The criteria to be labelled a social enterprise in Denmark

In June 2014, the Danish Parliament passed the "Act on Registered Social Enterprises'.

As from 2015, it is possible to register as a social enterprise.

Social enterprises must meet the following five criteria to be labbeled a social enterprise:

  • Social purpose - the enterprise must have a primary purpose that is beneficial to society with a social, cultural, employment-related, health-related or environmental aim.
  • Significant commercial activityThe enterprise must sell either goods or services. This activity must constitute a significant element of the revenue generated by the enterprise. 
  • Independence of public authoritiesThe public authorities must not have any significant influence on the management or operation of the enterprise.
  • Inclusive and responsible governanceThe enterprise must involve employees, customers, partners and stakeholders. In addition, the company must be managed responsibly in accordance with the social objectives
  • Social management of profits - The enterprise must spend its profits on social objectives or reinvest the funds. However, a limited share of profits may be distributed as dividends to investors or owners. Profits should be reinvested in the enterprise, invested in other registered social enterprises, donated to charitable organisations or distributed as dividends to owners and investors to a limited extent.
last modified Nov 13, 2014