Unincorporated associations
How to operate and organise an unincorporated association, and decide whether it suits your needs.
An unincorporated association is a straightforward legal form typically chosen by a group of individuals who agree to come together for a common purpose, often of a social nature. This structure is easy to set up and incurs no initial costs.
How unincorporated associations operate
Unincorporated associations make their own rules for running the organisation and set these down in a democratic constitution. A management committee is elected to run the organisation on behalf of the members (if it has any).
Unlike companies, unincorporated associations do not need to register with or be regulated by Companies House or the Financial Conduct Authority. This offers greater operational freedom, as they are not required to submit annual returns.
Charitable unincorporated associations
If an unincorporated association's objects are exclusively charitable and those objects are for the public benefit, the association should apply to The Charity Commission for Northern Ireland to be registered as a charity. All charities must follow the requirements of charity law, and most registered charities must also submit annual returns to the Charity Commission.
The Charity Commission for Northern Ireland provides information on how to .
The Department for Communities (DfC) provides .
Unincorporated associations and personal risk
Unincorporated associations have no separate legal identity. This means that their members will have to sign loans and contracts as individuals and carry the risk of personal liability.
This form is unlikely to offer a long-term solution if you intend to sign contracts or expand the enterprise. You should consider incorporation if you intend to:
- take on employees
- raise finance, apply for grants or open bank accounts
- issue shares
- enter into large contracts
- take on a lease or buy freehold property
This should help you to gain access to a wide range of financing sources that will not put your personal assets at risk. The Northern Ireland Council for Voluntary Action (NICVA) provides further .