Create association

What is an association?

An association is an association of a number of people, organisations, institutions, companies or the like that have a common interest that they want to promote, disseminate or cultivate. There are five types of associations:

1. Limited Liability Associations ( F.M.B.A. )

2. Voluntary associations

3. Ordinary associations

4. Andelsboligforeninger

5. Special associations

Common to all of them is that there is more than one member and the members have entered into an agreement on the purpose of the association, typically in the form of statutes. The supreme authority of the association will be the general meeting, where all members can attend and vote, most often with one vote each. In addition, there will be a board of directors to manage the association between general meetings elected by members. Some association types require one CVR number and must therefore be registered with the Danish Business Authority at Virk.dk.

What is the difference between a regular and voluntary association?

As we mentioned there exists five different types of association in Denmark, the two most widespread of which are voluntary associations and ordinary associations. These are also the two types of association you can create with DKkonsult.

Voluntary association

Voluntary associations can have many different purposes. Some of the most common purposes are sports associations, non-profit housing associations and cultural associations, each dealing with something specific in their field.  

A voluntary association is characterised in that it can decide for itself whether it will register with the Danish Business Authority and receive a CVR number or not. In principle, a voluntary association does not have a duty to pay or disclose to the public. However, if a voluntary association wishes to apply for a financial grant, it is a requirement that the association create a CVR number and an independent bank account. 

When you set up your voluntary association at Legal Desk, we always make sure you get a CVR number as well. Then you can always apply for grants if it should become relevant. The CVR number of voluntary associations must be renewed every 3 years, but this will automatically receive a reminder by mail. If you later need your voluntary association to be registered for VAT or to hire employees, you also have the opportunity to re-register it to a regular association.

If an association’s turnover is more than DKK 50,000 or has tax or tax duties, it can no longer be described as a voluntary association.

Ordinary association

A general association is also known as a “ non-profit association ”, since the purpose of this type of association must not be to promote the financial interests of its members. Typically, ordinary associations will have charitable purposes such as relief organisations, non-profit organisations and sports associations if the association’s turnover exceeds DKK 50,000, as it can no longer be classified as a voluntary association.

The earnings that the association may have must be used to promote the purpose of the association and not be paid as dividends to the members. If the association has tax and / or tax duties – which all ordinary associations will have – it is forced to register and obtain a CVR number. If the association does not have these duties, it is a voluntary association.

The purpose of an association

If you decide to create an association, it is usually based on some common interests or activities you share with the other members. The exact purpose of an association depends on the members, but it may be a good idea to determine one particular so that everyone has the same starting point for signing up. What, for example, do you basically want with the association? What values is the association built on and what are you going to work for?

It is an advantage for your association to have a specific purpose if you want to register your association with or apply for a grant from the municipality.

How do I create an association?

Since there is no association law in Denmark, there are only limited rules for associations, and how they are created. However, to create the best circumstances for your association going forward, there are some formal requirements that you are recommended to meet. The most important requirement is that a set of statutes be drawn up for the association. The statutes must describe the following:

• The type of association
• Purpose of the association
• Who can join
• Enrollment and cancellation 
• General Assembly
• The Association’s Board of Directors
• Financial year
• drawing rule
• Amendments to the Articles of Association
• Resolution of the association
• Association information ( address etc. )

Once the founders of the association have decided on the above, the association is ready to be established. The final creation of the association occurs by gathering all the founding members – as well as potentially possible members – into one founding general meeting, where the statutes are adopted.

When you create your association with DKkonsult, you also receive a general meeting report, which you will need for the founding general meeting.

After the founding general meeting has been held and the attendees agree on the content of the articles of association and have signed the general meeting minutes, the association is officially established. However, the association’s statutes must be inscribed in a document before they are legally applicable. This also happens automatically when you create your association with DKkonsult.