Background & General Outline
This small principality situated in the Alps between Switzerland and Austria, Liechtenstein is German-speaking and home to just 38,000 people. Despite its size, it has the second-highest GDP per capita in the world thus resulting in a high standard of living.
The capital of Vaduz has under 6,000 residents and is the home of much of the financial services industry. The nation’s economy is also reliant on electronics, textiles, metals, pharmaceuticals, and power tools. Tourism accounts for a big part of the Liechtenstein economy, as do corporate services.
Liechtenstein is a member of the European Free Trade Association, the United Nations, Council of Europe and participates in the European Economic Area and the Schengen Area. Its currency is the Swiss Franc and it is home to more registered companies than there are citizens.
Political Structure & Legal System
Liechtenstein is a democracy but monarch Prince Hans-Adam II is the head of state. There is an elected parliament who enacts the law and voters can propose constitutional amendments and legal changes. The Prince has the power to veto laws proposed by parliament and he can also call a referendum, suggest new laws, and dissolve parliament. Liechtenstein enjoys Executive Authority, Legislative Authority, Parliamentary Authority, and Judicial Authority.
In terms of its legal system, Liechtenstein is a civil law country and the source of all laws are statute. Laws are enacted through parliament who are elected democratically. Legal precedents are an important part of the legal system, as is the Constitution.
Name Restrictions for Incorporation in Liechtenstein
When considering company incorporation in Liechtenstein, you must be aware of certain limitations regarding its names. The name can be in any language but the Latin alphabet must be used. Like most other jurisdictions, you cannot choose a name that is the same as, or similar to another offshore company in Liechtenstein. Also, you cannot choose a famous or brand name, a name that could imply state patronage or anything that is undesirable in the eyes of the Registrar. Additionally, words like “reinsurance”, “bank”, “savings”, “country”, “state”, and “investment fund” aren’t permitted.
An offshore company in Liechtenstein cannot undertake activities like banking, assurance, insurance, reinsurance, fund management, investment schemes, or anything associated with Banking or Finance. Companies are prohibited from carrying out licensed activities, without a license.
Taxation in Liechtenstein
Corporate tax is payable on Liechtenstein offshore companies profit before tax. Exemptions are in place for income generated from dividends and capital gains via participations. All companies are subject to the standard rate of taxation which is 12.5%. Capital gains are treated as ordinary income and taxed at the same rate. There are no withholding taxes on interests, royalties, fees to non-residents, or dividends.
Double Taxation Treaties
To date, there is only one double taxation treaty in place with Austria.
Accounting & Financial Statements
An offshore company in Liechtenstein must submit audited financial statements to the tax administrator on an annual basis. It is compulsory to appoint an auditor to conduct audits and file financial statements. The company must also submit an annual report to the Commercial Register, detailing any information on changes in structure, personnel, or location.
Disclosure of Beneficial Owner
Every offshore company in Liechtenstein should have one director who is licensed or authorised to operate as such in the country. They are bound by requirements under AML/CFT laws and CDD requirements and as such must identify and verify each beneficial owner. This information will be recorded and kept within the country at all times. The names of the beneficial owners are not publicly accessible.
Capitalization Requirements for Incorporation in Liechtenstein
In order to continue with company incorporation in Liechtenstein, a minimum of CHF 50,000 (approximately 53,000 USD – Click here for currency converter) must be paid up in share capital before the entity can become operational.
There are no restrictions on the import or export of capital in Liechtenstein.
How Much Does Incorporation in Liechtenstein Cost?
Get your Liechtenstein Offshore Company for as little as €32,000 with our Formation Package. You may also benefit from optional services and special renewal package. To get full price details, related documents and services click on the button below:
Contact Us for Incorporation in Liechtenstein
Liechtenstein is a dynamic, innovative, and fast-paced jurisdiction. It’s highly developed and the fiscal system is one of the world’s simplest. With great tax incentives, a thriving international community of entrepreneurs, and a simple set-up process, it is gaining traction as a popular and versatile offshore incorporation jurisdiction. Contact us today to get your company registered in Liechtenstein.
More Locations to Incorporate Your Company
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