Creating a non-profit Association (Loi 1901) in France

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Creating a non-profit Association (Loi 1901) in France

An Association Loi 1901 is the term used in France for a non-profit-making organisation of two or more people. The name comes for the convention having entered into French law on 1 July 1901. 

A non-profit association created in France can function without being declared. In this case it does not exist as a legal entity and falls under the collective ownership of all its members.

However, the association must be declared if a bank account is needed, if it collects membership fees or arranges fundraising, or if the members undertake any legal action or buy or sell on its behalf. 

Declaration requires the following:

• Declaration with the Préfecture or Sous-Préfecture
• Declaration of the association's creation in the Official Journal (Journal Officiel). The official journal is a daily paper edited by the French government containing legal information, official declarations and information concerning new associations

Note: In Alsace and Moselle, the situation is different. Click here for more information.

Declaration Procedures

Declaration is free. It should be made at the Préfecture of the department where the association is located.

The declaration must contain the following information:

• The exact name of the association followed by its abbreviation if there is one
• The object or aim of the association
• The address of the main office (a physical address, not post box)
• The full names, addresses, birth dates and birthplaces of the people in charge of the administration
• A copy of its statute dated and certified by at least two people or by the founder members (standard statutes are available from the Préfecture, they may be adapted)

Other information which may be included:

• The term of the association (usually declared as "unlimited")
• The language(s) to be used in any official documents or the association minutes

A receipt of declaration is sent by the administration within 5 days.

Official Journal

An application form to declare the creation of the association in the Journal Officiel can be filled in at the same time as the declaration is made. Publication of the new association must appear in the Journal Officiel within a month following the declaration at the Préfecture. 

There is a fee to be paid for this publication (€39,06 - January 2006)

Management and the AGM

The structure of the management team (president, treasurer etc.) can be arranged as best suits the association - there are no rules on this - although all members must be invited to attend an Annual General Meeting held by the Association's management.

Staff and salaries

Under certain circumstances and within particular restrictions, non-profit organisations may hire and pay employees with a Chèque Emploi Associatif, part of the simplified CE-TPE (Chèque Emploi trés petites entreprises) system for small employers.

• For full details see the AngloINFO INFOrmation Page Small Scale Employment and Employing Casual Labour in France

Modification or Dissolution of the Association

Any changes that occur in the Association must be declared at the Préfecture within 3 months. They should be noted in a register that the Association must be able to produce on request to the administrative and legal authorities. 

Changes made in the Association may be published in the Official Journal although this is not compulsory.

There are three kinds of dissolution: 

• Voluntary dissolution (dissolution volontaire)
• Legal dissolution (dissolution judiciaire)
• Administrative dissolution (dissolution administrative)

Alsace-Moselle

This region does not fall under the 1901 Association law. For associations with a head office in the Bas-Rhin, Haut-Rhin or Moselle, the magistrate's court is qualified to receive the inscription of an association. This must be followed by an announcement in a newspaper of legal advertisements.

The main differences from the Loi 1901 are:

• Seven people are necessary to create an association
• Associations can be profit making as long as they are not in direct competition with a business
• Profit-making associations may be subject to business tax

Further Information

• The Association Law of 1 July 1901
• Comprehensive information from the French Government website Service Public (in French)
• Institut du Droit Local Alsacien-Mosellan (in French)