Liechtenstein Foundation

Details

Formation

The formation of the Liechtenstein foundation is effected through a foundation declaration. This deed requires the written form as well as the notarized signature of the founder. They obtain legal personality upon registration.

Nominal capital or minimum capital

The minimum capital of the Liechtenstein foundation amounts to CHF/EUR/USD 30,000.  The contributed assets become the assets of the foundation, which are solely liable for any liabilities of the Liechtenstein foundation.

Company name

The Liechtenstein foundation can choose the company‘s name freely in any language and can use imaginative names. Special permission must be obtained if one is intending to use national and international state or place names in a company name.

Organization

Governing bodies

The supreme authority of the Liechtenstein foundation is the foundation council. It manages the foundation in Liechtenstein and represents it in any legal relations. At least one member of the foundation council must have his law office address in Liechtenstein and be in possession of certain professional qualifications. In addition to this Liechtenstein administrative body, any number of natural or juridical persons, resident in Liechtenstein or abroad, may be co-opted.

Auditors or control agency

It is mandatory that registered Liechtenstein foundations that are engaged in commercial activities appoint auditors. Trustees, trust companies with a trustee concession, auditing firms and chartered accountants can act as auditors.

Founder

The founder of a Liechtenstein foundation has to determine the purpose of the foundation at least as an outline and establish the group of beneficiaries in the foundation documents.

Representative

The representative of a Liechtenstein foundation acts as the official postal addressee of the company and as a connecting link with the authorities.

Beneficiaries

The rights of the beneficiary of the Liechtenstein foundation are regulated in the articles of association and by-laws. The founder himself can be beneficiary. The beneficial interest can be tied to certain conditions, time limits and prerequisites. Likewise, the beneficial interest can be annulled through an amendment of the articles at a later time, if this option is provided by the foundation articles. As a general principle, the executive bodies have to follow the wishes of the founder. In the event that no beneficiaries have been designated, the legal assumption applies that the founder himself is the beneficiary. In this case, succession shall be by inheritance.

Founder‘s rights

Under certain conditions, the founder can revoke the foundation or change the foundation documents after the formation and registration of the Liechtenstein foundation. These rights may be exercised by the settlor in relation to third parties. The foundation rights can be neither transferred nor bequeathed.

Liquidation

The de-registration of a registered foundation in Liechtenstein, can be effected within a few days given that the liquidation process has been concluded.

Taxation

Liechtenstein foundations may apply for the tax status of a “Private Asset Structure”, provided that they only hold private wealth and do not engage in economic activities. A foundation taxes as such a Private Asset Structure is only liable to pay the minimum annual profit tax of CHF 1,200, and no tax filing needs to be made.