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Knowledgebase
Open a Foundation in Switzerland
Alex Buri, Off-Counsel
15 April, 2025
Table of Contents
1. Associations and foundations in Switzerland
2. Legislation related to the creation of Swiss foundations
3. What are the registration requirements for a Swiss foundation?
4. What types of foundations can one register in Switzerland?
5. How to create a Swiss foundation
6. The foundation’s charter
7. Supervision of Swiss foundations
8. What are the statistics on Swiss foundations?
9. What are the benefits of a Swiss foundation?
10. FAQ - Frequiently Asked Questions about Open a Foundation in Switzerland
2. Legislation related to the creation of Swiss foundations
3. What are the registration requirements for a Swiss foundation?
4. What types of foundations can one register in Switzerland?
5. How to create a Swiss foundation
6. The foundation’s charter
7. Supervision of Swiss foundations
8. What are the statistics on Swiss foundations?
9. What are the benefits of a Swiss foundation?
10. FAQ - Frequiently Asked Questions about Open a Foundation in Switzerland
The concept of the foundation in Switzerland has its roots in the 14th century, initially associated with charitable and social causes. Today, foundations remain a vital legal structure governed by the Swiss Civil Code, particularly aimed at fulfilling specific goals, whether philanthropic, educational, cultural, or even family-oriented.
Unlike traditional commercial entities, Swiss foundations are not intended for profit-driven activities and therefore follow a distinct legal framework. This makes them ideal for individuals or organizations looking to support public utility projects, promote research or education, or provide long-term charitable assistance.
If you are considering establishing such an entity, our Swiss company formation experts can guide you through the legal and administrative process, including drafting the founding documents and securing registration.
Unlike traditional commercial entities, Swiss foundations are not intended for profit-driven activities and therefore follow a distinct legal framework. This makes them ideal for individuals or organizations looking to support public utility projects, promote research or education, or provide long-term charitable assistance.
If you are considering establishing such an entity, our Swiss company formation experts can guide you through the legal and administrative process, including drafting the founding documents and securing registration.
Associations and foundations in Switzerland
Switzerland recognizes two main types of non-profit organizations: associations (Vereine) and foundations (Stiftungen). Both legal entities serve charitable, educational, religious, cultural, or social goals but differ in terms of governance, structure, and regulation.
Key distinctions:
- Associations are formed by a group of individuals or legal entities united by a common goal. They must adopt bylaws and are governed by their members.
- Foundations, by contrast, are established through a donation of assets by a founder with a specific goal. Once created, the foundation becomes an independent legal entity with no owners or shareholders.
In contrast to an AG in Switzerland, which operates for profit and issues shares, a foundation holds assets perpetually to fulfill its non-commercial mission.
Swiss foundations are governed by Articles 80–89 of the Swiss Civil Code, which outline their structure, purpose, and supervision.
While associations can operate freely unless they pursue economic activities, foundations are subject to stricter registration and regulatory oversight, particularly when they serve public interests.
Foundations are often used for philanthropic projects, family succession planning, cultural initiatives, and scientific research funding.
Swiss foundations are governed by Articles 80–89 of the Swiss Civil Code, which outline their structure, purpose, and supervision.
While associations can operate freely unless they pursue economic activities, foundations are subject to stricter registration and regulatory oversight, particularly when they serve public interests.
Foundations are often used for philanthropic projects, family succession planning, cultural initiatives, and scientific research funding.
Legislation related to the creation of Swiss foundations
The legal framework for Swiss foundations is detailed in:
- Swiss Civil Code (Articles 80–89): Governs the creation, governance, and purpose of foundations.
- Ordinance on the Supervision of Foundations (OSF): Sets rules for supervision, accounting, and auditing.
- Tax Legislation: Defines exemptions and requirements for recognition as a public utility organization.
To be legally recognized, a foundation must have a clear public or private purpose, an irrevocable allocation of funds, and a founding document (charter) signed by the founder.
The foundation becomes a legal entity upon entry into the Commercial Register. Public utility foundations may also apply for tax exemption at the cantonal and federal levels. Just like the registration of a company in Switzerland, the creation of a foundation requires precise documentation and legal structuring, which must comply with cantonal and federal regulations.
The foundation becomes a legal entity upon entry into the Commercial Register. Public utility foundations may also apply for tax exemption at the cantonal and federal levels. Just like the registration of a company in Switzerland, the creation of a foundation requires precise documentation and legal structuring, which must comply with cantonal and federal regulations.
What are the registration requirements for a Swiss foundation?
To legally establish a foundation in Switzerland, a series of registration and documentation steps must be completed. These are intended to ensure the foundation’s compliance with the Swiss Civil Code and relevant supervisory rules.
Main registration steps:
- Drafting of the foundation charter: This is the core founding document that defines the foundation’s name, purpose, capital, organization, and seat (domicile).
- Contribution of initial capital: The founder must irrevocably allocate a minimum amount of CHF 50,000 to the foundation’s purpose. This amount may be higher depending on the foundation’s objectives.
- Authentication of the charter: The foundation charter must be notarized by a Swiss notary.
- Registration with the Commercial Register: The foundation only acquires legal personality after being recorded in the cantonal commercial registry.
- Application for supervision: Public utility foundations must register with a supervisory authority, usually the Federal Supervisory Authority for Foundations (ESA).
Foundations with economic purposes or mixed objectives may be subject to different procedures and requirements. Private family foundations, for instance, are only permitted for limited purposes such as education and support.
Our legal team supports clients through the entire registration process — from preparing the charter to liaising with the relevant registry and tax office.
Our legal team supports clients through the entire registration process — from preparing the charter to liaising with the relevant registry and tax office.
What types of foundations can one register in Switzerland?
Switzerland offers several types of foundations, each serving specific legal, philanthropic, or private purposes. Choosing the right type of foundation depends on the founder’s objectives, the scope of activities, and the legal and tax implications.
Main categories of Swiss foundations:
- Public utility foundations
- Focused on charitable, scientific, cultural, or educational purposes.
- Eligible for tax exemptions at the cantonal and federal levels.
- Must be supervised by a competent authority (e.g., ESA).
- Family foundations
- Serve to support members of a particular family.
- Permitted only for specific purposes, such as education, support, or health care.
- Not considered public utility entities and therefore generally not tax-exempt.
- Ecclesiastical foundations
- Established for religious or spiritual purposes.
- May support churches, places of worship, or religious education.
- Employee welfare foundations
- Created by employers to provide pensions or benefits to employees.
- Often structured as occupational pension institutions under Swiss pension law.
- Corporate or holding foundations
- Less common and more controversial.
- May serve to hold and manage business assets for long-term succession planning.
- Subject to strict scrutiny regarding their non-profit status.
In certain cases, a Swiss Holding Company may be used in parallel with a foundation structure to separate operational activities from philanthropic asset management, especially in succession scenarios.
Swiss law requires that all foundations — regardless of type — be irrevocable, meaning the founder relinquishes control once the foundation is created. This ensures the independence and integrity of the foundation's operations.
Our advisors assist clients in selecting the appropriate foundation structure and preparing the legal documents aligned with both Swiss law and the founder’s goals.
Swiss law requires that all foundations — regardless of type — be irrevocable, meaning the founder relinquishes control once the foundation is created. This ensures the independence and integrity of the foundation's operations.
Our advisors assist clients in selecting the appropriate foundation structure and preparing the legal documents aligned with both Swiss law and the founder’s goals.
How to create a Swiss foundation
Creating a foundation in Switzerland requires following a precise legal procedure that ensures the independence, legitimacy, and durability of the new entity. The process involves drafting legal documents, registering with authorities, and appointing governance structures.
Step-by-step creation process:
- Define the foundation’s purpose and structure
- Determine whether the foundation will be public utility, family-based, religious, or corporate.
- Identify its long-term goals, beneficiaries, and operational scope.
- Draft the foundation charter
- Prepare a written charter stating the foundation’s name, seat, objectives, initial capital, and governance rules.
- Include information about the board of trustees, auditing procedures, and amendment mechanisms.
- Prepare the founding act
- A separate legal declaration by the founder confirming the establishment of the foundation and the irrevocable transfer of funds.
- Notarization and authentication
- Sign all documents in the presence of a Swiss notary for authentication.
- Register with the Commercial Register
- Submit the charter and supporting documents for official recognition and legal personality.
- Notify supervisory authorities
- If the foundation serves a public purpose, it must be supervised by the Federal Supervisory Authority for Foundations (ESA) or a cantonal counterpart.
Each step must be performed with care, as the legal nature of Swiss foundations prohibits subsequent changes to the founder’s declared intent.
Our legal and fiduciary advisors offer full guidance through each phase of the foundation creation process, ensuring timely registration and regulatory compliance. If required, we can also appoint a Swiss Resident Director to meet legal residency obligations for board representation in public utility foundations.
Our legal and fiduciary advisors offer full guidance through each phase of the foundation creation process, ensuring timely registration and regulatory compliance. If required, we can also appoint a Swiss Resident Director to meet legal residency obligations for board representation in public utility foundations.
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Please contact us directly or via email if you require assistance. We are here to help you move forward.
The foundation’s charter
The foundation charter (Stiftungsurkunde) is the primary legal document that defines the identity and operational structure of the foundation. It is mandatory under Swiss law and must be carefully drafted to reflect the founder’s intentions.
Required content of the charter:
- Name and registered seat of the foundation (must be in Switzerland);
- Purpose of the foundation, stated clearly and precisely;
- Details of the initial capital, including source and amount (minimum CHF 50,000);
- Structure of the governing body (usually a board of trustees);
- Rules on representation and signing authority;
- Provisions for amendments, mergers, or dissolution;
- Supervision and audit arrangements, especially for public utility foundations.
The charter may also include specific conditions or limitations set by the founder regarding the use of funds, investment policies, or geographic scope.
Once signed and notarized, the charter becomes legally binding and cannot be amended at will. Any changes must conform strictly to the procedures specified in the original document and are only permissible if the foundation’s purpose becomes impossible or unlawful.
Our legal experts assist in the drafting and revision of foundation charters, ensuring full compliance with the Swiss Civil Code and alignment with the founder’s goals.
Once signed and notarized, the charter becomes legally binding and cannot be amended at will. Any changes must conform strictly to the procedures specified in the original document and are only permissible if the foundation’s purpose becomes impossible or unlawful.
Our legal experts assist in the drafting and revision of foundation charters, ensuring full compliance with the Swiss Civil Code and alignment with the founder’s goals.
Supervision of Swiss foundations
In Switzerland, foundations are subject to legal supervision to ensure that they act in accordance with their charter and fulfill their stated purpose. The type and level of supervision depend on the nature of the foundation.
Supervisory authorities:
- Public utility foundations are typically supervised by the Federal Supervisory Authority for Foundations (ESA) if their activities extend beyond one canton.
- Foundations operating solely within a single canton may fall under the jurisdiction of a cantonal supervisory office.
- Family foundations and occupational welfare foundations (e.g., pension funds) are subject to specialized supervision based on their area of operation.
Scope of supervision:
- Review of annual financial statements and budgets;
- Audit of accounting records and confirmation of proper fund use;
- Oversight of the foundation’s board of trustees and compliance with its mandate;
- Approval of certain structural changes (e.g., dissolution, amendments);
- Intervention in cases of mismanagement or deviation from objectives.
Foundations must appoint independent auditors, unless exempted by the authority. These auditors submit annual reports directly to the supervisory body.
Supervision aims not to interfere with operations but to protect the integrity of the foundation sector and ensure that public trust is maintained.
Our fiduciary experts liaise with supervisory authorities and auditors on behalf of clients, ensuring full regulatory compliance and transparent operations.
Supervision aims not to interfere with operations but to protect the integrity of the foundation sector and ensure that public trust is maintained.
Our fiduciary experts liaise with supervisory authorities and auditors on behalf of clients, ensuring full regulatory compliance and transparent operations.
What are the statistics on Swiss foundations?
Switzerland has one of the highest concentrations of foundations in Europe, with over 13,500 registered foundations as of the most recent data. These entities span a wide range of sectors, including education, science, culture, public health, and environmental protection.
Key figures:
- The total foundation assets are estimated at more than CHF 100 billion.
- Around 300–400 new foundations are created each year.
- The majority of foundations are located in cantons such as Zurich, Geneva, Vaud, and Basel-Stadt.
- Approximately 70% of all Swiss foundations pursue public utility objectives and benefit from tax exemptions.
The Swiss foundation sector is characterized by its transparency, governance quality, and strong reputation for compliance.
The sector is supported by institutions like SwissFoundations, the association of grant-making foundations, which promotes best practices and publishes annual reports on the state of the industry.
These statistics demonstrate the growing role of foundations in supporting societal development and providing alternative forms of funding for public interest projects.
The sector is supported by institutions like SwissFoundations, the association of grant-making foundations, which promotes best practices and publishes annual reports on the state of the industry.
These statistics demonstrate the growing role of foundations in supporting societal development and providing alternative forms of funding for public interest projects.
What are the benefits of a Swiss foundation?
Swiss foundations are highly regarded both domestically and internationally due to their legal stability, regulatory transparency, and tax advantages. They provide a flexible vehicle for achieving philanthropic, social, or family-related goals.
Main benefits:
- Reputation and credibility: Swiss foundations enjoy global recognition and inspire trust among donors, beneficiaries, and institutions.
- Tax exemptions: Public utility foundations can apply for full exemption from income and capital taxes at both cantonal and federal levels.
- Strong legal framework: The Swiss Civil Code and supervisory authorities ensure legal certainty and compliance.
- Asset protection: Foundations offer a high level of independence and security, making them suitable for long-term succession and estate planning.
- Flexibility in structuring: Founders can shape the foundation’s goals, beneficiaries, and investment approach, subject to legal limits.
- No shareholders or owners: The absence of ownership ensures that the foundation’s assets remain dedicated to its stated purpose.
- Access to financial services: Swiss foundations benefit from access to world-class banking, investment, and legal services.
Thanks to the robustness of the Swiss Banking System, foundations can securely manage endowments, investment portfolios, and multi-currency accounts with full compliance and discretion.
These advantages make Switzerland a preferred jurisdiction for establishing foundations that combine philanthropic intent with institutional strength.
Our specialists provide full support for the setup, structuring, and administration of Swiss foundations — from the initial planning phase to long-term legal and financial management.
These advantages make Switzerland a preferred jurisdiction for establishing foundations that combine philanthropic intent with institutional strength.
Our specialists provide full support for the setup, structuring, and administration of Swiss foundations — from the initial planning phase to long-term legal and financial management.
FAQ - Frequiently Asked Questions about Open a Foundation in Switzerland
Swiss foundations are commonly used for philanthropic, educational, cultural, family, or employee welfare goals. They serve as independent legal entities with no owners, created to manage and allocate assets toward a specific long-term purpose.
Switzerland allows for several types of foundations: public utility foundations, family foundations, ecclesiastical foundations, employee welfare foundations, and, in rare cases, corporate or holding foundations.
Yes. Public utility foundations can apply for full income and capital tax exemptions at both the cantonal and federal levels, provided their activities benefit the public and meet specific criteria.
The founder must contribute at least CHF 50,000 in irrevocable assets at the time of incorporation. The amount may be higher depending on the foundation’s objectives and operational needs.
Yes. Public utility foundations are supervised either by the Federal Supervisory Authority for Foundations (ESA) or cantonal authorities. They must submit annual reports and comply with strict governance and accounting rules.
Absolutely. Swiss law allows foreign individuals and entities to create foundations, as long as all legal and administrative requirements are met.
The registration process typically takes between 4 to 8 weeks, depending on the complexity of the foundation and the completeness of the documents.
Swiss foundations must comply with the Swiss Civil Code (Articles 80-89), which outlines the creation, governance, and oversight of foundations. They must have a clear public or private purpose, an irrevocable allocation of funds, and a founding document (charter) signed by the founder. Additionally, foundations must be registered with the Commercial Register to acquire legal personality.
Swiss foundations are irrevocable once established, meaning that the founder relinquishes control. However, any changes to the foundation’s purpose, structure, or governance must comply with strict legal procedures and can only be made if the original purpose becomes impossible or unlawful. Amendments require approval from the supervisory authorities.
The board of trustees is responsible for overseeing the foundation's operations and ensuring that it adheres to its purpose. They are in charge of managing the foundation's assets, making decisions on funding allocations, and complying with legal and regulatory requirements. Trustees must act in the foundation's best interests and may be required to submit annual financial statements and audits to the supervisory authorities.