A Swiss Foundation is a legal entity created to manage assets dedicated to a specific purpose, such as charity, research, education, or cultural initiatives.
Key Features:- Asset Protection: Once assets are transferred to the foundation, they must be used for the stated purpose.
- No Shareholders or Members: Unlike companies, foundations do not have owners. They are governed by a board that ensures compliance with the founding charter.
- Supervision: Most foundations are subject to regulatory oversight to ensure transparency and accountability.
- Minimum Capital: Typically CHF 50,000 is required to set up a foundation.
- Legal Documentation: A notarial deed or will must outline the foundation’s objectives, governance, and asset management.
- Registration: Private foundations must be registered in the Swiss Commercial Register. Religious and family foundations are exempt.
- Strong Legal Framework – Switzerland provides a stable and well-regulated environment for foundations.
- Potential Tax Benefits – Non-profit foundations may qualify for tax exemptions.
- Long-Term Stability – Foundations can operate indefinitely, ensuring assets are preserved for their intended purpose.
A Verein is a Swiss legal entity similar to an association, often used by non-profits, trade organizations, and professional networks.
Key Features:- Membership-Based Structure: Requires at least two members, who may be individuals or legal entities.
- Flexible Management: Unlike foundations, Vereins can engage in commercial activities while maintaining their non-profit status.
- Legal Independence: A registered Verein can enter contracts, own property, and operate like a company.
- At Least Two Founding Members
- Written Articles of Association (including objectives, governance, and membership rules)
- Commercial Register Entry (required if the Verein is engaged in business activities)
- No Minimum Capital Required – Unlike a foundation, a Verein does not require significant upfront investment.
- Limited Liability – Members are generally not personally liable for the Verein’s debts.
- Ideal for International Organizations – Many global networks and professional groups use the Swiss Verein structure for operational flexibility.
- Regulatory Compliance: Ensure adherence to both Swiss and UK financial regulations, particularly regarding taxation and reporting obligations.
- Banking & Administration: Swiss banks have strict compliance requirements, so be prepared to provide documentation regarding the foundation or Verein’s purpose and funding sources.
- Professional Assistance: Consulting with Swiss legal and financial experts is highly recommended to navigate local laws and maximize benefits.
By choosing the right structure, UK residents can leverage Switzerland’s stable legal environment to create a lasting impact, whether through a foundation’s dedicated mission or a Verein’s flexible operational model.
