Formation of the foundation

Start up a foundation

Article 552 § 1(1) PGR (hereinafter Art. 552 § 1(1) PGR) defines the legal institution of a foundation. The following section discusses the essential characteristics of a foundation as well as its formation and coming into being.

Essential characteristics of a foundation

Essential characteristics of a foundation As referred to in this section, foundations are legally and economically independent special-purpose assets which are formed as a legal entity (juristic person) through the unilateral declaration of will of the founder.
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Establishment of a foundation

Establishment of a foundation The foundation is formed through a declaration of establishment, which requires the written form and authentication of the signatures of the founders. In the case of direct or indirect representation, the signature of the representative has to be authenticated on the foundation deed.
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Organisation

Organisation The foundation council (Art. 552 § 24 – § 26 PGR) manages the business of the foundation and represents the foundation externally. The primary responsibility of the foundation council is to ensure fulfilment of the purpose of the foundation. Apart from this general duty, there are special duties relating to asset management and accounting.
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