Establish a private foundation (Stiftung) in Liechtenstein
Set up a Liechtenstein private foundation under the Law on Persons and Companies (PGR), a distinctive vehicle for holding and passing on assets. It requires a founder, a dedicated endowment, and a clear statement of purpose and beneficiaries.
- Timeline
- A few weeks, depending on due diligence and structuring
- Cost
- Minimum endowment of CHF 30,000, plus notarial, trustee and registration fees
- Steps
- 6 stages
Deadline — read this first
A foundation used for commercial purposes must be entered in the commercial register; a purely private one may only need to be deposited.
Who can file
A founder, natural or legal person, of any nationality, usually acting through a licensed trustee.
Step by step
- 1
Define the purpose and beneficiaries
Decide the foundation's purpose (family, charitable or mixed) and identify the beneficiaries or classes of beneficiary, which shape the governance and tax treatment.
- 2
Engage a licensed trustee
Appoint a Liechtenstein-licensed trustee or professional to prepare the structure and satisfy anti-money-laundering due diligence.
- 3
Draw up the foundation deed and by-laws
Prepare the foundation declaration (statutes) and any supplementary by-laws setting out the endowment, the foundation council and the distribution rules.
- 4
Provide the endowment
Contribute the minimum dedicated assets (CHF 30,000 or equivalent) to the foundation.
- 5
Register or deposit the foundation
Enter the foundation in the commercial register where required, or deposit the formation documents with the Office of Justice for a private foundation.
- 6
Meet ongoing compliance
Maintain proper records, the register of beneficial owners, and any audit or reporting obligations, and observe the minimum corporate tax.
Documents you must produce
- Foundation deed (statutes) and by-laws
- Evidence of the endowment
- Identification of the founder and beneficiaries for due diligence
- Details of the foundation council
- Beneficial-ownership information
Common mistakes that sink cases
- Treating the foundation as a way to hide ownership; transparency and beneficial-owner rules now apply.
- Confusing a commercial foundation (which must register) with a private one (which may only be deposited).
- Neglecting genuine governance by the foundation council, which can undermine the structure.
- Overlooking the minimum tax and ongoing AML compliance obligations.
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