Open a Foundation in Switzerland

If you want to open a foundation in Switzerland, our team of specialists in company formation can provide in-depth information on how to set one up and can also assist in drafting its incorporation documents.

Quick Facts
Applicable laws	Swiss Civil Code.
Types of foundations	– charities, – family purpose foundations, – private foundations, – pension funds.
Mandatory registration (YES/NO)	Yes, foundations must go through the registration phase.
Registration authority	The cantonal commercial register; supervision is by the Federal Foundation Supervisory Authority or a cantonal supervisory authority.
Requirement to register with the Swiss Trade Register (YES/NO)	Yes, since 2016.
Creation document	Foundations can be created through notarial deeds or wills.
Special requirements	The deed must define the foundation's purpose and assets; a non-profit purpose is only needed for tax exemption.
Requirement to appoint a management body (YES/NO)	Yes, it must have a foundation council acting as a management body.
Local address required (YES/NO)	Yes, a foundation must have a registered address in Switzerland.
Share capital requirement (YES/NO)	No statutory minimum endowment; supervisory authorities generally expect at least CHF 50,000.
Taxation of foundations	Only foundations pursuing public-benefit (charitable) purposes can be tax-exempt; family and other private foundations are taxed.
Special accounting requirements (if any)	Foundations must appoint an auditor and have their financial documents audited once a year.
Possibility to conduct economic activities through a Swiss foundation (YES/NO)	Yes, however, tax rules must be observed in this case.
Advantages	– favorable legislation, – possibility to receive tax-free donations, – multiple uses.
Support in setting up a foundation in Switzerland (YES/NO)	Yes, you can rely our Swiss company formation agents for guidance.

Who can open a foundation in Switzerland?

Both Swiss and foreign citizens, as there are no restrictions in this sense. It is also possible for companies to set up foundations in Switzerland.

How are foundations categorized in Switzerland?

According to the Swiss Civil Code, there are two non-corporate legal entities that can be registered in Switzerland:

associations (Verein);
foundations (Stiftung).

What are the most important requirements to set up a foundation in Switzerland?

The following:

the foundation must have its headquarters in Switzerland;
it must be managed by a Council with at least one Swiss resident as a member;
in order to modify the foundation’s purposes, the founders have to request permission from the authority regulating the activity of Swiss foundations;
the main supervisory authority in this case is the Federal Supervisory Board for Foundations;
some of the registration requirements are similar to the ones available for commercial entities – for example, the foundation must be registered with the Trade Registry in order to gain legal personality;
any Swiss foundation must appoint a Foundation Council and an Audit Board.

Below, you can discover our infographic on this subject:

Are there any other governing bodies besides the Foundation Council?

Yes, a Swiss foundation must also have:

a trustees board;
an auditor.

Are there any minimum capital requirements to open a foundation in Switzerland?

There is no statutory minimum, but supervisory authorities generally expect an endowment of at least CHF 50,000.

Where do I register a Swiss foundation?

With the Commercial Registry.

What are the documents required to open a foundation in Switzerland?

the foundation deed: the document through which the foundation is created
the foundation bylaws: the document which provides for the internal organization and operation of the foundation;
proof of depositing the authorized capital;
a declaration of each member accepting their appointment.

The charter must be approved by the founder, followed by obtaining the approval of the federal or cantonal Supervisory Authority of Foundations, depending on where the foundation has its seat.

Where do I draft the foundation deed/bylaws?

You need to make an appointment with a civil notary, as you need to sign the documents in front of the notary.

What are the types of foundations available for registration in Switzerland?

The following:

charitable foundations: the most common types of foundations, which can be created for the endorsement of culture, education, social welfare purposes;
family foundations: they are created to support family members;
employee/retirement foundations: they can take the form of funds created to protect employees against disability or death;
religious foundation.

How long does it take to register a foundation in Switzerland?

Approximately 3 months. If applying for the tax-exempt status, the procedure may take longer.

Can Swiss foundations operate internationally?

Yes, they can.

What are the accounting requirements applicable to Swiss foundations?

Foundations must have their accounts audited by an independent auditor in accordance with the Swiss Generally Accepted Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS).

If you need information or accounting services related to the financial aspects of a foundation, you can rely on the services provided by our accountants in Switzerland.

Here is also a video on foundations:

What are the benefits of a Swiss foundation?

A Swiss foundation is set up with the purpose of aiding a specific type of group. It can be set up to help groups of people in need, but it can also be used as a way of providing grants to sustain the business environment.

When opening a company in Switzerland, the commercial legislation stipulates that a business can be registered with 100% foreign ownership. The same is available for a Swiss foundation. The foundation can also qualify for a low tax system – for example, the federal profit tax is applied at a rate of 4.25% (plus cantonal taxes) in the case of family foundations.

We invite you to contact our team of consultants in company registration in Switzerland for any other inquiry related to this matter.