The Nonprofit Law or the 2018 Non-Governmental Organizations Act is the main legislative framework governing the creation of foundations in Slovenia. However, depending on their activities, they will also be subject to other laws. This is why if you want to open such an entity in this country, you must pay attention to several aspects.
Below, our company formation agents in Slovenia explain the requirements related to setting up a foundation, as well as the most important considerations you must respect. We are also at your disposal with tailored solutions for creating such an entity.
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Conditions to open a foundation in Slovenia
When deciding to create a Slovenian foundation, there are several aspects to take into account, among which the most important are:
- determining the purpose of the foundation, which will establish the number of founders and its taxation;
- choosing an appropriate name which must contain the designation of the foundation (association, club, family, or even society);
- ensuring the foundation carries out activities approved by the law (there are certain operations such an entity is restricted from);
- making sure the foundation meets the membership requirements, in accordance with its type.
It is possible for natural persons and companies to open foundations in Slovenia. Also, foreign foundations can operate through branches in Slovenia.
Our local consultants can help you register the desired type of association.
Types of foundations in Slovenia
Similarly to when you open a company in Slovenia and can choose its legal form, it is also possible to create:
- non-profit foundations;
- institutes;
- associations.
They must be non-commercial entities that operate independently from other bodies.
How to open a foundation in Slovenia
Just like in the case of companies, the Articles of Association are the basis of creating a Slovenian foundation. They must contain the following information:
- the names of the founders;
- the registered address of the foundation;
- the activities the entity will undertake;
- information about the managing body;
- details on how the foundation will complete its activities;
- information about the financing means;
- the procedure of allocating revenue surplus and how deficits will be covered (if necessary);
- other information relevant to the foundation.
Our company registration consultants in Slovenia can assist with the creation of the establishment document for a foundation. Following that, we can also assist with its registration with the Business Register.
Activities completed by foundations in Slovenia
According to Article 4 in the Nonprofit Law, a Slovenian foundation can carry out:
- charity work;
- generally beneficial operations.
The latter usually involves sustaining:
- scientific activities;
- culture and education;
- sport;
- healthcare;
- social welfare;
- environmental protection;
- protection of natural and cultural heritage;
- religious activities.
The same Article 2 stipulates that a foundation can engage in more than one activity. Our Slovenian company formation advisors can offer more information on this aspect.
Taxation of foundations in Slovenia
The foundation is a very tax efficient vehicle, as it can benefit from various exemptions. To be more precise, it does not pay any levies on its non-profit activities. However, when it comes to those it must pay, please consider the following:
- the corporate tax for profit-deriving operations, which is levied at a 19% rate;
- the VAT which is levied at a standard rate of 22%;
- deductions of 0.2% and 0.3% are available for corporate donors.
If you want to open a foundation in Slovenia and need support, please contact us.