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Taxes & Legal

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From Bavaria to Bremen: How to Become a Founder in Every Federal State

From Bavaria to Bremen: How to Become a Founder in Every Federal State

Taxes & Legal

From Bavaria to Bremen: How to Become a Founder in Every Federal State

How to establish a foundation in Germany: Federal and state-specific regulations, as well as the simple digital solution with bcause.

6 minutes

Anyone Googling "set up a foundation Bavaria", "set up a foundation NRW" or "set up a foundation Hesse" is not alone. Month after month, hundreds of people search for information on how to set up their own foundation in their federal state. But beware: many encounter unnecessary complexity – even though a digital, simple solution has long since existed.

📚 Table of Contents

  1. How many foundations actually exist in Germany?

  2. What legal regulations apply to setting up a foundation?

  3. The digital path: setting up a foundation without state borders

  4. And from 2026? A federal register of foundations is coming

  5. Conclusion

1. How many foundations actually exist in Germany?

According to the Association of German Foundations, at the end of 2024 active in Germany were a total of 26,349 legally capable foundations under civil law. Most of them have their headquarters in:

  • North Rhine-Westphalia: 5,106 foundations

  • Bavaria: 4,522 foundations

  • Baden-Württemberg: around 4,000

However, Bremen is particularly active in terms of foundations relative to the population size: there are 49.8 foundations per 100,000 inhabitants, followed by Hesse (45.8).

The federal state with the highest foundation growth is currently Brandenburg (+5.7% compared to the previous year), closely followed by Rhineland-Palatinate (+5.2%).

👉 The message: setting up a foundation is possible everywhere – but varies greatly by region.

2. What legal rules apply to setting up a foundation?

The good news first:

Since July 1, 2023, a unified foundation law has applied in Germany. The legislature has thus created clarity – the most important provisions are now in §§ 80 ff. of the German Civil Code (BGB).

But:

The authority responsible for recognizing a foundation remains the respective federal state. This means: in Bavaria, NRW, Hesse, or Berlin, different procedures continue to apply – regulated in the state foundation acts.

💡 The registered office of your foundation therefore determines which supervisory authority is responsible – and how complex the establishment will be.

3. The digital path: setting up a foundation without state borders

If you want to save yourself all the paperwork and the legal dispute with state laws, as well as the resulting costs for lawyers and tax advisors, there is an alternative:

👉 bcause – digital foundation in a few minutes

With bcause, you set up a digital foundation account with a non-profit trust foundation. You do not need any start-up capital, a notary, or recognition by the state authority – and you can still:

  • Deduct donations from taxes

  • Grant funding

  • Define the specific purpose of your funds

  • Use your account publicly or anonymously

Whether in Bavaria, NRW, Hesse, or Berlin – with bcause, your foundation is immediately operational.

4. And from 2026? A federal register of foundations is coming

Another note for all those who want to establish a foundation in the traditional way: from 2026, there will be a federal register of foundations – similar to the commercial register. It will then be possible for the first time to view foundations publicly. New rules and reporting requirements will then also apply to this.

5. Conclusion: establishing a foundation is possible – but not easy everywhere

Anyone who wants to set up a foundation should know: every federal state has its own specific features. The digital establishment via bcause bypasses this complexity – and makes establishing a foundation possible, without bureaucracy, minimum capital, or regional restrictions.

👉 Do you want to get started?

Start your digital foundation on bcause now.


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⚠️ Disclaimer: We do not provide tax advice. We do not replace a certified tax advisor. All information is provided without guarantee.

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Written by

Nicole Weyde