If you want to create a foundation, you need to know the requirements to create a foundation, and in this content we show you each of them.
Stay and read this article, and learn much more about foundations.
What are the Requirements to Create a Foundation in Spain?
Thinking about creating or building a foundation, it turns out, seems complicated and difficult, however it can be a very simple procedure if the steps are followed and the requirements to create a foundation are met.
The requirements consist of a series of characteristics with which the foundation to be planned must be fulfilled. Each of them are presented below:
- It is important that the main interest of the foundation is to benefit people, that it has a general and collective benefit.
- It is recommended that the duration of the foundation is indefinite, that is, it can work for a certain period of time, however, the process is easier if its duration is indefinite.
- The minimum capital required to create a foundation in Spain is 30,000 euros.
- The foundation is not allowed to benefit in any way, directly or indirectly, to the founders, since the benefit is for other people.
- It must be regulated and subject to administrative supervision.
If you meet these requirements, the foundation will be a success.
How to create a foundation in Spain?
To create a foundation it must be taken into account that it must have its own legal framework. Therefore, they are governed by rules and parameters in each of their areas.
Here are some steps you must follow to create a foundation in Spain:
Create a basic status
To begin the process of creating a foundation, the bylaws that prove the corporate purpose of the foundation must be established.
Make the request for certification to the Registry of Foundations
Another step is to request certification from the Registry of Foundations accordingly.
Bank and notary procedures
The third step consists of going to the bank to complete the deposit of the initial endowment on behalf of the foundation. Then, within the same step, the constitution deed must be raised to a public deed.
This procedure is carried out before a notary, in which certain information corresponding to the founder and the foundation is provided.
Application for the NIF of the foundation
The fourth step is to request the corresponding NIF of the foundation. To do this, you must go directly to the Delegation of Finance, and then go to the Ministry of Finance, where the liquidation of Tax on Patrimonial Transmissions and Documented Legal Actor.
Registration in the Registry of Foundations
As the last and fifth step, request registration in the Registry of Foundations. For this you can enter here.
In order to carry out this process, the public deed, the statutes, the provisional NIF and the liquidated taxes must be issued.
Ready! If you comply with all the aforementioned steps, you will obtain the necessary legal personality to start working.
Types of foundations
In this section of this content, we are going to explain the types of foundations. There are exactly three types, which are: charitable foundations, labor foundations and cultural foundations.
Up next, each of the preview are described:
Charitable foundations or also better known as Charities, are the best known foundations worldwide and one of the oldest types.
As their name indicates, charitable foundations have the purpose of benefiting society, generating a satisfaction of people’s needs, free of charge.
At present this type of foundation has a large market share.
This type of foundations are created under decree number 196, which establishes that their purpose is created by virtue of an agreement between the company and the employees.
These foundations are related to cultural education and training. It is based on providing cultural services under the regulation of what is established by the Ministry of Education.
Regardless of the type of foundation in question, they all have the same purpose, which is based on providing a service that can greatly benefit a wide group of people.
Advantages of Creating a Foundation
To better convince ourselves to create a foundation, it is very valuable and important to know the benefits and advantages that are obtained through a foundation. Therefore, in this section each of the benefits are presented, in the following list:
- Long-term lasting commitment: Every foundation is committed to operating in the long term, providing stability and strength.
- Ease of alliances: One of the advantages of creating a foundation is that it can facilitate alliances with other institutions. This is due to the non-profit nature of the foundation, which generates greater credibility to formalize agreements and alliances with other foundations, NGOs and other international organizations.
- It favors social development: Because the function of a foundation is to grant a benefit to a wide group of people, that helps society and its development, by reducing amounts of problems and helping people in their difficulties.
- Tax advantages: The creation and formation of a foundation entails a truly beneficial tax framework for the creators of the foundation.
- Beneficial image: Charitable acts, foundations, charities, create a gratifying and popular world image, because solidarity issues in the world generate much to talk about and are well viewed and beneficial.
All of these are some of the advantages and benefits of creating and forming a foundation. Remember that in order to carry out all this you must comply with the requirements to create a foundation.
What is the Difference between Creating a Foundation and an Association?
Many people have doubts about the differences between foundations and associations. That is why in this part of this content, some of the differences are expressed.
There are many differences between association and foundation, which are mainly reflected in the requirements requested for the constitution of both institutions and also in the way they work.
We must bear in mind that:
- An association aims to achieve purposes common to all associates, that is, benefits to those who form the association (Associates).
- On the other hand, a foundation’s fundamental objective is to generate benefits of general interest, that is, to other people and not to the founding members.
Based on these two characteristics, you can tell the difference between the association and the foundation.
We can also make the following comparisons in terms of constitution:
- Members required for the constitution: The association must have a minimum of 3 members and the foundation must have a minimum of 1.
- Type of documentation: The association must issue a private or public document, and in the case of a foundation, it can only issue a public document.
- Type of registration: In the case of the association, it must be declarative in nature and in the case of a foundation, it must be constitutive.
- Patrimony: As initial patrimony, the association does not have a minimum amount and in the case of the foundation it must contribute an initial amount of at least 30,000 euros.
- Type of operation: In the case of associations it should be a democratic operation and in the case of foundations it is decided by the founder.
- Control: The control of an association is subject to the assembly board, and the control of a foundation is subject to the Board of Trustees to the Protectorate.
What is it?
The foundation in the area of law is considered a non-profit institution, and originates from a legal entity.
One of the characteristics of this type of foundation is that it has its own patrimony, that is, it is placed by the founder, or the founders.
It is governed by certain bases and the entered patrimony must be taken care of, in order to fulfill the goals imposed by the foundation. For this, those responsible for the institution must maintain commercial activities that allow the heritage to grow.
Meet the requirements to create a foundation and be successful in your process.
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