Foundation

A foundation is a legal person without members which is established with a certain amount of capital to achieve a goal which is stated in the Articles of Association. Foundations tend to have idealistic or social objectives. A foundation is allowed to make profits, but there are restrictions on how the profits can be allocated. This is why the foundation and the association are not the ideal legal form in which to start a business.

Taxes
If a foundation does run a business, it has to pay corporation tax on the profits. Deciding whether or not turnover tax (BTW) has to be paid can be quite complex. It is advisable to consult an expert, for example the tax authorities.

Liability
In principle the managers of a foundation are not liable for obligations. However, if the foundation runs a business, the managers may be held liable under certain circumstances.