Entity Structure

Your entity.
Swiss precision.

A Swiss association gives your team a real legal home with privacy, flexibility, and a framework built for international builder teams.

What is a Swiss Association?

A Swiss association (Verein) is a legally recognized entity under Swiss law. It can own assets, enter contracts, and act in its own name, giving your team a proper legal structure without the complexity of a corporation.

Unlike corporations, associations are formed through member agreements; commercial register filing is optional for many non-profit associations. This means your team maintains privacy from public registries (subject to bank, AML, and counterparty KYC requirements) while gaining the legal protections of a formal entity.

Why Switzerland?

Privacy by default

Member identities are not publicly disclosed. Registration in the commercial register is optional for non-profit associations.

Clear legal framework

Association law is flexible and well-defined. Switzerland has issued substantial guidance on blockchain and tokenization (FINMA ICO Guidelines, DLT Act). Application to specific activities still requires case-by-case analysis.

Limited liability

Members are generally not personally liable for the association's obligations under Swiss law. Personal liability may apply in cases of intentional misconduct, gross negligence, or specific statutory exceptions (tax, criminal, certain regulatory matters).

International by design

Members and decision-makers don't need to be in Switzerland. Meetings and votes can be held remotely.

Tax efficiency

Associations may be eligible for a cost-based tax methodology ("Cost +5%" model) by ruling, depending on activities and structure. Combined corporate tax rate in Zug is approximately 9-11%. Tax treatment requires case-by-case advisor review.

Democratic governance

Decision-making authority rests with members, typically following one-member-one-vote. No shareholders or equity.

What a Swiss Association can and can't do

Well suited for

  • Receiving income as grants or donations
  • Paying and hiring contributors
  • Holding assets, treasury, and IP
  • Signing contracts and service agreements
  • Providing liability protection
  • International teams (founding team outside Switzerland)
  • Member privacy (no public registry required)

Not designed for

  • Paying dividends or distributing profits
  • Issuing shares or security tokens
  • Receiving external equity investment
  • Primary commercial activity or IP licensing

Need commercial capabilities? We're launching a commercial entity option soon.

Who is this for?

🛠️

Builder teams

Contributor teams and DevCos working in decentralized ecosystems who need a legal home.

🌐

Open source projects

Projects that receive grants or donations and need to coordinate contributors across jurisdictions.

🔒

Privacy-conscious teams

Organizations that value member privacy and don't want public disclosure of participants.

How it compares

Swiss AssociationFiscal HostUS LLC
You own the entity
Member privacyVaries
International teamComplex
Limited liability
Crypto-native bankingVariesDifficult
Clear regulatory frameworkVariesEvolving
Coming Soon

More entity types on the way

Need to issue equity, distribute profits, or run commercial operations? We're building additional entity structures to support the full range of builder needs.

Commercial Hub

For teams that monetize IP or need equity capabilities

Revenue Hub (OpCo)

Separate entity for commercial activities

IP SPV

Special purpose vehicle for holding and licensing IP

Frequently asked questions

Can companies join, or only individuals?

Both. Individuals can join in their personal capacity, and legal entities (LLCs, corporations, foundations) can also join as members.

Will joining affect my existing company?

No. Participation through an existing company doesn't change ownership, tax status, or create an employment relationship. The association acts as a contractual counterparty.

Do members need to be in Switzerland?

No. Swiss law doesn't require members or decision-makers to be physically present in Switzerland. Meetings and votes can be held remotely.

Is a Swiss bank account required?

Not legally required. Many associations primarily use multisig wallets and crypto-native infrastructure. A bank account can be added when fiat transactions are needed.

How are Swiss associations taxed?

Associations are subject to Swiss corporate income tax. Eligibility for cost-based assessment ("Cost +5%" model) depends on activity profile and is granted through tax ruling. In Canton Zug, the combined rate for ruled associations is approximately 9-11%. Specific tax treatment requires advisor review.

Does membership create personal tax obligations?

Under Swiss law, membership alone doesn't create personal tax liability. Tax obligations depend on your local law and whether you receive income from the association.

What about U.S. tax considerations?

U.S. persons may need to assess potential reporting requirements depending on membership composition and voting rights. We recommend consulting a U.S. tax advisor.

Ready to set up your entity?

Let's discuss whether a Swiss association is right for your team.