Private foundations in Belgium have doubled in number over the past decade, driven largely by their popularity among family businesses, according to financial consultancy BDO Belgium and figures from the Justice Ministry (FPS Justice).
In 2014, there were 1,014 private foundations in the country. By the end of last year, this number had risen to 2,147, marking an increase of nearly 50% compared to 2023.
The growth is mainly attributed to family businesses.
Private foundations allow companies to separate control from income. By placing company shares in a foundation, active family members can manage the business through the board of administration, while other family members receive income through certificates issued by the foundation.
The foundation, which legally owns the shares, ensures a clear framework that helps prevent disputes, according to Rutger Van Boven of BDO Belgium.
Another factor behind the rising popularity is the growing trend of granting employees a stake in company’s shares. This approach enables employees to benefit from profits without the company relinquishing managerial control.
The model is also gaining traction with university spin-offs. Foundations in this context consolidate shares and designate a small management team, simplifying negotiations with potential investors, Van Boven added.
