Unincorporated Association

By Mahmood Reza
An Unincorporated Association is suitable for a group of people with a common non-commercial purpose, such as a club, society, local group or community associate. 

It is the most simple and basic of structures and will usually consist of :

  • A management committee, which typically comprises the:
    • Chair; 
    • Treasurer;
    • Secretary,
  • A bank account in the name of the organisation, 
  • Two unrelated signatories on the bank account and 
  • The Constitution
    • A document outlining organisation's objects/ aims.  
This sort of structure has minimal legal and regulatory compliance but it potentially exposes its members to financial and legal risks.

Advantages

  • There are very few set up and running costs.
  • There are no formal registration requirements.

Disdvantages

  • It does not have a separate legal identity: The members can be held liable for any debts.
  • As it is less formal, it can be seen by third parties as less professional.

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