Comprehensive Assistance for Associations

Introduction

An Association is simply the tool to channel the means and resources we need to satisfy prior needs or desires. Therefore, throughout its life, each Association will require a series of different services depending on the purposes pursued and the activities to be carried out. In this regard, the IN DIEM TEAM can provide comprehensive assistance to those associations wishing to benefit from our acquired experience.

Are Associations required to pay taxes?

The answer is that it depends on the activity each Association will carry out. In principle, by the mere fact of existing, an Association does not have to pay any tax. However, if it is going to carry out any economic activity, even if it is not for profit, it may incur certain obligations to the Tax Authority.

For example, if you intend to set up a supporters’ club for your favorite team, organize concerts, theater performances, or similar events, it will be common to have a bar to serve alcoholic or non-alcoholic beverages, or even food.

Each time we provide a service or deliver something—even a can of soda—to members or the general public, an economic activity is being carried out, and as a consequence, the Association must: be registered in the Census of Entrepreneurs and Withholding Agents, have a Tax ID, and file the appropriate VAT return corresponding to the services provided or products sold.

Additionally, Associations with a very high volume of income from their activity will have to file a Corporate Income Tax return.

Can I hire employees?

Yes. An Association is a legal entity with full capacity; therefore, it can hire employees. In many cases, it will be necessary to staff the bar, operate certain equipment, maintain the premises, or promote the Association.

If you have employees on payroll, the Association must, in addition to observing the aforementioned tax obligations, fulfill its obligations to Social Security. Likewise, if you need to address needs that arise only occasionally, you can contract the services of third-party companies; for example, organizing catering.

So… What services can IN DIEM Lawyers offer me?

Depending on the purpose the Association pursues, there will be different needs, so making an exhaustive list is almost impossible. However, we will provide here a summary by subject matter of the most common services.

Administrative Procedures and Administrative Litigation.

• Minor and major construction permits.
• Authorizations for public land occupation (installation of terraces or outdoor activities).
• Obtaining licenses for the sale of food and beverages.

Labor Advisory.

• Assistance in hiring personnel.
• Advice on obligations related to Social Security.

Civil Advisory

• Acquisitions, leases, and disposals of premises and assets.
• Advice on entering into insurance policies.
• Advice on entering into financial loans.
• Management of internal conflicts.
• Management of conflicts with third parties.

Criminal Advisory

• Defense in any type of proceeding in which the Association may be involved.

Exclusive Services for Associations

At IN DIEM Lawyers, we have extensive experience advising Associations of all types in their organization and internal operations. Some of the most requested services are:

Amendment of Bylaws

We know that everything changes over time, and after years of operation, an Association may wish to expand its activities, relocate its headquarters, include or modify the membership fee system, or establish new voting systems.

These changes can be extremely delicate and must be structured with the greatest possible guarantees. Therefore, we can prepare new bylaws tailored to the desired changes.

Drafting of Minutes and Certificates

Member meetings must be documented; this is a guarantee for administrators and a legal requirement for carrying out certain actions. It is common to require certificates of meeting minutes in which relevant agreements are adopted, or even the minutes themselves. Therefore, we can provide you with advice for preparing these documents in the optimal manner and in compliance with all legal requirements.

Assistance to the Board of Directors when making certain decisions, especially when these are of an economic nature, and even more so as the Association grows. Members of the Board of Directors may have doubts about the legal requirements for adopting an agreement, whether they need to consult or submit their decision for approval by the members, or about their liability in the event that the adopted agreement proves to be detrimental.

The IN DIEM Team can provide answers to all these questions and others of this nature.

Assistance to the General Assembly

Certain agreements may be especially complex and require detailed explanation to the members, or doubts may even arise regarding the majority required to consider an agreement validly adopted, the validity of the Assembly’s notice, or the minimum number of members—quorum—that must be present for a decision to be validly adopted.

Merger and Dissolution of Associations

When an association has reached the end of its useful life, it must be dissolved and its assets liquidated. Or perhaps, on the contrary, this end comes because it will merge with another Association.

In these cases, IN DIEM Lawyers has successfully completed numerous processes. We will discuss these matters further in the next article.

If you are a Member, a member of the Board of Directors, or are considering creating an Association and believe we can help you with any of the services described above, or with similar ones, we will be delighted to assist you.

Author: Francisco Javier Paredes Hermida

Specialist lawyers in Comprehensive Assistance for Associations | IN DIEM: Málaga, Seville, Madrid, Las Palmas de Gran Canarias, Almería, Huelva…

IN DIEM Lawyers has extensive experience and a high degree of specialization in the area of Civil Law related to Comprehensive Assistance for Associations and Foundations, offering clients the necessary advice at all times.

IN DIEM Lawyers has a team with experience in previous roles as Magistrate-Judge, State Attorney, Prosecutor, or University Professor, which will provide you with peace of mind and security, having the best team, competitive and highly prepared to achieve your objectives and meet your needs.

We are at your disposal for whatever you need. You can reach us through the IN DIEM Lawyers Telephone (+34) 901 900 071. For Urgent matters, you can reach us at the IN DIEM 24-Hour Emergency Lawyers Telephone: (+34) 610 667 452.

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You will find us in Seville, Madrid, Las Palmas de Gran Canaria, Málaga, Tomares, Coria del Rio, Dos Hermanas, Mairena del Alcor, Estepona, Marbella, Mairena del Aljarafe… it will be a pleasure to assist you…!!