Legal Structure

Free Your Tech Association operates as a “frivillig forening” (voluntary association) based in Copenhagen, Denmark. This page outlines our legal structure, governance framework, and future organizational plans.

Current Structure: Frivillig Forening

Free Your Tech Association is formally established as a Danish voluntary association (“frivillig forening”), registered with the Danish Business Authority (Erhvervsstyrelsen) with CVR number 45369897. The association was registered on virk and its information can be updated there by its representatives after MitID authentication. The association needs to be renewed there every few years.

What is a Frivillig Forening?

A “frivillig forening” is a common legal structure in Denmark for non-profit organizations, associations, and community groups. It is fast and free to register, and the administrative burdern is very low. Key characteristics include:

• Legal Recognition: Recognized as a legal entity under Danish law
• Democratic Governance: Governed by members through a general assembly
• Non-Profit Status: Operates without the purpose of generating profit for members
• Organizational Autonomy: Free to establish its own rules within legal boundaries
• Limited Liability: Members are not personally liable for the association’s obligations

Benefits of the Frivillig Forening Structure

This legal structure offers several advantages that align with our mission and values:

1. Low Administrative Burden: Minimal bureaucracy and reporting requirements, allowing us to focus on our core activities
2. Flexibility: Adaptable governance structure that can evolve with our organization
3. Democratic Control: Ensures all members have a voice in the organization’s direction
4. Tax Benefits: Potential tax exemptions for activities aligned with our non-profit purpose
5. Credibility: Formal recognition that enhances our ability to partner with other organizations
6. Low Barrier to Entry: Simple and cost-effective to establish, requiring only statutes and a founding meeting
7. Banking Access: Ability to open organizational bank accounts and manage collective finances

Governance Framework

As outlined in our statutes, our governance structure includes:

• General Assembly: The highest authority, where all members can participate in decision-making
• Board of Directors: Responsible for daily operations and implementing the decisions of the general assembly
• Transparent Decision-Making: All major decisions are made collectively with member input
• Financial Accountability: Regular reporting and oversight of the association’s finances

Future Organizational Development

Registration for VAT

Currently we are not registered for VAT but we aim to be in the future.

Why we are not:

• it is not legally required
• extra accounting burden: submitting regular VAT reports

Benefits:

• No VAT on EU expenses
• VAT reimbursed for danish expenses

Basically we could lower our expenses if someone is willing to do the accounting work voluntarily for free.

Path to Socialøkonomisk Virksomhed Status

We aim to eventually qualify for “socialøkonomisk virksomhed” (social enterprise) status in Denmark. This designation is granted to organizations that:

• Operate with a social purpose as their primary objective
• Reinvest profits in the organization’s social mission
• Operate independently of public authorities
• Have inclusive and responsible governance
• Maintain social business practices

Achieving this status would provide:

• Enhanced credibility and recognition
• Access to specific funding opportunities
• Networking with other social enterprises
• Potential tax benefits