Setting up an association under the 1901 Act: what are the steps involved?

The famous law on the contract of association was promulgated on July^1, 1901, allowing any citizen over the age of 16 to associate freely, without prior authorization. Freedom of association is recognized by the Constitution.

A 1901 law association is an agreement by which two or more people pool their knowledge or activities for a purpose other than profit-sharing. These are non-profit-making structures.

Each association is free to define its own rules and organize itself freely for a collective purpose. There are several types of association under the 1901 law:

• Declared associations are the most common category
• Unregistered associations require no formalities
• As an accredited association, you are entitled to a certificate issued by the administrative authorities, giving you a specific mission.
• An association recognized as being in the public interest pursues a specific objective and is authorized to raise funds.

Setting up an association is simple, and requires very few formalities.

Let's take a look at all the steps you need to know to set up your own 1901 association!

Step #1: Choose the address for your association's head office

The first step is to choose the address of your association'sregistered office. This does not have to be the same as the place where you carry out your activities. The domiciliation companies make it possible to separate these two addresses. Some départements have specific regulations governing the location of 1901 associations within their territory.

Domiciliation companies simplify the lives of association managers by offering useful day-to-day services: daily mail management, switchboard, administrative and legal assistance, meeting room rental, etc.

For example, this last solution is ideal for holding your annual general meeting.

This is the ideal, simple and inexpensive alternative to choosing the manager's personal home, or renting premises for an association. It is preferable to choose a stable head office to guarantee continuity of activities.

Step #2: Draft the association's articles of association

Each association must have its own articles of association. They must be drawn up jointly by all the founders. All the following elements must be mentioned:

• Its official name
• Address of head office
• The workings of management bodies
• The procedure for setting the agenda for shareholders' meetings
• Collection of contributions
• Conditions governing the resignation or exclusion of a member
• Executive compensation
• Conditions for amending the articles of association
• Conditions for dissolution

Step #3: Submit your administrative declaration file

The association's founding members must download and complete a preliminary declaration of association creation, to be sent to the prefecture of the département corresponding to the association's head office.

You can check that your declaration of creation has been published in the Journal Officiel des associations by downloading the publication certificate.

You must also open a dedicated bank account in the name of your association and take out a civil liability policy.

Any changes to your articles of association, management, acquisition of premises, opening of a new establishment or change of registered office must be notified to the relevant prefecture. This must also be the case for certain events you are likely to organize, such as public demonstrations, gatherings, organized sporting events, etc.

The Law of 1901 makes it particularly simple and attractive to set up associations in France. The fact that there are no financial constraints is a further advantage, enabling many virtuous initiatives to flourish in every region of France. Like so many others in the past, it's your turn to take the plunge!