Table 3 - Main legal forms Economic entity/ Economic Co-operative Company Company under entity/Company Foundation under Association Minimum capital Establishing an -At least 7 Limited Company: requirement for association: shareholders -At least 2 establishment of a -At least 7 people -High of shareholders foundation: 50,000 needed. capital needed. - Min. capital TL Establishing an requirement 10,000 Minimum capital economic entity: TL to start up an -around 1,000TL Incorporated economic entity: -registration to company: -around 1,000 TL Chamber of -At least 5 to Commerce shareholders Chamber of Establishing an -Min. capital Commerce association is requirement More expensive faster compared to 50,000TL and takes longer a foundation to establish a (The new Turkish foundation Commercial Code effective as of July 2012 will enable one person to establish a limited liability or incorporated company) Income -Donations to -Donations, -Revenues from -Revenues from Foundation, -Grants, sales of economic activities, Grants, -Loans (for profitable -Loans -Loans to Economic activities) -Loans, entity/company - Grants (NEW) under foundation(for profitable activities) By members By members By shareholders By shareholders Management Governance Each member has Each member has 1 Each Percentage of 1 vote vote shareholder has shares is effective 1 vote in decision making In conclusion, operating as a foundation and association gives social enterprises the possibility to receive grants as well as generate income through the sales of goods and services. Due to lack of a social co-operative or social enterprise status in the legislation, co-operatives and companies operating as social enterprises are treated the same way in legislation and therefore they cannot benefit from any breaks or advantages. In contrast, the required equity of each shareholder is rather high for co-operatives. National laws affecting social enterprises
Table 3 - Main legal forms Economic entity/ Company under Foundation Economic entity/Company under Association Co-operative Company Minimum capital requirement for establishment of a foundation: 50,000 TL Minimum capital to start up an economic entity: -around 1,000 TL to Chamber of Commerce More expensive and takes longer to establish a foundation Establishing an association: -At least 7 people needed. Establishing an economic entity: -around 1,000TL -registration to Chamber of Commerce Establishing an association is faster compared to a foundation -At least 7 shareholders -High of capital needed. Limited Company: -At least 2 shareholders - Min. capital requirement 10,000 TL Incorporated company: -At least 5 shareholders -Min. capital requirement 50,000TL (The new Turkish Commercial Code effective as of July 2012 will enable one person to establish a limited liability or incorporated company) Income -Donations to Foundation, Grants, -Loans to Economic entity/company under foundation(for profitable activities) -Donations, -Grants, -Loans (for profitable activities) -Revenues from sales of -Loans, - Grants (NEW) -Revenues from economic activities, -Loans Management By members By members By shareholders By shareholders Governance Each member has 1 vote Each member has 1 vote Each shareholder has 1 vote Percentage of shares is effective in decision making In conclusion, operating as a foundation and association gives social enterprises the possibility to receive grants as well as generate income through the sales of goods and services. Due to lack of a social co-operative or social enterprise status in the legislation, co-operatives and companies operating as social enterprises are treated the same way in legislation and therefore they cannot benefit from any breaks or advantages. In contrast, the required equity of each shareholder is rather high for co-operatives. National laws affecting social enterprises
Egypt_Final_Report_FINAL_0612.docx