Legal Wrappers for DAO
in Switzerland and Liechtenstein
in Switzerland and Liechtenstein
Project planning
DAO is a powerful way to build decentralized, transparent, and community-driven organizations, leveraging blockchain technology to align incentives, distribute decision-making power. Switzerland and Liechtenstein are among the most progressive jurisdictions in terms of regulatory frameworks for blockchain technology and DAOs
- At ZÜGERLAW, we assist clients with defining suitable regulation for DAO projects and making a legal wrapper that can shield members from personal liability by creating a legal entity (e.g., an LLC or foundation) that assumes the legal responsibilities.
- We create a legal wrapper helps DAOs compliant with regulations, regulations, including tax laws, securities regulations, and anti-money laundering (AML) rules reducing the risk of enforcement actions.
- We help DAOs to raise capital by making them adopt legal structures that allow them to issue tokens or raise capital in a regulated manner which attracts institutional investors.
A DAO (Decentralized Autonomous Organization) is a digital organization that operates through rules encoded as smart contracts on a blockchain, without the need for a centralized governing body. In Switzerland, DAOs operate through legal entities regulated by the Swiss Financial Market Supervisory Authority (FINMA) which issued several guidelines concerning blockchain and cryptocurrency projects. In Liechtenstein, DAOs and other blockchain entities are regulated by the Token and Trustworthy Technology Service Providers Act (TVTG), or the Blockchain Act from January 2020.
Regulation of DAOs in Switzerland & Liechtenstein
Your Expert
Tilda Publishing
Janina Petrovskaia
Founding Partner
Since 2017 Ms.Petrovskaia has structured over 100 web3 projects across various sectors worldwide with major focus on tokenization of real estate, commodities, diamonds, physical and digital art.
Liechtenstein
Why to consider Liechtenstein for setting up a company?
Liechtenstein, once known as an offshore "tax haven" is now a fully compliant, low-tax jurisdiction.
As a member of the European Economic Area (EEA), it offers access to the European market for the distribution of financial products.
The Liechtenstein Blockchain Act (TVTG), in effect since 2020, is proactively aligning with the upcoming European MiCA regulations for crypto assets.
Over 30 major blockchain companies have been granted national licenses in Liechtenstein, with the official register meticulously maintained in line with legal requirements.
As an international financial hub, Liechtenstein manages approximately CHF 300 billion in assets and is home to around 100 blockchain-related businesses.
The country boasts AAA+ credit ratings from S&P, Moody’s, and Fitch, and enjoys a highly stable political system under its constitutional monarchy.
As a member of the European Economic Area (EEA), it offers access to the European market for the distribution of financial products.
The Liechtenstein Blockchain Act (TVTG), in effect since 2020, is proactively aligning with the upcoming European MiCA regulations for crypto assets.
Over 30 major blockchain companies have been granted national licenses in Liechtenstein, with the official register meticulously maintained in line with legal requirements.
As an international financial hub, Liechtenstein manages approximately CHF 300 billion in assets and is home to around 100 blockchain-related businesses.
The country boasts AAA+ credit ratings from S&P, Moody’s, and Fitch, and enjoys a highly stable political system under its constitutional monarchy.
Legal wrappers for DAOs in Liechtenstein
A common-benefit foundation is deemed to be a foundation the activity of which is intended to be of benefit to the general public. It can provide a benefit to the general public in a charitable, religious, humanitarian, scientific, cultural, moral, social, sporting or ecological sense.
- Can be formed by a single individual
- Can be formed by a trustee
- The minimum capital of the foundation is 30’000 Swiss francs, euros or US dollars
The structure of a Liechtenstein Establishment can be similar to that of a corporate entity or its basic characteristics can be similar to those of a foundation, and, depending on its structural set-up, it can be used for commercial purposes or for asset management purposes.
- Can be formed by a single individual
- The minimum capital of 30’000 Swiss francs, euros or US dollars
- If the Establishment’s capital is divided into shares, it must be at least 50’000 Swiss francs.
An association is an association of persons organized as a corporate entity. It can have any purpose, unless it is unlawful or against good morals.
- Associations with additional commercial activities must be listed in the commercial register to gain legal status
- The number of members must be sufficient to form the corporate bodies and to manage
- the association
- Does not require any capital
An LVC makes it possible for various persons (private individuals and legal entities) to contribute work as an investment, to make non-cash investments and capital investments which are necessary for the development of an innovation. In return for the contribution to the LVC
of an idea or the preparatory work associated therewith, the inventor(s) receive(s) units in the company.
The corporate bodies:
of an idea or the preparatory work associated therewith, the inventor(s) receive(s) units in the company.
The corporate bodies:
- the general meeting of members,
- the managing board,
- the auditors,
- commissions and delegates
- articles of association,
- formation deed,
- founder’s resolution,
- innovation document,
- membership contribution regulations
- unit register.
Switzerland
Why to consider Switzerland for setting up a DAO?
Switzerland offers clear regulatory guidelines for handling distributed ledger technology, making it a leading hub for blockchain innovation.
Swiss financial market authorities are highly crypto-friendly, with dedicated fintech desks that we at ZÜGERLAW maintain direct contact with, ensuring streamlined communication and support for your projects.
At ZÜGERLAW, our team provides comprehensive services, covering legal, regulatory, and tax aspects of blockchain-related ventures.
Swiss banks also offer a broad range of services, including trading, custody, asset management, and tokenization of physical assets and securities.
With its stable economic and legal system, Switzerland maintains a liberal business environment, featuring low taxes, negotiable tax arrangements, and a progressive approach to cryptocurrency regulation.
Swiss financial market authorities are highly crypto-friendly, with dedicated fintech desks that we at ZÜGERLAW maintain direct contact with, ensuring streamlined communication and support for your projects.
At ZÜGERLAW, our team provides comprehensive services, covering legal, regulatory, and tax aspects of blockchain-related ventures.
Swiss banks also offer a broad range of services, including trading, custody, asset management, and tokenization of physical assets and securities.
With its stable economic and legal system, Switzerland maintains a liberal business environment, featuring low taxes, negotiable tax arrangements, and a progressive approach to cryptocurrency regulation.
Legal wrappers for DAOs in Switzerland
It is a legal person under private-law created for non-profit purpose.
Requirements:
Requirements:
- an initial capital of at least CHF 50,000.-
- non-profit purpose
- a registered office in Switzerland
It is a company managed in accordance with commercial practices but for non-profit purpose.
Requirements:
Requirements:
- does not require any capital
- associations with additional commercial activities
- must be listed in commercial register
Your Expert
Raphael Züger
Managing Partner
Raphael Nikola Züger is an experienced attorney-at-law and public notary with a focus in the area of corporate and capital markets law as well as digital assets law. He is the founder of ZÜGERLAW.
Setup process
Introductory call / Onboarding
Kick-Off Workshop
Execution
Key Contacts
Managing Partner
Partner