Family foundations

Anna Skowron

Tomasz Wilk

What is a family foundation?

May 2023 saw entry into force of the long-expected family foundations law in the form of the Family Foundation Act of 26 January 2023 (“FFA”).  The idea behind FFA is to facilitate the operation and succession of multi-generational businesses, as well as creating a vehicle for the accumulation of family wealth and ensuring financial security for the beneficiaries (typically family members). In addition, FFE offers real tax savings that will help improve the growth prospects of Polish-owned firms.

Family Foundation Guide

You may want to have a look at our special guide on family foundations!

It explains what a family foundation is and how it works. It also provides details on how to set up a family foundation, offering valuable tax and legal advice.

How we can help

Tax and legal analysis for would-be founders

• pre-establishment tax and legal analysis to determine if a family foundation is the right choice in your case, showing what purposes one may serve, what business it may carry on and what assets may be contributed to it
• helping you identify the founders’ roles in foundation boards, the remuneration structures etc.
• supporting you in finding the best tax solutions for foundation beneficiaries and identifying the tax effect of endowing various assets
• preparing applications for tax rulings or assurance opinions (concerning tax treatments, asset endowments, etc.)
• helping you formulate a foundation investment policy (if required)

Family Foundation incorporation services:

• incorporation support, including drafting a deed of foundation and a charter for your foundation
• preparing other incorporation documents and filings, such as the list of assets, the statement by the founders that they have contributed assets to form the endowment fund, the documents appointing foundation boards (with consents to appointment), powers of attorney, clean criminal record enquiries (to National Criminal Register)
• preparing and filing the registration application with appendices (statements, consents, notices, beneficiary lists, etc.) on your behalf and representing you during the registration proceedings
• supporting you in filing your foundation with the register of beneficial owners (CRBR) and in other filings, such as for business statistics (REGON) or tax (NIP) purposes
• assisting you in notarizations, during asset endowment (if necessary)

Secretarial and compliance services throughout foundation life:

• model resolutions for foundation boards (including for the general meeting of beneficiaries and the management board)
• keeping records of distributions to beneficiaries, updating the beneficiary list and the asset list, etc.
• formulating and updating personal data processing policies for the foundation,
• support in mandatory annual GDPR reviews, serving as outside data protection officer for the foundation, support in end-of-year accounting or tax procedures, tax compliance assistance for foundation, founders, beneficiaries and managers