Open a Foundation in Switzerland

As outlined in the Swiss Civil Code, there are two primary non-commercial legal entities that can be established in Switzerland:

These legal forms are intended for non-commercial purposes, and as such, they are not subject to mandatory registration with the Swiss Companies House. However, they are required to be registered with the Federal Supervisory Authority of Foundations. For those seeking comprehensive Company management, we provide end-to-end solutions for establishing and operating foundations in compliance with Swiss law.

Foundations and associations can be founded in any of the Swiss cantons. Our experienced consultants are ready to assist you in initiating this process and ensuring full legal compliance.

It is important to understand that Swiss law does not formally recognize the concept of "charity" when establishing a foundation. Instead, the notion of public utility is commonly employed.

The Swiss Civil Code is the principal legal instrument governing the creation of associations and foundations. Entrepreneurs considering blockchain or digital assets should explore options for setting up a Fintech Company, ensuring they meet all regulatory and compliance standards.

Specifically:

In addition to the Civil Code, foundations are also subject to the Federal Direct Tax Law, which sets out tax obligations and potential benefits for these entities. For those planning to structure investment vehicles, forming an SPV Company may provide greater asset protection and tax efficiency.

Should you choose to open a foundation in Switzerland, our company formation specialists can offer a comprehensive overview of the applicable legal framework and support you throughout the incorporation process.

In Switzerland, the establishment of any legal entity begins with the drafting of a statutory document. For foundations, this is typically an authenticated deed, which must be executed in the presence of a notary public.

The deed must clearly state the foundation’s purpose, and the following conditions must be met:

These requirements form the cornerstone of foundation registration in Switzerland, and our team can provide guidance at every stage.

Swiss legislation outlines several distinct types of foundations that individuals or entities can establish within the country.

These are grouped into three primary categories:

Our company formation experts in Switzerland are well-equipped to assist in choosing the right type of foundation based on your intended objectives and can provide detailed advice on the advantages and obligations of each type.

Legally, a Swiss foundation is recognized as an independent entity that manages and allocates assets in accordance with specific objectives laid out in its charter. The founders can be individuals or legal entities, either based in Switzerland or abroad.

To establish a foundation, the following steps are required:

The most notable distinction between a foundation and an association lies in their structural composition: a foundation has no members, whereas an association must comprise at least two members. If the foundation intends to operate internationally or conduct financial transactions, establishing a Swiss Branch can facilitate broader market reach and operational flexibility.

Our advisors on Swiss company formation can guide you through each phase of establishing both foundations and associations, ensuring full compliance with local laws.

The foundational document of any Swiss foundation is its charter, which formally outlines the entity’s purpose and structure. This document serves as the legal backbone of the foundation and must be drafted with precision to reflect the intended goals and operations.

The charter must include the following essential elements:

Once the charter is drafted, it must be approved by the founder, and then submitted to the appropriate supervisory authority — either federal or cantonal — depending on the location of the foundation’s registered seat.

In addition to legal formation, many foundations in Switzerland are eligible for tax exemptions, particularly those serving the public interest. To take advantage of this, it is strongly recommended to submit a request for preliminary tax exemption with the relevant cantonal tax office.

After the approval of the charter and confirmation of tax status, the foundation is officially created by means of a notarized deed, executed by a public notary. Subsequently, it is registered with the Companies House and a bank account is opened to deposit the initial capital.

Our company registration professionals in Switzerland can offer complete assistance in preparing and validating your foundation’s charter to ensure legal compliance and eligibility for tax advantages.

Once established, Swiss foundations are subject to continuous oversight to ensure transparency, accountability, and adherence to their stated purposes. This responsibility lies with the Supervisory Authority of Foundations, which performs the following functions:

Regarding financial oversight, Swiss foundations must comply with rigorous accounting standards. They are obligated to have their financial records audited annually by an independent auditor, following either the Swiss GAAP (Generally Accepted Accounting Principles) or the International Financial Reporting Standards (IFRS).

For expert advice on maintaining financial compliance and meeting accounting obligations, our team of Swiss accountants is readily available to assist foundations of all sizes and types. Companies focusing on blockchain or digital assets should consider the regulatory framework for Starting a Cryptocurrency Company, ensuring full alignment with Swiss AML and KYC requirements.

Once established, Swiss foundations are subject to continuous oversight to ensure transparency, accountability, and adherence to their stated purposes. This responsibility lies with the Supervisory Authority of Foundations, which performs the following functions:

Regarding financial oversight, Swiss foundations must comply with rigorous accounting standards. They are obligated to have their financial records audited annually by an independent auditor, following either the Swiss GAAP (Generally Accepted Accounting Principles) or the International Financial Reporting Standards (IFRS).

For expert advice on maintaining financial compliance and meeting accounting obligations, our team of Swiss accountants is readily available to assist foundations of all sizes and types.

Opening a foundation in Switzerland offers a unique opportunity to manage assets with a specific purpose, whether it’s for family benefits, pension funds, or public welfare. The Swiss legal framework provides clear guidelines for establishing and overseeing foundations, ensuring that they operate within the bounds of the law. Whether you are looking to create a family foundation, a pension fund, or a public benefit organization, Switzerland offers a stable and favorable environment for such ventures.

By following the appropriate steps, such as defining the foundation's purpose, appointing a governing board, and registering with the relevant authorities, you can establish a successful foundation that meets both legal and social objectives. Additionally, the potential tax benefits and the country's reputation for stability make Switzerland an attractive jurisdiction for those wishing to create a foundation with a positive impact.

For anyone interested in setting up a foundation in Switzerland, it is advisable to consult with experts in Swiss company formation to ensure that all legal and regulatory requirements are met, and that the foundation operates smoothly and efficiently.