Creating an association: the complete guide

Want to develop your association? You'll need to take a number of steps, especially because of the unique characteristics of associations, but also with regard to the rules and obligations they're subject to.

But what is an association?

According to the 1901 law regarding freedom of association, an association is a group of volunteers who come together around a project or share activities, without the goal of making profit.

To help you develop your association, today we're focusing on the steps involved in creating an association.

Creation steps

We can identify 4 major steps in the creation of an association.

Defining the name of the association structure 

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

However, there are still a few rules you'll need to follow:

• The company name must only consist of characters from the alphabet and cannot exceed 250 characters, including spaces.
• Double-check that the name you want isn't already being used by another association, business, or establishment.
• The proposed name must not cause confusion with the name of another person, whether legal or natural.
• An association cannot be a protected designation like those of trademarks registered with the INPI or National Institute of Industrial Property.
• 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 is possible to take steps to ensure the protection of the company name with the INPI.

Determining the association's registered office

There are several options for domiciling your association.

Thus, the registered office can be located:

• At the home of one of the association's members. Please note that such registration is only possible for a maximum period of 5 years, whether the latter is an owner or a tenant.
• In a town hall or communal building. To get this type of registered address, you need to apply directly to the town hall concerned.
• In a dedicated space, whether rented or purchased by the association.
• From a domiciliation company.

Drafting the articles of association for an association

Next, it will be essential to tackle the drafting of the articles of association. Indeed, such articles of association constitute the founding act of the association and aim to commit the various signatories to each other. The drafting of the articles of association makes it possible to have a "contractual freedom".

However, several clauses must be included in the articles of association:

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

You can also add internal regulations to these articles of association, which will fill in any missing details. This will help clarify the conditions related to the association's internal operations.

The declaration of the association

It can be done online, by post, or directly with the Police Prefecture for Paris, or with the association registry located in the Prefecture or sub-Prefecture in other departments.

It must include a number of documents:

• The name of the association
• The acronym
• The purpose
• Head office
• Information relating to the association's administrators

It should be noted 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 constituent assembly.

A publication in the Official Journal of Associations and Corporate Foundations (JOAFE) is also required, which automatically registers the association with the National Register of Companies (RNA).

Finally, if the association intends to employ staff or carry out activities requiring the payment of commercial taxes, it must register with the Sirene directory managed by INSEE.

Specificities

Next, you'll need to look into the specific characteristics of an association.

These are the following:

• No minimum share capital. The association has the advantage of not requiring a minimum share capital or any formation costs.
• Being an association means you can benefit from very simple incorporation formalities.
• There are no social security contributions to pay.
• Being an association also means you can enjoy a lighter tax burden for small activities. Associations can benefit from tax and VAT exemptions if the structure's annual turnover is less than €82,800 for sales activities and €33,200 for service provision.
• But also to benefit from advantageous accounting.
• Government assistance for hiring employees, particularly for hiring disabled employees, is also available.

Thus, opting for an association allows you to benefit from significant advantages.

Obligations and rules

Finally, it's important to look at the obligations and rules relating to associations.

Here are two main ones:

• Profile of the founders: An association needs at least two founders to get going. This number can reach 7 in Alsace-Moselle. The founders must also be at least 16 years old.
• The project's goal must comply with the conditions set out by the law of 1901: particularly regarding the project's non-profit nature. Therefore, an association cannot aim to make profits as an end in itself, but only as a means to achieve the association's objectives. A project whose primary goal is to make profits should be a company, not an association.

In conclusion, in order to create an association, it is necessary to carry out the administrative procedures correctly and, in particular, to ensure that the project meets the requirements and regulations.