LiechtensteinHow To Register an Liechtenstein Investment fund in 2024

November 13, 2023by Tetra Consultants0
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  • As a small country, Liechtenstein has been a prosperous country with a highly industrialized, free-enterprise economy. A competitive industry that has a great role to play in the future of Liechtenstein includes an investment fund. The companies need to register a Liechtenstein investment fund to operate a business in the industry.  
  • Moreover, Liechtenstein is an attractive location for investment funds because of the favorable business environment and the country’s ambition to be an investment fund center. The official representative of the Liechtenstein investment fund industry is the Liechtenstein Investment Fund Association (LAVF) which was established in September 2000. For Liechtenstein company registration a company will need to consider the country’s economy, which is based on industries, with a significant share of the agricultural sector, and services, including tourism and information technology 
  • Being a well-established investment fund center and a representative association for the industry, the Liechtenstein is able to attract many investors and entrepreneurs to invest in country’s economy because of wide range of investment opportunities presented to them.  
  • Further, if you are planning to register a Liechtenstein investment fund through Liechtenstein company registration, you must know that the investment funds are formed through a fund contract between several investors for the formation.  
  • Tetra Consultants can set up a fully operational and functional Liechtenstein investment fund company while taking caring of all the procedure including to register a Liechtenstein investment fund without making you to leave your desk.  

Procedure to register a Liechtenstein investment fund 

The process for Liechtenstein company registration to operate a Liechtenstein investment funds includes the following steps:  

Step 1: Arrange the minimum capital requirement 

  • To set up an investment fund in Liechtenstein you will be required a minimum capital of CHF 2 million. The huge funds requirements are mandatory for monetary stability of the entity.  

Step 2: Arrangement of incorporation document  

  • On engagement with Tetra Consultants, our experts will comply with the needs of the documents. Provided below is a list of documents to set up an investment fund in Liechtenstein. A document presenting the prospectus containing information on the services and organization of the fund.  
  • The document mentioning the company name which must contain the references to the services of the fund.  
  • The document mentioning the address of the company as a company managing the fund must have a Liechtenstein address.  
  • A document mentioning a sustainable business plan prepared by the management of the company and submitted to the Financial Market Authority (FMA).   
  • A document mentioning the guarantee of the proper management of the fund is also required.  
  • With Tetra Consultants you can be sure of documentation compliances as our experts will provide you a seamless service of incorporation during which you will have to take no worries and all the documentation compliances will be fulfilled under our offshore company incorporation service.  
  • Moreover, Tetra Consultants can also help you to draft these legal documents for incorporating your company. 

Step 3: Licensing requirements 

  • Tetra Consultants assists international clients with the process of applying for a Liechtenstein Investment funds license. The idealistic investment fund hub of Liechtenstein provides a variety of options for fund formation. It stands out well from a global perspective thanks to its quick licensing processes and affordable start-up, administration, and supervision costs. 
  • The Liechtenstein investment fund license helps in easy access to the European market without discrimination thanks to EU passporting. Tetra Consultants can help you with their offshore financial license services which will help you to obtain a business license in an easier way.  

Step 4: Register a Liechtenstein investment fund 

  • With Tetra Consultants Foreign and local investors who are willing to set up an investment fund in Liechtenstein must comply with the laws which are as follows: Undertakings for Collective Investments in Transferable Securities Law, also known as the UCITS legislation, and the Alternative Investment Fund Managers (AIFM) Directive.  
  • After receiving authorization from Liechtenstein’s Financial Market Authority, the Tetra Consultants will register investment funds with the Commercial Register. Tetra Consultants will guide investors to comply with the UCITS legislation and the AIFM Directive. Prior to the commencement of the engagement in Liechtenstein, the licensing requirements need to be presented. 
  • For registering the Liechtenstein investment fund if the company will ever require the local presence requirement Tetra Consultants can help you with nominee director and shareholder services 

Step 5: Taxation compliances and benefits 

  • Liechtenstein follows the tax regulations of Switzerland which applies the principality of a stamp duty which will be levied upon the formation of the company managing the fund. The value of stamp duty is 1% and applies to legal entities. 
  • The Liechtenstein provides an important benefit which are as follows:  
  • Dividends obtained from investments in legal entities are exempt from income tax.   
  • Capital gains obtained after the liquidation of investments in legal entities are also exempted from income tax 
  • Only 1% tax is applied to the increase of the nominal value of the shares, and this is for public limited companies and public EU companies that are in charge with the management of the investment fund in Liechtenstein.   
  • No tax applied to the shares of investment companies with variable capital.  
  • Tax exemptions for the properties 
  • A special tax regime for the legal entities named PVS (Privatvermögensstruktur).  
  • Investment funds on a contractual basis are not liable to pay income tax on their income or net worth.  
  • No provision of withholding tax for the distribution to the holders of the unit in the fund.  
  • Tetra Consultants provides will assist you in adhering to the yearly compliances of submitting the annual audited financial statements to the local regulatory authorities along with taking care of tax and accounting obligations. 

Step 6: Corporate bank account opening 

  • With the engagement of Tetra Consultants, our experts will head towards corporate bank account opening for your Liechtenstein investment fund. Our experts will open the bank account for your investment fund with any preferred bank within 4 weeks of incorporation. 
  • Our team will deliver you all the bank account documents to your preferred location within the stipulated period of time.  

 Conclusion 

  • Liechtenstein presents a compelling opportunity for investment funds, with its advantageous regulatory environment and strategic location. With Tetra Consultants by your side, navigating this landscape becomes a seamless endeavor. Our seasoned team excels in facilitating the acquisition of fund management licenses, specializing in jurisdictions like Liechtenstein. From establishing offshore entities to formulating essential legal documentation, we meticulously oversee every aspect of the license application process. 
  • Additionally, we provide invaluable support with due diligence assessments, client profiling, and the preparation of critical documents tailored to your specific objectives. As your dedicated intermediary, we ensure effective communication between you and regulatory authorities, streamlining the application process. With Tetra Consultants, you’ll find a trusted partner committed to maximizing your investment potential in Liechtenstein’s flourishing financial market. 
  • Contact us to find out more about the Liechtenstein investment fund. Our team of experts will revert within the next 24 hours.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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