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Practical Manual for Companies 2023.

Requirements

Regulation: Article 3 Law 49/2002

Entities regulated in Article 2 of Law 49/2002, which meet the following requirements, will be considered non-profit entities:

  1. Pursue purposes of general interest such as the defense of human rights, the promotion of the social economy, scientific research, among others.

  2. ## Allocate at least 70% of the income and revenue referred to in Article 3.2 of Law 49/2002 to the achievement of said purposes, and the rest of the income and revenue to increase the capital allocation or reserves, in the period between the beginning of the fiscal year in which the respective income and revenue were obtained and the four years following the end of said fiscal year.

  3. That the activity carried out does not consist of the development of economic operations other than its statutory object or purpose.

  4. That the founders, partners, patrons, statutory representatives, members of the governing bodies and the spouses or relatives up to the fourth degree inclusive of any of them are not the main recipients of the activities carried out by the entities, nor do they benefit from special conditions for using their services.

  5. That the positions of patron, statutory representative and member of the governing body be free of charge , with the exceptions provided for in Law 49/2002.

  6. That, in the event of dissolution , its assets are allocated in their entirety to one of the entities considered as beneficiary entities of patronage for the purposes set forth in articles 16 to 25 of Law 49/2002, or to public entities of a non-foundational nature that pursue purposes of general interest, and this circumstance is expressly contemplated in the founding business or in the statutes of the dissolved entity.

  7. That are registered in the corresponding registry.

  8. That they comply with the accounting obligations provided for in the regulations by which they are governed or, failing that, in the Commercial Code and complementary provisions.

  9. That they comply with the accountability obligations established by their specific legislation. In the absence of a specific legal provision, they must render accounts within six months from the end of their financial year to the public body in charge of the corresponding registry.

  10. That they annually prepare a financial report in the terms indicated in Law 49/2002.