Establishment and administration of domestic and foreign companies, foundations and trusts 

Foundations

A Liechtenstein foundation is a special form of legal entity established to manage assets for specific purposes. The founder transfers the assets to the foundation and specifies in the foundation statutes the purposes of the foundation, who benefits from it (beneficiaries) and how the assets are managed.

There are different types of foundations. Some serve to preserve assets for a family, while others may also support charitable purposes.

Liechtenstein foundation law offers many possibilities for individual structuring.

The foundation is usually administered by a foundation board, which manages the business and represents the foundation externally. Depending on the founder’s wishes, other bodies can also be established.

Advantages:

Foundations offer numerous advantages, as they provide the ideal framework for efficiently safeguarding assets, including in particular

• globally effective protection of assets (asset protection)
• possibility of individual succession planning
• individual tax-optimized solutions
• broad, international recognition
• confidentiality

Trusts

A trust, often referred to in common parlance as a trusteeship, is a special legal agreement. In this agreement, a person, the settlor, transfers his assets to one or more trustees. These transferred assets are then held by the trustee in his own name and managed and used according to the instructions of the settlor. These instructions are recorded in a written contract known as a trust charter.

Liechtenstein trust law grants the settlor considerable leeway in the drafting of this agreement. Trusts in Liechtenstein must be registered or deposited in the Commercial Register to be legally binding.

Similar to the case of foundation law, different categories of beneficiaries can be defined under trust law. This allows the settlor to define specific rights for the beneficiaries, to determine conditions for their beneficiary status or to leave this to the discretion of the trustees. In this way, the rights of the beneficiaries can be shaped according to the individual wishes and needs of the settlor.

Advantages:

Trusts offer numerous advantages due to their individual design options, including in particular

• globally effective protection of assets (asset protection)
• Possibility of individual succession planning
• individual tax-optimized solutions
• broad, international recognition
• confidentiality

Public limited company

The public limited company (PLC) is an extremely widespread form of company that can be found all over the world. What is special about this form of company is that its capital is divided into shares. These shares can be held by shareholders, who thus become owners of the company. It is characterized by its flexibility, its ability to attract capital from many different shareholders, and its legal autonomy. It can be incorporated by individuals or other companies and has specific bodies such as the General Assembly and the Board of Directors, which are responsible for decision-making and management.

Advantages:

The corporation offers the following advantages in particular:

• limited liability
• easy transferability of shares
• easy way to raise capital
• international recognition

Limited liability company

A limited liability company (LLC) is a popular form of business, especially for small and medium-sized companies, because it offers legal security, limitation of liability and a clear structure. In a limited liability company, the capital is divided into shares, and the people who own these shares are called partners. The special feature of a limited liability company is that the shareholders are only liable with the money they have invested in the company. A limited liability company can be established by one or more persons, be it a natural person or another company. In a GmbH, the highest decision-making authority is the shareholders’ meeting.

Advantages:

The limited liability company offers the following advantages in particular:

• limitation of liability
• privileged formation
• division among different shareholders

Institutions

The Institution in Liechtenstein is a unique form of company. It is a legally independent company with its own legal personality. The special feature of an Anstalt is its great flexibility. For example, it can be organized like a foundation, without members and without capital divided into shares, or like a corporation, i.e. like a classic company. When organized with founder’s rights, the founder can usually make the most important decisions. Otherwise, the board of directors, the most important body of the establishment, assumes the tasks of management representation to the outside world.

Advantages:

The Establishment in Liechtenstein is flexible and offers unique advantages, especially with regard to the

• protection of assets
• succession planning
• tax solutions