The segmented PCC foundation in Liechtenstein

Segmented foundations (PCC foundation) are not a separate legal form in Liechtenstein. The PCC foundation is a special form of foundation reserved exclusively for charitable foundations and holding foundations. The PCC status results in favourable structuring options for limiting liability.

Permissibility of foundation segmentation in Liechtenstein

Foundation segmentation is permitted in Liechtenstein for non-profit and charitable foundations and for holding foundations (acquisition, management and realisation of participations in companies).

Organisation of the PCC foundation in Liechtenstein

The segmented foundation consists of a core (non-cellular part) and one or more separate segments.

The assets of the individual segments remain separate from each other and from the assets of the core. The segments do not have their own legal personality.

Only the foundation has legal personality.

Articles of association of the segmented PCC foundation in Liechtenstein

The foundation deed of a segmented Liechtenstein foundation must include the following contents:

  • the statement  that this is a segmented foundation;
  • provisions on the organisation and representation of the segmented foundation;
  • the name of the individual segments; and
  • the areas of activity of the individual segments.

Conversion into a PCC foundation in Liechtenstein

The segmentation of an exclusively charitable foundation or holding foundation is also possible at a later date, provided that a reservation of amendment is provided for in the articles of association.

Practical tip: The introduction of the segmented legal entity / protected cell company also provides foundations with an exclusively charitable purpose and holding foundations with attractive structuring options for limiting liability.

Foundation names of the PCC foundation in Liechtenstein

The name of a segmented foundation must contain either the suffix „Segmented Association Person“ or the abbreviation „SV“ or the suffix „Protected Cell Company“ or the abbreviation „PCC“.

Minimum capital of the PCC foundation in Liechtenstein

Both the core assets of the segmented foundation and each individual segment must have at least the statutory minimum capital of CHF 30,000.

PCC foundation subject to mandatory auditing in Liechtenstein

Segmented foundations are subject to mandatory auditing in Liechtenstein. Exemption is not possible.

PCC foundation disclosure of legal relationship to third parties and liability

A segmented foundation must inform third parties with whom it comes into legal contact in writing of its status as a segmented foundation when entering into contractual negotiations. In doing so, the foundation must specify the segment with whose assets it is liable for the legal relationship in question. If the core assets are liable, this must be indicated accordingly.

Bankruptcy of the PCC foundation in Liechtenstein

As a rule, the core assets of the foundation are not liable for liabilities arising from legal transactions with third parties relating to a segment. The liability of the segments is limited to the segment concerned. Joint and several liability of the foundation segments among themselves or together with the core assets is excluded.

Both the segmented foundation and the individual segments are may become separately bankrupt in accordance with the provisions of the Liechtenstein Bankruptcy Code.

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