What legal structure is best for our social enterprise?

**Dave A** · 24-Jun-09, 09:16 AM

Originally Posted by Startup

We do not know our annually budget yet, but it is for sure that our venture is not going to earn 75% or more of its income from donations or member subscriptions. The venture will earn its necessary income from its service offerings to SMMEs, thereby we will not depend upon donations for maintaining our operations running.

OK then - If there is no intention of paying a dividend to shareholders/members, you can still go the section 21 company route.

However, it's going to be pretty tough to frame this as an NPO for tax purposes.

**Startup** · 24-Jun-09, 10:44 AM

Originally Posted by Dave A

OK then - If there is no intention of paying a dividend to shareholders/members, you can still go the section 21 company route.

However, it's going to be pretty tough to frame this as an NPO for tax purposes.

That is another reason why we want to split the organisation in two parts. Isn't there any way to do so?