The association
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Who is this legal form suitable for?
In Switzerland, an association as a legal form is suitable for groups of people who wish to pursue an idealistic purpose together, such as sports clubs, cultural associations, charitable organizations and other non-profit initiatives.
It offers a flexible structure, is easy to set up and enables members to realize their common interests and goals without the need for commercial gain.
Minimum capital
No minimum capital is required to set up an association in Switzerland. This makes it much easier to get started, as there are no financial hurdles to overcome.
An association is usually financed by membership fees, donations and, if necessary, public subsidies.
These sources of funding make it possible to cover the association's running costs and projects without the founding members having to contribute a certain amount of capital.
Purpose
An association can be founded for a variety of purposes, be it sporting, cultural, social or charitable.
The purpose is defined in the articles of association and must serve the common good. This means that an association may not pursue commercial goals, but must focus on the common interest and the promotion of its members or society.
The broad spectrum of possible purposes makes the association a flexible and versatile form of organization.
Number of people
At least two people are required to found an association in Switzerland. These people form the founding meeting, which adopts the articles of association and elects the association's bodies, such as the board of directors. The board is responsible for the management and administration of the association and usually consists of several members who cover different tasks and areas of responsibility.
Cooperation between the members is a central aspect of the association's life and promotes cohesion and the achievement of common goals.
Advantages
Founding an association has many advantages. One of the biggest advantages is the simple and inexpensive formation without minimum capital requirements. This means that common interests can be organized quickly and unbureaucratically. Associations also enjoy tax advantages, as they can be exempt from tax liability for non-profit activities.
The association structure also promotes democratic co-determination, as all members can be involved in decision-making processes.
In addition, the association makes it possible to pool resources and strengths in order to efficiently implement joint projects and goals.
Disadvantages
One of the disadvantages of an association is the administrative effort involved in its establishment and management. The creation and adaptation of statutes, the organization of general meetings and the management of finances require time and commitment.
Another disadvantage can be the dependence on voluntary work and donations, which can affect the financial stability of an association.
In addition, conflicts and differences of opinion between members can arise, making the work of the association more difficult. The non-profit orientation also restricts the possibilities of raising capital, as no profits may be generated and distributed.
Summary
In summary, founding an association in Switzerland offers a flexible and cost-effective way of pursuing common interests and implementing social projects. However, the advantages of simple formation and democratic co-determination must be weighed against the administrative effort and possible challenges in financing and coordinating members.
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