Association

An association is a partnership between two or more people (members) who wish to realize a certain objective. An association is allowed to make a profit, but the profit must be used for the common goal. The objective must not be to disturb law and order or to challenge public morality. Profits may not be divided amongst the members.

There are two sorts of association:

• Associations with complete authority under the law: the association is established with articles of association drawn up by a civil notary. The association has to be registered in the Chamber of Commerce trade register.
• Associations with limited authority under the law: the articles of association are not drawn up by a notary. The associations can register in the trade register but this is not compulsory. 

Taxes
An association that runs a business pays corporation tax on the profits. Deciding whether or not turnover tax (BTW) has to be paid can be quite complex. It is advisable to consult an expert, for example the tax authorities.

Liability
Once an association with complete authority has been registered in the trade register, the executives and members are not liable for obligations. Once an association with limited authority has been registered in the trade register, the executives and the association are jointly and severally liable for the agreements entered into by the executives. If the association is not registered, the executives are jointly and severally liable.