This study aimed to demonstrate the main differences between Association and Limited
society in their Tax and Accounting aspects in light of the financial statements of AFIA
Associação Franciscana de Instrução e Assistencia. We sought to identify what the main
differences are between a third sector entity and a limited company in its tax and accounting
aspects. According to the approach to the problem, the research was characterized as
qualitative and, regarding the proposed objectives, it was characterized as descriptive, using
bibliographical and documentary research. It was possible to identify that, due to the
fundamental objective of the Associations (to carry out a non-economic activity, or for nonprofit purposes), and the Limited Companies (to carry out economic activity and share the
results among themselves), the two entities will differ in different ways. This difference
between the entities' objectives causes accounting standards and legislation to establish some
criteria that will impact all tax and accounting aspects of the two entities, differentiating them
in terms of: the form of incorporation, the name of the share capital, the registration
formalities, the administrative structure, the types of mandatory financial statements, the
denomination of the result, the tax regimes, the qualifications, certificates and ancillary
obligations.
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