Institution and trust company (Trust reg.)
These two legal forms which are unique to Liechtenstein can be used in many different ways.
The leeway for their structure is very great. They can be organised similar to a corporate body or they can assume a character which is similar to a foundation and thus depending on the structure form an instrument for commercial purposes or for the asset management.
Capital stock
The minimum capital is CHF 30,000.– or current value in any legal currency and can also be broken down into shares (with or without the character of securities).
Bodies
With the typical structure on the market the highest body (founder) is entitled to rights of control, which as a rule are assigned by means of an assignment declaration (this is a deed of proof of the ownership). The asset rights can also be allocated to other persons than the owner(s) of the founder rights. The management is exercised at the institution by the supervisory board and at the trust company by the trustee board. Insofar as a trade is operated which is managed in a commercial manner or the statutes allow such a trade a revision department must be appointed as a third body. Incidentally, further bodies are conceivable – as described with the foundation.
Beneficiary
If a reference is missing about the stipulation of the financial benefit the statutory presumption exists that the owner of the founder rights (in the event of the institution) respectively the owner of the
trustor rights (in the event of the trust company) himself is the beneficiary.
Submission of balance sheet
Insofar as a trade is operated which is managed in a commercial manner or is possible according to the statutes the annual accounts which were audited by the revision department must be submitted to the tax authorities in Liechtenstein.
Declaration
Insofar as no trade is operated which is managed in a commercial manner and the statutes do not allow such either there is a declaration obligation.
Taxes
The generated profits and the distributions to beneficiaries are tax-neutral in Liechtenstein. Principally the capital tax of 1‰ on the statutory capital and the open reserves, at least however CHF 1,000.– per annum are to be observed.
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