Capital Market Development and construction of major business systems led to the need to renew the institution of the Foundation and the endowment. After long deliberations, in March 2011, entered into force the Law on endowments and foundations, which allowed for investment in non-profit organizations in order for development of specific areas of culture, education, improvement of all aspects of life.
The Office began implementation of the new Law and the establishment of foundations in accordance with newly adopted regulations. The mentioned Law on endowments and foundation regulates the registration of the endowments and foundations as well as representative offices of foreign endowments and foundations, in special registers which are kept by the Business Register Agency. responsibility of the founders and members is excluded. Endowments and foundations enjoy budget and tax benefits as well as the possibility of funding by foreign donors.
Endowments, foundation and funds are established and entered into registers according to the previously existing law have to be put in compliance with the new law and through forms of endowments or foundation, and the harmonization is done at latest by March 1st 2012.
Practically, putting into compliance presupposes adjustment of statute and other general acts with the new legislation provisions. In case of failure of harmonization, the same will stop working. The specificity of the new Law regards the funds, which from the date of application of the same, continue to operate, however, as a foundation under the name under which they were entered in the register.