The Principality of Liechtenstein is located in Central Europe, between Austria and Switzerland. The country is not part of the EU, but is included in the EEA and participates in the Schengen Agreement.
The jurisdiction is a prosperous state with one of the most advanced living standards in the world, so setting up a company in Liechtenstein may be a good solution for you, provided you have sufficient funds. This is one of the most expensive countries in Europe, however, in order to register a firm in Liechtenstein, it is worth considering that the money that you invest in the authorized capital is, in fact, the authorized capital, and until the end of registration, they are frozen.
Primary positives for starting a business in Liechtenstein:
- A company in Liechtenstein is different from any other traditional company - firstly, there may be several directors, and secondly, there may be no secretary at all. The most important thing for a businessman after registering a company in Liechtenstein is to pay taxes on time and without administrative and legal violations;
- The level of taxation is quite low;
- Beneficiaries are not disclosed;
- There is no control over foreign exchange transactions;
- High international status and prestige of the country;
- Stable and secure political and economic situation;
- Increased degree of confidentiality (even criminal liability may be imposed on the person who discloses classified data);
- Highly developed payments financial sector;
- Flexible and simplified system of enterprise formation;
- It is allowed to issue bearer shares or without specifying the par value;
- The number of shareholders is not specified.
Types of companies most frequently registered in Liechtenstein:
- LLC (GmbH). This form is typical for small and medium enterprises. This form can be applied for commercial and non-commercial activities. To create a business in Liechtenstein of this type, you need at least 1 director and 2 participants (legal entity or individual of any residence). Participant data are not disclosed to third parties.
- JSC (AG). The type is suitable for establishing large-scale firms in Liechtenstein (for conducting commercial transactions worldwide and managing the assets of subsidiaries). The board manages such a firm's OPF. The board must include at least 1 director. Information about shareholders and directors is not disclosed to third parties.
- Foundation (Stiftung) does not apply for international commercial trade. Most often they are necessary to preserve and increase assets. If you want to register a company in Liechtenstein as a family business or for charity, then this type is perfect for you. The fund is recognized as a non-trading organization, but commercial activities are permitted without the intention of making a profit. The foundation is headed by the board (1 member of the foundation must be a resident of the principality) and the founder (individual or legal entity of any residence). Beneficiary data is not disclosed to third parties. In addition to corporate tax, you must pay tax on net assets - 2.5%, a registered office is required.
- Trust company, only the principal has the right to receive, profit, or he has the right to transfer his right to another person under the internal charter; a specific species characteristic of Liechtenstein.
- Trust institution (Anstalt). Only the founder has the right to manage the assets. Establishing a trust in Liechtenstein is quite simple as a kind of holding. A trust institution is typical only for a given country. In this institution there are no members, no shareholders, no shares, no secretaries. The company is headed by the founder and the board of directors. It is worth noting that if an institution conducts commercial activities, then an audit becomes a prerequisite. In the event that the institution carries out only investment activities, then its income is not subject to taxation.
Conditions for company registration in Liechtenstein
- There is no requirement for a local partner and secretary;
- Change of jurisdiction is prohibited;
- Electronic signature is encouraged;
- The presence of a registered local legal address and office is required;
- Shareholders meetings are held every year but they can be held outside Liechtenstein;
- Be sure to be audited annually.
All registered companies in Liechtenstein are required to pay annual state fees, based on the type of enterprise. On average, this will be 1,000 CHF.
Final word
Please note that the information in the article is for informational purposes only and cannot serve as a basis for taking any active actions. If you have any queries, our experienced specialists are at your service.
IQ Decision UK Ltd is a company that accompanies at every stage of company registration in Liechtenstein and in other jurisdictions.
For more information, please contact us through the contacts below.
