Creating an Association
The first thing to do is to decide whether or not you want to formally register your association.

The 1901 law allows any group of people to meet and share common ideas without completing any legal formalities at all.

If you opt for this formula however, your association will have no legal personality. This means it won't be able to open a bank account in its own name, or hire people or carry out any other activities that must be undertaken by what French lawyers call a moral person ('personne morale').

But if you do decide to declare your association, you need to draw up a list of statutes setting out exactly what your group intends to do. If necessary, your local prefecture can provide you with a series of standard statutes that can be adapted to your association's needs.

It is important that the statutes take into account all of the possible activities your association may want to carry out. Once you have formally registered your group it will only be allowed to do what is mentioned in the statutes, which can always, but only, be changed by presenting a new declaration to the authorities. As a rule of thumb, it is a good idea to keep the statutes as general as possible.

Along with the statutes you will also have to write down the full name of the association and its official address (this can be someone's house, an office or any similar premises BUT NOT a post office box). To this growing pile of papers add the names, addresses, dates and places of birth as well as the jobs of all of the people who will be charged with running the group.

You now have all of the information necessary to register your association. The next step is to photocopy everything at least three times - one copy for you and two for the préfecture - and make sure the statutes are signed and dated by at least two members of the association's 'bureau' (more on this below).

Finally, you need to go along to your local préfecture to declare your association. You will also need to make sure that your group's creation appears in France's Journal Officiel, (official journal), which records all legal matters across the country. This step will cost you 38.10 Euros and should be handled by the préfecture. If they don't mention anything, ask for the inevitable form.

The Bureau
This is an association's management team. Most small associations have a bureau made up of a President, Secretary and Treasurer, who are appointed by the members. This set up is not obligatory however, so you can choose to manage your group differently if you wish.
If you do opt for the usual 'triumvirate' - and it certainly seems the easiest way to run things - each bureau member will have certain tasks.
The President tends to be the public face of the association (especially vis à vis the authorities). The secretary carries out tasks like the drawing-up of minutes of meetings and sending out correspondence to members. The treasurer is in charge of the accounts.

It is usually a wise move to ensure that the treasurer does not have the right to sign checks in the association's name. This avoids a risk that he or she may be accused of trying to embezzle funds.

The General Assembly
At least once a year, all of an association's members MUST meet to discuss the group's business, elect bureau members etc. It is also possible to call extraordinary general assemblies if necessary.

Profits
Contrary to popular belief, associations can make profits. But they are not allowed to distribute money amongst their members. Profits must be re-invested in the association or used to cover the group's costs. Classic profit-making activities carried out by associations include organising dances, fêtes, and other social events in order to raise money for the group. A word of warning, however. If profit-making becomes your association's primary activity, you could find yourself in trouble.

It is possible for an association to have the pursuit of money as its number one aim but this must be clearly mentioned in the statutes and money-making groups must pay certain business taxes.

You're OK if you're making money to support your group's main activity but you'll get into trouble if making money is your group's main activity.
 
Subsidies
Registered associations have the right apply for subsidies from all of the usual sources. Whether they'll actually get any money or not is of course another matter.

For more information
Contact your local préfecture - telephone number in the yellow pages. http://wfa.pagesjaunes.fr  or  http://www.interieur.gouv.fr

Article written by Simon Coss in Expatica.com