[ESTABLISHING A BUSINESS ENTITY IN LIECHTENSTEIN]
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The executive board, comprising one or more members, conducts the business and represents the establishment externally. The members of the board represent the establishment solely or jointly. Beneficiaries of the establishment can be appointed by the founder or his legal successor. If no other beneficiaries are appointed, the founder or his legal successor is regarded as sole beneficiary. The resolution of the supreme body to dissolve the establishment is followed by the liquidation. The deletion from the Commercial Register can take place after a fixed period of six months at the earliest. If the purpose of the establishment permits commercial activities, then the establishment is
conducted by the trustee council. It represents the trust enterprise externally and is the authorized signatory. It is also possible to have a foundation-like trust enterprise which does not have settlors’ rights. In that case the powers of the highest body are entrusted to the Board of Trustees. Therefore, there is also no supervision of the fiduciary council by a supreme body. However, a protector can be appointed to oversee the interests of the beneficiaries. Foundation The provisions regarding the foundation are laid down in Art. 522 § 1 to 41 PGR (Law of Persons and Companies). Possible aims of the foundation include:
asset protection,
obliged to appoint an auditor. Trust Enterprise (Trust reg.)
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settling the succession,
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- securing the economic future of family members or other close individuals in the form of maintenance arrangements, for example, - functioning as a holding to safeguard a corporate or real estate portfolio, - perpetuating the life’s work of the founder (e.g., art collections), charitable purposes. In principle, the foundation may not pursue an active business run along commercial lines (e.g., trading business). Private foundations are not allowed to set up a commercial business, unless such business is necessary for the proper investment and management of foundation assets, e.g., management of participations in a business. Charitable foundations may also set up a commercial business if this is necessary for attaining their charitable purpose. -
This type of entity has a distinctly Liechtenstein character and is extremely versatile. It may be structured in the manner of a corporation, or its main characteristics may be similar to a foundation and, as a result, may be used for commercial or asset management purposes. A trust enterprise can be formed with or without legal personality, although the latter is almost unknown in practice. The highest organ of a trust enterprise is the settlor or his legal successor, i.e., the person who made the contribution of assets. The trust rights can be transferred, assigned, inherited, or encumbered. The minimum capital stock is set at 30,000 CHF/EUR/USD. Only the assets of the trust enterprise are liable for the debts. The beneficiaries are usually appointed by the settlor in the by-laws. If no beneficiaries are named in the statutes or in the by-laws, then the settlor is deemed to be the beneficiary. The transactions of the trust enterprise are
ILN Corporate Group – Establishing a Business Entity Series
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