Obtain a Trust License in Switzerland: Requirements and Process

Switzerland’s longstanding reputation as a global financial hub is largely attributed to its robust legal framework, political stability, and commitment to confidentiality. The country’s trust industry, in particular, has garnered significant attention due to its rigorous regulatory environment and attractive tax incentives.

Recent Regulatory Changes

The introduction of new trust rules in 2020 and the proposed inclusion of trust law in the Swiss Code of Obligations underscore Switzerland’s dedication to maintaining its competitive edge in the global financial landscape. These changes aim to:

Enhance competitiveness: Strengthen Switzerland’s position as a preferred destination for trust services.
Improve quality and integrity: Ensure that the trust industry adheres to the highest standards of professionalism and ethics.
Foster accountability: Promote transparency and accountability within the sector.
Create a level playing field: Establish a fair and competitive environment for trustees in Switzerland.

Obtaining a Trust License in Switzerland

A trust license is required to operate a trust company in Switzerland. The process of obtaining this license involves meeting several key requirements:

Capital Requirements: A minimum paid-up capital of CHF 100,000 is necessary.
Financial Security: Adequate financial security measures, such as insurance, must be in place.
Qualified Directors: At least two qualified directors with good standing are required.
Risk Management: Effective risk management mechanisms and internal control systems are essential.
Knowledge of International Law: Trustees must thoroughly understand international law, especially when dealing with foreign clients.
Additional Requirements: For firms seeking a separate license as an asset manager, additional staff and office space may be necessary.

Key Documents for the Application Process

To ensure a smooth application process, the following documents are typically required:

Identification Documents: Copies of identification documents for owners and directors.
Residence Permits: For foreign citizens, copies of Swiss residence permits.
Residential Address: Confirmation of residential addresses for owners and directors.
Qualifications: Copies of resumes and educational certificates demonstrating relevant experience.
Criminal Records: Certificates of no criminal record from local authorities.
Corporate Documents: Articles of association, registration certificates, etc.
Business Plan: A detailed business plan with financial forecasts and market analysis.
Premises and Personnel: Information about office space, infrastructure, and staff.
Funds and Deposits: Proof of the origin of funds and information on government deposits.
Share Information: Details about company shares (structure, distribution, etc.).
Operating Model: Documentation of internal policies, cash flow, data security, and technology.
Power of Attorney: If represented by a legal representative, a notarized power of attorney is required.

Advantages of Establishing a Trust in Switzerland

Strong Reputation: Switzerland’s reputation as a financial center enhances trust in Swiss trust companies.
High Standards: Swiss security standards, confidentiality, and customer service quality foster trust.
Global Recognition: Swiss trust companies enjoy international recognition and respect.
Confidentiality: Swiss laws provide a high level of confidentiality for trust owners.
Asset Protection: Switzerland’s legal framework offers robust asset protection measures.
Flexibility: The Swiss trust system is adaptable to various asset types and structures.

By adhering to the regulatory requirements and leveraging the advantages offered by Switzerland, individuals and businesses can establish trusts that benefit from a stable, secure, and confidential environment.

To learn more about how IFB can help you establish a trust that aligns with your objectives, please contact us. Our team is ready to discuss your specific requirements and provide tailored advice.