© Didier Weber (Archiv)
Minister Sam Tanson presented the new bill aimed at non-profit organisations (ASBL) on Tuesday morning.
The bill is designed to update the existing law, which dates back around 100 years and is in dire need of modernisation. The new framework will allow more transparency on a financial level, as well as simplifying processes for non-profits.
Organisations will no longer have to apply to multiple registers, such as the commerce register and register of beneficial owners. It will also become easier to amend legal forms for businesses. The authorisation process will be made more transparent.
Associations will also no longer be obliged to submit an annual list of their members to the RCS, this obligation being replaced by a register of members kept by the board of directors. The obligation for foundations to submit and publish their provisional budget is also due to be abolished.
The Ministry also created a tailor-made accounting system, in which associations will be categorised according to size. Smaller organisations will benefit from simplified account processes.
Minister Tanson said of the bill: “It was important to me not to overburden the small associations. However, we must put in place accounting and auditing obligations for large associations and foundations to meet the financial transparency requirements of the sector, also set by the FATF."
Tanson will hold a virtual meeting on Tuesday with 170 participants to gather more data for the initiative, while future plans are in motion to create a national starting point for questions on the topic.
There are currently 220 foundations and 8,300 associations in Luxembourg, 107 of which are considered to be public utility.
