Association (biedrība)
In Latvian: Biedrība
An association (biedrība) is a voluntary union of persons founded to achieve an aim set in its articles that is not profit-making. It becomes a legal person when it is entered in the Latvian register of associations and foundations.
An association needs at least two members unless its articles require more. Founders may be natural or legal persons, or partnerships with legal capacity.
As a side activity an association may carry on business connected with maintaining or using its property, and other business that serves its aims. Its income may be used only for the aims in its articles, and profit may not be shared among members.
An association is neither a merchant nor a foundation: a foundation is a pool of property set aside for an aim chosen by its founder, while an association is a union of people.
Example
The association "Riteņbraucēju klubs" runs races and sells club jerseys to participants at EUR 25 each. It may spend the income on races and other aims in its articles, but it may not share any profit among its members.
Legal basis
- Associations and Foundations Law, Section 2 likumi.lv
- Associations and Foundations Law, Section 7 likumi.lv
- Associations and Foundations Law, Section 28 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.