Reform of the procedure for setting up associations

Simplifying the procedure for recognition of the legal personality of associations and foundations by way of a prior check on legality by the notary would ensure greater security for the operation and result in a lightening of the load on the Public Administration.

Subject of the Reform. What is it?

 Currently the articles of association of a recognised association or foundation must be prepared as a public deed pursuant to Article 14 of the Civil Code. Subsequently, in order for the body to acquire a legal personality, the representatives of the association or foundation must apply for registration of the deed in the Register of legal entities established under Presidential Decree 361/2000 by the Prefectures and Regions depending on the geographical area where the institution itself is destined to carry on its affairs. Registration is subject to certain controls by the administrative authority which, however, have an impact on the length of time for the acquisition of legal personality, with the commitment of resources by the public administration.

The proposal provides that the notary, at the time of signing of the memorandum of association or foundation, perform all the checks and then register the deed in the register of legal entities held by each Region, so as to rationalise the use of the resources of the Public Administration.

To further illustrate the process in question, the proposal provides for the operation of the register in question to follow rules laid down by ministerial regulation. 

Among the controls that the notary has to make at the time of signing there is also that of the capital adequacy of the institution to achieve its purpose and this is a significant innovation.

Purpose of the Reform. What are the benefits?

The proposal simplifies the procedure for recognition of the legal personality of associations and foundations by submitting the operation to the control of the notary and guarantees a safer operation.

 The proposal, as is the case for corporations, gives the notary at the time of constitution of the body the task and responsibility of verifying that all the requirements of the law have been met; he must also see to registration in the Register of legal entities. As well as simplifying the procedure for recognition of the legal personality of associations and foundations, with a consequent reduction in the tasks covered by the Public Administration, the proposal aims to achieve greater certainty and safety.