Establish a Foundation in France

If you want to open a foundation in France, we advise you to discuss all the procedures beforehand with our French specialists. We are here to help you with all the formalities related to company formation in France, including for non-profit organizations. Below is information about registering a foundation in France and related requirements.

Quick Facts
Types of foundations in France	– charitable foundation, – public utility foundation, – sheltered foundation, – corporate foundation
Legislation	Civil Code
Authority in charge of approvals	The Ministry of the Interior in France
Status	non-profit organization
Seat & duration	Can be settled by founders
Most popular option	Public utility foundation that acts in the general interest
Minimum capital required	Starting from EUR 150,000, depending in the type of charity.
Documents	Foundation deed
Tax ID required	Yes
Purposes of a foundation in France	To raise money from donations/philanthropy and sustain various social causes.
Is partnership foundation available in France?	Yes
Tax benefits	Up to 75% tax deductions to founders and donors
Number of existing foundations in France	More than 3,000
Sectors of interest	– education, – science, – health care, – culture, – sports, – religion, etc.
Working with our French agents	To properly register a foundation in France. Our specialists can take care of all the incorporation procedures and represent clients in front of the relevant authorities.

What types of non-profit organizations are available in France?

According to the legislation, non-governmental organizations, such as foundations and associations, can be established in France. They can be registered for public or private benefit purposes. Here are 3 other primary forms of foundations available in France:

corporate foundations,
sheltered foundations,
public utility foundations.

On the other hand, there are other forms of charities in France, but they are not so frequent. Research, hospitals, partnerships, and scientific and university foundations can also be created. If you aren’t certain of which type of structure to incorporate, you can get in touch with our French agents. Besides, we are here to help you set up a foundation in France if this is your project. Plus, you can explore this infographic with information on foundations in France:

What is a corporate foundation, and how can it be established in France?

Public and private companies, cooperatives, mutual societies, and, in general, commercial entities can open corporate foundations in France. In this case, Article 19, Law of Philanthropy Development in France, will be respected. Here are other details in this regard:

a corporate foundation in France does not qualify as a public utility organization;
the basis of the corporate foundation in France will be an agreement with details about the action plans and programs intended to attain public benefit purposes;
a general interest objective broadly describes a corporate foundation in France;
the law mentioned above states that a corporate foundation must be active for at least 5 years, but the period can be extended, at the request of the founders;
the founders must commit to a multi-year action programme of at least EUR 150,000 to establish a corporate foundation in France.

How can you open a public utility foundation in France?

A public utility foundation in France (FRUP) is usually the optimal entity for involvement in general interest causes. This is also known as a non-profit philanthropic organization, recognized by the French Council of State. Here are the conditions to open a FRUP in France:

EUR 1.5 million is the minimum endowment/capital required for opening a public utility foundation in France;
founders of FRUP in France must clearly define the purpose of the entity: social, educational, scientific, religious, etc.);
a board of directors is required for opening a public utility foundation in France;
the foundation’s charter stands at the base of a FRUP in France. The application is filed with the Ministry of the Interior, which consults the Council of State (Conseil d'État). after a favourable opinion, public-utility status is granted by decree;
once approved, the foundation has an official decree, and it is recognized as FRUP;
owning a public utility foundation in France means all activity reports and annual accounts must be submitted to the relevant authorities.

How are foundations levied in France?

The majority of those who opt for foundations in France enjoy a specific taxation. For example, there is no corporate income tax imposed on foundations without economic activities. In the case of FRUPs in France that are recognized as acting in the public interest, there is no taxation on inheritance and gifts from donors.

On the other hand, individuals who make donations to foundations in France can deduct 66% of the donation from their income tax (within 20% of taxable income). In the case of companies that make donations, 60% of the donation can be credited against corporate tax (40% above EUR 2 million), within EUR 20,000 or 0.5% of turnover. Other tax schemes apply to corporate foundations in France. It is a good idea to seek specialized help when setting up a foundation in France to know from the outset what taxes are involved. You can collaborate with our French tax advisors and learn more about the benefits of having such an entity.

What other types of foundations are available in France?

Research, hospitals, partnerships, and scientific and university foundations can also be created.

Each of these types of entities serves a specific purpose and has a certain supervisory administration. What they have in common is the fact that they all have to act/serve a public benefit purpose in France.

We assist international investors in setting up foundations in France, but for more details, please feel free to contact us.