The right legal form for your organisation
Most organisations grow out of a loose group. As soon as money moves, the legal form decides who is personally liable and what is possible for tax purposes.
Almost every esports organisation starts as a group of people who play together. That works while nothing costs anything. As soon as entry fees, jerseys or sponsorship contracts appear, the question is who stands behind them.
The four usual routes
- Section in a sports clubThe quickest way in. Existing structures, insurance and bookkeeping included, in return for the parent club’s rules and its board deciding on larger matters.
- Your own registered clubSeven members, statutes, registration in the register of associations. Limits liability to the club’s assets and allows membership fees and donations.
- A companyFor the commercial side: prize money, sponsorship, merchandise. A clear limit on liability, in return for share capital, accounts and disclosure.
- Club plus companyThe common split beyond a certain size. The club carries youth and grassroots work, a company carries the professional business and its risks.
What belongs in the statutes
- A purpose that matches the intended tax treatment
- Admission and exclusion of members, with a procedure that survives review
- The board’s responsibilities and the limits of its authority
- Fees, levies and who sets them
- Rules on competitive play and membership of governing bodies
- Handling of member data, with a reference to a separate policy
How we help
We work out which form fits your size and your income, draft the statutes and see the formation and registration through. Where a change of form is due, we plan the transition so that running contracts and competitive play are not disrupted.
Ready to turn the group into something solid?
Tell us how large you are and what money comes in. The right form follows almost by itself.
Get in touchFrequently asked questions
Are we personally liable while we are not yet a club?
Yes. A loose group is a partnership under civil law, and in it the participants are personally and jointly liable. Whoever books a tournament slot, orders jerseys or signs a player stands behind it with their own assets. That is the most common reason to take the first step.
Does esports qualify as charitable?
Esports is not recognised as sport under the German Fiscal Code. Charitable status therefore cannot be based on the purpose of sport, but it can be based on other purposes such as youth work or education, provided the statutes and the actual activity match. Anyone seeking the status should agree the statutes with the tax office before registration.
A section in an existing club, or a club of our own?
A section is quick to set up and uses existing structures, from insurance to bookkeeping. It also brings the parent club's rules with it, and its board decides on larger spending. Your own club costs more administration and gives the decisions back.
When is a company worth it?
Once commercial activity dominates, meaning prize money, sponsorship and merchandise shape the work. An association may act commercially, but only as a secondary purpose. As that part grows it endangers both registration and charitable status. The common split is a club for youth and grassroots work and a company for the professional side.