Procedures for Validating Legal Associations and Amending Their Constitutions

The Minister of Law and Human Rights (“Minister”) has issued Regulation No. 3 of 2016 on the Procedures for Submitting Applications for the Validation of and Amendment to the Constitutions of Legal Associations (“2016 Regulation”).The 2016 Regulation redefines the requirements and procedures for securing approvals for the names of associations and their validation by the Minister. Additionally, the 2016 Regulation also incorporates one new provision, namely the procedure for amending an association’s constitution.Prior to the 2016 Regulation, these matters were regulated under Ministerial Regulation No. 6 of 2014 on the Validation of Associations (“2014 Regulation”). [1] The 2016 Regulation is of relevance to notaries, existing associations (e.g. NGOs, community organizations), or any parties wishing to establish new associations.Approval of Association’s NameAs a general rule, all newly established associations must be validated by the Ministry. However, before an association is able to be validated as a legal entity, the association in question must first have its association name approved by the Minister. [2] Applications for approval of a name must be submitted to the Minister by an association’s founder through a notary using the electronic form provided through the Legal Entities Administration System (Sistem Administrasi Badan Hukum–“SABH”) and should enclose details of the proposed association name. [3] Upon taking receipt of an application, the Minister will issue approval to the applicant, provided that the proposed name satisfies all of the requirements set out under the prevailing laws and regulations. The applicant then has 60 days in which to use the name before the association is finally validated as a legal entity. [4] Previously, under the 2014 Regulation, applicants were required to pay a non-refundable administration fee before applying for association-name approval. [5] Under the 2016 Regulation, such fees are to be paid when submitting an application for validation.Validation as a Legal EntityOnce an association name has been approved, the applicant must submit an application to be validated as a legal entity to the Minister via the SABH. [6] Applications for such validation are subject to administrative fees that must be paid at the relevant appointed banks. [7] The 2016 Regulation requires applicants to upload the following supporting documents along with their application through the electronic SABH system: [8]