Companies
Foundation | Establishment | Stock Corporation | Trust |
Foreign companies
The foundation is the most frequently-used legal form in the Principality of Liechtenstein.
Possible aims of the foundation include:
The foundation is established by a founder dedicating assets to a specific purpose in favour of a specific or specifiable beneficiary. Once raised to the status of a legal entity, these assets no longer form part of the private assets of the founder but form the foundation assets.
Besides the registered foundation which comes into existence by entered in the Public Register the so-called deposited foundation exists in certain exceptional circumstances determined by law. For the deposited foundation, especially the pure or mixed family foundation, only the articles and the foundation deed ? not the by-laws appointing namely the beneficiaries ? have to be deposited with the Public Register. These documents are not accessible for third persons.
The foundation has neither members nor an owner. After the formation also the founder has only those rights which have been reserved in the articles or by-laws. Very often the founder reserves the right to amend the articles and by-laws, especially the beneficiary regulations.
The usufructuaries of the foundation are the beneficiaries, whereby the payment of distributions to beneficiaries may also be made subject to conditions or rules. The beneficiaries are named by the founder, usually in separate by-laws, resembling a last will and testament. The founder can appoint himself as a beneficiary.
The foundation is administered by the foundation board, made up of one or more members who represent the foundation solely or jointly. The foundation board exercises the wishes of the founder as recorded in the articles and the by-laws. Therefore the foundation board does not form any intent but only has a serving function.
The founder can vest the foundation board with the authority to execute the founder?s will with free and absolute discretion, e.g. regarding distributions to beneficiaries (so-called discretionary foundation). The basis of this free and absolute discretion is always the founder?s will, determined in the articles and by-laws of the foundation.
The founder may make provision in the articles of association for further bodies ? such as an advisory board, a board of trustees or a protector ? to advise and support the foundation board, e.g. when paying out distributions to beneficiaries. These may also exercise a controlling function.
The foundation is cancelled by law, when the objects can not be achieved anymore, especially when such objects are no longer realisable due to lack of adequate funds. This also applies when all of the foundation?s assets have been distributed to the beneficiaries.
Furthermore the founder can stipulate in the articles that the foundation can be dissolved at any time.
The minimum capital required to establish a foundation is CHF 30,000.00.
As a rule, the foundation does not have to keep accounts. However, it is advisable to draw up an annual schedule of assets.
Foreign companies
The foundation is the most frequently-used legal form in the Principality of Liechtenstein.
Possible aims of the foundation include:
- discreet asset administration,
- settling the succession,
- securing the economic future of family members or other close individuals in the form of maintenance arrangements, for example,
- functioning as a holding to safeguard a corporate portfolio,
- perpetuating the life?s work of the founder (e.g. art collections),
- charitable purposes.
The foundation is established by a founder dedicating assets to a specific purpose in favour of a specific or specifiable beneficiary. Once raised to the status of a legal entity, these assets no longer form part of the private assets of the founder but form the foundation assets.
Besides the registered foundation which comes into existence by entered in the Public Register the so-called deposited foundation exists in certain exceptional circumstances determined by law. For the deposited foundation, especially the pure or mixed family foundation, only the articles and the foundation deed ? not the by-laws appointing namely the beneficiaries ? have to be deposited with the Public Register. These documents are not accessible for third persons.
The foundation has neither members nor an owner. After the formation also the founder has only those rights which have been reserved in the articles or by-laws. Very often the founder reserves the right to amend the articles and by-laws, especially the beneficiary regulations.
The usufructuaries of the foundation are the beneficiaries, whereby the payment of distributions to beneficiaries may also be made subject to conditions or rules. The beneficiaries are named by the founder, usually in separate by-laws, resembling a last will and testament. The founder can appoint himself as a beneficiary.
The foundation is administered by the foundation board, made up of one or more members who represent the foundation solely or jointly. The foundation board exercises the wishes of the founder as recorded in the articles and the by-laws. Therefore the foundation board does not form any intent but only has a serving function.
The founder can vest the foundation board with the authority to execute the founder?s will with free and absolute discretion, e.g. regarding distributions to beneficiaries (so-called discretionary foundation). The basis of this free and absolute discretion is always the founder?s will, determined in the articles and by-laws of the foundation.
The founder may make provision in the articles of association for further bodies ? such as an advisory board, a board of trustees or a protector ? to advise and support the foundation board, e.g. when paying out distributions to beneficiaries. These may also exercise a controlling function.
The foundation is cancelled by law, when the objects can not be achieved anymore, especially when such objects are no longer realisable due to lack of adequate funds. This also applies when all of the foundation?s assets have been distributed to the beneficiaries.
Furthermore the founder can stipulate in the articles that the foundation can be dissolved at any time.
The minimum capital required to establish a foundation is CHF 30,000.00.
As a rule, the foundation does not have to keep accounts. However, it is advisable to draw up an annual schedule of assets.
