Company Registration in Liechtenstein
Liechtenstein is generally considered to be a global financial center that is strategically located between Switzerland and Austria. The jurisdiction is commonly known for its stable economy, and tax regime which offers some advantages, and a business-friendly environment. Liechtenstein is a member of the EEA (European Economic Area) and provides seamless access to the EU market.
Overview of Liechtenstein Company Formation
Liechtenstein attracts entrepreneurs from all over the world, as the process of incorporation is straightforward. Additionally, there are some more benefits which are worth considering:
- One of the lowest corporate tax rates in the EU – 12,5%.
- Business-friendly regulatory environment.
- Access to the EU market.
- No withholding tax
Legal Framework for Company Registration
Generally, the Liechtenstein company registry is regulated by the Personen und Gesellschaftsrecht (PGR) – the Personal and the Company law. The following legal structures are flexible in choosing business structures such as the limited liability company and the public limited company. PGR guarantees shareholders’ legal activity and defines the path for corporate management.
Liechtenstein Company Formation Process
Steps to Register a Company in Liechtenstein
The company formation process in Liechtenstein is relatively straightforward; however, as with most jurisdictions worldwide, it requires careful attention and thorough preparation to ensure the process is carried out smoothly and correctly. Here are the most basic steps of the incorporation process:
- Choosing a type of company based on your preferences.
- Reserving the company name.
- Preparation of company formation documents.
- Minimum share capital deposit.
- Final steps of registration.
Requirements for Liechtenstein Company Formation
Aside from personal documents necessary for the KYC procedure (like passport, proof of address, etc ), to register a company in Liechtenstein individuals would require the following documents:
- Certified copy of articles of association
- Minute of the meeting
- Amount of share capital required
- The registered address of the entity
- Business plan
Apart from this, there are several more Liechtenstein company formation requirements:
- At least one company director is a resident
- The company has a local registered address.
- The company has at least one shareholder.
Do not hesitate to contact our sales team to get a completed list of required individual/corporate documents to begin the Liechtenstein company formation process.
Timeline for Completing the Registration
The registration process in Liechtenstein typically takes between two to three weeks, depending on the complexity of the business structure and the completeness of the required documentation. Opening a bank account may significantly extend this timeline slightly, as banks conduct thorough due diligence.
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Costs and Fees for Company Registration in Liechtenstein
Breakdown of Company Formation Costs
Liechtenstein company formation costs include government registration fees, notarization charges, and preparation of legal documentation. These expenses can vary depending on the type of company and the complexity of the registration process. Businesses should also consider costs for professional services, such as legal and accounting assistance, which can help facilitate the process and ensure compliance with local regulations.
Additional Fees for Registration and Services
In addition to the core registration costs, companies may incur other expenses, such as obtaining commercial register extracts, apostilles for international use, and industry-specific licensing fees. There are also banking fees associated with opening corporate accounts. To simplify the process, many professional service providers offer comprehensive packages that include these additional services, ensuring transparency and convenience.
Ongoing Business Maintenance Expenses
Once a company is established, it is important to budget for ongoing expenses, such as annual audit fees, mandatory filings with the Commercial Register, and tax compliance. The costs for these services will depend on the size and complexity of the business. Additional costs may include renting office space, utilities, and retainers for professional services like bookkeeping, legal consultations, and financial reporting, which are essential for maintaining smooth operations and compliance.
Types of Companies in Liechtenstein
Limited Liability Company (LLC) Formation
LLC in Liechtenstein exists under the abbreviation of GmbH. The minimum authorized capital is set to 30,000 CHF (or approx. 25,000 EUR). At least 1, individual or legal person with local residence is required by law. Additionally, LLCs shall submit financial statements and conduct audits as required by law. This is the most popular form of legal entity in Liechtenstein as it is eligible for many business sectors.
Public Limited Company (PLC) Setup
Public limited companies in Liechtenstein can be used for different purposes, including trading or engaging in some non-commercial activities. PLCs in Liechtenstein are commonly known as Aktiengesellschaft or AG. As for requirements, the minimum share capital is set to 50,000 EUR and it must be deposited at the beginning of incorporation. The primary difference from LLCs is that members are not personally liable for company debts. The company’s capital is divided into shares, and it must adhere to strict legal and governance requirements.
Other Company Structures Available
Among LLCs and PLCs there is also a Joint Stock Company that exists under the abbreviation of AG. The minimum authorized capital for such companies is set to 50,000 CHF (or approximately 41,500 EUR). Other requirements are similar to those which were mentioned for the previous two types of legal entities. To register a joint stock company in Liechtenstein, a minimum of two shareholders is required. However, once the company is incorporated, the shares can be transferred to a single shareholder.
Compliance with the Liechtenstein Commercial Register
Role of the Commercial Register
The Liechtenstein Commercial Register serves as a public database of all registered businesses in the country. It ensures transparency and legal certainty by maintaining records of company details, including ownership, capital structure, and management. Registration with the Liechtenstein commercial register is a mandatory step for all businesses, providing them with legal status and recognition.
Reporting and Filing Requirements
Companies in Liechtenstein must comply with specific reporting requirements, including annual financial statements and management reports. These documents must be submitted to the Commercial Register, ensuring accurate and up-to-date records. Depending on the company’s size and type, audited financial statements may also be required, demonstrating the company’s financial health and compliance.
Ongoing Compliance Obligations
In addition to filing annual reports, businesses must adhere to ongoing compliance obligations, such as maintaining updated records of directors, shareholders, and company activities. Any significant changes, such as capital increases or management changes, must be reported to the Commercial Register.
The minimum corporate income tax is CHF 1,800 per year. However, this minimum tax is not applied if the business’s average balance sheet total over the last three financial years does not exceed CHF 500,000.
Services for Company Formation in Liechtenstein
Professional Company Formation Assistance
We can provide a comprehensive guide on Liechtenstein company formation, ensuring that the whole process of incorporation goes smoothly and efficiently. Our expert team will guide you through every step, starting from name selection to submission of the necessary documents to authorities. Whether you’re launching a startup or expanding internationally, we offer tailored solutions to meet your needs and help you navigate legal requirements, ensuring a strong foundation for your business’s success.
Legal and Financial Consulting Services
Our Liechtenstein company formation services provide the best solutions to legal and financial issues in different jurisdictions. We help with corporate governance, tax advice, contract review, and compliance issues. Our team has vast experience that assists in avoiding such risks and guarantees that your business complies with the laws of the country and the world.
Post-Incorporation Support
After company formation, you might require some additional services to ensure the smooth operation of your company and post-incorporation legal compliance. We provide ongoing support in areas like accounting, legal filings, and business strategy. Whether you need assistance with maintaining corporate records, preparing for audits, or managing tax obligations, our team is here to help.
FAQ
What are the steps for registering a company in Liechtenstein?
To open a company in Liechtenstein, you must select the preferred legal entity type, draft/collect necessary documents, and deposit the minimum amount of share capital required by law. Afterward, you submit the application to the Public Registry, and beyond approval, your company is officially registered.
How much does it cost to open a company in Liechtenstein?
The cost of opening a company in Liechtenstein typically ranges, depending on the company type and legal professional fees. Additional costs may include legal services, registration fees, and ongoing administrative expenses. Contact our legal sales team to get an accurate calculation of company registration fees in Liechtenstein.
What are the requirements to register a company in Liechtenstein?
Key requirements for Liechtenstein company incorporation include having a minimum share capital which depends on the chosen type of entity, appointing at least one resident-director, and maintaining a registered office in Liechtenstein. Additionally, the company must comply with local regulations regarding corporate governance and tax filings.
