Want to Make a Foundation? Don't Forget These 5 Documents

For non-profit organizations such as Foundations, the issue of credibility is one of the important factors, one of which is through the Foundation’s legality documents. This is because many organizations that call themselves Foundations but turn out to be just a front to get the benefits of a handful of people. For example, a foundation established to manage and distribute humanitarian aid. Without being supported by adequate legality and licensing, it is arguable that the public will not put their trust. That is why Foundation legality documents are important as a way to ensure that this organization can really be trusted. Then, what are the documents needed to fulfill the legality of the Foundation? Check out the explanation here.

Overview of the Foundation

Before knowing more about the legality documents of the Foundation, KH Friend needs to first understand what is meant by the Foundation. A foundation is a legal entity that has social, religious and humanitarian purposes, and is established by fulfilling the formal requirements determined by law. The Foundation Law is contained in Law No. 28 of 2004 concerning amendments to Law No. 16 of 2001 concerning Foundations. In accordance with the applicable rules, both Indonesian citizens and foreigners can establish a Foundation. But of course, there are certain conditions that must be met to establish the Foundation. The requirements for establishing a Foundation in accordance with Article 9 of the Foundation Law are as follows:

The foundation is established by one or more people by separating part of the founder’s wealth as initial wealth.
The establishment of the Foundation is carried out by notarial deed and made in Indonesian.
The foundation can be established based on a will
The cost of making a notarial deed is determined by Government Regulation.
In the event that the Foundation is established by foreigners or together with foreigners, regarding the requirements and procedures for the establishment of the Foundation are regulated by Government Regulation.

What is included in the Foundation Legality Document?

Quoted from the Directorate General of AHU page, there are documents that must be owned to fulfill the legality of the Foundation, including:

Foundation Establishment Deed

One of the most important documents in the legality of the Foundation is the deed of establishment. To obtain the status of a legal entity, the deed of establishment must be authorized by the MOLHR. Information that must also be contained in the Foundation’s deed of establishment consists of at least the name, address, occupation, place and date of birth, as well as the citizenship of the founders, coaches, administrators, and supervisors of the Foundation.

Foundation Articles of Association

As a guide, the articles of association of the Foundation must at least contain some of the following:

Name and domicile;
Goals and objectives and activities to achieve those goals and objectives;
Period of establishment;
The amount of initial wealth separated from the founder’s personal wealth in the form of money or objects;
How wealth is acquired and used;
Procedures for the appointment, dismissal, and replacement of members of the board of trustees, management, and supervisors;
Rights and obligations of members of the board of trustees, management, and supervisors;
Procedures for organizing Foundation organ meetings;
Merger and dissolution of the Foundation; and
Use of the remaining wealth of liquidation or distribution of the Foundation’s wealth after dissolution

Foundation NPWP

In practice, the Foundation’s NPWP can only be obtained after the deed of establishment has been approved by the MOLHR. As we know, NPWP is a series of serial numbers used by the tax office to identify taxpayers in Indonesia, both individuals and business entities. For the benefit of the Foundation’s activities, of course this identity is needed. In general, to get a Foundation NPWP, some of the documents below must be fulfilled:

Copy of ID card of the head of the foundation
Copy of personal NPWP of the head of the Foundation
Copy of the deed of establishment of the Foundation
Certificate of domicile from the urban village
Corporate NPWP application form

Foundation Domicile

If you want to establish a Foundation in Jakarta, you should first look at Regional Regulation No. 1 of 2014 concerning Detailed Spatial Planning and Zoning Regulations. Referring to the regulation, Foundations are categorized as social institutions and community organizations that can be established in houses with certain limits. In addition, Foundations can also be established in office subzones and mixed subzones. For other areas outside Jakarta, of course, you must pay attention to the relevant regional regulations. If the local government does not yet have rules related to this, you can contact the village or sub-district where the Foundation was established.

Foundation Registration Certificate

The Foundation registration mark is guided by DKI Governor Regulation No. 6/2012. Where the regulation states that every Foundation or branch of a foreign Foundation that carries out activities in the field of social welfare must have a registration mark from the Mental Spiritual and Social Welfare Office (Bintal and Kesos). The Foundation registration mark is valid for three years. As for the conditions for obtaining it, the Foundation must submit a written application to the Head of the Bintal and Kesos Office signed by the Chairman / Chairperson and secretary, and affixed with the Foundation seal.

This is an explanation of the foundation, its establishment requirements, and legal documents. If you want to establish a foundation, you must follow the procedures in accordance with the applicable regulations, including those related to the legality of the foundation. The five legalities are very important to have because they support the credibility of the foundation.

KH Contact

Well, for those of you who intend to establish a foundation but do not really understand the legalities or do not have the time to take care of it, you can contact Kontrak Hukum. For only Rp5 million, Kontrak Hukum can help you to take care of the establishment and licensing of the foundation legally including the required legal documents such as the deed of establishment, NPWP, and other business licenses issued through OSS. For information about booking a foundation establishment, please visit this page. If you still have other questions about foundations or other business entities, please contact us at Tanya KH and via Direct Message (DM) to Instagram @kontrakhukum.