Page 95 - Social Enterprise A New Business Paradigm for Thailand

“A business with primarily social objectives whose surpluses are principally reinvested for that
purpose in the business or in the community, rather than being driven by the need to maximize
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profit for shareholders and owners.”

This definition closely aligns with the official Thai legal definition of a “social enterprise,”
emphasizing social purpose over profit distribution.

Legal Forms for Registration
Under current UK law, social enterprises can be registered in various legal forms, including:

1. Company Limited by Shares (CLS):
A traditional corporate structure where ownership is divided among shareholders who may
receive dividends. Some social enterprises adopt this form but commit to social missions in

their operations.
2. Company Limited by Guarantee (CLG):
A company that does not distribute profits to shareholders. In practice, a CLG consists of
members who contribute a small financial guarantee (as stated in the company’s founding
documents), and their liability is limited to the amount they have guaranteed. This form is
commonly used by non-profit organizations or charitable groups seeking legal entity status,
such as clubs, student unions, and sports associations. Well-known charities like Oxfam are
structured as CLGs.
3. Community Interest Company (CIC):

A specialized legal form created specifically for social enterprises, designed to ensure that
profits are used for public good.
4. Community Benefit Society / Co-operative Society:
These include cooperatives or mutuals that reinvest profits into community benefit or support
their members.
5. Charitable Incorporated Organization (CIO):
A registered charity with legal incorporation, allowing it to enter into contracts and own

property in its own name.
6. Other organizational forms, both registered and unregistered, may also be used to operate as
social enterprises depending on structure, governance, and mission.

35 Department for Business Innovation and Skills, A Guide to Legal Forms for Social Enterprise, November 2011.
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