With a population of approximately 38,749 people, Liechtenstein is a cozy, serene, and lively German-speaking haven in Europe. The fourth-smallest country in Europe, Liechtenstein is known for its tranquil alpine landscapes, enchanting medieval castles, and lush landscape.
While the country boasts gorgeous natural beauty, it’s equally well-known for the lucrative and exciting business opportunities it offers to keen entrepreneurs. Liechtenstein may be tiny, but it certainly isn’t small in terms of market potential!
A part of the European Economic Area and one of the most stable and diversified economies in the region, the country has excellent trade agreements with not only its European neighbors, but also with the rest of the world. Famously, Liechtenstein is also the 2nd largest financial center in the entire world, and its citizens enjoy the 2nd highest annual average income!
Over the years, the country has become home to over 4,000 businesses and a plethora of growth-oriented job opportunities. With a strong financial center, an enriching corporate environment, and profitable prospects, Liechtenstein has easily become one of the most sought after start-up locations in Europe.
The economy strongly focuses on the services sector, manufacturing, and industry. Foreign investors who are interested in expanding their business in Lichtenstein can make the most of the:
- Immense political stability and continuity
- Immaculate infrastructure
- High levels of industrialization
- Ample tax advantages for foreign investors
- Access to large markets (Europe and Switzerland)
- AAA credit rating
- Stable socio-economic environment
This little country is one of the best locations in the world to set up an insurance company or an investment fund. Many investors choose to start a crowdfunding business in Liechtenstein. The low corporate tax of 12.5% and the easy company registration process have attracted a great number of foreign investors.
Investing in cryptocurrencies is another unique business opportunity in Liechtenstein. The government has set up a crypto-friendly environment, so opening a bank account with one of the bigger crypto coins is extremely easy.
Forms Of Companies In Liechtenstein
- GmbH – “Gesellschaft mit beschränkter Haftung” – Private Limited Liability Company
- AG – “Aktiengesellschaft” – Public Limited Company
- “Anstalt” – The Lichtenstein Establishment
- The foundation “Stiftung”
What is the difference between GmbH and AG?
In Liechtenstein, most foreign investors choose to start a limited company.
Most entrepreneurs choose to establish a GmbH with a capital deposit of 30,000 CHF. The company must have at least one shareholder, and each shareholder’s share value must be 50 CHF or greater. The company must have at least one local director. At CompyCo, we provide professional service of Nominee director in Liechtenstein.
An AG is suited for large-scale business operations and must have at least 50,000 CHF of share value deposited in its business bank account. Similar to GmbH, at least 1 shareholder and 1 local director are mandatory. If the company has an annual profit of at least 1 million CHF, a management board of at least three directors is mandatory. In the case of AG, the auditor must be appointed.
Fundamentals Of A Limited Liability Company
Corporate Tax in Liechtenstein
VAT in Liechtenstein
Fundamentals of limited liability companies in Liechtenstein
|Limited liability company||GmbH|
|Minimum Share capital||30 000 EUR|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local directors required||Yes|
|Bank signatory must travel||In many cases not|
|Timescale for company formation||4 weeks|
|Timescale for bank account opening||14 days|
|Timescale for obtaining VAT number||2 weeks|
|Statutory audit requirements||Yes|
|Shelf companies available||No|
How can I register my company in Liechtenstein?
Since a local Nominee director is mandatory for foreigners to be able to register a company in Liechtenstein, we can register a company and open a bank account remotely on your behalf.
When the company’s name has been reserved with the Public Registry, we will notarize the Articles of Association with Liechtenstein notary.
The next step is depositing the company’s share value by opening a bank account in Liechtenstein. Each company must appoint a managing director who is both a resident of the country and fluent in German.
The following documents must be submitted to the Public Registry:
- Information about shareholders
- Company deed
- Bank statement
- Information about appointed auditors
After the aforementioned requirements are met, we will submit the company to the Commercial Registry. Once the company has been formed, the business certificate has to be obtained. In addition, certain requirements need to be met.
Our experienced team will assist you with these procedures so you don’t have to worry about the intricacies!
Setting up a business in Liechtenstein can seem challenging and overwhelming at first.
At CompyCo, we go the extra mile to make things much easier.
Whether you’re an entrepreneur who’s gearing up to launch their start-up or simply want to switch locations to make the most of Liechtenstein’s remarkable corporate, geographic, and economic perks, we can help you kick things off.
Our experts are equipped with the knowledge, experience, and local insights required to help make the process as streamlined and seamless as possible. We’ll cover everything from paperwork to the proceedings so you can prioritize your business instead of getting caught up in confusing and frustrating procedures.
Over the years, our experts have helped countless businesses expand into the lucrative markets in Liechtenstein. We work assiduously to resolve the underlying problems so you’re left with a clean slate and a fresh start.
Our customized approach helps new companies fit into the scheme of Liechtenstein without feeling out of place. We’ll take care of the financial, legal, and corporate proceedings so your business can spread its wings and take off!
Bank Account Opening
Opening a bank account should be one of the first things you do for your business in Liechtenstein. Some of the documents that we will ask for in order to present you in front of the bank:
- Address information
- Contact information
- Income statements
- Certificate of Incorporation of the company
As every bank has its own set of rules by which they choose a client, CompyCo will advise you on which bank to approach based on your business activity, the turnover, number of transactions. Some of the most reputable and established banks in Liechtenstein:
- Raiffeisen Privatbank
- VP Bank
- Liechtensteinische Landesbank
- Banque Havilland
Banks in Liechtenstein are opened to provide services to foreign companies. So businesses and private people who are looking for a safe and stable banking environment should consider Liechtenstein as an option. CompyCo has a unique service for those. Learn more about opening a bank account Internationally here.
Accounting & Taxation
The accounting and taxation obligations to take into consideration include:
- The Liechtenstein company must keep the books in legal currency. While they can be written in any language, they must be translated into German. The books can be kept in Liechtenstein or abroad.
- The current VAT rate is 7.7% on most goods and services. Exceptions apply. Liechtenstein issues 5-digit VAT numbers.
- Companies that do not trade have to pay an annual tax of 1,200 EUR to the Liechtenstein Tax Authority. They are obligated to submit unaudited financial statements.
How can you employ staff in Liechtenstein?
Non-resident employers often find it hard to track the employment requirements of a foreign country.
At CompyCo, our HR experts take care of everything so you can instead focus on hiring top-tier talent in Liechtenstein. From familiarizing your company with Liechtenstein’s complex employment laws to handling key registrations, we’ll simplify the process without missing out on any essential details.
Your company can seamlessly set up and benefit from the talented workforce without worrying about keeping up with the high-volume regulations.
Have any questions? Take a look at our HR services page for more information about our International HR services!