Foundation, association

A foundation is a legal person established by the founder for the continuous pursuit of a permanent objective defined in the Foundation’s Statutes. The founder shall specify in the foundation deed the assets to be allocated to the foundation and the organisation of the foundation.

An association is a legal person with registered membership established for the common, permanent and continuous realisation of the purpose of its members as defined in its statutes. 3:63. § (1))

Put simply, the main difference between the two forms is that a foundation brings together assets, while an association brings together individuals. From this point of view, a foundation is an organisation that supports aims and activities, while an association is a self-organising community of members for the purpose of a particular aim or activity.

Although it is not mandatory to be represented by a legal representative for either the establishment of a foundation or an association, it is advisable to seek the assistance of a professional with the appropriate experience and knowledge, as the relevant legislation is very complex, which may include the conditions and process of obtaining public benefit status.

The main provisions are set out in the following legislation:

Act V of 2013 on the Civil Code

Act CLXXXI of 2011 on the Court Register of Civil Organisations and the related procedural rules

Act CLXXV of 2011 on the Right of Association, the Public Benefit Status and the Functioning and Support of Non-Governmental Organisations

In recent years, I have helped to set up and run a number of foundations and associations. I can provide you with expert assistance in this area.

For more information, please do not hesitate to contact me using one of the contact details in the Contact section.

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