Accounting for Family office

We will help you build an optimal succession strategy for your assets. As part of our Family Office services, in cooperation with leading law firms, we offer support in drafting the foundation’s bylaws, registering the family office, handling its accounting and settlements, as well as valuing financial and non-financial assets contributed to it, and preparing its periodic reporting. We service 70% of the assets under management of alternative funds in Poland and also provide the highest standards, including family foundation accounting, taxation, and financial reporting.

Księgowość Fundacji Rodzinnej

Our experience in family offices

We have designed our services for entrepreneurs and investors who want to protect their wealth. The structure of a family foundation makes it possible to ensure business continuity, accumulate family capital, and pass it on to future generations in a tax-efficient way, while in certain cases enabling the disposal of assets without PIT or solidarity levy taxation.  

We are an accounting and advisory firm specialized in servicing alternative investment funds and valuing financial assets. Our experienced team of licensed investment advisors, accountants, and tax advisors also actively supports the growing sector of family foundations in Poland.  

Family office

Ksiegowosc fundacji rodzinnej

The Act of 26 January 2023 on Family Foundations introduced into the Polish legal system a solution enabling the succession of an entrepreneur’s assets, including a family business, as well as a tax-efficient vehicle for the disposal of assets.

What is a family foundation?

A family foundation is a legal entity established by a founder for the purpose of accumulating assets, managing them in the interest of beneficiaries, and providing benefits to those beneficiaries. In practice, a family foundation can be used as a vehicle for tax-efficient asset transfers (e.g., contributing a family business to the foundation prior to its sale to a strategic investor or a private equity fund).

How does a family foundation work?

A family foundation is based on the principle that the entrepreneur’s business and family are separated, since the assets contributed to the foundation by its founder become the property of the family foundation. The purpose of the foundation is to provide financial support for the family while at the same time pursuing the objectives set by the founder.

Who is a family foundation for?

A family foundation enables the effective implementation of the succession process for the founder’s family business. A family foundation can be established only by a natural person or several natural persons with full legal capacity, who will hold the status of founder. The founder contributes assets to the family foundation to cover the founding fund, in the amount specified in the articles of association, not less than PLN 100,000.

How to set up a family foundation?

A family foundation must have its registered office in Poland and has legal personality. To establish a family foundation, a deed of incorporation must be drawn up by a notary. A family foundation may be founded only by a natural person or several natural persons with full legal capacity, who will hold the status of founder. The family foundation must be entered into the register of family foundations.

Five steps to establish a family office:

  1. Submission by the founder of a declaration on the establishment of a family office before a notary, either in a deed of incorporation or in a will.
  2. Drafting of the articles of association containing the rules governing the operation of the family office.
  3. Transfer of assets to the founding fund.
  4. Establishment of the governing bodies of the family office.
  5. Registration of the family office in the court-maintained register of family offices.
What benefits may a beneficiary receive?

A benefit means assets, including cash, property, or rights, transferred to the beneficiary or made available for the beneficiary’s use by the family office in accordance with the articles of association and the list of beneficiaries. In the case of a beneficiary who is a natural person, it may in particular cover the costs of their maintenance or education.

What are the tax benefits of establishing a family office?

A family office, when conducting business activities within the scope provided by law, is exempt from corporate income tax (CIT).

Can a family office conduct business activities?

A family office may conduct business activities only within the scope of:

  • disposal of assets
  • leasing, tenancy, or making assets available for use
  • joining commercial companies, investment funds, cooperatives, and entities of a similar nature, domiciled either in the country or abroad, as well as participating in such companies, funds, cooperatives, and entities
  • acquiring and disposing of securities, derivatives, and rights of a similar nature
  • granting loans to companies in which the family office holds shares or stock
  • trading in foreign currencies belonging to the family office for the purpose of making payments related to the activities of the family office.
Which accounting firm to choose for servicing a family office?

You have successfully developed a company that is now meant to benefit future generations. Choosing a firm to manage the accounting of your family office is more than just entrusting the bookkeeping. You need discretion, professionalism, and expertise in accounting, taxation, and financial asset valuation. More than 50% of the alternative investment fund market in Poland trusts us. The assets under management of our clients exceed PLN 7 billion.

Discover the benefits of family offices

  • A family office allows assets to be aggregated within a single legal entity, separating the wealth as a whole from the decisions of individual beneficiaries.
  • The founder retains control over what happens to the assets they have accumulated. They can define the rules for providing benefits to beneficiaries, which will remain in force for future generations.
  • A family office is an effective tax vehicle, allowing for the deferral and, in some respects, reduction of taxation.
  • Beneficiaries in subsequent generations make joint decisions regarding the assets through the supervisory board and the assembly of beneficiaries. This ensures that asset management is centralized while also incorporating the perspectives of various family members.
  • The legal structure of a family office is an attractive way to sell a business while avoiding personal income tax (PIT) and the solidarity levy.

Our services for family offices

Tax succession planning

Succession is a critical process for any business if you want it to operate across generations. We will help you build a strategy that is tax-efficient and enables you to safely hand over control to your successors.

Support in the foundation registration process

The registration process of a family office requires specific steps defined by law. In cooperation with leading law firms, we offer support in properly drafting the provisions of the family office’s articles of association and in the registration process.

Accounting for Family office

Your family office will engage in various business activities. For this reason, you need a trusted partner who will assist you with the accounting of the family office, ensure compliance with reporting obligations, and support you during periodic audits.

Valuation of family office assets

One of the stages of establishing a family office is the preparation of an inventory of assets. We have many years of experience in asset valuations. Our investment advisors, licensed by the Polish Financial Supervision Authority (KNF), carry out valuations of both financial and non-financial assets.

Succession of the business and the entrepreneur’s assets

A family office has legal personality and must have its registered seat in Poland. To establish a family office, a deed of incorporation must be drawn up by a notary. A family office may be established only by one or more natural persons with full legal capacity, who will hold the status of founder(s). The family office is entered in the register of family offices.

Księgowość Fundacji Rodzinnej

Let’s talk about the future

If you are looking for a trusted and experienced partner to plan your succession and manage your family office, write to us or schedule a consultation.

Our qualifications and experience in servicing family offices

We are an accounting and advisory firm specializing in the accounting of AIFs. We possess broad professional expertise and hold certifications such as Investment Advisor, ACCA, and Tax Advisor. This enables the VC funds we serve to receive, in one place, a comprehensive service unavailable from any other accounting firm or law office. We specialize in servicing VC funds and have a deep understanding of their reporting needs. As a result, we are able to provide full accounting, tax, and reporting support for any type of VC/PE fund in Poland as well as for alternative funds in Luxembourg.

FAQ

A family office must maintain full accounting in accordance with the Accounting Act. This means the foundation is required to keep accounting books, prepare a balance sheet, a profit and loss statement, and other mandatory financial reports. All financial transactions of the foundation must be properly documented and compliant with the adopted accounting policy.

Yes, every family office is required to prepare annual financial statements, which include a balance sheet, a profit and loss account, notes to the financial statements, and, in some cases, also a cash flow statement and a statement of changes in equity. The financial statements must be approved by the relevant governing body of the foundation, e.g. the management board, and then submitted to the National Court Register (KRS).

A family office is exempt from corporate income tax (CIT) on contributed assets, provided they are allocated for the statutory purposes of the foundation. However, if the foundation conducts business activities, the income from such activities is subject to CIT at the standard rate of 19%. Beneficiaries of the foundation may be required to pay personal income tax (PIT) on benefits received, with different rates depending on their degree of kinship with the founder.

The audit of a family office’s financial statements is mandatory if it meets certain criteria set out in the Accounting Act, e.g. reaches specific net revenue thresholds (at least EUR 5 million annually), holds assets of significant value, or employs more than 50 staff members.

Yes, a family office may conduct business activities, but only within the scope defined by the Family Foundation Act. Permitted activities include, among others, the rental and sale of real estate, trading in securities, granting loans, and investing in businesses. Income from such activities may be allocated to the foundation’s statutory purposes or distributed to beneficiaries.

A family office is required to notify the National Court Register (KRS) of any changes to its articles of association, the composition of its governing bodies, and to submit annual financial statements within 15 days of their approval. If it conducts business activities, it may also be necessary to report additional information, such as changes in PKD (business activity codes).