Guide To Founding An Association English
Guide To Founding An Association English
Guide To Founding An Association English
founding an association
§
§
When people get together for joint activities or projects,
legal issues arise. This concerns, for example, liability
and the co-determination rights of those involved. This
getting-together is regulated by law. But it can also be
organised through contracts. This also applies to the
founding of associations..
9
it is decided that the association will be
founded,
9 the statute is adopted,
9 the board of directors is elected.
Satzung
The statute must be signed by at least 7 members.
Minutes shall be taken of the formation meeting.
The elected board members must appear with
the statute and the formation minutes at a notary
public, who certifies the formation and registers
the association with the ‘register of associations’.
Satzung
9 Membership fees
9 Certification of resolutions (recording of minutes) § Protokollierung
Vo
Vo
rs
rs
tan
tan
Vo
Vo
rs
rs
rs
rs
tan
tan
tan
tan
are sufficient.
d
d
d
d
Non-profit status
IMPORTANT: Donations
Associations must pay
close attention to their tax
obligations. The tax office Non-profit status is often applied for primarily so
can hold the board personally that the association can issue donation receipts.
liable if the association does However, it may only do so once it has received
not fulfil its obligations. a notice of exemption from the tax office.
After receiving the extract from the ‘register of associations’ from the Local Court:
9 Done J
e. V. and ‘register of associations’ status must be applied for at the tax office.
(Vereinsregister) If this is granted, the association receives
the so-called notice of exemption. Non-profit
e. V. means registered association. An
status has some advantages for associa-
association becomes a legal entity when it
tions such as tax concessions and the pos-
is entered in the register of associations at
sibility of collecting donations and applying
the competent local court. The association
for subsidies.
is then given the suffix e. V. and receives a
so-called extract from the ‘register of asso-
Fiscal Code (AO) (Abgabenordnung )
ciation’s and its own association register
number. The German Fiscal Code (AO) contains
important paragraphs on the subject of tax-
Corporate body and legal person ation of associations and non-profit status
(Körperschaft und juristische Person) for associations. Here, the law lists which
purposes may be considered non-profit.
An association belongs to the legal form
of a corporation. This is an association of
Notice of exemption (Freistellungsbescheid)
persons for a common purpose, which as a
legal person has its own legal capacity and This states that the association is exempt
is represented by association bodies. Asso- from corporation tax and is therefore a non-
ciation members are referred to as natural profit organisation. It certifies the exact pur-
persons, the association as an organisation pose (= which section(s) of the tax code) for
as a legal person. which the association is granted charitable
status. In the case of a new foundation, the
Non-profit status (Gemeinnützigkeit) certificate is valid (provisionally) for 3 years
from the date of issue. During this period,
Associations whose activities serve the
the first tax audit must be carried out, which
common good are designated as non-profit-
may take 1 or 2 years. Thereafter, the review
making. The aims of the non-profit activity
period can be extended to 3 years if the
may include the promotion of education and
association does not operate a commercial
upbringing, art and culture, environmental
business. A notice of exemption, if issued,
protection, animal welfare and nature con-
is valid for 5 years from the date of issue. In
servation, the promotion of international
order to receive this notice, the association
attitudes, tolerance in all areas of culture
must then submit a corporation tax return
and the idea of international understanding,
together with a surplus calculation as well
or the promotion of youth and assistance for
as an activity report and a statement of
the elderly. The requirements (purposes) for
assets and liabilities to the tax office.
non-profit status are set out in §§ 51–68 of
the German Fiscal Code (AO). The non-profit
The general assembly is the second compul- The board is elected at the formation
sory body, alongside the board of directors, meeting and then confirmed or re-elected
necessary for the existence and functioning annually by the general assembly. Like the
of an association. The general assembly is general assembly, the board is one of the
the structure of the association in which the mandatory organs of an association. With-
members make the fundamental decisions out a board, the association cannot act and
for the association. The formalities for the thus cannot exist. It represents the associ-
work of the general assembly, the condi- ation in and out of court and conducts the
tions for inviting members to the general association’s business; the BGB (German
assembly, the regulations for the agenda Civil Code) sees it in the position of a legal
and voting on it must be precisely regulated representative. In view of the importance
in the statute. of the board for the association, this area
should be comprehensively regulated in the
Statute (Satzung) statute, as the corresponding basic provi-
sions of the BGB are usually not sufficient.
An association that wants to be entered
This concerns both the election and the
in the ‘register of associations’ in order to
composition as well as the powers of
become a “e. V.” needs a written statute. The
representation of the board.
statute is therefore often referred to as the
“basic law” of the association. It is the task
of the association to draft the statute and
their content and to give itself a statute that
is suitable for the association. There, basic
provisions as well as the way in which the
association is to operate are laid down.
Tel (030) 23 98 93 91
Fax (030) 2 79 01 26
Mail kontakt@house-of-resources.berlin
www.house-of-resources.berlin
www.facebook.com/HoRBerlin
Authorship