Liechtenstein Company Registration
Liechtenstein company registration is hassle-free with Tetra Consultants’ assistance. The process is straightforward and with Tetra Consultants at the wheel, you will be able to channel your time and energy into other more important aspects of your company.
Liechtenstein attracts business people from various countries who choose to set up foreign companies in this tiny independent state. Liechtenstein boasts hundred-year-old corporate legislation and offers flexible taxation conditions to non-resident companies.
With our lean-and-mean mentality, you can rely on our team of experts to provide you with a seamless experience throughout the whole process to register company in Liechtenstein. Our ultimate goal is for your Liechtenstein company to be operationally ready within the stipulated time frame.
Our service package includes everything you will require to do business with your Liechtenstein company.
- Liechtenstein company registration with Liechtenstein Chamber of Industry and Commerce – LIHK
- Company secretary and local registered address
- Opening a local or international corporate bank account services
- Annual accounting and tax services
Advantages of registering a company in Liechtenstein
- Liechtenstein has one of the lowest tax rates in the EU
- World-class infrastructure, business-friendly legal and regulatory environment
- Low value-added tax (VAT) compared to many European Union (EU) countries
- A business-friendly environment that encourages innovation
- Access to an extensive network of double tax treaties allowing for tax-efficient structuring of investments
- Political stability that the country has been demonstrating for a great number of years.
Liechtenstein is a member of the Schengen agreement and part of the EEA but it is not a member of the EU.
- There is no currency control in the country.
- Company beneficiaries enjoy a high level of personal information confidentiality in Liechtenstein.
- There is no withholding tax in the country.
- Liechtenstein has never been on any blacklists.
How long does it take for a Liechtenstein company registration and open a corporate bank account?
- Tetra Consultants will successfully complete the company registration process in Liechtenstein in 2 weeks. Tetra Consultants will verify the Liechtenstein Companies Registry for the availability of your preferred company name after securing due diligence documents of the directors and shareholders. Our team of experts would strive to complete Liechtenstein company registration without the need to travel.
- Once the aforementioned steps are completed our team of experts will provide assistance with further process of the formation including the preparation of required corporate documents, notarization, and more.
- Within due time, you can expect to receive the registration details of your entity including your company number and certificate of incorporation.
- Upon the successful registration of your company, Tetra Consultants within 4 weeks will open a corporate bank account for your business entity. Consequently, within 6 weeks you can expect to officially operate your business with the Liechtenstein company formed with Tetra Consultants engagement.
Types of business entities in Liechtenstein
There are multiple forms of business entities that are available for Liechtenstein company registration. Our team of experts will fully understand your business model, objectives, and resources before making a recommendation for the most suitable business structure for you.
Liechtenstein LLC or GmbH (Gesellschaft mit beschränkter Haftung)
- When foreign investors and entrepreneurs choose to set up a company in Liechtenstein, they usually go with the equivalent of a limited liability company. This is the most popular and common business entity. Regardless of whether you are conducting onshore or offshore business, you are legally able to complete GmbH registration as it caters to many business sectors.
- The GmbH (Gesellschaft mit beschränkter Haftung) can be formed with minimal requirements of having :
- At least one local resident director (can be provided by Tetra Consultants)
- At least one shareholder
- Minimum share capital of CH₣10,000
- Local registered address and local registered agent
- Foreign investors can freely engage in non-commercial and commercial business activities (on acquiring a trade license) but are restricted from investing and engaging in certain sectors like banking and Insurance.
Company Limited by Shares (Aktiengesellschaft or AG)
- A company limited by shares (Aktiengesellschaft or AG), is the equivalent of a public company in other countries.
- An AG (Aktiengesellschaft or company limited by shares) can be formed by at least one director (required to be the resident local of Lichtenstein), at least a shareholder and it requires a minimum share capital of CH₣50,000. The capital is divided into company shares that can be registered, no-par-value, voting, or bearer shares. The members are not liable in case of debt, only the company’s assets are used in the case of liquidation.
- An AG is different from a limited liability company (Gmbh) in the sense that it requires to adhere to strict legal and governance compliance and have high company share capital. However, both the form of entities are required to file for annual returns and audited financial statements.
- Foundation (Stiftung), which is very sought due to the many tax advantages it offers.
- The Liechtenstein Foundation (Stiftung) can take several forms, such as a family foundation, or a non-profit foundation, or it can be used for maintenance only. This type of company is not allowed to conduct commercial activities. This business structure is used mainly to manage global family assets while providing confidentiality. Liechtenstein foundations are suitable for holding assets such as shares in other companies, properties, or other forms of investment.
- Establishment (Anstalt), is a unique business form that can be created in Liechtenstein.
- The Establishment (Anstalt) can be structured as a corporation if it is used for commercial activities or as a foundation if it is used for the administration of assets. This type of Liechtenstein company is most often used by foreign investors as a holding company. It has a board of directors, but no shareholders, and the control is granted to the company founder.
- Trust enterprise, which is also a specific business form available in Liechtenstein.
- The Trust Enterprise is based in most cases on the same principles of the Liechtenstein foundation, in order to protect family assets, but in addition, it provides the freedom to pursue commercial and non – commercial objectives. Trust enterprises in Liechtenstein are formed as foundations or corporations, depending on their objectives. This type of company is formed by a settlor, trustees, and beneficiaries.
Branch or representative office
- Subsidiaries and branch offices may be established in Liechtenstein by foreign companies. Liechtenstein subsidiaries are most commonly used by foreign companies because this type of legal structure allows the undertaking of new business activities and expansion of business operations, while branch offices are limited to the business activities of the parent companies.
Can a foreigner start a business in Liechtenstein?
- The Liechtenstein administration welcomes foreign investment. There are no restrictions on investment, except for some controls on the purchase of real estate and the ownership of banks by foreigners.
- The primary types of businesses that can be established by a foreign investor who believes it is a good idea to open a company in Liechtenstein are Limited Liability Companies. These are often referred to as GmbH, which are the most frequently established companies.
- This is a way of doing business directed specifically at small and medium businesses. This type of company requires a minimum capital share of ₣30,000 before it can be founded, and can be for both commercial and non-commercial purposes.
How to register company in Liechtenstein?
Step 1: Choose the form of company ownership.
- Before you proceed to Liechtenstein company registration, it is essential to choose the correct type of company. Based on your business structure and long-term goals, Tetra Consultants will advise you on the most optimum business entity, paid-up share capital, and corporate structure.
- Generally, the most common type of company in Liechtenstien is a company limited by shares.
Step 2: Reserving the company name
- Tetra Consultants will search for the availability of the proposed company name through the Liechtenstein Public Registry.
- Once the availability of your company’s trade name has been confirmed, Tetra Consultants will reserve your company’s trade name with the Liechtenstein register of companies.
- The name has to be unique and it should not contain geographical names nor any references to banking, insurance, or investment services. Depending on the form of ownership, the company name will end in the corresponding acronym.
Step 3 – Preparation of relevant documents
- Before Tetra Consultants can incorporate your company in Liechtenstein, you are required to provide a list of required KYC documents. Some of these documents include the names of directors, the company’s resolution, and identification proof.
- Based on the documents provided, Tetra Consultants will draft and notarize the Memorandum and Articles of Association, business plan, and other incorporation documents.
Step 4: Open a corporate bank account.
- The corporate legislation of Liechtenstein requires depositing the registered capital prior to registering a company in the country. In order to do that, you will have to have a bank account in Liechtenstein or another country. Tetra Consultants will help in consolidating the documents and corporate bank account opening with a reputable bank of your choice in the country.
- The registered capital has to be deposited in full. The required amounts depend on the form of company ownership:
- GmbH, Anstalt, Stiftung – CH₣10,000
- AG – CH₣50,000
Step 5: Company Registration
- Once the aforementioned steps are completed, Tetra Consultants will proceed with the registration of your Liechtenstein company with the Liechtenstein Chamber of Industry and Commerce (LIHK).
- After registration, Tetra Consultants will courier the Hong Kong Business Registration Certificate, Memorandum and Articles of Association, and other documents to your preferred address.
What are the documents required for Liechtenstein company registration?
The following documents and information must be provided to Liechtenstein Public Register in order to have the new entity incorporated:
- The original or certified copy of the articles of association,
- The minute of the meeting where the decision of establishment was taken,
- The name and the registered address of the entity,
- The company’s objectives,
- The amount of share capital,
- Details regarding the shares and the payment made by the shareholders,
- Details regarding the members of the board and the representatives.
Accounting and tax obligations
- Accounting and tax considerations are important factors when incorporating your company. By outsourcing your Ireland accounting and tax obligations to Tetra Consultants, you can be confident that you will be in the best hands. Our team of consultants will ensure that your firm’s financial statements, corporate tax returns, and audits are completed without the need for you to travel.
- Additionally, outsourcing your accounting and tax needs to Tetra Consultants will allow you to reduce overhead costs while be ensured of timely reporting and filings. Before the start of the engagement, our accounting team will also keep you updated of all the required deadlines and expectations. Thereafter, we will prepare all required filings in advance to ensure that the stipulated deadlines are met.
- In principle, all corporations, foundations, and establishments are subject to a profit tax at a flat rate of 12.5%.
- The standard VAT rate is 7.7% and certain goods and services are taxed at two reduced rates of 3.7% (for hotels and businesses in the lodging industry in general) and 2.5% (for banking services and others).
- The accounting requirements for companies in Liechtenstein include an annual submission of the tax return before July of the following year. Tax payments have a due date of August 31st the following tax year. Companies are subject to penalties for late filing or for failure to comply with the filing regulations.
- An Aktiengesellschaft and GmbH are required to submit audited financial statements to the Liechtenstein tax administrator for assessment.
- A commercial Anstalt is required to submit audited financial statements to the Liechtenstein tax administrator.
- A non-commercial Anstalt need not submit accounts to the Liechtenstein tax administrator, solely a statement by the Bank that a record of assets is available.
- A Stiftung need not submit accounts to the Liechtenstein tax administrator, solely a statement by the Bank of a record of assets.
Why invest in Liechtenstein?
Before you complete Liechtenstein company registration, you need to understand the political and economic environment of the jurisdiction. This is to ensure that you can safely conduct your business to achieve your business objectives.
- The high degree of political continuity, the country’s solid financial policy, and the financial strength of the public budget mean that entrepreneurs can focus on what is essential.
- Liechtenstein is one of the few debt-free countries in the world. The reliability of the social and economic order, legal certainty, and the Swiss franc as the official currency ensure stability.
- Due to the size and lack of natural resources, the economy of the state has evolved as a free enterprise economy, which is extremely industrialized and advanced. The financial services sector is undoubtedly the most significant revenue generator of the local economy.
- Liechtenstein is known for being a specialized and stable financial center with a strong international network. But the country also has a very high degree of industrialization. Industry and manufacturing is the largest economic sector in the country.
- With the security, intact nature, rich cultural offerings, diverse recreational possibilities, and a top-quality education system, Liechtenstein offers a high quality of life.
- The standard of living is particularly high, even compared to the country’s successful neighbors of West Europe, and unemployment is extremely low (only 2%) in 2020.
- To further a business-friendly environment, Liechtenstein aims to provide innovative and flexible legislation to create and promote new business opportunities. On top of that, the simple company registration process in Liechtenstein impresses many global investors. In Liechtenstein, the company incorporation process is simple and easy where you need to provide the Public Registry details and documents about your proposed business and minimum share capital of CH₣30,000 for a limited liability company. You can have your company incorporated within 2 weeks.
- Liechtenstein’s attractive taxation system is one of the main reasons that appeal to foreign investors. With a maximum income tax rate of 20% and a slew of tax and investment agreements, Liechtenstein offers many other benefits to global investors. The corporate tax in Liechtenstein stood at 12.5%, which is one of the smallest rates in Europe.
- The Liechtenstein government is committed to an environmentally friendly approach to agriculture, as climate change is likely to pose the greatest risk to Liechtenstein’s agricultural sector.
- In 2017, the country launched ‘Waterfootprint Liechtenstein’, the rationale of which is ‘drink tap water; donate drinking water. The project aims to provide access to high-quality water for every resident of the Principality of Liechtenstein i.e. to improve the living conditions of around 38 000 people in need.
Looking for assistance with Liechtenstein company registration?
Contact us to find out more about Liechtenstein company registration. Our team of experts will revert within the next 24 hours.
How much does it cost to register company in Liechtenstein?
- Depending on the services you need from Tetra Consultants, the total engagement fee will differ. Our services include planning and strategizing with your company, assisting you in the incorporation process, ensuring that you are compliant, and more.
- This total fee includes the registration fee charged by the Liechtenstein government. We will discuss with you the total engagement fee you would need to pay before we start the registration process for your company
Does my company need an address in Liechtenstein?
- Yes, the law requires all companies registered in Liechtenstein to have a local address. We can help you with virtual office services for this purpose.
How many directors are required in a Liechtenstein company?
- The minimum number of directors for a local company is one.
Does the company need to have a local director?
- No, the companies to be registered in Liechtenstein do not mandatorily require to have a resident director.