What is the proper legal entity for Social Enterprise?

Mission-driven or social enterprise began popping up. Basically, this is a business that in it there are two purposes: for profit and for the purpose (social activities). However, many players social enterprise that still confused what the right legal entity for that organization.

Ari Susanti, Senior Programme Manager of the British Council Indonesia said, the dilemma in determining legal entities a social enterprise happen because of social organization is always associated with the Foundation. However, in practice, the Foundation usually non-profit venture in which all wealth belongs to the Foundation, so there is no profit.

“Whereas, if the ruling body of the CV or PT, many people believe it will be difficult against a social business is done,” said Ari in the event ARISE 2nd entitled Impactful Technology for Sustainable Future at Soehana Hall, Jakarta some time ago.

Nancy Margried, the founder of Fractal Batik admitted initially difficult to determine legal entities for the social enterprise which he founded it. Fractal batik manufacturer is using the software mathematics of fractals. The Organization invites the women citizens of Dago, Bandung Corner to design batik using the software.

“When I want to register as a public company Fractal Batik (PT), I still not have any minimum required capital and employees who were put to work,” the story of Nancy.

Nancy continues, because the company wanted to have a profit, so he chose the setting up of CV with CV Pixels Indonesia. Pass CV, her easier to find or let investors in order to increase the scale of its business.

“We live out our cost advantage through a social business that we do,” Nancy explained.

On the other side, the Gita Syahrani, the lawyer at the same time one of the founders of Socolas (Social Corporate Lawyers Society) reveals, for being a speaker at various forums, many social communities or social enterprise who wondered about the legality of a legal entity.

“We at Socolas provide legal assistance and mentoring on how social communities can understand what kind of need legality in the conduct of business activities and their social life,” said Gita.

Socolas is a group of lawyers who perform pro bono activity to help the legality of social enterprise. There is three Socolas assistance provided. First, regular consultations can be done either via email or with accompaniment.

Second, provide training regarding legal entities for social enterprise. Activities can be based on invitations as well as agenda Socolas.

Third, the Socolas help the social enterprise in order to make the study of law.

“It is also important that we provide education regarding the rights and obligations of social enterprise with a third party if they are negotiating. Many artists, for example, don’t know how decent they get a fee or royalty, “stated Gita.

In the future, Socolas will give you the cost for the client or social enterprise who want to use their service. The reason for this, there is no fee charged at all, so that social cost is borne 100% by the donor.

“We want to develop as a social enterprise in the field of legal assistance. However, we give you a price that is much cheaper than other professional legal institutions,” said Gita.