Updated: Nov 8
A non-profit organization consists of a group of people with a common goal. Considering that it is non-profit, revenue is to be re-invested in the organization. To set up a non-profit organization in Spain, please continue reading.
Firstly, it is important to write down the statutes. These are basic rules for the functioning of the organization and they are binding. It contains the regulations established by partners and basic information about the organization and its members. Additionally, requirements for admissions and obligations of company officers are included.
Tax obligations Once the organization has been established, tax obligations arise. The books for this should contain certain details. Firstly, the day-to-day basis’s, legal references for partners and third parties. In addition, agreements taken by the organization and the money flow. To sum up, there are three books. There is the Minute Book, Company Officers Book, and Accountancy Books.
Types of non-profit organizations
The most flexible entities are associations. At least three natural or legal persons are needed for the creation. Besides this, an act of constitution is required. To elaborate, it contains the meeting details and general information such as the name and goals of the organization. Additionally, the previously mentioned statute is necessary. To conclude, after completion of the forms the founders register with the Registry of Associations. However, foreign associates register with the National Registry of Associations.
In this instance, in addition to the Spanish Constitution, other regulations also apply. Foundations pursue a general interest purpose. So, activities are meant to benefit the public. Additionally, the foundation follows the Principle of Implementation. It informs of assets, purposes, and activities. also, criteria of impartiality and non-discrimination are followed. In addition, the constitutive act is required, its content can be found in Law 50/2002.
On the contrary, cooperatives consist of democratic governance and joint ownership. Also, members can receive benefits like tax deductions. Moreover, there are first and second-grade cooperatives. For context, first grades have at least 3 members, and second grades at least 2. There are the following categories of cooperative societies:
· Cooperatives of first instance
· Workers' cooperatives
· Consumer and user cooperatives
· Housing cooperatives
· Agricultural cooperatives
· Cooperatives for the common use of land
· Service cooperatives
· Maritime cooperatives
· Transport cooperatives
· ·Insurance cooperatives
· Health cooperatives
· Educational cooperatives
· Credit unions
· Second grade cooperatives.
Public deed of incorporation
Once the requirements are met, the public deed of incorporation is granted by the promoters. It contains their identity and eligibility for membership. Also, the willingness and proof of compulsory contribution. Furthermore, the Statutes must be included.
The structure is made up of the General Assembly, The Governing Council, and the Statutes. Firstly, the General Assembly is meant for deliberation and adoption of agreements. Secondly, the Governing Council is responsible for senior management, supervision, and representation of society. Finally, the Statutes decide the minimum compulsory contribution. To add, they may provide an opportunity to receive financial resources from members or third parties.
So, now you have the basic information about non-profit organizations in Spain, However, this does not include all the specifics for the documentation. Therefore, please visit the official government page to view all the required details. Still, hopefully, the article has given you enough insight to start with the creation of a non-profit organization.
· Velasco M.T.
· Ley Orgánica
· Constitución Española
· Ley de Fundaciones
· Ley de Cooperativas