Home / Insight / Companies and Associations: New Code / the Non-Profit Organization

the Non-Profit Organization

Profit-making activities allowed

Non-Profit Organizations are now allowed to perform profit-making, commercial activities with no limitations regarding the type of activity or whether the profit-making activity is of an accessory nature, as was the case before. A Non-Profit Organization even qualifies as an undertaking.

Distribution of profits still not allowed

The main distinctive feature of Non-Profit Organizations is that their profits may not be distributed to their members and directors.

This was already the case under the old regime but is now characteristic of Non-Profit Organizations since they are now allowed to carry out activities for profit. As a result of the prohibition, profits may only be used for “idealistic” goals promoted by Non-Profit Organizations.

Your key contacts

Back to main page