Social Enterprise Status, Latvia

The social enterprise status supports limited liability companies that focus on social impact rather than profit maximisation. 

• Eligibility criteria: To be eligible, limited liability companies must (1) have a defined social mission in their founding documents that focuses on addressing societal challenges (e.g. unemployment, social exclusion or environmental sustainability), (2) reinvest profits into their social mission, (3) involve target beneficiaries in their decision-making process, (4) engage in regular economic activity that supports their financial self-sufficiency.
• Monitoring: The Ministry of Welfare is responsible for evaluating applications and ensuring that applicants meet the required standards. Once granted, social enterprise status is subject to ongoing monitoring. Organisations must submit annual reports detailing their social activities, financial performance, and impact. The Ministry may revoke the status if an organisation no longer meets the established standards.
• Measures tied to the status: The social enterprise status offers a range of financial and institutional benefits designed to support social enterprises. These enterprises benefit from favourable tax treatment, including the exclusion of certain socially oriented expenses (e.g. employee inclusion, integration of target groups) and mission-related asset acquisition from their taxable base. Local governments may grant property tax relief, and public entities may donate or lend property to social enterprises free of charge.