Registering a Charitable Foundation in Lithuania

A charitable foundation (Labdaros ir paramos fondas) is a non-profit legal form intended for carrying out charitable activities and/or providing support for social, sporting, cultural, educational, scientific, or other publicly beneficial purposes (including healthcare, environmental protection, and similar fields). A foundation is not permitted to distribute any profit it receives among its founders or members.

The registration of a charitable foundation is governed by the Law on Charity and Support Foundations of the Republic of Lithuania. This legal form allows an organisation to legally collect donations, receive grants, and benefit from certain tax advantages.

Basic Requirements for Establishing a Foundation

A single founder — an individual or legal entity, including a foreign one — is sufficient to register a charitable foundation. The law does not set a mandatory minimum amount of share capital. Founders may contribute assets or funds of any amount starting from €1. The foundation’s articles of association may also provide for a protected capital reserve to ensure the organisation’s financial stability.

The highest governing body of a foundation is the general meeting of participants (where there is more than one participant). Day-to-day management is carried out by a director, and in some cases a board is also formed. An important condition for a foundation’s operation is the prohibition on distributing profit among participants — all funds must be used solely for the purposes set out in the articles of association.

Stages of Registration

The registration process for a charitable foundation includes the following main stages:

• Checking and registering the name with the Register (VĮ Registrų centras).
• Registering the legal address.
• Preparing all necessary founding documents and having them notarised.
• Registration with the Register.

Timeline and Registration Details

With a complete set of documents, registering a foundation usually takes from around 2 weeks. Once registration is complete, the foundation receives an extract from the Register of Legal Entities and other supporting documents.

It is also worth noting that, to obtain tax benefits, a foundation may apply to the State Tax Inspectorate (Valstybinė mokesčių inspekcija) for recognition as a recipient of donations. This status allows donors to claim tax deductions when providing financial support to the foundation.

Benefits of Establishing a Charitable Foundation

Registering a charitable foundation provides a legal basis for carrying out charitable activities, increases trust among partners and donors, and opens access to grants and support programmes. This legal form also allows an organisation’s activities to be structured in line with transparency and accountability requirements.

A charitable foundation is a convenient tool for implementing long-term social and publicly significant projects in Lithuania and the European Union.