Foundation of a Trust Enterprise (Trust reg.) in Liechtenstein

Legal Structure

A Liechtenstein Trust Enterprise, frequently referred to as a Trust reg., is a legal entity and is an Anglo-Saxon company-form that has become part of Liechtenstein law. The trust fund of a Liechtenstein Trust Enterprise (Trust reg.) is wholly liable for the liabilities of a Trust Enterprise. A Liechtenstein Trust Enterprise (Trust reg.) may be formed for the pursuit of commercial or non-commercial purposes insofar as they are not disallowed by statute. For example, this may include the trading of goods and estate planning.

A Liechtenstein Trust Enterprise (Trust reg.) may be formed with or without legal personality. However, if a Liechtenstein Trust Enterprise (Trust reg.) is formed for the purpose of carrying on unrestricted commercial activity, it must be formed with legal personality. The trust deed of a Liechtenstein Trust Enterprise (Trust reg.) must state if the Trust Enterprise (Trust reg.) will be undertaking commercial activities or not. A Liechtenstein Trust Enterprise (Trust reg.) is deemed not to be undertaking commercial activities if its activities are restricted to the management of the trust fund and the holding of investments.

A Liechtenstein Trust Enterprise (Trust reg.) can be structured like a corporation or foundation and is particularly suitable for cases in which the purpose of the company has not yet been determined at the time of founding.

Foundation

A Liechtenstein Trust Enterprise (Trust reg.) is formed through the filing of the notarised trust deed to the competent Liechtenstein authority. A minimum of one natural or legal entity is sufficient therefor. A Liechtenstein Trust Enterprise (Trust reg.) with legal personality must be registered in the Commercial Register. The Commercial Register is a public register.

Minimum Capital (Trust fund)

For the formation of a Liechtenstein Trust Enterprise (Trust reg.), a minimum of 30,000 Swiss Francs or Euros or US Dollars must be contributed to its capital (trust fund). This contribution may be in the form of cash or a non-cash contribution. The trust fund may be divided into shares which may or may not have the character of a security. Furthermore, the said shares may be gradually increased or reduced.

Organisation

The Settlor

In a Liechtenstein Trust Enterprise (Trust reg.), the settlor is the person who supplies and warrants the trust fund’s assets.

Board of Trustees

The board of Trustees of a Liechtenstein Trust Enterprise (Trust reg.) consists of trustees of the Trust Enterprise. The board of trustees undertakes the management of a Liechtenstein Trust Enterprise (Trust reg.). Furthermore, the management of a Liechtenstein Trust Enterprise (Trust reg.) may be transferred to particular trustees or to a third party.

Appointment of an Auditor

A Liechtenstein Trust Enterprise (Trust reg.) in Liechtenstein is only required to appoint an auditor if it is carrying on commercial activities or if its trust deed provides for the carrying on of commercial activities.

Representative

The address of the person registered as the representative of a Liechtenstein Trust Enterprise (Trust reg.) will be the Trust Enterprise’s official address. The representative will also act as the contact person between the Trust Enterprise and the Liechtenstein authorities.

Beneficiaries

A beneficiary of a Liechtenstein Trust Enterprise (Trust reg.) is defined as he who is to receive any present or future benefit from a Liechtenstein Trust Enterprise (Trust reg) in accordance with its trust deed or its supplementary foundation deed. Such benefit may take the form of a share of the income or of the assets of a Liechtenstein Trust Enterprise (Trust reg.). Where the beneficial interest has been granted gratuitously, it may be restricted or a condition may be attached thereto. Moreover, the beneficial interest may be revoked at any time. Due to the beneficiaries of a Liechtenstein Trust Enterprise (Trust reg.) being specified frequently in its supplementary foundation deed, the said supplementary foundation deed is not publicly available. This is in contrast to the trust deed of a Liechtenstein Trust Enterprise (Trust reg.) which is registered in the Commercial Register and accordingly publicly available. Where they are not so excluded by the trust deed of a Liechtenstein Trust Enterprise (Trust reg.) or by law, the rights of the beneficiaries of a Liechtenstein Trust Enterprise (Trust reg.) may either be entirely or partially assigned, bequeathed, given as security or otherwise transferred.

Liquidation

The earliest point at which a Liechtenstein Trust Enterprise (Trust reg.) can be liquidated is after the expiry of six months following the issuing of the third notice to the creditors.

Tax Structure of a Liechtenstein Trust Enterprise (Trust reg.)

A Liechtenstein Trust Enterprise (Trust reg.) is required to pay an annual flat income tax rate of 12.5% on its taxable income. In accordance with Liechtenstein‘s Tax Law of 1st January 2011, those Liechtenstein Trust Enterprises (Trust reg.) which qualify as Private Asset Structures (PAS) are required only to pay the minimum income tax of 1,200 Swiss Francs.