A foundation is a legal entity with a pool of assets irrevocably committed to a defined purposes. The foundation becomes the owner of the contributed assets for the particular purpose, once estblished. Generally suitable for long-term infrastructure development DLT-projects (e.g. open source infrastructure, protocol, decentralisation).
Formation: Established for a particular purpose (need not be charitable or public)
Commercial register: Entered into based on charter (must indicate members of the board of trustees)
Mininum capital: CHF 50,000 contributed by founder (Swiss / foreign person or entity)
Supervision: Generally supervised by state authority to which assigned (e.g. federal, cantonal). The supervisory authority must ensure that assets are used for declared purpose.
Accounting: Generally, duty to keep accounts and file financial reports. Exempt from filing reports if exempt from appointing auditors (or a family / church foundation).
Auditors: Board of trustees must appoint external auditors unless supervisory authority exempts. External auditors provide supervisory authority with copy of the audit report.
Amendment: The amendment of the original purpose of the foundation can only be amended in certain circumstances and only with the approval of the competent foundation supervisory authority. An amendment is possible at the request of the founder himself or on the basis of his disposition due to death, if the change of purpose is provided for in the foundation deed and if at least ten years have passed since the establishment of the foundation or the last change of purpose.
Amendment of original purpose of foundation only permissible if:
- original objects plainly estranged from founder’s intentions (at request by supervisory authority or board of trustees)
- requested by founder or on the basis of his disposition due to death, if the change of purpose is provided for in the charter and if at least 10 years have passed since the establishment of the foundation or the last change of purpose
- if founder is a legal entity, the right to change the purpose finishes after 20 years from foundation