Legal Forms in Liechtenstein

Foundations have a long tradition in Liechtenstein and offer the founder a wide range of structuring options. For example, the founder may establish a foundation for his or her own family, or for any charitable purpose.

The foundation is a legal entity and an independent pool of assets dedicated to a specific purpose. This means that it is created by the founder, who determines its purpose and its potential beneficiaries and endows it with assets. In this way, the assets acquire a legal personality of their own and are no longer attributed to the founder's private assets.

The family foundation is ideally suited to securing wealth for many generations, which is why it is the most popular form of the Liechtenstein foundation.

The minimum capital is 30,000 Swiss francs, euros or US dollars. The new foundation law gives the founder and the beneficiaries greater legal certainty and has created options to ensure administration in accordance with the articles.

Like the foundation, the Liechtenstein trust is suitable for succession planning and asset protection. The trust is endowed with trust assets, which the settlor transfers to the trustee. The transfer entails the obligation to manage and use these trust assets in the trustee's own name as separate assets for the benefit of one or more beneficiaries.

A trusteeship – as the trust is also called – is not a legal entity but a contractual legal relationship. Trusteeships may also be established for charitable, social, cultural or similar purposes and are comparable to trust settlements or family trusts under English law; in Liechtenstein, however, the trust is entered or deposited in the Public Register.

The Liechtenstein company limited by shares (AG) is a legal entity and is also suitable for small and medium-sized enterprises. The purpose of the Liechtenstein AG may be commercial or non-commercial, for example trading in goods or patents, acquiring holdings and real estate, financing or asset management.

The share capital set out in the articles may be denominated in Swiss francs, euros or US dollars, with a minimum capital of 50,000 Swiss francs, euros or US dollars. It must be fully paid up on incorporation or contributed in kind and is at the company's free disposal as soon as the company has been entered in the Commercial Register. Only the company's assets are liable for the AG's obligations.

The supreme body is the general meeting of shareholders, whose powers include electing the board of directors and deciding on the appropriation of profits. The board of directors conducts the company's business and represents the company. Liechtenstein AGs are required to keep accounts.

The establishment (Anstalt) is a Liechtenstein speciality; this legal form does not exist in this form in any other country. Its flexibility makes it suitable for a wide range of uses.

It is a legal form under private law and should not be confused with the public-law institutions found in other legal systems. It is a legal entity whose obligations are met solely by the establishment's assets. It can be structured in a similar way to a foundation or a company limited by shares, and its capital can, for example, be divided into participation certificates.

Depending on its structure, it is therefore suitable for commercial purposes or for succession planning, asset protection and asset management. Most establishments have neither members nor partners nor shareholders; this means they have beneficiaries who receive financial benefits from the establishment's assets.

The minimum capital is 30,000 Swiss francs, euros or US dollars and is at the establishment's free disposal as soon as it has been entered in the Commercial Register.

The Trust reg. – as a registered trust enterprise is also known – is likewise a legal form that exists only in Liechtenstein. It is entered and registered in the Public Register and, like the establishment, can then be used for a wide range of purposes.

The enterprise can be structured like a corporation and pursue commercial purposes, or be designed like a foundation and serve private or charitable purposes. The capital of a Trust reg. is referred to as the trust fund and amounts to at least 30,000 Swiss francs, euros or US dollars.

The supreme body is the settlor, who, as the provider of capital, contributes the funds for the trust fund. The administrative tasks of the registered trust enterprise are performed by a board of trustees in line with the company's purpose.

The Trust reg. is taxed like any other company in Liechtenstein, which contributes to legal certainty in international business.