Broadly speaking, an incorporated association gives small groups an alternative to forming a company. Similar to a company, an incorporated association is a separate legal entity from the members of the association. Generally speaking, any association can trade, however generating a profit will not usually be the main objective of the association and any profit that is made is usually reinvested back into the association rather than being distributed to the members of the association.
Generally, an association is formed from a small community group. For example, the association could be a group such as a hobby association, an industry association, a sports association or some other form of general interest group.
An incorporated association can:
- Sue another organisation or be sued;
- Continue irrespective of any changes that occur to the membership of the association, subject of course to the terms of any constitution or rules of the association; and
- Enter into contractual dealings with respect to the acquisition or holding of property.
Whilst incorporation of your association may not be necessary, it may be prudent to seek legal advice from an associations lawyer on whether the incorporation of your association is appropriate in your circumstances.
If you are considering setting up an association for your group, there are a number of important legal considerations that need to be contemplated before you decide that an association is the right entity for your group. Our association lawyers have been assisting groups in setting up their associations for over a decade and we have the experience and expertise required to guide you through the setup process of your association.
If you would like to discuss setting up an association for you club or group, you can contact our head office in Sydney to arrange a meeting with our association lawyers. Generally, we will meet with you in our Sydney CBD office.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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