Foundations are institutions intended to serve non-profit purposes and are established for the promotion of specific objectives outlined in law, including the promotion of commerce, art, science, religion, charity or any public purpose. Their assets must be entirely dedicated to specific and legitimate purposes, clear to public.
Registration process
The registration process comprises of a written application submitted to the Ministry of Interior, in the prescribed form and accompanied by foundation's act, and the corresponding articles of association, which shall include the following details:
- names, addresses and contact details of the members of the board of Directors,
- purpose of the foundation,
- registered office,
- any emblem and
- property to be dedicated.
Timing
The competent authorities will examine the application and depending on their workload, processing time may take from 1 to 3 months.
Tips
A careful drafting must be made so that:
- the entire application complies and is in full adherence to the Law, in all respects,
- legitimate and altruistic objectives are met, in accordance with the law; and
- there is no interference and/or overlap, in any way, with intergovernmental competences and powers. The slightest overlap and/or conflict will result in automatic rejection of the application as the regulators do not wish for foundation to take over any state powers or competences.
Moreover, the foundation's objectives shall not be deemed as having a public interest and at the same time, the non-profit nature of the foundation should be evident. On that basis, the initial property donated, and any subsequent funds received, must align proportionately with the foundation's altruistic mission. Lastly, no suspicion of money laundering or other unlawful activities should arise when inspecting the application and activities of the foundation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
