Welcome to the DAO Legal Guide focusing on the Liechtenstein Foundation, an integral segment of the Pontinova Global Top 100 DAO Legal Report.
Delve into this comprehensive guide to gain insights into the legal set up requirements and the regulatory compliance framework surrounding Liechtenstein Foundations. Explore the other jurisdictions to understand why they excel at fostering DAO initiatives and navigating the intricacies of decentralized governance structures.
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Legal
Liechtenstein Foundations are incorporated under the Persons and Companies Act.
Constitution
Foundation Declaration, one or more Founders who can be either individuals or companies and do not need to be residents of Liechtenstein, Entry in the Commercial Register, if the Foundation is carrying on commercial or non-commercial activities.
Regulatory Board
Foundation Supervisory Authority (STIFA), Financial Market Authority (FMA)
Administration, Management
Registered Office within or, in an international context, outside Liechtenstein, Bank Account within Liechtenstein, Foundation Council which con-sists of two or more persons who can be either individuals or companies and who do not need to be a resident of Liechtenstein, but in this case, the Foundation needs to appoint a Representative in Liechtenstein who is authorized to receive declarations, communications and notifications and to represent the Foundation in dealings with public authorities.
Reporting, Accounting, Auditing
Reporting, Accounting, Auditing are mandatory.
Please note that a mini-mum capital of CHF / EUR / USD 30’000 is required to set up a Liechtenstein Foundation. The calculation of the incorporation fees should include legal consulting fees, fees for entry in the commercial register and fees for the supervisory authority. The incorporation duration is about 1 week. The Liechtenstein Foundation is suited for profit and non-profit purposes.
Taxation
12.5 % of Corporate Income Tax. However, Foundations may be granted tax exemption from corporate income tax, if they meet the following criteria: (a) common public interest, and (b) non-commercial purpose.
In 2019, Liechtenstein issued the Token and Trusted Technology Service Provider Act. Hereunder, “trusted technologies” are defined as technologies that ensure the integrity, the unique assignment, and the disposal of tokens. The Liechtenstein regulatory approach thus differs significantly from other jurisdictions. In contrast to Switzerland and the European Union, Liechtenstein does not differentiate between token categories, (“Token Container Model”) but between Trusted Technologies (TT) Services pro-vided by the Crypto Asset Service Providers (CASPs). As Liechtenstein is an EEA state, it offers unrestricted access to the EU/EEA market ("passporting"). However, this also means that the Markets in Crypto-Assets Regulation (MiCAR) provisions will apply in Liechtenstein from December 30, 2024. Please note that TT Service Providers already registered under the TVTG may convert to a MiCAR license in a simplified procedure.
Trusted Technology Service Provider Act [U, P, A / VA S]
* Financial intermediaries licensed by the FMA which are required to have higher minimum capital under that license than the minimum capital required under the TVTG do not need to comply with prudential requirements. ** except token issuers that issue tokens in their own name or not on a professional basis.
Please note that the capital required under company law may be counted towards the minimum capital under the TVTG. However, this capital must be always adhered to and may therefore not be used for operational expenses. Any legal and natural person with registered office or place of residence in Liechtenstein, who wishes to professionally act as TT Service Provider, is required to be registered by the FMA before beginning their activity. The registration fees payable to the FMA are CHF 1’500 for the first service and CHF 700 for each additional service. The registration duration is about 3 months. Any legal or natural person providing a TT service without being registered under the TVTG Act is liable on conviction to a fine or 1 year imprisonment.
Due Diligence Act [U, P, A / VA I]
Applicable to (a) Token Issuers, if they provide this service on a professional basis, (b) Token Issuers, subject to the registration obligation that issue tokens in their own name or not on a professional basis, if an investor buys tokens in a total amount exceeding CHF 1’000 irrespective of whether the purchase is made in one or several transactions.
Due Diligence Act [U, P, A / VA S]
Applicable to (a) TT Key Depositaries, (b) TT Token Depositaries, (c) TT Protectors, (d) Physical Validators, (e) TT Exchange Providers, (f) TT Agents, subject to the registration obligation, if they provide or distribute TT services for the TT service providers.
Professional Trustees Act [U, P, A / VA S]
Applicable to TT Protectors that need to get licensed before they apply for a registration under the TVTG Act.
Check the other DAO Jurisdictions:
• Switzerland - Foundation
• Switzerland - Association
• Lithuania - Private Limited Liability Company
• Marshall Islands - DAO (Non-Profit) Limited Liability Company
• Cayman Islands - Foundation
• British Virgin Islands - Limited Liability Company
• Abu Dhabi ADGM - Distributed Ledger Technology Foundation
• Ras Al Khaimah Digital Assets Oasis - DAO Association
