Economic association | Companies guide

Content

An economic association (ekonomisk förening) is a legal entity, set up by a minimum of three physical persons or legal entities. The association is issued with a registration number as its means of identification.

Obligations

An economic association is to be registered by Bolagsverket after the association has been established. In this way, it is similar to a limited company, but there are certain differences.

An approved or authorized public accountant is not compulsory if the association is a small one. It is sufficient for the auditor to have the necessary competence to carry out his or her duties.

Responsibility and risk

Every member undertakes to pay a certain contributed capital and, normally, to pay an annual membership fee which is decided by the general meeting of members. There is, however, no demand for a minimum starting capital similar to a share capital.

Apart from the amount contributed, the members of an economic association are not personally responsible for the debts and other obligations of the business enterprise.

Economic associations must keep accounts and shall draw up annual reports. These are to be keep available to the public, but only in the case of large associations do they have to be filed with Bolagsverket, unless especially instructed to do so.

Contrary to what many people believe, an economic association cannot be terminated simply by asking Bolagsverket to remove it from the register. This can only be done by a merger, bankruptcy proceedings or liquidation.

Protection of business name

The registered business name of an economic association is protected throughout the country.

Advantages of an economic association

• The business activities of the association are of financial benefit to a member, for example as producer, consumer or employee.
• An economic association is open to all and, in principle, it cannot refuse anyone membership.
• As a rule, each member has one vote. Associations are said to be built on democracy and a sense of responsibility.
• An economic association is allowed to have a split financial year, with the advantages which this can entail.

Register the association via the internet

Use the webservice verksamt.se when you want to register an economic association. You can also use application form Nyregistrering – ekonomisk förening, nr 904.

A piece of good advice

Do not order any stationery, printed matter, signs, etc. until your business and the name you applied for have been registered.