A foundation in the form of a Limited company can bring substantial advantages!
The majority of foundations in EU run on a non-profit basis. In order to fulfill foundation objectives they require a sustainable source of income. In order not to lose charitable status, these earnings need to be quite small. In practice, many foundations set up a corporation in the form of a Limited Liability Company or PLC ( a company ran by shares), to secure the inflow of funds: Bertelsmann Foundation and the Robert Bosch Foundation are examples.
Foundations with activities or property abroad can make use of foreign forms of incorporation, such as INC or Limited company. In Europe, a Malta Limited company is especially attractive to foundations because tax exemptions allow a nonprofit foundation to reduce the tax burden of commercial activities to just 5%.
St Publius are happy to provide advice for existing or proposed foundations on the benefits of operating a Maltese Limited company company.