What Are the Prerequisites for Becoming a B Corp?

Becoming a Certified B Corporation is about more than just a badge. It’s about making a public commitment to balancing profit with purpose—and proving you’re walking the talk. But before you dive into the B Impact Assessment or start dreaming about that B logo on your website, it’s worth understanding the key prerequisites.

Whether you’re a startup or an established organisation, here’s what you need to know before beginning your B Corp journey.

1. You Must Be a For-Profit Business

The B Corp certification is only open to for-profit businesses. That includes:

• Companies limited by shares (like Pty Ltd in Australia)
• Sole traders and partnerships
• Cooperatives
• Limited liability companies (LLCs)

Not eligible: Government bodies, nonprofits, and registered charities. That said, nonprofits can still align themselves with the B Economy in other ways, such as by partnering with or supporting B Corps.

2. You Must Be in Operation for at Least 12 Months

B Lab requires a minimum of 12 months of operations to certify a company under the full B Impact Assessment. Why? Because they want real data and practices—not just good intentions.

If you’re under 12 months old, you can still apply for Pending B Corp status, which allows early-stage companies to signal their commitment and build practices that align with the full certification later.

3. You Must Complete the B Impact Assessment (BIA)

The B Impact Assessment is the heart of the B Corp process. You’ll need to:

• Complete a detailed online assessment
• Score 80 points or more across 5 key areas: Governance, Workers, Community, Environment, and Customers
• Submit supporting documentation
• Go through a review and verification process with B Lab

The BIA is free to complete, and it’s a great diagnostic tool even if you’re not ready to certify yet.

4. You Must Meet the Legal Requirement

This is a big one—and it trips up a lot of companies.

To certify, you must update your governing documents (e.g. your constitution or articles of incorporation) to legally commit to considering stakeholders, not just shareholders, in decision-making. This includes:

• Your workers
• Customers
• Suppliers
• The community
• The environment

In Australia, this usually means adding or amending a clause in your constitution. Don’t worry—it’s not as scary as it sounds, and most companies can do it without needing ASIC approval.

5. You Must Be Transparent

Transparency is core to the B Corp ethos. Once certified, you agree to publish your B Impact Score on the B Lab directory for anyone to see. You’re also expected to update your assessment every 3 years and demonstrate continued improvement.

6. You Must Commit to Continuous Improvement

B Corp isn’t a “set-and-forget” certification. Your business will need to evolve and improve to maintain certification. That means embedding sustainable practices, updating policies, and continually reassessing your impact.

It’s a mindset shift—from compliance to continuous purpose-led business improvement.

Bonus Tip: Bring the Team Along

B Corp certification is easier (and more meaningful) when it’s a team effort. Before you begin, make sure your leadership is on board and your internal champions are clear on the why. It helps to assign a project lead or work with a consultant who’s done it before (hi! 👋).

Final Thoughts

Becoming a B Corp is about building a better business. The prerequisites are designed to ensure that certification means something—that companies aren’t just saying the right things, they’re doing them.

If you’re thinking about certification and want to know if you’re ready, we’re happy to run a readiness review or help guide your business through the process.