Association Law

An organisation (organised group) is defined as a voluntary association of natural or legal persons (entities) created to achieve common goals. As a result, organisations include associations in particular. In most cases, organisations choose the legal form of a registered association. Therefore, for instance, the rules for the creation and dissolution of an association can be applied to other types of organisations as well. Organisations often create a strong economic position to represent common interests. A statute of an organisation contains primarily an organisational structure. The interests of individual members are put together in order to achieve common goals. Due to the complexity of the organisation law, one should consider getting a legal advice in advance. In addition, lawyers can provide you comprehensive advice in terms of statutory and legal issues, as well as regarding the liability of the members of the board.

The association law regulates the establishment and organisation of associations. The right to create associations is protected by law. There is a distinction between a registered, an unregistered and an economic association/society. This classification is based on the association purpose. Anassociationis characterised by cooperation of its members for certain duration, for a common purpose and under a common name. The association is represented by the board. The establishment of anassociation/society may also be useful for tax purposes. Among the reasons of establishment one can call the exemption from income tax and trade tax in case of public recognition of its usefulness. In addition, non-profit organisations may claim reduction of VAT. The establishment of an association should be well planned in every case, because it entails specific legal consequences. For this reason, it is not advisable to proceed without prior legal advice. In addition, lawyers can help you draw up a memorandum of association (a statute).

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