Simply put, a 'foundation' is a legal entity that holds a pool of assets dedicated to specific purposes. Upon establishment, it gains full legal recognition and ownership of the assets allocated for those purposes. For founders seeking to better understand the broader legal environment for business structures, it's helpful to review the
Types of Companies in Switzerland, which provides insight into how foundations compare to other legal forms. The law of foundations is governed by
articles 80 et seq. of the Swiss Civil Code.
A foundation is endowed with its own legal capacity, independent of its founder or other parties. It has organs, a registered address, and a designated name. Unlike corporations, it lacks members or shareholders, yet maintains a close relationship with beneficiaries, who benefit from the foundation's objectives. This structure also sets it apart from entities governed by banking laws and privacy frameworks such as those covered under
Bank Secrecy in Switzerland, where shareholder identity and transaction confidentiality may be central.
Founders, who can be Swiss, foreign individuals, legal entities, or even states or international organizations, can establish a foundation through a public deed or testamentary disposition.