Liechtenstein Foundation Law has been in existence since the enactment of the Persons and Companies Act in 1926. Since then the Liechtenstein Foundation has proven to be a reliable and sought after legal structure in particular for inheritance planning, asset protection and also as topholding structure for privately owned company Group structures.
It is common knowledge that some of the largest privately owned company groups in the world are headed by Liechtenstein Foundation structures acting as the umbrella for the group of companies, such as Ikea Group, Tetra Group, Onassis Group, Hilti Group and the Luksic Group.
Besides being used for said purposes, the Liechtenstein Foundation also since decades is widely utilized to pursue charitable purposes all over the world. Other than the Swiss charitable Foundation which by law is subject to severe restrictions on the pursuable charitable purposes which in particular includes the limitation to charities in Switzerland, the Liechtenstein Charitable Foundation is not subject to such limitations. Rather Liechtenstein Foundation Law allows and embraces the pursuit of charitable purposes of the Foundation in any location of the world and thus already by design has a much broader array of utilization.
Our practice has shown that in the last two years the Liechtenstein Charitable Foundation gained importance in the progressive field of Blockchain Networks. In particular due the flexibility of Liechtenstein Foundation Law the Liechtenstein Charitable Foundation has proven to be the ideal legal structure for the longterm fulfilment of the purpose and aims of decentralized Network Protocols which are due to provide for the technology infrastructure of the future. Meanwhile Liechtenstein Charitable Foundations have become a most reliable backbone for several of the world’s top 100 Network Protocols. Besides SKALE Network (SKL) and Elrond Network (EGLD) for which a Network Foundation already has been implemented, recently also Doge Network (DOGE) started the setup of Liechtenstein Foundation structure.
The steadily growing importance and the proof of functioning and reliability did not remain unnoticed and our firm is experiencing increasing demand in setting up new Liechtenstein Charitable Foundation Structures to provide for the suitable legal basis for decentralized Network Protocols.
Also in the recent past we experience increased demand of relocation of Network Protocol Foundations from other jurisdictions. In particular Network Foundations located in Switzerland realize that strict legal framework of purpose restrictions combined with excessive and sometimes invasive Foundation supervision and detrimental tax treatment increasingly impose a burden on existing Network Foundation which even bear the potential to jeopardize the longterm pursuit of the initial aims and intentions of the founders of the Protocols.
In cooperation with experienced international Tax advisors our lawfirm already advised and guided several Projects in the setup of Liechtenstein Network Foundation Structures as well as relocations of existing structures into the Liechtenstein legal system. Given the experience gained in the last years and having noted the obstacles faced abroad we can state with confidence that Liechtenstein currently offers a unique and unmatched legal setup for decentralized Blockchain Protocols and Networks which provides a sustainable basis for the longterm development and growth of decentralized Networks.
Hence not only new projects but also existing Protocols and Networks are well advised to consider and review the implementation of a Liechtenstein Charitable Foundation Structure already at early stages of the Project.
9 | 2021