Foundation - to be recognised as having legal capacity

• The foundation business complies with the legal requirements,
• the permanent and sustainable fulfilment of the foundation's purpose appears assured,
• the purpose of the foundation is actually and legally possible,
• the purpose of the foundation does not endanger the common good,
• the establishment of the foundation does not serve to circumvent legal provisions such as commercial law, and
• the foundation complies with the above-mentioned characteristics, i.e. above all it pursues an enduring purpose.

With the effectiveness of the recognition, the foundation comes into being as a legal entity. The foundation acquires a claim under the law of obligations against the donor for the transfer of the assets dedicated to it.

The realisation of the foundation's purpose presupposes that the foundation has the necessary funds at its disposal. The donor must therefore endow the foundation with a certain amount of foundation assets. These must be sufficient to fulfil the foundation's purpose permanently and sustainably from the income generated from the foundation's assets.

The competent tax office will advise you on the tax aspects of a foundation, especially on the content requirements for the foundation statutes as a prerequisite for being able to claim the possible tax benefits.

Tip: Before you apply for recognition of the foundation, it is advisable to submit the draft of the foundation statutes to the tax office for examination of the tax aspects. It is also advisable to submit the draft of the foundation business and the foundation statutes to the foundation authority for examination. This will shorten the recognition procedure.