November 2, 2012, 8:28 pm
The major forms of Dutch non-profit organization are the associations, the foundations and the churches.
The Dutch Civil Code is regulating these forms of entities and describes them as form of organizations that cannot produce profit for its members and are used especially in order to pursue charity activities.
Foundations (stichting in Dutch) are legal entities opened in The Netherlands without membership which are holding funds used in order to achieve certain objectives stated in the Articles of Association. A foundation can produce profit as long as this profit is used to pursue the objectives stated in the Articles of Association. A foundation can also be formed as a request of a testament.
The foundations created in The Netherlands have the obligation to register in the Register of Commerce ("Handelsregister") according to the Dutch Civil Code. Along with the foundation registration a list with all the initial directors must be presented for registration. The directors of an NGO formed in The Netherlandsare usually instituted at the establishment in the articles of association.
The memorandum of association is mandatory for the Dutch foundation and must be written in Dutch and elaborated by a civil notary. The content of the memorandum should stipulate the name of the foundation (it’s mandatory to contain the termination “stichting”), the location, the objectives, the modality to appoint and discharge the board members, the destination of the foundations’ funds in case of dissolution, the obligations and powers of the board’s members. Alteration of the memorandum of association must be performed through the creation of a new notarial deed.
In certain situation, different tax exemption are granted if the Dutch Tax Service consider the foundation as an "institution for general benefit"
Associations registered in The Netherlands are unions between two or more individuals, physical persons or corporate bodies that pursue certain goals stated in the Articles of Association and that cannot divide profit among its members.
There are two types of associations that can be set up in the Netherlands: with complete authority under the law (in this case the articles of associations are drawn by a civil notary and it’s mandatory in this case that the association is registered at the Dutch Chamber of Commerce trade register) and with limited authority under the law (when the articles are not drawn up by a notary and the registration is not mandatory).Tweet
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