What is the Swiss Association?
Despite the often-presumed status of crypto projects having a Swiss Foundation, many have realized its drawbacks. As governing restrictions along with local demands are not always worth the assumed prestige associated with this setup, a significant number of leading blockchain networks have adopted alternative methods for managing their efforts and funds.
Establishing an Association in Switzerland is a straightforward affair. Unlike Germany, no filing requirements need to be met as long as it's of non-profit nature; just the signature on a written agreement is necessary for it come into existence, allowing members to be individuals as well as legal entities with their liabilities limited. By operating globally as one brand, members can safely diversify their profit pools and protect themselves from liabilities in any given country. Centralizing power within the association means that each member remains bound only by regulations of their local jurisdiction.
More details about the Swiss Association
Associations offer a variety of advantages compared to Swiss Foundations. Directors do not need to be individuals; they can also be legal entities, which opens up possibilities for projects managed largely outside Switzerland. This flexibility enables associations to consider their specific use case when electing directors and board members: one director could represent the operational entity (e.g., a company in or out of Switzerland) while another may come from within membership ranks, ensuring member representation at the board level.
An optimum board size should feature an uneven number of directors, with the president possessing a tie-breaking vote to ensure efficient decision-making. Every member of the council is allotted one ballot during elections and revocations for fair representation in governance decisions.
Conclusion
The Swiss Association is an ideal platform for blockchain-based projects that span multiple regions, offering a flexible and cost-effective structure. It takes as little as two individuals to form an association with non-economic objectives without having to register through the registry of commerce - attractive features like charitable exemptions from income or capital tax provide further incentives.
An Association offers far more freedom than a Swiss Foundation when it comes to governance, and its formation can be easily managed with the help of smart contracts.
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