Under the Laws of the Principality of Liechtenstein and the Republic of Austria, the Term “Private Foundation” (the so called private utility foundation or private use foundation) is used as a standard definition for a Legal Form and Institution the purpose of which is the protection of assets and for the planning and succession of corporate and private assets.
Currently, many Polish Family based Companies are undergoing the process of preparations for the first ever (after World War II) transfer of business to the next generation. The Polish Government reacted to this issue by way of enforcing the Act No 123/18 dd. 05.07.2018 on the Succession Management in respect of the succession of enterprises run and owned by Physical Persons.
However, in Poland there are still missing regulations with regard to intergenerational family and property planning in respect of medium-sized and large enterprises. Such regulations represent a standard procedure in Austria or Liechtenstein. Article 1 of the Polish Foundations Act limits the potential purposes for which a foundation may be established to public interest purposes only: "A foundation may be established for the pursuit of socially or economically useful goals consistent with the fundamental interests of the Republic of Poland, in particular health care, the development of the economy and science, education, culture and arts, social care, environmental protection and monument and historical buildings protection".
The goal of most of family business owners is the protection of the business success achieved, so it may be a benefit to future generations and not subject to a split or dissolution in case of passing away. This is a reason why Polish entrepreneurs are highly interested in legal solutions provided and offered by the Austrian and the Laws the Principality of Liechtenstein.
On the one side, the Principality of Liechtenstein offers a very attractive tax system. On the other side, it has a stable legal and political system with unique and liberal regulations in respect of incorporating and running a business.
The Private Utility Foundations, unknown to the Polish Legislation, enjoy a special status in the context mentioned above (more information under www.klimek.li). This refers to the questions and solutions in respect of Asset Protection, Confidential Data Protection, smooth Asset Management and but not limited to Business Succession.
Our Law Firm successfully represents our Clients in the establishment, ongoing service and the management as well as and possible liquidations of Private Foundations both in Austria and Liechtenstein.
We encourage You to contact us.