Creating an association: the complete guide

Are you looking to expand your association? A number of steps need to be taken, particularly in view of the special characteristics of associations, and the rules and obligations to which they are subject.

But what is an association?

According to the 1901 law on freedom of association, an association is a group of voluntary individuals who come together around a project or share activities, without a profit motive.

To help you develop your association, we focus today on the steps involved in setting up an association.

Creation stages

There are 4 main stages in setting up an association.

Defining the name of the associative structure 

The name or title of the association is usually freely determined.

There are a number of rules that must be observed:

• The company name must be composed exclusively of characters from the alphabet and may not exceed 250 characters, including spaces.
• It's important to check that the name you're thinking of using isn't already in use by another association, business or institution.
• The proposed name must not be confused with the name of another person or entity.
• An association cannot be a protected name such as those used for trademarks registered with the INPI (Institut National de la Propriété Industrielle) .
• An association may not use certain terms reserved for other categories of legal or natural persons, such as foundations.

Once a name has been found, it's time to take steps to protect your company's name with the INPI.

Determining the association's registered office

There are several ways to domicile your association.

The registered office can be located :

• At the home of one of the association's members. Please note that such domiciliation is only possible for a maximum of 5 years, whether the member is the owner or the tenant.
• In a town hall or community building. In order to obtain such a domiciliation, it is necessary to address a request directly to the town hall concerned.
• In its own premises, whether rented or purchased by the association.
• With a domiciliation company.

Drafting an association's articles of association

Next, it's time to start drafting the articles of association. These are the founding document of the association, and are intended to commit the various signatories to each other. Drafting the articles of association gives the association "contractual freedom".

However, several clauses must be included in the body of the bylaws:

• The name of the association
• Its purpose
• Head office

It is also possible to add bylaws to the articles of association, which will complete all the aspects missing from the articles of association. These will specify the conditions governing the association's internal operation.

Declaration of the association

You can apply online, by post or direct to the Préfecture de Police in Paris, or to the Registrar of Associations at the prefecture or sub-prefecture in other départements.

It must include a number of documents:

• The name of the association
• The acronym
• The object
• Head office
• Information about the association's directors

Please note that such a declaration must be accompanied by a copy of the company's articles of association, as well as a copy of the minutes of the founding meeting.

Publication in the Journal Officiel des Associations et Fondation d'Entreprise (JOAFE) is also required, automatically registering the association with the Registre National des Entreprises (RNA).

Finally, if the association intends to employ staff or carry out activities requiring the payment of commercial taxes, it is necessary for the association to register with the Sirene register managed byINSEE.

Special features

Secondly, we need to look at the specific characteristics of an association.

These are as follows:

• No minimum share capital. The association has the advantage of not requiring a minimum share capital or any incorporation costs.
• Being an associative structure means you benefit from very few formalities when setting up your business.
• No social security contributions are required.
• Being an association also enables you to benefit from tax breaks for small businesses. Indeed, associations are not only tax-exempt, but also VAT-exempt, as long as their annual turnover is less than €82,800 for sales and €33,200 for services.
• But also to benefit from advantageous accounting.
• State-subsidized hiring aids for disabled employees are also available.

Opting for an association offers a number of significant advantages

Obligations and rules

Finally, we need to look at the obligations and rules governing associations.

There are two main ones:

• Profile of founders: a minimum of two founders is required to develop an association. This number can be as high as 7 in Alsace-Moselle. Founders must also be at least 16 years old.
• The aim of the project must comply with the conditions set out in the Law of 1901, in particular with regard to the non-profit nature of the project. As a result, an association's profit motive cannot be an end in itself, but can only be asserted as a means to achieving the association's objectives. A project whose main aim is to make a profit should be a company, not an association.

In conclusion, to set up an association, you need to take all the necessary administrative steps, and in particular make sure that your project meets all requirements and regulations.