Associations may be used for Decentralized Finance (DeFi) projects. The purpose of the associations must be political, religious, scientific, cultural, charitable, social or other non-commercial.
Formation: In practice, a minimum of two members can constitute an association. Associations acquire legal personality as soon as their intention to exist as a corporate body becomes apparent from their articles of association (AoA).
Commercial register: In principle, associations are not obligated to be registered in the commercial register. The association is only obliged to register if its purpose is of commercial kind or if an auditor is mandatory (see requirements for audit below). An association that is not obliged to register in the commercial register can be registered voluntarily. With the entry in the commercial register, the association is subject to bankruptcy proceedings.
Accounting: If not registered in the commercial register, an association is only required to keep accounts on income/expenditure/assets (no financials filing).
Audit: Generally, an association is free to make auditing arrangements as deem fit (per AoA / general meeting). A full audit by external auditors is mandatory if the following criteria are given (two of three below in two subsequent years):
- CHF 10 million in total assets
- CHF 20 million turnover
- 50 full-time staff total annual average
