Opening a bank account for a French 1901-law association
Documents requested, signatories, delegated authority, changes at the handover, online banks: opening and running a student association's bank account.
The association is declared, the board is elected, and the first membership fees are coming in. They must not land in the treasurer's personal account. Opening a bank account in the association's name is the new board's first task, and one of the slowest when the file is incomplete.
Does an association need a bank account?
The French law of 1 July 1901 on associations does not require one. In practice, an association that collects membership fees, sells tickets or receives a grant cannot do without it:
- the association's money must never pass through a member's account: after a dispute, a departure or a simple oversight, nobody knows what belongs to whom;
- the school, funders and online payment services pay funds into an account in the association's name;
- bank statements are the basis of the accounts and of the financial report presented at the general meeting.
A single current account is enough for most student associations.
When to open the association's bank account
The account is opened after the association has been declared: the declaration is what gives it legal capacity, and the bank asks for proof of it. The steps therefore come in this order: bylaws, founding meeting, declaration, then the bank. The full process is described in setting up a student association.
Allow several weeks between the first appointment and receiving your cards and other means of payment. If a paid event is planned for the start of the academic year, do not wait until September.
The documents requested to open the account
Each bank has its own list: ask for it before the appointment. The following documents come up almost every time.
| Document | What it is for |
|---|---|
| Dated and signed bylaws | Proving the association's purpose and showing who has the power to commit it |
| Récépissé (acknowledgement of filing) of the declaration, or extract from the publication in the Journal officiel (the French official gazette) | Proving that the association legally exists |
| Minutes of the meeting that appointed the officers | Identifying the board currently in office |
| Decision naming the people authorised to operate the account | Knowing who can sign, and within what limits |
| Identity document and proof of address for each authorised person | Checking the identity of the signatories |
| Proof of the registered office address | Linking the account to an address |
Some banks also ask for a SIREN number (the French business identification number). An association does not receive one automatically when it is created: ask the bank, then check the official government website, to find out how to obtain it.
Bring documents that are consistent with each other. If the bylaws say that the president represents the association and the minutes do not mention the president's election, the file will be sent back.
Who signs? President, treasurer and delegated authority
The bylaws say who represents the association, and therefore who can open the account. Most often, it is the president. The 1901 law requires neither a president nor a treasurer: if your bylaws organise things differently, the bank will go by them.
In practice, at least two people should be able to operate the account: if one of them cannot be reached, is on an internship or is on exchange abroad, the association can still pay its suppliers. The usual practice is to give signing authority to the president and the treasurer.
The decision is taken at a board meeting, or at a general meeting if the bylaws say so, and it is put in writing. A template for the extract from the minutes:
Template translated for reference: the document you file or sign in France must be written in French.
Extract from the minutes of the board meeting of [date]
The board of the association [name], meeting on [date] at [place], unanimously decides:
- to open a current account in the association's name with [bank];
- to authorise the following people to operate this account, each acting alone: [surname, first name], president, and [surname, first name], treasurer;
- that any payment above €[amount] requires the prior written agreement of the board;
- that these authorisations end when a new board is elected.
Certified as a true copy, on [date]. [Name, position and signature of the president and the secretary]
Three rules for delegated authority:
- it is personal: you authorise a named person, not a role;
- it is limited: a payment ceiling, a duration, and an automatic end when the board changes;
- each authorised person has their own login details for online access. Shared login details make it impossible to attribute any transaction.
Changing the signatories at the handover
This is when things get lost. Every year, associations end up with an account whose only signatory has left the school.
The order to follow:
- The general meeting elects the new board; the minutes are signed.
- The change of officers is declared within three months (article 5 of the law of 1 July 1901), online or at the greffe des associations (the associations registry office).
- The new board makes an appointment at the bank with the minutes, the acknowledgement of filing for the declared change, and the identity documents of the new signatories.
- The former signatories are removed, their cards returned or cancelled, and their online access deleted.
- Current direct debits and subscriptions are reviewed with the former treasurer.
An example timetable: the general meeting takes place on 15 May. The declaration is filed online on 20 May. The bank appointment is booked for the first half of June, before people leave for internships. By 30 June, the former signatories no longer have any access. The legal deadline for the declaration fell on 15 August: meeting it is not enough if nobody is left to go to the bank.
Until the bank has recorded the change, the former officers remain the only people who can act on the account. Do it before the summer. The rest of the handover is covered in the board handover.
Traditional bank or online bank?
Both are suitable, provided you check a few points before choosing. Offers change often: compare the actual terms.
- Does the institution accept associations? Some online offers are reserved for businesses.
- How many people can have access, and with separate permissions?
- Can you pay in cash and cheques? This is the weak point of many online offers, and a bar at an event generates cash.
- What are the fees? Monthly subscription, cards, transfers, account maintenance fees.
- Can you export transactions in a format you can use for the accounts?
- Can the signatories be changed remotely, and how long does it take?
- What is the institution's status? A bank and a payment institution do not offer the same services; read the terms.
Set the fees against the budget. A subscription of €8 a month comes to €96 a year: negligible for a student union (BDE) that manages €40,000, significant for a club with an annual budget of €1,500, where it amounts to more than 6%. Several banks have free or reduced-rate offers for small associations: ask.
If the bank refuses to open the account
A bank is not obliged to accept a customer. If it refuses, ask for a written confirmation of refusal. Anyone domiciled in France, including a legal entity such as an association, can then apply to the Banque de France under the droit au compte (right to a bank account) set out in article L312-1 of the French Monetary and Financial Code: the Banque de France designates an institution, which is required to open an account with basic banking services.
Common mistakes
- Collecting money in a personal account "for now". The temporary arrangement lasts, and the accounts for the first financial year become impossible to reconstruct.
- A single signatory. The day that person is unavailable, nothing gets paid.
- Login details shared in a group chat.
- Forgetting to remove the former signatories. They keep a power, and a responsibility, that they no longer want.
- Opening several accounts, one per team or per event. One account and project-by-project bookkeeping are enough.
- Not archiving the statements. They must remain available to the next board, along with the receipts.
The checklist
- the acknowledgement of filing for the declaration has been received;
- the list of documents has been requested from the bank;
- the bylaws and the minutes are consistent about who the officers are;
- the decision to open the account and authorise signatories is written and signed;
- at least two signatories are named, each with their own access;
- a ceiling is set for payments made without prior agreement;
- the association's bank details (RIB) have been sent to the school and to the online payment services;
- the statements are archived every month;
- the date for changing the signatories is in the handover calendar.
Frequently asked questions
Can you open an account before the association is declared?
No. Without a declaration, the association has no legal capacity, and the bank asks for the acknowledgement of filing or the extract from the publication. Prepare the file in parallel to save time.
Is a minimum deposit required?
It depends on the bank: some ask for an initial payment, others do not. The law does not require one.
Can the treasurer use a personal card for the association?
Yes, like any member who pays an expense up front: the treasurer is then reimbursed through an expense claim, approved by another member of the board. See reimbursing expense claims.
With toGaether
In toGaether, the bylaws, the minutes and the association's other documents are kept in one place, and the new board's roles are assigned without losing the history of the previous one: the file to show the bank is ready from one term to the next. For day-to-day tracking of the accounts, read keeping a student union's books.
This article gives general guidance; the exact documents and conditions are those of the bank you choose.
