Liechtenstein

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Liechtenstein

General information about the jurisdiction

The Principality of Liechtenstein is a dwarf state in Central State, surrounded by Austria and Switzerland.

Despite the small area there are some huge high-tech enterprises in Liechtenstein that hire not only residents but Austrians, Swiss and Germans as well.

Liechtenstein attracts businessmen from all over the world by low taxes and developed banking system.

1. Legislation

Law on Persons and Companies, 1926 regulates company activities in Liechtenstein.

2. Company formation

2.1 Types of companies

The Liechtenstein law provides such corporate form as joint stock company (AG), limited liability company (GmbH),  Ansalt, trust, fund (Stiftung) .

2.2. Joint Stock Company (AG):

  • The minimum authorized capital – 50 000 CHF (≈ 41 500€), which must be paid by depositing funds into a bank account. The bank will monitor the funds until the issuing of the certificate of incorporation.
  • Shares –bearer shares are allowed, but it must be fully paid.
  • Director (chairman of the board) –at least 1 individual or legal person. At least one director must be resident.
  • Members – at least 1, individual or legal person, no residency required.  
  • Secretary – not required.
  • Confidential information: information about directors and shareholders. 
  • Company is obliged to keep and submit an annual financial report, to be audited.

         2.3. Limited Liability Company (GmbH):

  • The minimum authorized capital – 30 000 CHF (≈ 25 000€), every member must pay at least 50 CHF by the moment of incorporation.
  • Shares – none.
  • Director – at least 1, individual or legal person, a Liechtenstein resident. 
  • Members – at least 2, individuals or legal persons, no residency required.  
  • Secretary – not required.  
  • Confidential information: information about members. 
  • Company is obliged to keep and submit an annual financial report, to be audited. 

2.4. Anstalt

  • Only Liechtenstein has this corporate form. It may be used as a holding company. No members or shareholders, shares are not issued.
  • The minimum authorized capital – 30 000 CHF (≈ 25 000€), 50% of which must be paid by the moment of incorporation.
  • The Board of Directors and Founder manage the Anstalt. A Founder may be individual or legal person, at least on the director must be resident.
  • Secretary – not required. 
  • Confidential information: information about beneficial owner.
  • Company is obliged to keep and submit an annual financial report. An audit is needed for commercial companies.

2.4. Fund (Stiftung).

This form is usually used for management, conservation and enhancement of the capital, including real estate. Commercial activity is not the main.   

  • The minimum authorized capital – 30 000 CHF (≈ 25 000€).
  • The Board of Directors manages the fund, at least on the director must be resident.
  • Members – at least 1, individual or legal person, no residency required. 
  • Secretary – not required. 
  • Confidential information: information about beneficial owner.
  • Company is not obliged to keep and submit an annual financial report, to be audited.

3. Taxes

No income tax

Tax on capital - 0.1% of net asset value (not less than 1000 CHF).

AG  pays a coupon tax on dividends - 4%.

1/20 of AG annual income are credited to the reserve fond till the fond is 1/10 of the authorized capital.

4. Currency control

None

5. Agreements on avoidance of double taxation

Liechtenstein concluded 1 agreement on avoidance of double taxation with Austria.

6. Features

Liechtenstein is not included in Ukrainian list of tax havens.