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Advantages of Non-Profit Organization

The association can be described as a century-old “old lady” who wears herself like a charm. Indeed, created by the 1901 Law, the latter has never been amended. The association, unlike society, is a group of people “formed for purposes other than profit sharing”. It is therefore a non-profit organization.

There are 3 major types of associations:

Undeclared associations, which are sometimes “collectives”: they have no legal personality,

Declared associations, which have legal personality,

Associations recognized as being of public utility, which have legal personality and broader recognition.

Why does this type of creation work so well? Wity explains the 6 advantages of creating his association.

1) No capital to avoid financial constraints

While a LLC or EURL requires investments that will be blocked in the bank for a certain period of time, this financial constraint is a major factor.

2) Reduced formalities for a faster creation

You want to create your association? All right, it won’t take you more than two months. Indeed, you must:

Manually fill in statuses,

Take them to the prefecture (maximum 1/2 hour waiting timeā€¦),

Pay (two months later) the 36 euros of insertion in the Official Journal.

And now you have your association! It really can’t be any easier or cheaper.

3) In association, which says: no salary, means no social contributions

For a commercial company, the appointment of a majority manager entails the obligation of flat-rate contributions. This is done even before the company’s economic start. The capital is then automatically started!

In association, if the president and the members of the board are volunteers then this does not involve the payment of dues. It is no more complicated than that.

4) A very advantageous tax system to a certain extent

Indeed, associations benefit from a tax, VAT and CFE exemption if the turnover for the year is less than 76 300 euros (sale of goods, accommodation services, on site consumption) or 27 000 euros for consulting services.

However, if you exceed this threshold, your tax liability will be equivalent to that of commercial companies.

5) Very low constraint on accounting

For small associations, it is possible to keep the accounting to a minimum. Indeed, they will have to keep “income and expenditure” type accounts. All right, can you do it? šŸ˜‰

6) Really substantial hiring subsidies

Finally, the State provides subsidies and special mechanisms enabling the association to promote the hiring of able-bodied and unfit employees (people with disabilities).

And here we are, if you are not convinced with all this, you can also contact one of our Wity advisors to receive more information about the associations.

Creating an association: Benefits and simplified formalities

There are three types of associations: declared, undeclared and recognized as being in the public interest. What they have in common is that the 1901 law governs their creation and operation.

This law thus allows a group of individuals of at least two people to associate without any prior authorization. Except in the case of certain individuals in a special situation (minors, adults under guardianship, etc.). Moreover, although an association may receive money, it does not allow its founders to benefit from it. It is then legitimate to ask the question: why create an association? What are the benefits?

Creation of an association: Formalities

It should be noted that in order to create an association 1901, its statutes must be drafted. These will make it possible, in particular, to obtain the status of a legal person. The next step is to publish it in a JOAFE (Official Journal of Company Associations and Foundations) and make a declaration to the prefecture or sub-prefecture where its registered office will be located. This declaration may be made on plain paper and must include the following information:

The name and purpose of the association.

The address of the registered office and other premises available.

The names, addresses, professions and nationalities of the members responsible for the administration of the company.

Failure to declare an association is not mandatory, but it has several consequences in its legal management (de facto association). Among other things, it will not be able to apply for subsidies, its legal capacity is null and void, etc. Similarly, contracts with third parties will only be binding on the signatories.

The advantages of forming an association.

A simple and fast procedure.

As mentioned above, setting up an association is relatively simple: drafting the statutes, publishing a notice, filing with the administrative servicesā€¦ It should be noted that filing can be done remotely from an e-creation teleservice for a significant time saving.