Registering a Company in Liechtenstein: A Comprehensive Guide

Liechtenstein is a small, landlocked country situated in the heart of Europe, bordered by Switzerland to the west and south and Austria to the east. Known for its high standard of living, robust economy, and political stability, Liechtenstein presents a favorable environment for establishing a business.

**Why Choose Liechtenstein?**

Liechtenstein’s strategic location within Europe, combined with a highly skilled workforce, makes it an attractive destination for businesses. The country benefits from being part of the European Economic Area (EEA), providing companies with access to the European Single Market. Despite its size, Liechtenstein boasts a highly developed financial sector and is renowned for its wealth management and banking services.

**Types of Companies in Liechtenstein**

There are several types of business entities you can establish in Liechtenstein. The most common forms include:

1. Aktiengesellschaft (AG): This is equivalent to a Public Limited Company and is suitable for larger businesses. It requires a minimum share capital of CHF 50,000.

2. Gesellschaft mit beschränkter Haftung (GmbH): Similar to a Private Limited Company, this structure is ideal for small to medium-sized businesses. The minimum share capital is CHF 30,000.

3. Establishment (Anstalt): This versatile structure can be used for both commercial and non-commercial activities and does not require a specific minimum capital.

4. Foundation (Stiftung): Mainly used for asset protection and estate planning, but can also engage in commercial activities.

5. Trust (Treuhänderschaft): Suitable for asset protection and estate planning, often used for private wealth management.

**Steps to Register a Company**

1. Choose Your Business Structure: Determine which type of entity best suits your business needs.

2. Business Name Approval: Select a unique business name and have it approved by the Liechtenstein Office of Trade and Transport.

3. Draft the Articles of Association: Create the founding documents, including the Articles of Association and the Memorandum of Association.

4. Capital Requirements: Ensure that you have the minimum required share capital and that it is deposited in a bank account within Liechtenstein.

5. Register with the Public Registry: Submit the necessary documents, including the Articles of Association, a notarized copy of the incorporation resolution, and proof of capital deposit to the Liechtenstein Public Registry.

6. Obtain Necessary Licenses: Depending on your business activity, you may need specific licenses or permits to operate.

7. Register for Taxes: Register with the Liechtenstein Tax Administration for VAT and other applicable taxes.

**Taxation in Liechtenstein**

Liechtenstein has a favorable tax regime, which is one of the reasons it attracts many businesses. The standard corporate tax rate is 12.5%, and there’s no withholding tax on dividends, interest, or royalties paid to non-residents. Additionally, the country has several double taxation treaties in place to avoid the double taxation of income.

**Economic and Political Stability**

Liechtenstein benefits from a stable political environment, which is conducive to business operations. The legal system is highly developed and based on civil law. The government actively supports economic growth and innovation, providing a steady and predictable framework within which businesses can thrive.

**Banking and Financial Services**

Liechtenstein’s banking sector is highly regarded and has strict privacy laws. The country’s banks offer a broad range of services, including corporate banking, private banking, and investment management. This makes it a preferred jurisdiction for financial services and wealth management.

**Conclusion**

Registering a company in Liechtenstein provides numerous advantages, including access to the European Single Market, a favorable tax regime, and a stable economic and political environment. By following the necessary steps and understanding the legal requirements, you can successfully establish and grow your business in this affluent and well-regulated jurisdiction.

Suggested Related Links:

Liechtenstein Official Portal

Liechtenstein Government

Liechtenstein Business

Institute for Financial Services

Wilfried Treuhand & Partners