Corporate Law at Liechtenstein
Liechtenstein offers a sophisticated and business-friendly legal environment for corporate entities, combining modern legal frameworks with a robust regulatory system. The country's legal infrastructure is designed to support a diverse range of business activities, from startups to multinational corporations.
🏛️ Legal Framework
Corporate law in Liechtenstein is primarily governed by:
Persons and Companies Act (PGR): This act outlines the legal forms and structures of companies operating in Liechtenstein.
Foundation Law: Enacted in 2008, this law regulates the establishment and operation of foundations in the country.
🏢 Common Legal Entities
1. Aktiengesellschaft (AG) – Public Limited Company
Minimum Capital: CHF 50,000 (fully paid-up).
Shareholders: One or more; shares can be bearer or registered.
Governance: Requires a board of directors; at least one member must have a legal address in Liechtenstein.
Audit: Mandatory annual audit for financial statements.
2. Gesellschaft mit beschränkter Haftung (GmbH) – Limited Liability Company
Minimum Capital: CHF 10,000.
Members: One or more; liability is limited to the capital contribution
Governance: Managed by one or more directors; can be a single-member company.
Audit: Required if the company operates commercially.
3. Anstalt (Establishment)
Nature: A hybrid entity combining aspects of a company and a foundation
Capital: Minimum CHF 30,000; no shareholders
Purpose: Can be used for commercial or asset management purposes.
Governance: Managed by a founder or designated individuals; no shareholders or beneficiaries.
4. Foundation
Purpose: Primarily for asset management, succession planning, or charitable activities.
Capital: Minimum CHF 30,000.
Governance: Managed by a board; no shareholders
Audit: Not required for non-commercial foundations.
📝 Incorporation Process
Choose Legal Form: Select the appropriate company type based on business needs.
Prepare Documentation: Draft and notarize the Articles of Association.
Deposit Capital: Open a bank account and deposit the required capital.
Register: Submit documents to the Commercial Register for official incorporation.
Obtain Licenses: Apply for any necessary trade or business licenses.
💰 Taxation Overview
Corporate Tax Rate: Flat rate of 12.5% on worldwide profits.
Value Added Tax (VAT): Standard rate of 7.7%; reduced rates of 3.7% and 2.5% apply to specific goods and services.
Withholding Tax: Generally 0%; however, certain payments may be subject to withholding tax depending on treaties.
Accounting: Annual tax returns must be submitted by July 2nd; tax payments are due by August 31st.
📌 Regulatory Authorities
Financial Market Authority (FMA): Oversees financial markets and institutions in Liechtenstein.
Office of Justice: Responsible for company registrations and legal documentation.
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