Foundations are a very popular type of NGO. At the end of 2021, thousands foundations were registered in the world. The essence of the foundation is to achieve socially and economically useful goals, and the only condition is that these goals are public. Therefore, it is worth emphasizing that the main goal of each foundation must be to act for the general good. It can be established not only by citizens, but also by foreigners. Apart from a private person, a foundation may also be established by a legal entity. It is true that the place of residence or seat of a natural or legal person wishing to establish a foundation does not have to be in country but the seat itself should already be in country
What you need to do to set up a foundation
If you are already committed to starting your own foundation, there are a few requirements you need to fulfill. One of the most important things is to have a founding fund and, of course, to define what the foundation will do. The founding fund, as the name suggests, is to cover the costs related to the foundation’s start-up and its further operation. This fund may not necessarily be money.
We can give the foundation the ownership of movable or immovable property, e.g. real estate, as well as securities. In the case of securities, we must determine the amount due from them. When it comes to money, we must specify a specific amount that we intend to transfer to the foundation’s account. This amount can be in any currency.
Is there a minimum amount in advance that allows us to start a business? Not if the foundation is not going to run a business. In this case, the minimum contribution must be particular amound of money.
The next stage of creating a foundation is the foundation act. What is? It is a declaration in which the person establishing the foundation expresses his will to create it. It must not be complete without information about the purpose of the foundation and what assets are allocated to its operation. Such a document may be drawn up only at the notary’s office.
In such a statement, we can also indicate the minister who will supervise the operation of the foundation. The declaration is connected with the obligation to transfer certain property to the foundation. By what date should this be done? You can do this only when the foundation is entered into the National Court Register and obtains legal personality.
Foundation’s statute – what is it and what should it contain?
After signing the foundation act, the foundation’s statute should be established. What should it specify? First of all, it is to indicate the full name of the foundation, which cannot differ from the name indicated in the foundation act. The statute must also specify the locality in which the foundation has its seat. The statute must also specify the exact amount of the founding fund, as well as the reason why the foundation was established, i.e. its purpose. The statute must also specify how the foundation will pursue its goals. The articles of association should also indicate the members of the management board, duties and powers, and the method of their appointment.
The board is the most important body of each foundation. It may also include the person who created the foundation. The president of the foundation should be chosen to represent the foundation.
The foundation should be reported to the National Court Register. The application must be accompanied by & nbsp; the following documents: the foundation’s statute with the founder’s signature, proof of payment for the application for entry in the National Court Register, declaration on the establishment of the foundation, declaration of the competent minister of supervision, declaration of the board member with the address for service and resolutions on the appointment of the foundation’s authorities.
Equally important, each foundation must also have a bank account.