Glossary · Legal forms

Foundation (Stiftung)

Also: Stiftung, rechtsfähige Stiftung, Familienstiftung, gemeinnützige Stiftung, Verbrauchsstiftung, family foundation, charitable foundation

Dr. Georg Schröder, LL.M.Lawyer

In short

A foundation is a legal entity without members, endowed with assets in order to fulfil a purpose set by the founder permanently and sustainably. It comes into existence through the act of establishment and recognition by the competent state authority.

Foundation (Stiftung) explained

Unlike a company, a foundation has no shareholders or owners. It is usually established for an indefinite period; a foundation for a limited period uses up its assets for the purpose during that time (Sec. 80 (1) BGB). Recognition is the responsibility of the authority of the federal state in which the foundation is to have its registered office (Sec. 80 (2) BGB). The law does not specify a fixed minimum sum, but the permanent and sustainable fulfilment of the purpose must appear assured (Sec. 82 BGB). Charitable foundations serve the general public, family foundations above all the provision for a family and keeping family assets together.

Legal basisSec. 80, 82 BGB

Matching service

Set up a foundation

€1,449net plus VAT, fees of the foundation authority and the foundation register, notary fees if applicable

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Related terms

Registered office (Sitz der Gesellschaft)The registered office is the place in Germany that the articles of association specify as the company's seat. It determines the register court at which the GmbH or UG is registered.Asset management GmbH (vermögensverwaltende GmbH)An asset management GmbH manages its own assets, such as real estate, securities or shareholdings, instead of running an operating business. It is often used as a holding company or to invest accumulated profits.Corporation (Kapitalgesellschaft)In a corporation, the capital contributed is what matters, not the person of the shareholders; examples are the GmbH, UG and AG. It is a legal entity and in principle is only liable with the company's assets.eGbRThe eGbR is a GbR that is entered in the partnership register at the local court and carries the suffix "eGbR". Registration has been possible since 1 January 2024 and is voluntary, but it is a prerequisite for acquiring real estate or GmbH shares.GbR (civil law partnership)A GbR comes into existence as soon as at least two persons contractually undertake to pursue a common purpose, without a notary, register or minimum capital. All partners are personally liable for its debts, without limit and jointly and severally.gGmbH (non-profit GmbH)The gGmbH is a GmbH whose articles of association and actual management pursue exclusively and directly charitable, benevolent or religious purposes. In its tax-privileged sphere, it is exempt from corporation tax and trade tax, but may not distribute profits.

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