The key reform changes in bill 6054 were outlined in parliament on Tuesday and include an end to the rule that prohibits associations from owning a building that is not necessary for it to fulfil its social purpose. Under existing law, donated buildings have to be sold within six months.

Other changes and simplifications include:

—the possibility of keeping the register of members of an association in electronic form

—a plan by the justice ministry to introduce a complete regime for non-profit organisations and foundations, depending on their size, according to a differentiated and proportionate approach to the level of obligations

—the suppression of the obligation to file annually a list of members with the Register of Commerce and Companies (RCS)

—an end to the obligation to mention the contact details of foundation directors in the articles of association

—a relaxation of governance rules in line with technological developments, allowing associations to hold board meetings remotely

—an end of the obligation to publish the provisional budget of an association

The minimum initial endowment when setting up a foundation, currently set at €10,000, will be maintained, however. 

A separate bill will follow that will, among other things, end double declaration to the RCS and to the register of economic beneficiaries (RBE) when the members of the board of directors are also listed in the RBE; and replace PDF forms with HTML forms in the context of procedures with the RCS and the RBE.

According to parliament, there are currently 219 foundations in Luxembourg and 8,281 associations.

The bill rapporteur is Charles Margue (Déi Gréng).