Opening a family foundation - from succession planning to secure accounting

At TaxCoach, we divide the process of establishing a family foundation into two stages. The first stage covers the establishment and registration of the foundation: developing the concept, preparing the statute, completing registration documents, organising the visit to the notary and representing the client in the foundation registration process before the court. The cost of this stage is PLN 6,500 net plus VAT, notarial costs and court fees.

In the case of a more complex process, for example when it is necessary to prepare a more detailed statute or make significant modifications to the statute proposed by us, the cost may be higher.

The second stage concerns transferring assets to the foundation. The cost is PLN 3,500 net for each type of asset plus VAT and any notarial and court costs. This may include, among others, shares and stock in companies, securities, real estate or other asset components.

It should also be remembered that a family foundation must be equipped with founding capital of at least PLN 100,000. In our standard procedure, the foundation is registered with the minimum founding capital in cash.

In most cases, the entire process of preparing the documents and concept takes several weeks, while the registration of the family foundation in court may take several months. However, the foundation may operate as a family foundation in organisation already after signing the founding deed before a notary.

No. A family foundation may benefit from tax preferences, but only when it operates in accordance with the regulations. Tax may arise, among others, when benefits are paid to beneficiaries or when the foundation conducts activities outside the catalogue of permitted activities. That is why, before establishing a foundation, it is worth analysing the planned assets and sources of income.

Yes. A family foundation keeps accounting books and has reporting obligations, but its records differ from the standard accounting of an ordinary company. Already at the stage of establishing the foundation, it is worth planning how assets, payments to beneficiaries, dividend income, rental income, proceeds from the sale of shares or other assets will be recorded.

Well-prepared records should reflect the specific nature of a family foundation, including the asset inventory, tax and accounting value of assets, rules for settling benefits and CIT-related obligations. As a result, accounting is not only a formal requirement, but a tool that helps safely manage the foundation from day one.

Yes. A family foundation may receive, among others, cash, real estate, shares or stock in companies, securities and other asset components. Before transferring assets, however, it is necessary to check the tax consequences, the provisions of company agreements and the method of recording the assets in the foundation’s asset inventory.

Yes. A family foundation is subject to a mandatory audit by a statutory auditor at least once every 4 years. The audit covers, among others, the correctness of asset management, incurring and fulfilling obligations and providing benefits to beneficiaries.

That is why, from the very beginning, it is worth keeping the foundation’s accounting books in an organised way and in a manner adapted to its specific nature. Well-planned records facilitate a later audit, reduce the risk of corrections and make it easier to prepare documents for the statutory auditor.