Participation in the company registration in Liechtenstein
The main steps of an entrepreneur must be confirmed/approved by the Companies Registration Office before starting business in Liechtenstein, opening a bank account and depositing a minimum fixed capital, checking access to the name in the public registers. If the company has an annual turnover of more than € 100,000, it must register for VAT (Value-added tax). If the company hires staff, the cost of social services must also be announced. The whole process of creating a new company does not take more than a week.
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The process of establishing a company in Liechtenstein
The process of establishing a company in Liechtenstein will take some time. If all of the documents are presented correctly it takes about seven weeks. Foreign entrepreneurs who choose to register a company in this country must determine its type by considering different aspects of it such as the amount of Stock capital, goals and the total number of shareholders.
- Limited liability company
(Also known as GmbH), which is the most common type of company registration
- Public Joint Stock Company (AG)
It is like a public company in other countries
- Company registration (ANSTALT)
This is a unique form of business that can be created in Liechtenstein
- Organizational registration
Organizational registration, which is also a special business form is available in Liechtenstein.
- Check the process and requirements
A special form of business for small and medium-sized businesses is the limited company (Gesellschaft mit beschränkter Haftung or GmbH), which must be established with the minimum capital quota of 30,000 euros. This type of company can be used for commercial and non-commercial activities, it has a board of directors and requires a local registered office. It is possible to have a virtual office if you need a virtual office for your business.
Another type of company that you can establish in Liechtenstein is a limited company by shares, for which you need a minimum capital of € 50,000. The process of establishing and organizing a company is similar to LLC, and the main difference between these two types of companies is that in a private company it is possible to increase more shares and the capital and the shares and capital are transferable. The corporate tax which is paid by both companies is the same – 12.5% and both of them require at least one shareholder and one office.
The company cannot be used for international business, but is registered as a holding company or an investment company. It does not require a board of directors or shareholders and the minimum quota capital is 30,000 euros. In addition to corporate taxes, you must pay a net asset tax rate of 2.5% and this company needs an office.
-The next step can be used for business activities as a holding or investment company and requires at least 30,000 euros.
-In the last step, it can act as a company that has been bought and the minimum quota capital is 30,000 euros
Liechtenstein Economic Theory – Tax in Liechtenstein
Although Liechtenstein is not considered a large state and its natural resources are not wasted, it has developed an industrial economy with high motivations for foreign and domestic investors. It has a strong developed economy and this country has increased its gross domestic product (GDP) from $ 141 to $ 100 per capita, making Liechtenstein the second largest in the world. Particularly small businesses are highly developed and encouraged by the authorities. Since 2011, a corporate tax of 12.5% has been introduced and is one of the lowest of its kind in Europe. In order to divide profits to a foreign company taxes are required to be paid. Paying VAT is required only if the annual turnover is more than CHF 10000. The VAT rate is one of the lowest in Europe at (8%) and in some cases is lower (2.5% for food, beverages, medicine, newspapers or 3.8% for accommodation). Since May 1995, as a member of the European Economic Area (the link between the European Free Trade Association and the European Union), it has provided access to many foreign markets. This union has a deal with Switzerland and the currency which is used by this state is the Swiss franc. There is no control over foreign exchange and this attracts foreign investment. This small country hosts more than 4,000 companies and has a population of about 37,000.
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