Creating a foundation

A foundation is, in law, a moral person, the essence of which is that its property exists exclusively for a defined purpose. The law of foundations is governed by articles 80 et seq of the Swiss Civil Code.

How to create a foundation?

A foundation must be created through an authenticated deed before a notary. (See: "Chamber of Notaries")

It is created by the attribution of a capital amount to a specific purpose and it must be placed under the supervision of a public law entity (Confederation, canton, or commune), whichever is relevant in the light of its goals. This supervisory body ensures that the resources of the foundation are used for the intended purpose.

This is a relatively rigid legal form. Once the goals are adopted during the consitution, they may be altered only with the consent of the supervisory body.

The practice of the Federal Supervisory Body for foundations is to require a minimum initial capital of CHF 50,000.

A foundation has the following mandatory organs:

The foundation Council

An audit board. (See: "Accounting requirements")

It is advisable to submit the draft foundation deed to the Federal Supervisory Body for foundations.

To complete the procedure and to acquire legal personality, the foundation must be registered in the Trade Register.

Responsability toward third parties

Only the capital of the association is engaged with respect to third parties.

For more information, you may consult the Practical guide to the creation of a foundation or contact the Foundation Supervision Service.