The next stage of legal development started in 1995 when separate laws on religious entities and political parties were passed. The Non-profit Associations Act and Foundations Act became into force on 1 October 1996. Both of the laws took into account the principles of the General part of the Civil Code regarding the legal capacity, location and name of the organisation. The Act states clearly that profit cannot be the principal purpose of the not-for profit association and revenues raised may only be used to achieve statutory goals. The Act also specifies requirements for the members, order of admission, secession, exclusion of members, and the rights and obligations arising from membership.
Members can be individuals as well as juridical persons.
The Foundations Act states that a foundation is a non-membership legal entity set up to manage property and to pursue stated objectives. The Act sets limits on the activities of foundations, stating that a foundation is allowed to engage in economic activities, but that disbursements can only be made for charitable or social purposes. Founders of a foundation may be individuals as well as juridical persons, and further that it may be established by the last will and testament. Both Acts regulate the activities of governing bodies in detail. The chapters concerning dissolution, merger and separation are regulated more explicitly than in any previous law.