Sale of a civic association

The main advantage is the possibility to collect 2% of the tax already for this year. When establishing a new association, you could collect 2% of the tax only one year later. Other advantages include, in particular, the fact that after signing the documents for sale, you can immediately start using the association. It will be especially appreciated by clients who want to participate in the challenge (grant, subsidy, etc.) but do not have enough time to establish a new association. It currently takes the ministry about 60 days to establish a new association.

When buying an association, the minimum number is one natural person/member. Many people are familiar with the information that there must be at least three persons, but three persons are only necessary to establish a limited liability company. and its successful registration at the Ministry. However, after registration and thus after the establishment of the association, the minimum number of members is not determined by law. This means that after registration, only one person/member can be in the association.

The name of the civil association can be in the Slovak language as well as in a foreign language. The name may or may not contain an indication of the legal form (the suffix o.z., OZ, civil association). The name of the association must not be defamatory, offensive or interchangeable with the name of a public authority or with the name of another legal entity that is already active in the territory of the Slovak Republic. You can check the conformity in this link. You have to click on "continue without logging in", enter the desired name in the second field and click "Full text search...". If it doesn't find a match, the name is free.

The registered office of the association serves mainly as a correspondence address. You can have your seat in an apartment, house, or any other property. Most clients indicate the address of residence of one of the members as the registered office of the association. You are not obliged to carry out activities at the registered office address.

Public benefit activities - For the implementation or support of any public benefit goals, a civil association is the ideal choice, it is the most popular and most frequently established form of non-profit organization.

Lower taxes - Taxation of a civil association is significantly different from classic business companies, such as joint-stock companies or limited liability companies. If certain conditions are met, a large amount of income can be considered as tax-free income.

2% of the tax - One of the important financing options for a civil association is the possibility of collecting 2% of the tax paid by natural or legal persons. Take advantage of the opportunity to collect 2% of the tax.

Subsidies - For non-profit organizations and therefore also for civil associations, there are a large number of opportunities for drawing subsidies and grants designed to support their general beneficial activities and goals.

Entrepreneurship - The civic association is authorized to engage in entrepreneurial activity in support of its activities. More and more clients are taking advantage of the opportunity to do business as a civil association.

Yes you can.

Yes, it is required to keep simple accounting. If a civil association runs a business (it has a certificate of trade authorization issued) or its income exceeds €200,000 per year, it is required to keep double-entry bookkeeping.

Simply put, if the association does not carry out any activity and has no income, it has no obligation (levy, tax, accounting, etc.). In that case, he does not even have to file a tax return. What duties he will have subsequently depends on the nature of the activities he will perform and what income he will have.

Both legal forms belong to non-profit organizations. The fact that non-profit organizations include the legal form of the same name "non-profit organization providing generally beneficial services" raises questions and ambiguities. Many clients approach us with a request to establish a non-profit organization. However, we always contact clients to consult together whether they are interested in establishing a civic association or a non-profit organization providing generally beneficial services. After clarifying that a civil association is also a form of non-profit organization and explaining the differences between them, many clients ultimately decide to establish a civil association. Compared to a non-profit organization, a civic association is a legal form with a simpler structure and functioning. In a non-profit organization, you will need at least 5 people to make up the bodies (3 people, the board of directors, the director and the auditor). In a civil association, even one person is enough - the chairman. Other persons will be members only. A non-profit organization has one additional obligation compared to a civil association, namely to publish an annual report to the register of financial statements every year. When it comes to taxes, accounting, subsidies, collecting 2% of the tax, collecting donations and the like, they are exactly the same. We discussed the comparison in more detail in this article.

Immediately after signing the documents, which we can prepare within 24 hours, you can properly operate the association. You become the owner (chairman, member) by signing the documents and can use the association immediately. By signing the documents, you or your chosen person will immediately become the chairman of the association and at the same time the only members of the association. We will exclude ourselves from the association.

Yes, the price for the sale of the association is final and it will be not increased by any other fees.

No - a civic association is not required to have a bank account, it is voluntary. However, if you plan to collect 2% of the tax for the association, you will need a bank account.

With our civic associations, you can collect 2% of the tax for the 2022 tax period, which means that the first funds collected from the 2% of the tax will come to your account in 2023.