Setting-up of a Private Foundation

The Luxembourg Private Foundation is created as an authenticated deed by a Luxembourg notary. The deed contains the Charter of Constitution.

 

The deed contains the following information

 

  • the identity of the founders who signed the deed or on whose behalf the document was signed
  • the name of the Private Foundation
  • the duration of the Private Foundation
  • the seat of the Private Foundation
  • the subject of the Private Foundation
  • the amount of the initial endowment (minimum EUR 50.000,-)
  • the names, date and place of birth, position and private or professional address of the persons in charge of administering the Private Foundation and the determination of their powers of representation
  • the names, date and place of birth, position and private or professional address of the persons of the Supervisory Board of the Private Foundation, if any, and the powers of the Supervisory Board
  • the designation of the beneficiary(ies) or the criteria or the entity or persons in charge of the determining  such beneficiaries and the form of their appointment

 

The administrators must publish the Constitution Charter in the Memorial C Company Register within 3 months.

 

Additional Elements in the Extra-statutory Regulations

 

In addition to the Constitution Charter, the Founder can define the following elements in the Charter or in the Extra-statutory Regulations:

 

  • the modalities under which administrators are names,
  • how administrators can operate their duties,
  • how administrators are remunerated,
  • the power of the Founder, rights and obligations,
  • the designation of a Supervisory Board and an external auditor.

 

A Luxembourg Private Foundation with more than EUR 20 million of assets or more than 5 beneficiaries will need to appoint a supervisory board of at least 3 members and an external auditor.

The Luxembourg government issued a draft law on such private foundation in the summer of 2013. But these provisions have not come into effect since the bill has yet to be voted.