Associations

The association is a self-governing and voluntary union, whose members are guided by an interest in carrying out joint activities in an organized manner. The association can be founded by at least three members. No one may be forced to participate in the association and no one may be prevented from leaving it.

The main activity of the association cannot be business or other gainful activity. The activities of the association can only be the satisfaction and protection of those interests for the fulfilment of which the association is founded. The association may carry out an economic activity only as an ancillary activity. This profit from the activities of the association can only be used for the association's activities and administration.

Tax benefits of the association

Like other non-profit legal entities and organizations, a registered association also enjoys the following tax benefits, provided that it is also a public benefit taxpayer pursuant to the provisions of Section 18a et seq. Income Tax Act:

• Tax exemption for gift income
• Tax exemption for membership fees
• Income from gainful activity up to the amount of CZK 300,000 per year
• The possibility of drawing subsidies

We will arrange the following services for your association

• Establishment of a new association and its entry in the Association Register
• Transfer of a non-profit organization under former Civil Code to a registered association in accordance with the new Civil Code (NOZ)
• Changes, updates and modifications of the statutes of the existing association
• Election and registration of new bodies of the association
• Registration of your association at the tax office, health insurance company and social security administration
• Bookkeeping and payroll for your association
• Tax and legal advice on the use of the association
• Dissolution and liquidation of the association, including deletion from the federal register

Establishment of the association

In order to establish an association, it is necessary to draw up the statutes or a resolution of the constituent meeting of the association. It makes sense to hold a constituent meeting in the case of a larger number of members or members who are not known before the association is founded.

The statutes shall contain at least

• Name of the association
• Registered office of the association
• Purpose of the association
• Rights and obligations of the members towards the association, or the determination of the manner in which their rights and obligations will arise
• Designation of the statutory body of the association

The statutes must be deposited in full reading at the registered office of the association. The association will be established on the day of entry in the public register.

The proposal for entry of the association in the public register is submitted by the founders or a person designated for this purpose by the constituent meetings. The application form is available at www.justice.cz. The signatures must be officially verified, the application for registration of the association is not subject to a fee obligation and at least the following annexes must be attached:

• Record of the agreement of the founding members of the association on the content of the statutes, the choice of bodies and their members
• Consent of all persons forming the statutory body of the association with their entry in the federal register and a solemn declaration of autonomy and non-existence of bankruptcy, the signature on this document must be officially verified
• Current wording of the statutes of the association

Establishment and termination of membership in the association

Admission as a member is decided by the body designated by the statutes of the association or the highest body of the association. By accepting, the new member automatically undertakes to agree to its statutes. Membership in the association terminates by resignation, expulsion or other means specified in the statutes or in law.

Organizational structure of the association

The bodies of the association are the statutory body and the highest body, or the control commission, the arbitration commission and other bodies specified in the statutes. Authorities may be named arbitrarily, but their name must not give a false impression of their nature. Unless the statutes stipulate otherwise, the members of the statutory body are elected and removed by the highest body of the association. The term of office of the members of the elected bodies of the association is five years, unless the articles of association provide otherwise.

The highest body of the association

The statutes are determined by the highest body of the association. As a rule, its competence includes determining the main focus of the association's activities, deciding on changes to the statutes, approving the results of the association, evaluating the activities of other bodies of the association and their members and deciding on liquidation or transformation of the association. Unless the statutes stipulate otherwise, the membership meeting is the highest body of the association.

The existence of the control or arbitration commission are not mandatory, they are established only for the purpose of internal control.

The statutory body can take a collective or individual form. In the case of the collective form, it is a committee. If it has an individual form, we can talk about the chairman of the association.

Establishment of the association for as little as CZK 6,900 + VAT!

Your association will be established by our consulting company Valian.cz professionally and quickly without unnecessary paperwork and delays. We will tailor the statutes of the association to you and we will solve all other requirements, including entry in the public register.

If you do not have a headquarters for your association, you can choose from our offer of virtual registered offices throughout the Czech Republic, which also applies to associations. We also offer bookkeeping to all registered associations.

Branch association

It may be necessary to separate some tasks from the scope of the main association's activities. In such a case, it is possible to use the possibility of establishing a branch association. The statutes may establish a branch association as an organizational unit of the association or determine how the branch association is established and which body decides on the establishment, dissolution or transformation of the branch association.

Transfer of a civic association to a registered association

If your civic association is not as yet transferred to a registered association, as required by the New Civil Code (NOZ), you can use our services and order from our company Valian.cz all administrative matters related to the transfer to a registered association.