Association

Associations in Switzerland are, like cooperatives, often linked with charitable notions. An association is a voluntary and long-term association of natural persons and corporate bodies. There is no precise information about the number of existing associations in Switzerland since there is no obligation for them to register at the commercial registry. In terms of numbers, the association is definitively the most important legal structure next to the stock corporation. Since associations must pursue an “ideational or charitable purpose“, they are badly suited for the operation of a company.

Associations come into existence through a foundation meeting, during which the statutes are approved and the organs are constituted. Associations that are intended to generate profit have to be registered at the commercial registry.

Advantages		Various tax advantages No liability for association members No initial capital
Disadvantages		Bound to a specific purpose

Legal Status		Corporate body, association of individuals
Gesetz		Article 60 ff. ZGB
Name		Freely selectable
Number of Founders		mindestens 2
Capital		No minimal capital
Organization		1) Association meeting 2) Board (administration, composed of at least one member) 3) Auditors
Liability		Association assets; statutes may allow for reserve liability of association members.
Tax		The association is responsible for assets and profits; may under certain circumstances enjoy tax benefits.
Management		By association board, if not delegated to a third party.
Residential regulations		None