Foundations are usually set up to forever donate property or cash assets.

Foundations are also formed for the purpose of administration and preservation of (family) assets on account of legal security. (Endowments are often used to finance children's education or to support the founder and/or his relatives or to keep real estate assets for future generations). The founder can reserve the right to administer the Foundation's assets, not only in their time but also after their death. Foundations are not limited by time and can exist after the death of the founder.

The purpose of a Foundation is usually written down in the Foundation's Deed. The contents of the Deed of Foundation are not know to third parties unless specified. Any specific regulations are written down in the so-called Foundation's By-Laws. The succession and possible beneficiaries are determined by the founder and/or members of the Board of Foundation taken down in the Foundation's BY-Laws. By-Laws do not have to be submitted to authorities and can be changed or cancelled by the founder.

Foundations are unsuitable for trade or business purposes. If the Foundation pursues an interest in business trading, it needs to be registered in the Public Trade Register. Full anonymity is still guaranteed as only the existence of the Foundation must be confirmed.

Management and representation of Foundations toward third parties lie with the Board of Foundation. Rights and duties are put down in a contract. There must be at least one person on the Board who is permanently resident and officially permitted to conduct business in Switzerland or other places.

There is a lot of freedom in the structure of the Foundation.

The minimum start-up capital for a Foundation is CHF 30'000 (Approximately 20'000€) It is possible to pay the start-up capital in the form of real estates and houses, however, cash settlements should be given preference.

Further asset contributions are tax-free.

It is possible to retract contributed assets. If requested, contributions can be returned to the founder. It is possible to protect the Foundation in the event of creditors' charges. The Foundation's assets are also safeguarded even if the Foundation has filed for bankruptcy, on the condition that this benefit is not misused. In case of closure, the Foundation's assets stand surety for all kinds of liabilities. Donations made to appointed beneficiaries can be conditional. Beneficiaries can be private as well as judicial persons, charities, and religious or cultural institutions and organizations. Also, founders can appoint themselves as the first and/r the only beneficiary. Further appointments of beneficiaries are entered in the By-Laws. To ensure the designated use of the assets, special regulations can be set up.

The Foundation's and the founder's private assets are handled separately.

The company register differentiates between registered and deposited deeds of foundation. The latter is merely deposited with the company register office without its contents being accessible to third parties. Mandatory registration depends on the objects of the foundation and how it intends to achieve these. The foundation has legal personality whether or not it is registered.

Registered Foundations are not subject to maintaining business accounts. It is, however, recommended to maintain such, as they are best referred to when checking on the Foundation's financial situation. Also, Registered Foundations do not have to have their business accounts checked by an independent auditor.

As stated above, there is no obligation to submit any kind of documents stating the Foundation's financial situation. Nevertheless, it is compulsory to forward a declaration confirming the existence of any kind of assets.

Briefly, the main advantages of a Foundation are:

• International recognition
  
• Un-impeachment of the Foundation
  
• Very low taxes in respect of the value of the assets.
  
• Maintenance of assets over a long period of time