Establishing Cannabis Social Clubs in Germany

At Schlun & Elseven Rechtsanwälte, our full-service approach allows clients to benefit from our invaluable legal assistance throughout every stage of the establishment process, ensuring compliance with regulatory frameworks and maximising the potential for success. One of the initial steps in establishing a cannabis social club is the foundation of the association, often structured as a registered association (e.V.). Our lawyers advise clients about the process involved, and such legal advice is particularly valuable to international clients who may be unaware of the legal requirements under German law. Our experts guide clients through the process of entry into the register of associations, including notarisation and publication of the entry, ensuring adherence to legal formalities and requirements.

Securing official authorisation is vital for the legal legitimacy of the cannabis social club. Schlun & Elseven Rechtsanwälte outlines this process, guiding clients through regulatory requirements and ensuring legal compliance. With our expertise, clients can face authorisation matters confidently, knowing that they are supported by our dedicated team committed to their success.

Preparing for the founding meeting requires meticulous attention to detail, including drafting the agenda and drawing up articles of association. Our full-service law firm assists clients in crafting comprehensive legal documentation that outlines the club’s objectives, governance structure, and operational procedures. Additionally, our legal advisors facilitate the process of categorising the club as a non-profit association, enabling access to subsidies and tax breaks available to non-profit organisations.

The new legislation allowing for the partial legalisation of cannabis is set to unfold in gradual phases starting April 1st, marking a pivotal moment in balancing regulation with individual empowerment. While doubts linger about the feasibility of the proposed timeline, the envisioned framework promises transformative opportunities for cannabis enthusiasts and entrepreneurs alike.

At the heart of the proposed legal changes lies a paradigm shift in cannabis regulation, empowering adults aged 18 and above with the right to possess up to 25 grams of cannabis for personal use. Concurrently, individuals are granted the freedom to cultivate up to three cannabis plants within their own residences, fostering a culture of personal responsibility in cannabis consumption.

Central to the legislative overhaul is establishing non-commercial cultivation associations, colloquially termed “cannabis social clubs.” These associations provide a unique platform for the collective growth and distribution of cannabis among up to 500 German resident members. Striking a delicate balance between accessibility and regulation, the legislation stipulates a maximum dispensation of 25 grams per day and 50 grams per month per club member. Additionally, stringent safeguards are in place for those under the age of twenty-one, limiting their access to 30 grams per month with specified THC content limits.

Legal compliance is paramount in the establishment and operation of a cannabis social club in Germany. Striving to meet stringent regulations regarding quantity, quality, and child and youth protection is imperative. Compliance is ensured through rigorous official controls, which uphold the integrity of the club’s operations and safeguard against potential legal risks.

Despite the promising strides towards cannabis liberalisation, the proposed legislation remains tethered to strict regulations to safeguard public safety and youth protection. Prohibitions on public consumption and designated restrictions near sensitive areas underscore the government’s commitment to responsible cannabis governance.

For cannabis social clubs to thrive, sound financial planning and management are essential. The financial aspects of running a cannabis social club require careful consideration of budgeting, pricing strategies, and financial compliance. At Schlun & Elseven Rechtsanwälte, our professionals advise clients in such matters, including reviewing rental contracts and pricing strategies for cannabis products, aligned with market dynamics and legal requirements while ensuring transparency and fairness. Moreover, they provide guidance on budget planning, considering expenses such as rent, utilities, and materials to establish a sustainable financial framework for the club’s operations. Our aim is to empower clients to make informed financial decisions and mitigate potential risks.

Additionally, our team is committed to keeping clients informed about the latest legal and regulatory developments in the cannabis industry in Germany. By providing regular updates, we ensure that our clients remain informed and well-prepared to adapt to any changes that may impact their cannabis social clubs. With our proactive approach to staying abreast of legal developments, clients can trust that they are receiving timely and relevant information to support their ventures.