Founding an association
An association is a non-profit legal entity. This legal form is established for a specific purpose. Often an association is formed to share a common hobby. An association may not distribute profits to its members.
How do I set up an association?
An association must be formed by a minimum of two people. An association can be established privately or by notarized deed. With a private incorporation, the incorporation of the association takes place by oral agreement or by private deed. For incorporation by notarized deed, you need to go to a notary. The choice is up to the founders. However, there is a difference in legal consequences between incorporation by notary and by private deed.
The certificate of incorporation
The certificate of incorporation of an association must include the association's bylaws. In the bylaws, the notary will include at least the following information:
- the name of the association;
- the municipality in the Netherlands where it is located;
- the purpose of the association;
- The method of appointment and removal of directors;
- the appropriation of the surplus balance upon dissolution or the manner in which the appropriation is to be determined.
The obligations and powers of the board are also often included in the bylaws.
Legal capacity of association
Current legislation grants legal personality to all associations, but at the same time distinguishes between full and limited legal capacity:
- associations with full legal capacity have had their bylaws recorded in a notarized deed;
- associations with limited legal capacity are the other associations.
Legal capacity means that the association is an independent bearer of rights and obligations.
Association with full legal capacity
An association with full legal capacity can have the same rights and enter into obligations as any (adult) citizen. Thus, such an association can acquire registered property (immovable and/or movable property registered with the Land Registry), take out money loans and even be an heir. Subsidizing agencies often require that the association to be subsidized have full legal capacity.
Association with limited legal capacity
A limited liability association is limited in its rights in two respects:
- This association cannot acquire title to registered property (for example, its own building) nor be an heir; however, it may accept bequests (money or property left by a deceased person to someone outside the circle of heirs).
- The directors are personally liable for debts (sometimes even beyond their retirement as directors) in addition to the association.
Why choose Marks Wachters notaries?
- Personal
We combine high-quality service with personal attention. - For over 75 years
A household name in Greater Eindhoven and Nuenen since 1949. - Clear
We communicate in understandable language and avoid unnecessarily difficult language.
We are also happy to help you with:
Personal and non-committal
Do you want to form an association?
Would you like more information about forming an association? Or do you need a no-obligation introductory meeting?
