Company registration in Liechtenstein | SIGTAX

Company registration in Liechtenstein

How to register a company Liechtenstein

 

Liechtenstein is a small principality located in Central Europe. It attracts magnitudes of foreign investors owing to its stable political and socioeconomic environment. Furthermore, Liechtenstein is esteemed for its flexible company laws, favourable tax rates, and modern banking & financial services. According to some analyses, these factors have contributed to the formation of over 4,000 companies in the State. 

 

This article will provide basic information on how you can also register your company in Liechtenstein. The good news is that the process is relatively simple and it does not take time. In case you don't fully understand the requirements, it's recommended to work with a company formation firm such as SIGTAX. 

Types of companies Liechtenstein

The PLC is a form of legal entity that is most suitable for large businesses. It requires a minimum share capital of EUR 50,000. There is no minimum share value provided by the Liechtenstein law. Voting shares may be available.
 
Shareholders of a PLC are obligated to conduct annual meetings. These meetings allow them to make important decisions of the organisation, approve the audited annual account, and to attend to all matters outlined in the articles of association. Regarding the annual account, an auditing team has to be appointed to perform the audit and pitch the annual account to the shareholders before submitting it to the Tax Authority in the State. A PLC will also have a board of directors for daily decision making on matters concerning the company's business.

Among the legal entities that can be formed in Liechtenstein, the Individual Enterprise may be the simplest. The Individual Enterprise does not require a minimum share capital deposit. And also, a single natural person can form the company. This person may be accountable for all the obligations and liabilities of the business. Regarding bookkeeping, the Individual Enterprise may only be required to submit audited accounts if it surpasses a turnover of 10,000 CHF.

The formation of an LLC requires at least one member to be available. The minimum share capital to be deposited during registration is EUR 10,000, and the share value shouldn't be below EUR 50. Liechtenstein will also require at least one director (a natural person or a corporate) to be appointed. The role of the director will be to conduct day-to-day management activities as outlined in the articles of association. Secretaries are not necessary in Liechtenstein's LLC.
 
Audited accounts should be filed annually similarly to companies limited by shares. The Liechtenstein LLC may be more suitable for SMEs.

In Liechtenstein, an Establishment is a type of legal entity that is governed by civil law and not public law. Put simply, it is an autonomous fund that has beneficiaries. Its registration in the State is done without shareholders, or members. Concerning liabilities of the Establishment, only its assets may be accountable.
 
The formation of an Establishment requires a minimum capital of EUR 30,000. And, a minimum of one director is needed in the management. In the case that the entity involves some commercial activities, audited accounts are to be submitted every year.

Documents required for registering a company in Liechtenstein

In order to successfully register a company in Liechtenstein, you should submit the following documents and details to the office of the Public Register.
 

  • Personal identification documents;
  • The name of the company;
  • The registered business address;
  • The articles of association (certified/ original copies). 
  • The minutes of the meeting when the founders agreed to establish the company;
  • The main objectives of the company;
  • Information of the shares and other payments that the shareholders made;
  • Information of the board members and representatives if available.

 
The above outlined documents and details are general requirements for company formation in Liechtenstein. Further requirements may be asked for depending with the specific form of legal entity you would have  chosen. SIGTAX may help you with any additional information you may need.

 

Steps for registering a company in Liechtenstein

Below are the major steps that are associated with company registration in Liechtenstein.
 

  • Choosing the form of legal entity for the company
  • Choosing a business name
  • Preparation of documents
  • Payment of the minimum share capital
  • Registration of the company

 

1) Investors need to gazzette and choose the type of company for their business. The type of business selected should be one that is available in the State. Afterwards, the address of the business should be determined.

2) The new company will need to have a name. The name picked should be unique in accordance with the standards of the State. You may check if the name is not already taken in the Commercial Register. 

3) After the company has a name, you should prepare and notarize the company's formation documents e.g. the articles of association. Additional documents such as IDs, specimen signatures and proof of capital payment may also be made available.

4) The fourth step is compliance with the minimum capital requirements of the business type to be registered. The amount payable will depend on the form of the legal entity. Some types of legal entities such as the Individual Enterprise will not demand any minimum capital on registration.

5) In the final step, the new business should be registered with the Public Registry of Liechtenstein. Additional operating documents such as permits and special licenses will have to be applied for at this point.

Taxation of companies in Liechtenstein

For businesses that are located in the State, tax is charged on the worldwide profits obtained. While larger businesses are liable for a rather favorable corporate income tax of 12.5%, smaller businesses may pay an alternative tax standardised at 1,800 CHF. Other forms of taxes that companies may be liable for in Liechtenstein are:
 

  • Withholding tax;
  • Payroll tax;
  • Social security contributions;
  • Stamp duty.

 
Regarding VAT, Liechtenstein implements this tax under Switzerland. The standard rate for this tax form is 7.7%. Lower rates are charged for special services such as banking, and accommodation (lodges and hotels).

 

Why work with SIGTAX?

The SIGTAX firm will provide expert lawyers who understand the company laws of Liechtenstein. These professionals will provide assistance throughout the company registration process making it much easier for you. You need their assistance in the drawing of the memorandum and articles of association, submitting special registration documents and acquiring licenses and permits.

 

FAQ block for company registration in Liechtenstein

Crime (especially of violent nature) is very low in Liechtenstein. The place is considered one of the safest in the world.

Yes. English is spoken in Liechtenstein, however, to a lesser extent. The predominant language is Germany. SIGTAX may eliminate all problems associated with language barrier during your company registration. 

So far, the country only has a single Double Tax Treaty (DTT) with Austria. The other one is a partial tax treaty made with Switzerland

It takes a month or less to complete the company registration processes in the State. There are scenarios which may result in a longer period though.