Open a Foundation in Belgium

Based on the official regulation of the Code on Companies and Associations (BCCA), a foundation in Belgium is characterized as a legal entity without members, established by one or more individuals, known as founders, for purposes like education, culture, philanthropy and more. The assets of the foundation are allocated to achieve a non-profit objective. Below, our company registration agents in Belgium provide a comprehensive guide on the types of foundations, requirements to open a foundation in Belgium, documentation matters and more.

Types of Belgian foundations and activity area

In Belgium, there are two types of foundations eligible to open:

• private foundations;
• public-benefit foundations.

According to the Article 11.1 of the BCCA, it is specified that a foundation in Belgium can be categorized as a Belgian public foundation if it is operating in specific areas of activity, such as:

• philanthropy events and activities;
• philosophy meetings;
• education and cultural gatherings;
• religion activities;
• social welfare operations;
• goals of public interest (charity, for example).

Foundations that do not meet these criteria or do not have these areas of activity are classified, under the present legislation, as private foundations. Our Belgian company formation agents can offer more details on the types of foundations in Belgium in order to successfully set up a foundation in Belgium and choose the right category for your specific needs. We can also help you if you need to open a company in another country, such as the Netherlands, where the time frame for incorporation is 3-4 weeks, compared to 2 weeks in Belgium.

Requirements to establish a foundation in Belgium

To set up a NPO in Belgium, whether a private foundation or a public-benefit foundation, there are some legal requirements to meet before opening this kind of structure:

• The foundation’s statutes must be drafted and enacted by a notary public in Belgium;
• The foundation registration must be recognized by the specialized authority in Belgium – Ministry of Justice, only in the case of the public foundations registered in this country;
• All foundations (public or private) must be registered with the Belgian company register (Banque Carrefour des Enterprises) before starting to operate;
• All foundation must be listed in the Beneficial Ownership Register in order to be legally active.

Following these important legal steps ensure the recognition and transparency of the foundation’s structure and purpose. Our specialized company formation agents offer support in this matter can also help you set up a company in Belgium.

Documents to open a foundation in Belgium

To successfully open a foundation in Belgium under the actual regulations, there are some key documents required to prepare in advance for the future non-profit organisation in Belgium:

• The Articles of Association;
• The Founding Deed, also named deed of incorporation;
• Proof of identity of founders (id, passports)
• Proof of the first board meeting (minutes from the appointment meeting);
• Proof of the financial plan, representing first 2 years that the foundation aims to operate;
• Registration proof at the Crossroads Bank for Enterprises;
• Official publication in the Belgian Official Gazette (“Moniteur belge”) to announce the establishment of the foundation.

Additionally, if the foundation is engaging in economic activities, VAT registration in Belgium is required by the competent authorities. In this case, the NPO in Belgium must also set up a bank account in order to register the payments and financial activities.

Taxation for Belgian foundations

As of January 2024, official data shows that Belgium introduced a new annual tax regime for non-profit organizations and private foundations registered in Belgium, representing now a progressive tax system:

• 0% on the first €50,000, representing the general tax relief mechanism
• 0.15% tax rate applying from €50,000 to €250,000 of taxable base;
• 0.30% tax rate which is applicable for sums ranging from €250,000 to €500,000 of the taxable base;
• 0.45% tax rate applies for sums above €500,000 of the taxable base.

Previously, a flat tax of 0.17% applied to assets exceeding €25,000. Non-profit organizations and foundations active in healthcare, education, culture, social assistance, or sports benefit from a reduced taxable base with 37.7% of assets considered.

Furthermore, our specialized company formation agents in Belgium can offer support in company registration and establishment of a legal entity in this country, in accordance with the Belgian types of companies that are available.

For more information and support regarding opening a foundation in Belgium, do not hesitate to contact our specialists in Belgian company formation.