How to Form a Company in Liechtenstein?
Liechtenstein has become a popular option for foreign investors looking to open a new business in a country where the local authorities work with and favor commercial businesses, and have provided incentives to entice those interested in opening such businesses to do so in their country.
Liechtenstein is a small country positioned between Austria and Switzerland renowned for its capital, Vaduz, which is an international financial hub with worldwide connections to other prominent cities. Liechtenstein has much to offer foreign businessmen considering investing there. It has a highly advanced financial sector, investment funds, a thriving business insurance branch, and an active and successful asset management sector.
Now, the process of company incorporation in Lichtenstein won’t take longer than a few weeks, which really isn’t long at all, providing all the necessary documents are correctly submitted. It is up to the foreign business magnates to select the perfect company to found here by taking into account the many diverse details such as company goals, how much share capital is involved, and precisely how many shareholders there are.
Company in Liechtenstein – Types
The primary types of businesses that can be established by an investor who decides they believe it’s a good idea to open a company in Liechtenstein are as follows:
Limited Liability Companies – These are often referred to as GmbH, which are the most frequently established companies.
Companies Limited by Shares – These are called Aktiengesellschaft or AG, which are the same as publicly owned companies in other countries.
Foundation (Stiftung) – This is a very desirable classification because there are a great many tax benefits that it provides.
Establishment (Anstalt) – This is a special business form designed in Liechtenstein.
Trust Enterprise – This is also a special business form designed in Liechtenstein.
Limited Liability Company in Liechtenstein
This is a way of doing business directed specifically at the small and medium businesses. This type of company requires a minimum capital share of EUR 30,000 before it can be founded, and can be for both commercial and non-commercial purposes. It must have a board of directors and a local registration office.
Should you find yourself requiring a virtual office for your business, our company formation specialists here in Liechtenstein can provide a registered address for you where you will find all that you need.
Company Limited by Shares
You must have a minimum share capital of EUR 50,000 if you want to be permitted to open this type of company. Both this type of company and an LLC are similarly created, with the essential difference between the two being that the transferability of shares is greater for the private limited company and its capital larger. Both companies pay the same amount of corporate tax – 12.5% – are required to have a registered office and at least one shareholder.
It is also plainly stated that the established company cannot participate in international commercial trading, but is permitted to be used as a holding company or an investment holding company. No board of directors or shareholders are required and the minimum share capital is EUR 30,000. Along with the corporate tax a 2.5% net assets tax and is required to have a registered office.
Furthermore, the company is permitted to be used for commercial activities, or as a holding or investment company, and is required to have a minimum share capital of EUR 30,000.
It is permissible for the trust corporation to act as a holding company with a minimum share capital of EUR 30,000.
Subsidiaries and Branches in Liechtenstein
For foreign businesses desiring to open a company in Liechtenstein there are three options:
Subsidiary – An independent entity.
Branch Office – An offspring of the founding company.
All foreign companies wishing to establish a business in Liechtenstein will select the structure that best matches their aims. The business forms which are used the most are the branch office, and the subsidiary, with the essential variations between them in:
Degree of Independence – The branch office is not an independent business form, while the subsidiary is. The branch office is limited to offering its services to complete the undertakings of the parent company on the Liechtenstein market, while the subsidiary can also provide other services. In comparison to the branch office, the subsidiary will most often adopt the form of a limited liability company.
Taxation – As far as taxation goes, the subsidiary will pay taxes on its global income, while the branch office will only be taxed based on the income earned in Liechtenstein. Meanwhile, the Liechtenstein Representative Office can be in operation for a limited time and when that time is up, it can be converted into a branch office or a subsidiary. Our company registration consultants in Liechtenstein can use their experience to provide you with advice on all of these business forms.
Company in Liechtenstein – Incorporation
The essential things a businessman needs to do in Liechtenstein before he is able to undertake commercial activities are: Having the business’s articles of association notarized, opening a bank account and depositing the minimum share capital, checking to see if the company’s name is available at the Public Register and placing the above mentioned items with the Liechtenstein Public Registry. If it turns out that the company has an annual turnover that is higher than EUR 100,000, then it needs to also register for VAT. Furthermore, should the company be hiring personnel, Social Services must be informed. This entire process shouldn’t take more than a week, and then the new company will be successfully established.
Documents For Liechtenstein Company Formation
It is required that foreign businessmen/investors desiring to open new companies in Liechtenstein submit a set of certain documents with the Trade Register. These would include:
– In case of corporate shareholder – Constitutional documents, in case of individual – passport
– Proof of a registered address in Liechtenstein, under the form or a rental or lease contract.
– Company’s memorandum and articles of association drafts.
– Whatever information concerning the business’s manager or managers that is required, for example, their qualifications and identification papers.
– Confirmation from the bank that the share capital was placed in the Liechtenstein. It requires stating that any company registered in Liechtenstein must appoint a resident director. This director should have no criminal record, and an extract from the police department will be necessary. Along with proof of the director’s qualifications, the extract must be filed with the Trade Registry in Liechtenstein.
Would you like to get more information about incorporation procedure or to form a company in Liechtenstein, please contact our specialists!