The association can be described as a “old lady” centenary that is a charm. Indeed, created by the Law 1901, the latter has never known of modification. Association, unlike society, is a group of people “trained for a purpose other than to share the profits”. It is therefore non-profit-making.
There are 3 major types of associations:
- Undeclared associations, which are sometimes “collectives”: they have no legal personality,
- The declared associations, which have legal personality,
- Associations recognized as being of public utility, which have legal personality and wider recognition.
Why does this type of creation work so well? Wity tells you the 6 advantages of creating your association.
1) No capital to avoid financial constraints
While an LLC or a EURL require investments that will be blocked at a certain time, this financial constraint does not exist for the associations.
2) Reduced formalities for the fastest creation
Want to create your association? Very well, it will not take you more than 2 months. Indeed, you must:
- Manually fill in the statuses,
- Wear them to the prefecture (1/2 hour of waiting maximum …),
- Pay (two months later) the 36 euros of insertion in the Official Journal.
And here you have your association! You really can not make it any simpler, nor cheaper.
3) In association, which says: no salary, no social contributions
For a commercial enterprise, the appointment of a majority manager entails the obligation of flat-rate contributions. This is done even before the economic start-up of the company. The capital is then started automatically!
In association, if the president and the members of the board are volunteers then this does not involve the payment of contributions. It’s no more complicated than that.
(4) A very advantageous tax system up to a certain point
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, sale to be consumed on the spot ) or € 27,000 for consulting services.
However, if you exceed this threshold, your tax will be equivalent to that of commercial companies.
5) Very little accounting
For small associations, it is possible to be satisfied with minimal accounting. They will have to keep “revenue and expenditure” type of accounts. It’s okay, will you?
6) Hiring aids really important
Lastly, the State provides subsidies and special arrangements enabling the association to promote the hiring of able and incapable employees (disabled people).