Liechtenstein Foundation
Liechtenstein offers a favorable location for offshore foundation formation. Foundations can be likened to trusts in many ways, with a few distinct differences. Foundations are formed in Liechtenstein for the purpose of protecting your assets for your family. Such entities are entitled to a number of benefits, explaining Liechtenstein’s popularity as a location in which to establish a foundation.
For more information on Liechtenstein foundations and to proceed with opening one with DeltaQuest, please view our Liechtenstein Foundation Formation page.
Alternatively, to find out how DeltaQuest can assist you with your trust or foundation needs, please Contact Us.
What constitutes a Liechtenstein Foundation
When setting up a foundation in Liechtenstein, there are a number of requirements that must be adhered to in compliance with the Liechtenstein Foundation Law 2008, which has its origins in the Liechtenstein Company Law. A Liechtenstein foundation may be set up by either a private individual or legal entity. It is an independent legal entity that does not include members or shareholders and is established under the laws of Liechtenstein. When setting up an offshore Liechtenstein foundation, the foundation will be subject to a number of benefits, including no gift or inheritance taxes, provided that the founder transferring the assets is not a resident in Liechtenstein.
How to form an Offshore Liechtenstein Foundation
A foundation operates under its own name and has the ability to sue or be sued. It can also enter into agreements with third parties. The main principles of forming a foundation must include a ‘founder’, ‘protector’, ‘beneficiary’ and ‘council members’. The founder is the individual or group who establishes the foundation and transfers and endows specific assets into the foundation. The protector acts as a supervisor for the application and maintenance of the foundation, and ensures that the requirements stated within the foundation are correctly administered. The beneficiaries are those that directly benefit from the formation of the foundation, whilst the council members are those who implement and supervise the foundation’s activity and purpose.
Advantages of Liechtenstein Foundations
In setting up a Liechtenstein offshore foundation you will be able to take advantage of a number of benefits thatLiechtensteinoffers, including, but not limited to:
- Exemption from income tax
- Exemption from gift or inheritance tax
- Creation at a low cost
- Protecting a family business and providing continuity to second and third generations
- To manage payments of money or the distribution of assets to members of the family
- To manage profit sharing as well as pension plans to employees
- As a sophisticated and efficient substitute of the testament or will
- As a holding of shares, participation’s or interests in private or public corporations
- As a vehicle to invest in shares, bonds, mutual funds, bank deposits or other assets
- To protect assets against excessive taxes, claims by creditors, political instability or forced heirship
- To protect defenseless persons such as minors, disabled and persons incapable of managing their assets
- To carry on scientific, philanthropic, religious, humanitarian purposes, or to manage funds or assets for the benefit of these activities
Form an offshore Liechtenstein Foundation with DeltaQuest
DeltaQuest consultants have many years of experience in offshore foundation formation and can offer a range of services related to the formation of your Liechtenstein foundation. Our dedicated consultants can advise you every step of the way and will support you with every stage of your offshore Liechtenstein foundation, including the initial filing of documentation and application forms to employing effective tax planning and asset protection solutions for your foundation’s property.
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