Commentary on Sections Part 1 .Social Care Chapter 1 .Provision of Social Care Services to Children: Restrictions on Profit Section 3 – Applications for registration in respect of restricted children’s services
15.Section 3(3) inserts new sections 6A (registration in respect of a restricted children’s service) and 6B (registration in respect of a restricted children’s service: definitions) into the 2016 Act.
16.Under new section 6A(1), to be registered in respect of a restricted children’s service a person who is not a local authority must be a not-for-profit entity.
17.Section 6A(2), (3) and (4) provide that a “not-for-profit entity” is a person that meets these two tests:
	the person’s objects or purposes primarily relate to the welfare of children, or to such other public good as the Welsh Ministers may prescribe (regulations prescribing such public good may not be made unless a draft of the instrument has been laid before and approved by a resolution of Senedd Cymru);
	the person is one of the following four types of undertaking (that are defined in section 6B, and in relation to which the law restricts the extraction of profit): a charitable company limited by guarantee without a share capital; a charitable incorporated organisation; a charitable registered society; a community interest company limited by guarantee without a share capital.
18.As a consequence of the insertion of sections 6A and 6B into the 2016 Act, section 3(2) inserts a new subsection (1A) into section 6 of the 2016 Act. This new subsection requires a person applying to be registered in respect of a restricted children’s service to supply the Welsh Ministers with prescribed information showing that the person is a not-for-profit entity. The power to prescribe the information is to be exercised by regulations made in a statutory instrument under section 187 of the 2016 Act.