Across France and beyond, a host of associations abound. Joining forces, these collectives form around a shared goal: whether it's preserving the environment, combating ocean pollution, training guide dogs, distributing meals, promoting political ideals, or catalyzing sporting, artistic and cultural activities.
If you're thinking of setting up an association, even at local level, you need to know that you can choose between 4 different types of association, which differ essentially in their legal capacity. It' s important to choose the right association structure for your project. Here's an overview of the different types of association available.
Definition of an association
Article 1 of the law of 1901, which still governs associations today, defines these bodies in the following terms: "association is the agreement by which two or more persons permanently pool their knowledge or their activity for a purpose other than to share profits...".
It is clear from this definition thata certain amount of freedom is left to those who associate, in terms of both the association's object and its purpose. Nor is there any prohibition on making profits from an economic activity, except that they may not be distributed to members.
Article 2 of the law states: "Associations of persons may be freely formed without prior authorization or declaration...". In France, association is a constitutional freedom, and was confirmed by the Constitutional Council on July 16, 1971, following a bill to make the creation of an association subject to prior authorization.
The "de facto" association
If you're thinking of setting up a "de facto" association, it's essential to understand that it hasn't been officially declared, which means that no administrative steps, such as publication in the Journal Officiel, have been taken. You and the other founders have full control over its operation, and can dissolve it at any time. It's important to emphasize that this form of association is fully in line with Article 2 of the French Law of 1901.
The main advantages are undoubtedly the simplicity with which it can be set up, and the freedom enjoyed by members to establish their own rules. What's more, an unregistered association cannot be taken to court.
However, it should be borne in mind that it is not a legal entity, which means that it does not have the rights and obligations of a legal entity. This means that it cannot open a bank account, sign rental contracts, acquire property or benefit from name protection. In addition, it cannot accept donations, bequests, public subsidies or apply for approval.
Although this type of association may be suitable for small groups (minimum two people) for small-scale projects, it is important to formalize matters through an associative contract in which each member formally expresses his or her will. It should be noted, however, that the object of the contract must be lawful, in accordance witharticle 3 of the 1901 law, which stipulates that any association with illicit objectives, contrary to laws and morality, or aimed at undermining the integrity of the national territory and the republican system, is null and void.
Declared association
If you are in the process of setting up a "de facto" association, you can, if you wish, create articles of association, approve them at a general meeting and appoint yourself as officers. Once the minutes of this meeting, which has now become a constituent assembly, have been filed with the prefecture along with other documents, the undeclared association takes on a new form by becoming a declared association, which is the most common form.
Alternatively, if you are partners in a project, you can register your association directly. It's essential to publicize your activity by publishing the information in the Journal Officiel.
As soon as an association is officially registered, it automatically acquires a legal personality distinct from its members. This means it can receive membership fees through its own bank account, as well as donations and subsidies. It can also buy or rent premises dedicated exclusively to its activities. As a legal entity, it has the capacity to sue and be sued. A registered association is also entitled to hire and pay employees.
A non-profit association
If your already-registered association wishes to extend its legal prerogatives, it is possible to apply to the Ministry of the Interior for recognition as a public utility (RUP). This involves careful scrutiny by the authorities, but offers considerable advantages, not least the possibility of receiving donations and legacies exempt from certain transfer duties, as specified inarticle 795 of the French General Tax Code. What's more, an association with this status enjoys extended powers, such as the management of state-owned property.
In the associative landscape, the label of public utility confers greater legitimacy. However, to obtain this status, the association must demonstrate sound financial management over a period of generally 3 years prior to application. Various conditions must also be met, including :
- complete bookkeeping,
- a solid financial base,
- bylaws ensuring democratic operation,
- a scope that goes beyond the local area,
- at least 200 members,
- a not-for-profit orientation,
- and an objective of general interest (such as a personal assistance service).
To begin the process, a file containing the documents listed inarticle 10 of the August 16, 1901 decree must be submitted to the Direction des libertés publiques et des affaires juridiques (Department of Public Liberties and Legal Affairs) in Paris. Obtained after a rigorous process, public utility status brings your association exceptional opportunities.
The approved association
An accredited association is one that has obtained government approval, testifying to the importance of its actions in the general interest. This approval is granted by various ministries, each according to its own specific criteria. For example, the ministry in charge of the environment issues approval to environmental protection associations, while approval for popular education is the responsibility of the ministry in charge of associative life, and so on.
Thanks to these ministerial approvals, approved associations obtain special benefits: subsidies, authorization to carry out specific activities, and tax advantages, to name but a few. It's important to note that this type of association is not mentioned in the 1901 law; it stems from more recent legislation, namely the 2012 law on simplifying the law and streamlining administrative procedures.
If your association wishes to obtain this approval, it must submit an application to the relevant ministry, meeting three conditions:
- have a general interest objective,
- operate democratically, regularly involving its managers in consultations,
- maintain transparent and compliant accounting.
Once these criteria have been validated, your association will be registered in the Répertoire national des associations, making its status as an approved association official.