The Foundation Register 2028 and transparency in family foundations

How the new public nature of foundation data is changing your succession planning – and how to strike a clean balance between privacy, governance, and legal certainty.

Executive Summary:

• According to current legislation, the nationwide foundation register will be established at the Federal Office of Justice (BfJ) on January 1, 2028; from then on, legally constituted foundations under civil law will be subject to registration.

• The register is intended to facilitate proof of the authority of corporate representatives and to create protection of legitimate expectations ("publicity effect") in legal transactions. At the same time, it creates a new transparency risk for privately funded family foundations.

• Access to register data is permitted to "everyone"; this also applies in principle to submitted documents, unless access is restricted or excluded due to legitimate interests.

• For succession and asset structures, this means: the articles of association and organizational structure should now be reviewed to determine which information must be included in the articles of association – and which information can (legally) be regulated outside the articles of association.

• A good registry strategy combines legally sound representation arrangements, data protection-sensitive document design, and clear family communication to avoid future conflicts.

  
  

Why family foundations are strategically relevant for entrepreneurial families

Family foundations are a key instrument for succession planning in practice: They pool assets (e.g., company shares or real estate) in a legally independent structure that doesn't "disintegrate" with each inheritance. This allows for the establishment of long-term guidelines – from securing the company's management to ensuring the family's financial security. This stability is based on governance: Who represents the foundation, with what powers, and how is the foundation's purpose implemented in a legally sound manner?

From “foundation secrecy” to public register entries: The transparency paradox

Historically, foundations were difficult for outsiders to understand: there was no nationwide register with public disclosure. This was often attractive to entrepreneurial families – discretion protected them from unnecessary curiosity, and competitive information remained confidential. However, this lack of transparency had a downside for legal transactions: contracting parties often had to verify the authority to represent the foundation through (sometimes outdated) documents, official certificates, or individual case reviews.

The foundation register: Launch in 2028, registration authority and registration obligations

As it currently stands, the entry into force of the foundation register law has been postponed to January 1, 2028. From this date, legally constituted foundations under civil law must register in the foundation register; the register is maintained by the Federal Office of Justice and made accessible via an online platform.

Key points (practical check):

• Registration start date: January 1, 2028 (postponement compared to original plans).

• Registration authority: Federal Office of Justice (BfJ).

• Target audience: all legally constituted foundations under civil law (private and non-profit).

• Objective: improved transparency and easier proof of corporate representation authority; elimination of the need for state-level representation certificates as "standard proof".

  
  

What information is typically published?

The Federal Office of Justice (BfJ) lists the following as published content: basic data of the foundation (e.g., name, registered office, date of recognition) as well as information on board members and their powers of representation. In addition, statutory restrictions on the powers of representation and information on special representatives may be included in the register. The specific level of detail is prescribed by registration law; for external effect, the crucial factor is that legal transactions can more quickly determine who is authorized to act effectively.

Access to documents: “Everyone” – but not without limits

Section 15 of the Foundations Act stipulates that everyone is permitted to inspect the foundation register. This generally also applies to the inspection of submitted documents, unless access has been restricted or excluded due to a legitimate interest of the foundation or a third party. For family foundations, this interface between register transparency and the protection of sensitive family and asset information is the key lever for structuring their foundations.

Publicity impact in legal transactions: Legal certainty as a guiding principle

The core benefit of the register lies in protecting trust in legal transactions: A public register reduces transaction risks because powers of representation become more transparently verifiable. In practical terms, this means that anyone entering into contracts with a foundation can rely on register-based information – instead of having to prove a "chain of representation" in each individual case. For foundations, this increases the expectation that register data will be kept up-to-date and consistent: Governance thus becomes "auditable" not only internally but also externally.

What family foundations should now be examining

• Make the articles of association "register-proof": Check which regulations must be included in the articles of association – and which information (legally permissible) is better outsourced to internal regulations, rules of procedure or side agreements.

• The power of representation should be regulated precisely but concisely: The more complex the representation rule, the higher the risk of contradictions between the articles of association, actual practice and the register entry.

• Minimize personal data: Wherever possible, sensitive personal information and beneficiary logic should not be “overexplained” – without jeopardizing the effectiveness of governance.

• Consider family communication: Transparency "outwardly" can increase pressure "internally." A coordinated information strategy reduces future conflicts between beneficiaries, governing bodies, and the donor family.

• Preparing for transactional practice: Banks, notaries, and contracting parties will establish registry data as a standard checkpoint. A sound registry strategy will accelerate future deals.

FAQ

From what point does the foundation register come into effect?

As things stand, the foundation register will start on January 1, 2028; from then on, the registration obligations and the publicity effect will apply.

Who maintains the foundation register?

The foundation register is maintained by the Federal Office of Justice (BfJ) as the registration authority and is made accessible via an online platform.

Who can view the information?

Access to the register is permitted to "everyone". This also generally applies to submitted documents, unless access has been restricted or excluded for legitimate reasons.

Who is required to register?

Legally constituted foundations under civil law are subject to mandatory registration. This applies to private family foundations as well as charitable foundations.

What data is typically visible?

In particular, basic data (name, registered office, date of recognition) as well as details of the governing bodies (board of directors) and powers of representation. Statutory restrictions and special representatives can also be recorded.

Will the entire statutes be made public?

Registry law generally provides for access to documents. However, whether and to what extent documents are accessible can be restricted or excluded due to the legitimate interests of the foundation or third parties.

How does this affect the family's privacy?

Family foundations should review their bylaws to determine whether they contain sensitive family information and whether this information is absolutely necessary. A streamlined, governance-oriented bylaw design reduces disclosure risks.

What does "publicity impact" mean in practice?

The purpose is to protect trust in legal transactions: Contracting parties should be able to recognize more quickly and reliably who is authorized to effectively represent a foundation.

Does the register replace the certificate of representation issued by the state authorities?

According to the Federal Office of Justice (BfJ), the register-based proof should make the previously often required certificates of representation unnecessary.

What about existing foundations – are there any transition periods?

Registration and transitional arrangements are in place for existing foundations; the specific deadline is outlined in the official information from the Federal Office of Justice (BfJ).

Does the foundation's purpose need to be entered in the register?

The published register entries primarily highlight basic data and representation information; whether the purpose is to be included as a mandatory field has been the subject of political debate.

What "quick wins" provide immediate relief?

Review the statutes regarding disclosure issues, consolidate representation rules, clearly separate internal governance documents, and prepare a communication concept for the family/organs.

Conclusion: Transparency as a stabilizing factor – if the governance is sound

The 2028 Foundation Register is more than just a registration project: it shifts expectations regarding governance and document design. For entrepreneurial families, this presents an opportunity to increase legal certainty and transactional efficiency – and simultaneously a reason to strategically protect privacy. Those who establish clear statutes, organizational structure, and family communication now will reduce future friction and increase the stability of the succession architecture.