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How to set up an association under the 1901 Act

You're at least two people with shared values and a concrete project, aren't you? If so, you can join forces to create an association under the French 1901 law. Rest assured, the French government and various specialized websites will help you throughout the creation process. Then, dedicated association software tools come into play: accounting management, membership and subscription tracking, receipt of donations... All this is managed in an integrated way to make your day-to-day life easier.

It would be an exaggeration to say that setting up an association is child's play, but it's within everyone's grasp. All you need to do is familiarize yourself with the regulations in force and proceed step by step.

How do you go about setting up an association under the 1901 law? That's precisely what we're going to explore here.

An association under the law of 1901

The law of July 1, 1901 still defines an association as follows: "An association is a convention by which two or more persons permanently pool their knowledge or activity for a purpose other than sharing profits.

There is no strict pre-established framework; associations are free to organize themselves as they see fit, provided of course that their intention is legal. The articles of association play a decisive and binding role. The general rules of contract law apply. Careful drafting of the articles of association is therefore essential. Founders are well-advised to consider the specific features of their association, as there are no standard statutory models. Only a few associations are obliged to adopt a predefined model for their articles of association (this is the case for associations recognized as being of public utility, for example). However, the majority are obliged only to state their name, object and registered office.

There are few constraints on forming an association. You must be over 16 years of age, have at least two members and be non-profit-making. No authorization is required.

Steps to follow when setting up an association

You're planning to set up your own association, and you're probably wondering where to start. Rest assured, it's a process that may seem complex, but with the right information, you'll be able to follow these 5 essential steps.

1. Choice of name, purpose and registered office

This involves choosing a name that reflects the spirit of your association, specifying its object (the reason for its existence) and defining its registered office, i.e. its official address.

It's crucial to consider the choice of name carefully. It's a good idea to check the INPI website to make sure the name you're considering isn't already in use. You should also make sure that it will not be prejudicial to any person or organization. It's good to know that you can protect your name by registering it with INPI.

As for your association's purpose, it must comply fully with the law. Illegal activities are out of the question.

When it comes to headquarters, you have a few options. It can be located at the home of one of the founders, in a rented or shared space, or with a domiciliation company. However, a P.O. box is strictly forbidden. Take these factors into account carefully, as they play a major role in the successful launch of your association.

2. Free drafting of articles of association

Particular care must be taken when drafting the articles of association. In the absence of legislation, this contract is authoritative. It sets out the structure's operating rules, determines the powers of each member, the conditions for admitting and expelling members, the allocation of assets in the event of dissolution...

To ensure the solidity of your articles of association, we recommend that you take inspiration from an official example provided by the French Ministry for Associations. Although the wording is flexible and does not require any particular form, be careful not to include information that could become obsolete, such as the membership fee or the address of a founder, as these details will remain valid until the association is dissolved. The initial articles of association can also envisage future possibilities, such as owning real estate, for example. This will avoid having to rewrite the articles of association should such a situation arise.

It's important to note that some associations have specific obligations regarding their articles of association. They must, for example, indicate whether they provide services or sell products, conform to a particular model of articles of association, or submit their articles of association to a government ministry for approval. This step is therefore of major importance in the creation and structuring of your association.

3. Appointment of managers

Identify the people who will play key roles in your association, such as president, treasurer...

Your association's articles of association play an essential role in defining the way in which your governing bodies are appointed, whether by election or nomination. In general, the governing bodies include the General Meeting, the Board of Directors and possibly the Executive Committee, although the latter is not always present.

One obligation is to appoint at least one legal representative. The president plays a central role in running the association, and is often its external representative. The treasurer is responsible for managing the accounts, while the secretary handles administrative tasks.

Understand that setting up these roles and responsibilities is fundamental to the smooth running of your association. As you move through the process, you'll see that appointing these leaders is a key step in achieving your association's goals.

4. Declaration to prefecture (optional)

You may be wondering whether it's compulsory to register your company with the prefecture or sub-prefecture. Although optional, it is essential to obtain the necessary legal capacity. When an association is officially registered, it is considered an independent legal entity in its own right. This enables it toopen a bank account in its own name, acquire property, receive public donations and subsidies, among other benefits.

You can register your association online, directly on the public service website. You will find the Cerfa n° 13973 04 and Cerfa n° 13971 03 forms. 

When you submit your application, it must include a copy of the articles of association, a copy of the minutes of the founding general meeting, and the completed Cerfa forms.

When the application is complete, the Registrar of Associations registers it in the RNA (Registre National des Associations). This is an important step towards the legal formalization of your association, and it is with this act that your association can begin to fully exercise its role.

5. Publication of a notice in the Official Journal (if declaration)

As with all business start-ups, publication in an official journal heralds the official start of your organization's legal existence. It's worth knowing that publication in the Journal officiel des Associations et Fondations d'Entreprises(JOAFE) has been free of charge since January 1, 2020.

At every significant moment in your association's history, a publication in this journal will be necessary. It's an important means of formalizing and communicating the major developments that mark the evolution of your association.