We are experienced in the registration of German foundations /NGO’s. There are several laws that provide for the creation of foundations in Germany. These are the Civil Code, the Law on Associations, and the Law on Foundations.
| Short Facts | |
|---|---|
| Applicable law | – Civil Code, – Law on Foundations, – Law on Associations. |
| Types of foundations | – charities, – private and public benefit foundations. |
| Setup requirements for foundations in Germany | – at least 2 members for an unregistered foundation, – at least 7 members for a registered one. |
| Mandatory registration (YES/NO) | No. |
| Registration authority | – Charitiy Register, – Companies Register. |
| Creation document | The foundation charter. |
| Local address required (YES/NO) | Yes, a local address is required. |
| Share capital requirement (YES/NO) | Yes, the minimum amount is EUR 50,000, however, additional requirements apply in each state. |
| Tax benefits for foundations in Germany | Exemptions from the corporate, capital gains, and real estate taxes are available for charitable foundations. |
| Accounting requirements (if any) | Foundations must file annual financial statements. |
| Possibility to conduct economic activities through a German foundation (YES/NO) | Yes. |
| Registration timeframe (approx.) | Around 20 business days. |
| Duration of life | A minimum of 10 years. |
| Advantages | – quick registration, – possibility to complete various activities, – possibility to be registered as private limited liability companies. |
| Support in setting up a foundation in Germany (YES/NO) | Yes, our German company formation specialists can assist with the creation of a foundation. |
Table of Contents
What is a German Foundation?
A foundation is a non-corporate entity created by one or more founders who use the assets of their organizations to complete a specific purpose. These are non-profit/non-governmental organizations (NPOs, NGOs) – Stiftung in German.
Below, you can discover how to open a foundation in Germany as per the laws and regulations of 2026. You can rely on our experts for full support.
What are the requirements to create a foundation in Germany?
German foundations must:
- be registered with the Company House;
- have a legal address in Germany;
- have at least one director who can be a natural or legal person (no residency requirements apply);
- be registered as per its Articles of Association.
Note: Company Formation Germany.com is able to fully assist you with all requirements.
Here is also an infographic on this subject below:
How long does it take to set up the foundation?
Setting up a foundation in Germany takes about 15 to 20 working days.
Can I incorporate the foundation / NGO remotely?
Yes, our local representatives can help you incorporate an NGO based on a power of attorney if you do not want to travel.
What are the documents required to register an NGO in Germany?
There are several documents that need to be drafted when establishing a foundation in Germany. For this purpose, you should consider the following:
- ID/passport or residence permit in the case of natural persons;
- natural persons must also submit proof of a German residential address which cannot be older than 3 months;
- for companies setting up foundations, an extract from the Trade Register must be obtained (this document too cannot be older than 3 months);
- the proof of the German registered address (a lease agreement, property title, or even the address of the virtual office chosen, if such an option was chosen);
- the Articles of Association;
- the power of attorney, in case of registration by proxy.
What are the main characteristics of German foundations?
Here are the main features of foundations in Germany:
- they are considered legal entities;
- they are not set up for commercial activities;
- they do not have members, but founders who can be natural persons or companies;
- the management board is liable for its obligations.
Is a German Foundation better that Dutch or Luxembourg one?
This depends. You can make a comparison here:
- For the Dutch Foundation go to https://companyformationnetherlands.com/open-a-dutch-foundation/
- For the Lux foundation visit this website specialized in Luxembourg Company Setup :www.companyformationluxembourg.com
What are the share capital requirements?
Usually this is EUR 50,000, but the amount may vary from state to state. This rule, however, is not imposed at a federal level. As such, before setting up the foundation, our local consultants recommend you to:
- choose carefully the German land where you will register the foundation;
- check the exact amount required in the respective land.
What are the types of foundations in Germany?
One of the important things to take into account for the creation of a German foundation is to establish its purpose. From this point, it can be created for:
- charity;
- private benefits;
- commercial activities.
This aspect is important as it will have an impact on whether the NGO will be taxed or not. As such, only foundations created for commercial purposes are liable for taxation. In the case of charitable foundations, the founder must deposit the value of the NGO’s assets in its bank account. Then, the settlor must obtain a donation receipt that must be filed with the tax authorities to benefit from tax exemptions. These fiscal benefits apply to the:
- corporate tax;
- commercial tax;
- gift and inheritance tax.
From a gift and inheritance tax perspective, the best option is to set up a family foundation in Germany.
Note: that when created for commercial reasons, it can also be registered as a private limited liability company (GmbH).
Depending on the state you want to open your foundation in, our company registration consultants in Germany are at your service. Here is also our video:
Can you assist me set up a German trust?
Indeed. Its main features are:
- it does not have a legal capacity or personality;
- not having a legal capacity means it needs to be represented by a trustee;
- it is created based on a contract between the settlor and the trustee;
- in this case, the contract will usually be a donation one;
- it can also be established through a testament.
No matter the type of document it was created through, it must be notarized to ensure its validity and that of the German foundation, according to Article 518 in the Civil Code.
Another important aspect to consider about this type of foundation is that it does not require registration as a non-profit entity with the tax authorities, unless you want to obtain the tax benefits that apply to these organizations.
Important: The main advantage of setting up a trust foundation in Germany is that it requires significantly lower establishment capital.
What about the German Family Foundation?
Another way to open a foundation in Germany is by setting up a family organization. This is the most suitable option if you want your estate not to be fragmented over time, while ensuring the financial safety of your family on a long-term basis.
One of the major advantages of the family foundation is that the transfer of assets to the organization is levied the gift tax every 30 years. Also, the settlor decides who benefits from the assets.
What are the traits of the Corporate Foundation?
An interesting fact about creating a foundation in Germany is that it can also take the form of a private limited liability company. This means that the GmbH can be registered as a foundation. This is also called the foundation association. In this case, the legal form will have a non-profit purpose in which the shareholders are the members.
This type of foundation can also benefit from several advantages, among which:
- it is not required to register with the Commercial Register;
- it does not require supervision from the Charities Register;
- the minimum capital is EUR 25,000, however, if it is made up of cash, only half of the amount must be deposited.
As mentioned above, it is also called a foundation association, as it is a mix between the two types of organizations.
If you need support in opening a foundation in Germany, do not hesitate to contact us.