ASSOCIATION

An association is a grouping of individuals, companies, or other organizations that have joined together to pursue a common interest or purpose. Here are some key things to know about associations:

• Associations can be formed for various purposes like trade groups, professional organizations, alumni networks, political groups, nonprofit causes, etc.
• Members join voluntarily and benefit from networking, knowledge sharing, advocacy, and other resources provided.
• Governed by a board of directors or executive committee elected from members. May have annual membership dues.
• Provide representation and advocacy for issues impacting their industry/field to stakeholders and government.
• Organize conferences, training, publications, and other programs to aid professional development.
• Larger associations may employ staff to support activities and services for members.
• Membership levels vary widely from small local groups to national/international federations.
• Value is in collective voice, expertise, and resources that individual members or companies alone could not access.

So in essence, associations help like-minded individuals and organizations connect for mutual advancement of common goals.

What are the advantages?

• Legal status – It becomes a separate legal entity that can enter contracts, own assets, sue and be sued.
• Limited liability – Members are not personally liable for debts and obligations of the association.
• Credibility – Registration lends credibility with members, partners, and government institutions.
• Governance framework – A constitution provides clear rules on objectives, leadership roles, decision making.
• Continuity – The association exists indefinitely separate from individuals involved over time.
• Fundraising ability – Easier to apply for public/private grants that require a formalized structure.
• Tax exemptions – Associations may qualify for exemptions depending on non-profit activities.
• Bank accounts – Can open accounts in the registered name of the association.
• Membership formality – Clear categories, rights and responsibilities are in place.
• Compliance support – Duties and liabilities are clearly defined for committee members.
• Record keeping – All formal documents and member details are securely stored and maintained.

Requirements for registering a Company Limited by Guarantee

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