Trust Company; Definition
A Trust Company is a legal entity, usually a stock corporation, that manages various types of tangible and non-tangible assets, provides fiduciary services, and handles financial affairs for individuals or corporations, domestically and worldwide. In Switzerland, Trust Companies are regulated by the Swiss Financial Market Supervisory Authority (FINMA) and are subject to strict compliance requirements
Swiss Trust Company –
A pinnacle of Swiss Financial Culture and the world’s most secure business vehicle Through confidential registered shares and as a result of its structure, a vintage Swiss trust company protects your anonymity and allows you to carry out business operations with full discretion. Neither your competitors nor government authorities will ever know the exact type and amount of assets held by the Swiss trust company, or even its owner!
Private Trust Companies: A Phenomenon Unique to Switzerland
The small alpine nation does not have a law dedicated to the establishment and administration of trusts, in the Anglo-Saxon meaning of the term; but simultaneously provides the legal framework for Private Trust Companies.The versatile and completely anonymous business vehicle inherently tailored to provide fiduciary, financial, management, investment services, just to name a few, in a most discreet and secure fashion on behalf of its shareholders and clients. These can include both private discerning individuals, as well as sophisticated business structures and corporations.
Swiss Trust Company; Commercial & Transactional Value
Perhaps the most significant feather in the cap of Swiss Trust Companies is their flexibility, and in broader sense versatility. Owners of Swiss Trust Companies have various pathways via which to either maximize the efficiency of their overarching corporate operations at their disposal. They can easily structure and schedule transactions in a variety of ways, gain exposure to instruments not otherwise available to institutional investors and perhaps most significantly, raise credit and capital via public markets
In addition to the above, certain classes of STCs possess capabilities enabling them to serve as brokers for third-party transactions, provide intermediary services and act on behalf of clients. Switzerland has a long and well documented history of using Swiss Trust Companies as buffers between operational and financial divisions of a broader corporate group. These classes of STCs command a premium, as and when they come onto the market, which is a rare occurrence in of itself.
Swiss Trust Company; Advantages
A Swiss Trust commands prestige the world over. A classical corporate instrument, the private Swiss Trust Company carries with it numerous advantages, all while minimizing the downside traditionally associated with Trusts in other jurisdictions. Swiss Trust Companies maintain the flexibility and dynamism of a commercial vehicle. In essence, the Trust Company can act as a regular corporation for its own right and account.
The STC can enter into business arrangements, issue financial instruments such as equities, bonds, MTN’s, etc. and engage in all activities that a normal SA/AG [stock corporation] can. These capabilities exist alongside the mandate of the Trust, giving its owners and beneficiaries peace of mind regarding the safety and sanctity of their assets. The following is but a brief overview of the advantages bestowed by STCs onto their respective shareholders and clients, which in essence is virtually limitless:
1. Asset Protection:
A Swiss Trust Company provides a high degree of asset protection. The Swiss legal system is known for its strict privacy laws and robust banking regulations, which can help to shield investors' assets from creditors, or other legal claims, as well as the praying eyes of the outside world.
A Swiss trust company is the ideal solution for any asset protection needs because it combines two unique benefits registered ‘confidential’ share ownership and stringent Swiss banking secrecy laws. As a result, a Swiss company used as an asset protection Trust is a vehicle the principal owners of which cannot be traced (due to confidential registered share ownership),
and the assets of which cannot be disclosed (due to Swiss banking secrecy laws). This unique combination of benefits makes Swiss Trust Companies a commonly used component of numerous asset protection strategies.
Why use a Swiss Trust Company for offshore asset protection?
The following list of but a few unique benefits make Swiss Trusts the preferred asset protection solution:
Confidential registered share ownership
ensures complete legal separation of assets, making it impossible for third parties to prove that you are the beneficiary owner of the asset protection trust. This creates a layer of impenetrable protection in cases of legal battles and disputes.
Stringent Swiss banking secrecy laws
prohibit disclosure of the nature and value of assets held in a Swiss offshore asset protection trust. This guarantees that, even if your beneficiary ownership of the trust is somehow proven, it will still be impossible to place any valuation on the assets held in the trust.
Virtually 0% income and no capital gains tax
are levied on asset protection Trusts that operate outside of Switzerland and maintain no physical presence in the country (with the exception of a mailbox address). This allows you to manage and grow your Trust's assets without subjecting yourself to attrition through taxation. 0% withholding tax is levied on payouts to foreign nationals.
2. Tax Efficiency:
Switzerland is known for its favorable tax laws and policies. By setting up a Swiss Trust Company, investors may be able to take advantage of these tax benefits and potentially reduce their tax liability.
In addition, through maintenance of the so-called auxiliary status, a Swiss Trust Company is virtually exempted on foreign income taxation.
Furthermore, the shareholders of a Swiss Trust Company benefit from a full exemption on investment capital gains, both domestic and foreign, as long as such investments are shielded by a Swiss Trust Company.
3. Confidentiality:
Swiss Trust Companies are bound by strict confidentiality laws, which can help to protect investors' privacy and ensure that sensitive financial information remain confidential.
While the Swiss law has changed recently completely abolishing the bearer-share principles, giving way to the registered shares regime, confidentiality and privacy benefits remained intact.
Since the information about the shareholders are not published or broadcasted, their identities remain anonymous, shielded from the praying eye of the outside world.
The registered shares of Swiss Trust Companies are therefore referred to as ‘confidential registered shares’.
Most notably, these shares are considered ‘indefeasible’ in the eyes of the law in Switzerland.
What this means practically for the shareholders of such Trust Companies is that, these shares are not liable to being annulled or forfeited. Such indefeasible shares are commonly used to ensure the correct passage of property rights, assets, etc.
4. Enhanced Credibility:
A vintage Swiss Trust Company lets you catapult the credibility of any business, regardless of its field of operation or date of incorporation - and start winning over affluent clients and corporate customers without ever having to prove your credibility first.
It is a little-known fact that a vintage Swiss Trust Company retains its original date of incorporation even after changing ownership or adopting a new name. In other words, a Swiss trust company incorporated in the first half of the 20th century will retain that date of incorporation forever - even if it has been bought and sold ten times over and changed its name several times in the process.
As a result, when you choose to conduct business through your vintage Swiss Trust Company, you will be able to legitimately represent your offering through a company incorporated almost 100 years ago!
5. Investment Opportunities:
Switzerland is home to numerous high-quality investment opportunities, including a strong banking sector and a thriving fintech industry and an illustrious high-watchmaking.
Through the acquisition of a Swiss Trust Company, investors may be able to take advantage of these opportunities and access a wider range of investment options.
In fact, investments made under the umbrella of Swiss Trust Company are not only fully shielded and protected, but fundamentally the very presence in Switzerland ascertains prestige and credibility, opening a lot of doors and providing the beneficiaries with access to unique business and investment opportunities, reserved for the discreet.
6. Estate Planning:
A Swiss Trust Company can be a useful tool for estate planning purposes. By setting up a Trust, investors can ensure that their assets are distributed according to their wishes after their passing while also potentially reducing their estate tax liability.
First line inheritance in Switzerland is fully exempted from any tax liabilities.
Swiss Trust Company Capabilities:
Below, is list of some capabilities of a Swiss Trust Company, to show its versatility and vast operating freedom it bestows upon its owners:
The power to loan and borrow money
The power to issue SKR’s & promissory notes
The power to engage in MTN’s transactions
The power to trade and manage cryptocurrencies
The power to issue cryptocurrencies and conduct an initial coin offering (ICO)
The power to operate crypto-currency exchanges and manage customer wallets
The power to issue and trade LC’s with will international banking institutions
The power to open and maintain bank accounts, including trust, escrow, commercial, merchant accounts with any bank worldwide, including US based institutions.
The power to open and maintain multicurrency sub-accounts under the umbrella of the Trust
The power to accept and invest funds on behalf of third-party customers
The power to offer and service a complete range of worldwide fiduciary services
The power to acquire, develop, hold, sell, trade, exchange, dispose, mortgage of real property, precious metals, pieces of art as well as natural resources
It may engage in the general leasing business, franchising, money funds, mutual funds, formation of general limited partnership, real estate investment trust.
It may acquire and sell both private and commercial property worldwide
Act as a holding company for banks, savings and loans, insurance companies, small business investments corporations stock brokerage firms, etc.
It may hold and own financial institutions worldwide, including banks, brokers, Forex, etc.
This is list is but a brief presentation of the vase range of capabilities that an STC has to offer and is nowhere near exhaustive.
For a more comprehensive recap of Swiss Trust Company Capabilities,
visit: https://www.fidelitytrust.ch/benefits-of-swiss-trusts