What exactly is an association and why start one?
An association (NGO/NPO) is not a standard company. It doesn't exist primarily to make money, but rather to bring together people who share a common vision! Whether it's a sports club, environmental protection, or culture – an association is a legal form enabling collective action.
Basic characteristics
An association is a free and voluntary grouping of physical or legal persons. The focus isn't on getting rich! If the association generates a surplus (e.g., via memberships or donations), that money isn't paid out as profit to members, but must be reinvested into its primary goals.
How to start one?
- Only three founders are needed: Gather three people with the same idea and you're set to go.
- Founding assembly: This is a meeting where you draft the Statute (the rulebook). You define your goals and management board.
- Registration: Take your documents to the local government office to become an official legal entity!
With this, you become an official organization and can operate normally with your own bank account!
Can associations pay salaries?
Absolutely! Even though it's non-profit by nature, an association can hire employees. People running daily operations can be formally employed and receive a standard salary, which is taxed exactly the same way as in any regular enterprise.