How to set up a cannabis association?

In recent years , interest and acceptance around cannabis has grown exponentially , leading many enthusiasts and entrepreneurs to explore how they can become part of this evolving industry.

Cannabis associations, also known as clubs or collectives , offer a way for consumers to access cannabis in a regulated, community-based environment.

In this article, we bring you a detailed guide on how to set up a cannabis association, covering everything from the legal requirements and necessary permits to the cost of opening and the daily operation of a cannabis club.

Ready to start this exciting journey? Read on to discover all the details you need to set up your own cannabis association and dive into the cannabis industry responsibly and legally.

Requirements and permits to open a cannabis association

Creating a cannabis association in Spain is a process that involves understanding and complying with a series of specific legal and administrative requirements. Here we detail step by step what you need to know and do to legally establish such an association:

Constitution and registration:

• Non-profit association: You must form the association as a non-profit entity, which involves drafting and approving statutes and a founding document.
• Registration in the National Registry of Associations: After the creation of the statutes, the association must be registered in the National Registry of Associations, which grants it legal personality.

Municipal licenses:

• Business license: Depending on the location, you may need a municipal license to verify that the premises comply with urban planning and business regulations.
• Opening license: This permit is essential to be able to operate legally and ensures that the premises comply with all safety and health requirements.

Closed membership system:

• Member Registration: It is mandatory to maintain a detailed register of all members, which must include verifiable personal data. Each member must be of legal age and reside in Spain.
• Access Limitation: Access to the association and cannabis must be strictly limited to registered members.

Security and confidentiality:

• Security Measures: Facilities must have adequate security systems to prevent unauthorized access and protect the privacy of members.
• Data protection: It is essential to comply with personal data protection regulations, guaranteeing the confidentiality of members' information.

Tax aspects:

• Tax reporting and payment: Even if the association is non-profit, it must comply with all corresponding tax obligations, including income reporting and proper management of receipts and invoices.

Public health regulations:

• Risk prevention: It is crucial to develop protocols for the prevention of risks associated with cannabis consumption, including providing members with adequate information and training on responsible consumption.

How much money does it cost to open a cannabis association?

The cost of opening a cannabis association can vary significantly depending on several factors, including location, size of the facility, and the depth of services planned to be offered.

Anyway, so that you can have a general idea of ​​how much it costs to open a cannabis association, we break down the main costs associated with the process:

Costs of incorporation:

• Legal expenses: These would include legal advice to draft the statutes, the founding act and advice during the registration process. These costs can vary between 600 and 1,200 euros.
• Registration fee: The cost of registration in the National Registry of Associations may be minimal, but it is essential to consider it.

Conditioning of the premises:

• Renovations and adaptations : Depending on the condition of the chosen premises, the costs of renovations required to comply with municipal and safety regulations can be substantial. These can range from a few thousand euros to much higher figures if significant structural changes are required.
• Furniture and decoration: The purchase of furniture, safety equipment and decoration of the space must also be considered, which can range from 2,000 to 10,000 euros, depending on the quality and style selected.

Licenses and permits:

• Business and opening licence: The cost of these licences can vary considerably depending on the municipality. They can cost from a few hundred to several thousand euros.

Initial operating costs:

• Rental Deposit: A deposit of several months' rent is usually required upon signing the lease.
• Initial inventory: The cost of acquiring an initial stock of cannabis and other products can be significant, especially if you are looking to maintain a varied offering.

Insurance:

• Liability insurance and other necessary insurance : It is crucial to have good insurance to protect the association from any legal claims or accidents, the annual cost of which can vary between 500 and 2,000 euros.

Marketing and promotion:

• Initial Promotion: Include the marketing and promotion costs for the launch of the association, which can range from traditional advertising to digital marketing strategies, with costs that can start from 500 euros and increase depending on the scale of the campaign.

Establishing a cannabis association in Spain is a process that requires careful consideration of legal requirements and a significant investment of time and financial resources. From obtaining the necessary permits to setting up the premises and managing operational costs, each step must be meticulously planned to ensure legal compliance and business viability.