What is the difference between a registered and an unregistered association?
March 22, 2022 | 50,00 EUR | answered by Roberta Lahn
Dear lawyer specializing in association law,
My name is Ulrike Gehrmann and I am an active member of a nonprofit organization dedicated to environmental protection. Lately, we have been facing increasing issues with the legal recognition of our association and I am unsure whether we are considered a registered or unregistered association.
Currently, we are only organized as a loose group of individuals and have not yet made a formal entry in the relevant association register. This means that we do not have a legal personality of our own and therefore are not legally recognized as an association. However, our bylaws have been approved by the members and we have clearly defined charitable goals.
My concern is that as an unregistered association, we may have certain legal disadvantages and could potentially face liability risks or tax issues. Therefore, I would like to know the exact differences between a registered and an unregistered association and the respective advantages and disadvantages of each.
Can you provide me with possible solutions on how we can legally secure our association? Is there a way to retroactively register our association with the association register or do we need to start a new registration process? I would greatly appreciate your support and expertise in this matter.
Thank you in advance.
Sincerely,
Ulrike Gehrmann
Dear Mrs. Gehrmann,
Thank you for your inquiry regarding the legal recognition of your association and the differences between a registered and an unregistered association. I understand your concerns regarding potential legal disadvantages and liability risks that may arise from not being registered.
A registered association has its own legal personality, which means it has independent rights and obligations as a legal entity. On the other hand, an unregistered association does not have its own legal personality and is legally considered a group of individuals. This can lead to liability risks, as members of an unregistered association may be personally liable.
Another important difference concerns the authority to represent the association. A registered association can act validly and enter into contracts through its organs such as the board or managing director. An unregistered association, on the other hand, can only be represented by individual members, which can lead to legal uncertainties.
To legally secure your association, I strongly recommend registering with the relevant association register. This will grant you legal recognition as a registered association and minimize liability risks. While retroactive registration is possible, please note that the legal consequences will apply from the date of registration. It is advisable to seek advice from an experienced lawyer in this matter.
Additionally, you should review your articles of association and make any necessary adjustments to comply with association law requirements. Ensure that your charitable goals are clearly defined and comply with legal regulations. Establishing a board and defining responsibilities can also help make your association legally secure.
I hope this information is helpful and I am available for any further questions. Thank you for your trust and I wish you success in obtaining legal recognition for your association.
Best regards,
Roberta Lahn
