The EU legislation sets certain criteria for LAGs as organizations through national Managing Authorities.
1. The area defined
The operational area of the LAG must be defined in a clear and binding manner in the LAG statutes and strategy. The area of the LAG does not necessarily have to follow administrative borders. Each area can only belong to one LAG.
2. Sufficient resources
The definition of the area of the LAG must show that it has sufficient financial and human resources. The Leader measures must be targeted at rural areas.
3. Competent actor
The LAG must be a competent actor (a registered association, etc.). All the actors of the area must have the opportunity to become LAG members (the statutes cannot exclude certain actors). There must be a sufficiently large and extensive number of members in the LAG. The members must include representatives of public administration, entrepreneurs, communities and local people.
4. Public-private principle
Decision making rules of the Board must follow the public-private partnership principle where predominance is given to the private sector: At least 50 per cent of the votes must come from the private sector. This principle must be also visible in the LAG statutes.
5. Skills to administrate public funds
The LAG must show in its statutes and strategy how it will organize itself internally and acquire the sufficient economic and administrative skills required to administrate public funds.