Key Considerations For Liechtenstein Company Registration

Preface: Registering your Liechtenstein company is a hassle-free endeavor when you partner with Fionza Consultants. Our streamlined process and expert guidance free up your time and energy for more critical aspects of your business.

Liechtenstein is an attractive destination for entrepreneurs worldwide, thanks to its well-established corporate laws and favorable tax conditions for non-resident companies.

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Why invest in Liechtenstein?

Before proceeding with the registration of your company in Liechtenstein, it is essential to gain a comprehensive understanding of the political, economic, social, legal, and environmental landscape in this jurisdiction. This knowledge will enable you to conduct your business operations safely and effectively in alignment with your business objectives.

Political Environment: Liechtenstein boasts a remarkable degree of political stability, underpinned by sound financial policies and a robust public budget. The nation is exceptional in being virtually debt-free. This stability, coupled with a dependable social and economic framework and the official use of the Swiss franc, ensures a secure and reliable environment for entrepreneurs.

Economic Landscape: Despite its small size and lack of natural resources, Liechtenstein has cultivated a thriving free enterprise economy that is highly industrialized and technologically advanced. The financial services sector stands out as a key driver of the local economy, offering stability and a strong international network. Additionally, Liechtenstein boasts a significant degree of industrialization, with industry and manufacturing serving as the largest economic sector.

Social Aspects: Liechtenstein offers an exceptional quality of life, characterized by security, pristine natural surroundings, a rich cultural scene, diverse recreational opportunities, and a top-tier education system. The standard of living is notably high, even in comparison to its prosperous Western European neighbors, and unemployment remains extremely low, reaching just 2% in 2020.

Legal Framework: Liechtenstein is committed to fostering a business-friendly environment, exemplified by its innovative and flexible legislation aimed at creating and promoting new business opportunities. The company registration process is straightforward and efficient, requiring submission of details to the Public Registry and documents related to your proposed business, along with a minimum share capital of CH₣30,000 for a limited liability company. Your company can be incorporated within a mere two weeks.

The appeal to foreign investors is further enhanced by Liechtenstein’s attractive taxation system, characterized by a maximum income tax rate of 20%. Moreover, the nation has entered into a range of tax and investment agreements, offering numerous benefits to global investors. With a corporate tax rate of just 12.5%, Liechtenstein boasts one of the lowest rates in Europe.

Environmental Focus: Liechtenstein’s government places a strong emphasis on environmentally friendly agriculture, recognizing the threat of climate change to its agricultural sector. Initiatives such as ‘Waterfootprint Liechtenstein’ underscore the nation’s commitment to ensuring access to high-quality water for all residents, thus improving living conditions for thousands of people in need.

Understanding these critical facets of Liechtenstein’s environment is pivotal for your business’s success and compliance in this jurisdiction.

Accounting and tax obligations

When it comes to incorporating your company, accounting and tax considerations play a pivotal role. In Liechtenstein, the tax landscape is characterized by certain key principles. All corporations, foundations, and establishments are subject to a flat profit tax rate of 12.5%. Furthermore, the standard VAT rate stands at 7.7%, with specific goods and services subject to reduced rates of 3.7% (applicable to hotels and businesses in the lodging industry) and 2.5% (pertaining to banking services and others).

Regarding accounting requirements in Liechtenstein, companies must adhere to strict timelines. This includes the annual submission of the tax return before July of the following year, with tax payments due by August 31st of the subsequent tax year. Failure to comply with these regulations or late filings can result in penalties.

Additionally, specific entities have additional obligations:

• Aktiengesellschaft and GmbH entities must submit audited financial statements to the Liechtenstein tax administrator for assessment.
• Commercial Anstalt entities are also required to submit audited financial statements to the Liechtenstein tax administrator.
• Non-commercial Anstalt entities, however, are exempt from submitting accounts to the Liechtenstein tax administrator, only requiring a statement from the Bank confirming the availability of asset records.
• Stiftung entities are similarly not obliged to submit accounts to the Liechtenstein tax administrator, only necessitating a statement from the Bank regarding asset records.

How to register company in Liechtenstein?

Step 1: Select the Optimal Company Structure

Before diving into the process of registering a company in Liechtenstein, it’s crucial to choose the right company type. Fionza Consultants will offer expert guidance based on your business needs and long-term objectives. The most common company structure in Liechtenstein is a company limited by shares.

Step 2: Reserve Your Company Name

Fionza Consultants will perform a thorough search in the Liechtenstein Public Registry to confirm the availability of your desired company name. Once it’s confirmed, we will secure the name reservation with the Liechtenstein Register of Companies. Your chosen name should be unique and free from geographical references or any mentions of banking, insurance, or investment services. Depending on the ownership structure, the company name will include the appropriate acronym.

Step 3: Document Preparation 

Prior to incorporating your company in Liechtenstein, you’ll need to provide a list of essential KYC (Know Your Customer) documents. These may include director names, company resolutions, and proof of identification. With the documents you provide, Fionza Consultants will expertly draft and notarize the Memorandum and Articles of Association, create a business plan, and prepare other necessary incorporation documents.

Step 4: Open a Corporate Bank Account 

Liechtenstein’s corporate regulations mandate the deposit of registered capital before officially registering a company. To fulfill this requirement, you’ll need a bank account in Liechtenstein or another eligible country. Fionza Consultants will assist in assembling the required documentation and facilitate the opening of a corporate bank account with a reputable institution of your choice in Liechtenstein. The amount required for the registered capital varies depending on the type of company ownership:

• GmbH, Anstalt, Stiftung – CH₣10,000
• AG – CH₣50,000

Step 5: Company Registration 

Once all the aforementioned steps are completed, Fionza Consultants will initiate the company registration process with the Liechtenstein Chamber of Industry and Commerce (LIHK). After successful registration, we will promptly dispatch your Hong Kong Business Registration Certificate, Memorandum and Articles of Association, and other essential documents to your preferred address.