Foundation

The foundation can be used as a pure family foundation (payment of the costs for upbringing and education, equipment and support, etc.), as non-profit making foundation (support and promotion e.g. of charitable, artistic, scientific, social kind) or also as a church foundation. It is also conceivable as a pure maintenance foundation. The foundation is not suitable for pursuing commercial aims. A trade which is managed in a commercial manner may only be operated if this serves to achieve its non-commercial purpose or the type and scope of the holding of participations require a commercial operation. Only the non-profit making foundation is subject to official supervision under certain pre-requisites.

Establishment

Formation

The foundation, which is not liable for registration, is formed when the formation files are prepared, the foundation which is liable for registration is only formed when it is entered in the public register.

Registration or deposit

A registration obligation exists for all foundations which operate a trade which is managed in a commercial manner in order to achieve their non-commercial purpose (e.g. youth hostels, senior citizen’s homes, operational welfare foundations).
The mere deposit obligation of the formation documents at the public register department (without by-laws or regulations) exists for church foundations, pure and mixed family foundations (e.g. aintenance foundations) as well as foundations, whose beneficiary have been determined or can be determined. In this case the existence of the foundation cannot be seen from any register and inspection is only possible with the consent of the foundation.

Capital stock

The minimum capital (foundation fund) is CHF 30,000.– or the corresponding counter value in any legal currency.

Bodies

The highest body is the foundation board which manages the business of the foundation within the meaning of the statutes, by-laws and possible regulations. The benefactor can have the activity
of the foundation board examined by other bodies, such as e.g. the revision department or restrict its activities through rights to give instructions, exercise control or vetoes by protectors, curators or
collators.
Registered foundations with a trade which is managed in a commercial manner must appoint a revision department.

Beneficiary

The beneficiaries must principally be described in some manner or form (e.g. reference to descent, gender, etc.).

Submission of balance sheet

Insofar as the registered foundation operates a trade which is managed in a commercial manner
or the statutes allow such the annual accounts which have been audited by the revision department are to be submitted to the tax authorities in Liechtenstein, Vaduz.

Declaration

Foundations which are registered voluntarily, which do not operate a trade which is managed in a commercial manner and whose statutory object does not allow the operation of such a trade are subject to the declaration obligation. The declaration obligation ceases to apply to the deposited foundation.

Taxes