Civic participation: associations and community groups

An association is a non-profit organisation set up by a group of people with a common purpose, such as the promotion of culture, sport, social support or environmental causes.

What types of associations can be created?

You can create an association for different purposes, including:

• Cultural associations

To promote activities related to art, music, theatre, literature or other forms of cultural expression.

• Sports associations

Dedicated to the practice and promotion of sporting activities, such as football, athletics or gymnastics clubs.

• Environmental associations

With an objective to protect the environment and promote sustainable practices such as reforestation or anti-pollution campaigns.

• Social support associations

Supported by volunteers, these associations work in areas such as health, education, combating poverty and supporting vulnerable groups.

• Recreational associations

Focused on leisure and community, such as groups for games, dancing or other entertainment activities.

A single association can also combine several purposes, for example as a youth sports and cultural association.

What types of associations cannot be created?

The following cannot be created as associations:

• Political parties
• Religious entities
• Socio-professional associations of military personnel and police services
• Employers’ associations
• Trade union associations
• Humanitarian fire brigade associations
• Works councils
• Mutual aid associations
• Culture and sports centres: Community meeting houses (Casas do Povo)
• Associations for the collective management of copyright and related rights
• Associations promoting a sport
• Associations of irrigation farmers and beneficiaries
• Farmers’ Councils
• Canonically recognised religious associations, created by the Catholic Church under Article 10 of the Concordatum between the Holy See and the Portuguese Republic
• Athletes’ clubs
• Associations representing municipalities and parishes – associations of parishes governed by public law and associations of municipalities

Who can create an association?

An association can be created by:

• Any natural person
• Legal entities (companies or co-operatives, for example)

How are associations organised?

In Portugal, associations consist of three main bodies:

1. The General Assembly
2. The Board of Directors
3. The Supervisory Board

1. The General Assembly

The General Assembly is the association’s highest body and is headed by a board consisting of three elected members:

• The Chairperson
• A voting member
• The Secretary

The main functions of the General Assembly are the following:

• To dismiss the office holders of the association’s bodies
• To approve the business plan, articles of association and balance sheets
• To decide on the association’s dissolution

All members may take part in the General Assembly, except in exceptional cases defined in the articles of association.

The General Assembly must be convened at least once a year to approve the balance sheets. The meeting notice must be sent at least 8 days in advance, with the date, time, place and agenda.

The General Assembly may be convened by a group of members representing at least one fifth of the total membership (or a smaller number as defined in the articles of association).

2. The Board of Directors

The Board of Directors is responsible for running and managing the association. It consists of three members

• The Chairperson
• The Secretary
• The Treasurer

3. The Supervisory Board

The Supervisory Board is responsible for auditing the association’s accounts and must consist of at least three members:

• The Chairperson
• The Secretary
• The Clerk

How to create an association in Portugal

Creating an association is the first step towards giving legal form to a collective project with a not-for-profit purpose – whether it is a cultural, social, sports or environmental association. In Portugal, an association can be created in two ways:

• through the Quick Association Set-up service – faster and simpler –
• or through the common registration route, which allows for greater flexibility in drafting the articles of association, but is more time-consuming.

There are two ways of creating an association:

1. Quick Association Set-up service (quick and practical)

A quick and simple way to set up an association is to choose the Quick Association Set-up service. This service makes it possible to create the association on the same day, with pre-approved articles of association and less bureaucracy.

All you have to do is choose the name of your association (official title) and one of the pre-approved articles of association templates. More information can be found at ‘Quick Association Set-up’.

It is possible to set up an association in an hour, provided that:

• No real estate is used as part of the association’s assets.
• The articles of association template approved by the Institute of Registries and Notaries (IRN) is appropriate to the purpose of the association.

2. Traditional set-up route (via a notary)

An association in Portugal can be set up and formalised through a notary’s office. This process involves validation of the articles of association and the memorandum of association, the documents essential to legally formalising the association. However, it is only once the association has been registered with the records office that it becomes a legally recognised association.

To create an association, you will need:

1. To formalise the association at the notary’s office

The process begins at the notary’s office, where the notary validates the articles of association and the memorandum of association.

You must provide the following documents to set up your association:

• Certificate of admissibility
  The certificate of admissibility must be requested from the Institute of Registries and Notaries (IRN) and confirms that the name (official title) of the association is available for registration.
  Find out how to apply for the certificate of admissibility
• Identity documents
  Provide the identity documents of all members elected to the association’s bodies (president, treasurer, secretary, etc.).
• Approved articles of association
  You must submit the approved articles of association.
• Minutes of the General Assembly
  The minutes of the General Assembly approving the articles of association must be drafted and signed by the members of the General Assembly. The minutes must clearly indicate that the articles of association have been approved by a simple majority and must be submitted to the notary and to the records office.

2. Publication in the Diário da República (Official Gazette)

Once the memorandum and articles of association have been approved, it is mandatory to publish the association’s constitution in the Diário da República.

3. Register with the records office

It is only once the association has been registered with the commercial records office that the association acquires legal personality, i.e. is officially established.

What to do after creating an association

Once you have formally established your association, there are a few essential steps you will need to follow to ensure everything is legally in order:

1. Declare the activity to the tax authorities

Up to 90 days after the establishment of the association, it is mandatory to declare that it has commenced activities to the Tax and Customs Authority (Finanças).

You can choose whether or not to join the organised accounting scheme:

• If you choose to join the organised accounting scheme, you will need to hire a certified accountant.
• If you choose not to join the organised accounting scheme, you may submit the declaration of commencement of activity at the time of establishment or later on (adhering to the 90-day time limit).

2. Formalising the association’s status in the social security system

The association will automatically receive a social security identification number when it is established.

• If the association has its own employees or volunteers, they must be registered with social security and the corresponding contributions must be paid.
• Managers who do not receive remuneration may, if they wish, join the voluntary social insurance scheme, providing cover (pension, sickness, etc.) even without salary. Volunteers who are IPSS (private social solidarity institutions) members or firefighters, for example, are covered by voluntary social insurance.

Find out more about the voluntary social insurance scheme

3. Keeping mandatory books and records

It is essential to keep the following books:

• Record of minutes of general assemblies (for meetings of the assembly and directors)
• Book of elections

Minutes must be produced in writing, approved and duly filed.
 

4. Updating the association’s details

You must update the association’s details whenever:

• There are significant changes to the articles of association (change of registered office, change of purpose, new governing bodies, etc.). For example, changes to the association’s structure should be approved at the records office.
• If the association carries out activities that are subject to licensing. In this case, you must obtain the respective legal authorisations.

Support available for associations

Once created, the association can apply for various types of support, depending on its area of activity. This support may come from public or private entities, and is intended help the association run projects, cover expenditure or promote its sustainability.

The following are examples of sources of support:

1. Instituto Português do Desporto e Juventude (The Portuguese Institute of Youth and Sport, IPDJ)

If the association is a youth association, you can apply for official recognition from the IPDJ.
This recognition enables:

• Access to grants and subsidies
• Participation in project support schemes

Find out more about IPDJ support and funding

2. Social Security

Associations with a social purpose can benefit from:

• Financial support for certain activities
• Co-financing of workers’ social security contributions
• Access to the special scheme for volunteers

Find out more about associations with a social purpose

3. Municipal councils

Many municipalities have their own regulations for supporting local associations. Support can include:

• Cash subsidies
• Provision of premises or facilities
• Loans of equipment or vehicles

Check your local council’s website or contact the council directly.

4. Foundations and private companies

Several foundations and enterprises support cultural, environmental and social impact projects through:

• Grants and direct project funding
• Sponsorship and partnerships through patronage