Purpose
This guide explains the Stichting (Foundation) entity type in Suriname. It is intended for individuals or organizations considering establishing a foundation for charitable, non-profit, or specific purpose-driven activities.
What this page covers:
- Legal characteristics of Stichtingen
- Registration and governance requirements
- Tax implications and compliance obligations
- Practical considerations for establishment
Who this is for:
- Organizations planning non-profit or charitable activities
- Families considering asset management structures
- Individuals establishing foundations for specific purposes
Context & Assumptions
Regional scope: This guide applies to Suriname's legal framework.
Business type: Non-profit and purpose-driven entities.
Prerequisites: You should have clarity on your foundation's purpose before proceeding. For commercial business structures, see Eenmanszaak or N.V..
Core Guidance
Legal Nature
A Stichting (foundation) is a separate legal entity in Suriname with the following characteristics:
- Separate legal personality: Exists independently from its founders
- No ownership structure: No shareholders or members with equity ownership
- Purpose-bound: Activities limited to stated objectives
- Asset segregation: Foundation assets are separate from founder's personal assets
Types of Stichtingen
Charitable Foundations
- Serve public benefit purposes
- May qualify for tax-exempt status
- Subject to transparency and reporting requirements
- Examples: educational programs, healthcare initiatives, community development
Private Foundations
- Established for specific family or private purposes
- Typically used for wealth management or succession planning
- Less public disclosure than charitable foundations
- Subject to specific regulatory oversight
Administrative Foundations
- Provide management or administrative services
- May operate on a fee-based model
- Often serve as holding or service entities
Governance Requirements
Board of Directors
- Minimum of one director (specific requirements vary by foundation type)
- Fiduciary duty to act in accordance with foundation's stated purpose
- Responsible for financial management and compliance
Optional Supervisory Board
- Required for larger foundations above certain asset thresholds
- Provides oversight of board of directors
- Must include independent members
Registration Process
- Define purpose and objectives clearly in writing
- Draft articles of establishment with legal counsel
- Execute notarial deed before a notary public
- Submit to Ministry of Justice for government approval
- Register with Chamber of Commerce (KKF) if conducting commercial activities
- Complete tax registration for applicable taxes and potential exemptions
Tax Implications
Income Tax
- Qualified charitable foundations may be eligible for tax-exempt status
- Commercial activities typically subject to corporate tax
- Investment income may be taxable depending on foundation type
Donation Treatment
- Donations to qualified charitable foundations may be tax-deductible for donors
- Documentation and receipt requirements apply
Reporting Obligations
- Annual tax returns required regardless of tax-exempt status
- Financial reporting obligations vary by foundation size and type
Common Pitfalls
Unclear purpose definition: Vague or overly broad objectives can create legal and operational challenges. Define your purpose specifically.
Mixing commercial and non-profit activities: Stichtingen have restrictions on commercial activities. Excessive commercial operations can jeopardize tax-exempt status.
Inadequate governance: Failure to maintain proper board meetings, records, and oversight can lead to regulatory issues.
Irrevocable transfers: Assets transferred to a foundation typically cannot be reclaimed. Ensure you understand the permanence of asset transfers.
Underestimating costs: Foundations have ongoing legal, accounting, audit, and administrative costs. Budget accordingly.
Using foundations for personal benefit: Foundations must serve their stated purpose. Personal benefit arrangements may violate regulations.
Practical Considerations
When to Consider a Stichting
Appropriate scenarios:
- Establishing a charitable organization
- Creating a structure for long-term asset management with specific purposes
- Family wealth transfer across generations with non-profit objectives
- Holding assets for educational, cultural, or social purposes
Not appropriate for:
- Standard commercial business operations
- Personal asset protection without legitimate public or charitable purpose
- Tax avoidance without substance
Typical Timeline
- Weeks 1-2: Planning and purpose definition
- Weeks 3-4: Legal document preparation
- Weeks 5-6: Notarization and government filing
- Weeks 7-8: Tax registration and operational setup
Total estimated time: 6-8 weeks (may vary based on government processing times)
Estimated Costs
Costs vary significantly based on complexity and professional services required:
- Notarial fees
- Legal counsel for document preparation
- Government registration fees
- Ongoing annual audit costs (if required)
- Administrative and management expenses
Consult with legal and accounting professionals for specific cost estimates.
Related Documentation
Prerequisites:
Next steps:
Alternative structures:
Disclaimer
This documentation is for informational and educational purposes only and does not constitute legal, financial, or tax advice. Establishing a Stichting has significant legal, tax, and fiduciary implications. Consult with qualified legal and tax professionals in Suriname before making decisions about foundation establishment.