A swiss trust company is a business entity which is founded on the base of the trust founder’s property which is given to the trustee to manage it the way to acquire maximum income and the profits from the trust’s activity are obtained by the beneficiaries. The founder is allowed to be a beneficiary himself. All assets which a founder passes into the trust possession become a trust assets and a founder cannot be liable by them.
Many wealthy people prefer to establish trusts in Switzerland for the purposes of saving their assets as the state has a clear and friendly legislation and taxation with a stable financial situation.
A trust in Switzerland has some distinct advantages:
Trusts in Switzerland became more popular since 2007 when The Hague Convention about trusts was affirmed by the Swiss government.
A swiss foundation is the kind of a profitless organization which is incorporated by private individuals or legal entities. It can donate funds acting in interests of some other organizations or to provide its own activity to get its earnings for charity aims. A foundation can be created for support of another institutions, it can have various non-commercial goals: social, cultural, educational, charitable, etc.
There are no shareholders at foundation. The foundators get no income for the foundation activity. A foundation becomes a legal entity since it is founded. Being legal entity, it is allowed to open corporate bank accounts, to create companies and to do any other business activity.
An offshore foundation in Switzerland is quite similar to a trust, the difference is that a foundation is a corporation by its legal form. A foundation can be used for protection of assets as well as trust. A foundation in Switzerland can be incorporated by private individual, a family or a group of people or a company. Foundation contributions can be not taxable; all participants of a Swiss foundation may expect the high level of confidentiality.
There are such kinds of foundation in Switzerland: public, state, private and mixed ones. Foundations can be incorporated quite easy and fast, they can be setup for a certain period of time.
Initial Setup Fee: CHF 1490 once
Domicile Address: CHF 100 per month
Minimum Contract: 6 months