Company Foundation

A company foundation is set up to carry out a work of general interest.

It may be a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural work. But also the promotion of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge.

A company foundation may be set up by one or more companies or by one or more of the following:

• Civil or commercial businesses
• Industrial and Commercial Public Establishments (Epic)
• Cooperatives
• Provident or mutual institutions.

The creation of a company foundation is the subject of a application for authorization to the prefecture of department in which it will have its seat.

The application for authorization shall be made using an online service:

Creation of a company foundation

After instruction, the prefect sends the authorization order to the Directorate of Legal and Administrative Information (Dila) for publication in the Official Journal of company Associations and Foundations (JOAFE).

Leaders can download a copy of the ad published in JOAFE, called proof of publication.

This publication is free.

The existence of the foundation is effective from this publication.

Information needed

The application for authorization must be submitted by the founder(s).

It shall contain the following information:

• Name of the company Foundation
• Seat and duration of existence
• Social reasons, names, seats and activities of the founder(s)
• Names, forenames, dates of birth, professions, domicile, country of residence and nationalities of the founders or their representatives who will sit on the board of directors.

Documents needed

The application for authorization shall be accompanied by the following documents:

• Draft statutes of the Foundation
• Contract(s) of surety.

Characteristics of the identifier number

Each company foundation must have a unique identifier number, which remains the same throughout its life.

This number is included in the national repository of funds and foundations.

Assignment of the identifier number

There are 2 possible scenarios (new foundation or existing foundation):

A company foundation is administered by a board of directors.

This advice includes:

• up to 2/3, the founders and staff representatives of the founding companies,
• and for at least 1/3 of the qualified personalities chosen by the founders.

The board of directors makes all decisions in the interest of the company foundation. It decides on legal actions, votes on the budget, approves the accounts and decides on borrowings.

The President represents the Foundation in court and vis-à-vis third parties (persons outside the Foundation).

The company foundation must declare within 3 months to the competent prefecture all changes in its administration.

These changes apply to any person acting as a director, supervisor or director of the company Foundation.

The declaration shall contain the following information for each data subject:

• Last name, first name

• Date of birth

• Nationality

• Occupation

• Home

• Country of residence

• Nature of actual interests held in the company foundation (e.g. participation in decisions, voting rights, economic benefits)

This declaration shall be transmitted by means of an online service:

Reporting of changes in the administration of a company foundation

A company foundation's assets include:

• Founder's Payments
• Subsidies public
• Proceeds from fees for services rendered
• Investment income from its resources
• Possibly loans.

A company foundation cannot appeal to public generosity, or receive donations or bequest.

However, it may receive gifts from employees, agents, members, members or shareholders of the founding company or companies of the group to which the founding company belongs.

When a company foundation receives more than €153,000 grants, it duty publish its annual accounts and the auditor's report on the Associations of the site Journal-Officiel.gouv.fr.

The Foundation must commit to funding a multiannual action program of at least €150,000.

The sums that each founder undertakes to pay are guaranteed by a bank guarantee in case he is unable to make the agreed payment.

These amounts may be paid in installments over a maximum period of 5 years.

If the foundation is extended, the founders must commit to a new action program.

The Foundation shall draw up a balance sheet, a profit and loss account and an annex each year. It shall appoint at least one auditor.

The Foundation shall send each year to the Prefect, within 6 months from the end of the financial year, an activity report, its annual accounts and the report of the auditor.

Transmission is by using an online service:

Annual submission of accounts and activity report of company foundations

Any amendment to the statutes duty be the subject of a application for authorization to the prefecture of the foundation's headquarters department.

It shall mention each of the amendments to the Staff Regulations requested.

The application shall be accompanied by the following documents:

• Proposed new statutes
• Management Board's deliberations on amending the statutes
• List of the names, forenames, date of birth, nationality, professions, domicile and country of residence of the members of the board of directors in office at the date of the application and of the directors whose term of office has ended.

The change request is made using an online service:

Editing a company Foundation

After instruction, the prefect sends the Directorate of Legal and Administrative Information (Dila) for publication in the JOAFE: titleContent authorization to amend the statutes of the company foundation.

This publication is free.

A company foundation may be dissolved in the following cases:

• Scheduled lifetime expiration
• Amicable dissolution, by the withdrawal of all the founders, on condition that they have paid in full the sums they committed themselves to pay when the foundation was created
• Withdrawal of authorization by the prefect.

The dissolution is ensured by a liquidator, appointed by the board of directors or by the court of the seat of the foundation.

The dissolution declaration shall be transmitted using an online service:

Dissolution of a company foundation

After instructions, the prefect sends the company Foundation’s dissolution declaration to the Directorate of Legal and Administrative Information (Dila) for publication in the Official Journal of Associations and Foundations (JOAFE).