to strengthen their operations and achieve self-reliance. The Office is also
tasked with proposing national social enterprise policies and plans, preparing operational plans,
providing advice, offering training, and supporting the development of social business groups into
formal social enterprises. The Office is led by a Director and operates under the oversight of the
Social Enterprise Promotion Committee.

151 Announcement of the Social Enterprise Promotion Committee on the Duration of Operations for Applying for
Registration as a Social Enterprise, B.E. 2562 (2019), announced on September 24, 2019, Clause 3.
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