In Switzerland funds are divided into:
• Family funds- manage property of the single family. This is the main difference from other funds; the beneficiaries range is strictly limited. In order to register such fund it is not required notification from register. They are exempted from the obligation to provide the audit, prepare reports.
• Religion- their purpose is not clearly defined, but the main aim should be religious activities, and beneficiaries range is religious communities.
• Welfare- used as pension funds.
• Commercial- such funds are not defined in the legislation, but they are used in practice. They are characterized by commercial and investment activities, they can function as a corporate shareholder; manage the company or the property for its benefit. Typically, their main objective is the real estate planning.
• Charity funds- have charity or public international goals.
In order to create a fund in Switzerland, it is necessary to register the Constitutive Act in the notary’s office and later submit information and articles of association, indicating the fund council members, in register. The minimum share capital of the fund is 50 thousand Swiss francs.
Fund surveillance activities are carried out by the communities in whose territory the Fund was established, in the case of international action Swiss federal government deals with it.
The Fund shall be exempt from tax payments if it operates in the public interest. In other cases, taxes are collected in accordance with the federal and regional legislation.
Funds can be eliminated by regional or federal authorities or by the Fund Board if it fails to achieve the goals.