Would you like to set up a company in a secure low-tax jurisdiction and protect your assets? Registering an Aktiengesellschaft(AG) in Liechtenstein will allow achieving the goal.
- Registering an AG company in Liechtenstein
- Basic facts about Liechtenstein
- The legislation of Liechtenstein
- Who should consider establishing an AG in Liechtenstein?
- A Limited Liability Company in Liechtenstein: main characteristics
- A Limited Liability Company in Liechtenstein: the requirements that the AG has to meet
- Liechtenstein AG registration document package
- Company registration timeframes
- Choosing the company name
- Requirements to the registered capital
- Requirements to the company shareholders and directors
- Taxes and duties that an AG in Liechtenstein has to pay
- The process of registering an AG in Liechtenstein
- The cost of registering an AG company in Liechtenstein
If you would like to have a detailed consultation on registering a company in Liechtenstein, please send us an email and our experts will get back to you shortly.
Registering an AG company in Liechtenstein
Liechtenstein classifies as a midshore jurisdiction thanks to its low taxes, favorable legislation, and fair attitudes to foreign businesses. Please consider registering a company in the jurisdiction as InternationalWealth experts and our partners in Liechtenstein will be happy to assist you with that.
It is possible to set up a company in the country within two weeks. You will have to supply the full package of the required documents and we will gladly assist you in completing the forms, inspecting the document package for completeness, and having the documents translated.
An Aktiengesellschaft (AG) is a joint-stock company whose shareholders have limited liabilities. This is the most popular form of company ownership in Liechtenstein. One of the advantages of setting up such a company is that the name Aktiengesellschaft is well known in the business world. The owners’ liabilities are limited by the amount of ownership shares that they hold.
Basic facts about Liechtenstein
Liechtenstein is a tiny country in the Central Alps with the population of only 35,000 people. The language spoken there is a dialect of German but English is popular in the business circles. The capital of the country is Vaduz.
It is a constitutional parliamentary monarchy and Prince Liechtenstein is the head of the state. The modern history of the country started in 1712 when prince of Liechtenstein bought the principality of Vaduz.
The country cannot be referred to as an offshore jurisdiction because companies established there are taxed. However, the tax rates are lower in Liechtenstein in comparison to other top European countries. For this reason we refer to it as a midshore jurisdiction.
Main advantages of Liechtenstein for foreign entrepreneurs:
- The country is politically neutral just like the neighboring Switzerland.
- Holding and joint stock companies involved in business activities abroad pay less in taxes than similar companies do in Switzerland.
- Liechtenstein is the richest German-speaking state in the world: the GDP per capita in the country is US$ 98,000.
- Liechtenstein is not a member of the European Union but it is part of the European Economic Area and a signatory to the Schengen agreement.
- The processing industry is the main profit generator in the country. In addition, instrument and microprocessor manufacturing is well developed..
- The legislation in Liechtenstein is based on the European civil law. It is similar to the legislations of Switzerland, Austria, and Germany.
- It is the only European state that has legislation on trust registration.
- Liechtenstein is economically associated with Switzerland.
- A very high level of personal information confidentiality is provided there. Infringements on trade secrets and banking privacy are severely punished.
- The official currency in Liechtenstein is the Swiss franc. There is no currency control in the country.
- The low tax rates have served as a catalyst for the private business boom in the country. Over 74,000 business companies are registered in Liechtenstein.
The legislation of Liechtenstein
Liechtenstein has a flexible legislation that allows foreigners to establish business companies in the country. There are no restrictions as to the company founders’ nationalities but, of course, there are certain conditions to meet. A company registered in Liechtenstein is considered a reputable company by default all around the world.
Who should consider establishing an AG in Liechtenstein?
Medium- and large-size business owners may be interested in registering a limited liability company in a reputable jurisdiction. The minimum required amount of registered capital is 50,000 Swiss francs (CHF) if you are setting up an Aktiengesellschaft type of company in Liechtenstein. Besides, wealthy families often register companies with this form of ownership in the country in order to protect the family capital for the sake of the heirs.
A Limited Liability Company in Liechtenstein: main characteristics
- Citizens of any country can register an Aktiengesellschaft in Liechtenstein.
- The norms and procedures governing the establishment and the operations of an Aktiengesellschaft are laid down in a legislative act dating back to 1926 (it is called Personen und Gesellschaftsrecht mit dem Gesetz über das Treuhandunternehmen).
- The headquarters of the company shall be located in Liechtenstein. A minimum number of managers and employees is required. One company manager shall be a citizen of Liechtenstein. InternationalWealth partners in the country can hire such a manager for you.
- Personal information about the company officers can be made public only on a court decision. The company register is closed to the public; however, it keeps a large amount of data.
- Company shareholders’ personal information is kept confidential.
- The company has to keep financial records, use accounting services, file annual reports, and get audited.
- Registering a company in Liechtenstein requires submitting a large number of documents. The corporate documents shall be kept at the company office.
- Liechtenstein has made double taxation avoidance agreements with Austria and Luxembourg.
- There is no currency control in the country and the amount of bank transfers will be limited only by the bank.
A Limited Liability Company in Liechtenstein: the requirements that the AG has to meet
- The registered capital shall be at least 50,000 CHF. It has to be deposited in a Liechtenstein bank before the application for company registration is submitted.
- Types of shares allowed: ordinary, preferred, bearer, voting and non-voting shares.
- There are no restrictions as to the maximum number of company shareholders nor directors.
- The company name shall contain the following abbreviations at the end: AG or SA. Analogous abbreviations from other languages are permitted.
- All companies registered in Liechtenstein have to pay a fixed annual registration fee of 1,200 CHF.
We will be happy to provide more detailed information about the requirements to a Liechtenstein-registered Aktiengesellschaft in the frameworks of a personal consultation. Please apply for our assistance.
Liechtenstein AG registration document package
- Notarized passport copies of the company founders.
- A document to serve as a proof of residential address.
- A police clearance.
- Company officers’ signature samples.
- An auditor’s certificate.
- Company By-laws.
- A bank statement confirming the deposit of the registered capital.
- A business license, if applicable.
- An application to the State Register for company registration in Liechtenstein.
The corporate document package contains the following documents:
- Registration/ Incorporation Certificate.
- Company By-laws.
- The minutes of the first shareholders’ meeting where the first company director is appointed.
- Company seal.
- Share Certificate.
- In case nominee services are used – a Power of Attorney, a Declaration of Trust from the nominee shareholder, a Surrender of Right letter with an open date form the nominee director.
Company registration timeframes
The selection of the name for your company in Liechtenstein, the collection of the application documents, and the application processing take between 5 and 14 business days. This timeframe does not include the preparatory period (consultations, investigations, and so on).
Choosing the company name
- The use of personal names in the company name is allowed in Liechtenstein.
- Geographical names are not allowed. Phrases suggesting that the company is involve in banking, insurance or investment activities are not allowed (words such as ‘Municipality, Bank, Principality, Building Society, Insurance, Savings, Assurance, Fund Management, Reinsurance, Investment Fund’, etc. cannot be used in the company name).
- Having an AG, SA, or an analogous foreign abbreviation at the end of the company name is mandatory.
Requirements to the registered capital
The registered capital can be deposited in three national currencies in the following amounts: 50,000 CHF, 50,000 EUR, and 50,000 USD. The capital can be registered in the form of money or property including intellectual property. The registered capital shall be deposited prior to registering the company. The capital can be used freely once the company is registered with the Company Register.
Requirements to the company shareholders and directors
- Number of company founders – minimum two.
- We will assist you in hiring a nominee shareholder. Right after the company is registered, all the shares go to the real company owner whose liabilities remain limited.
- Physical persons or corporate entities can act as company founders. No restrictions as to their citizenship or domiciliation.
- Number of directors – minimum one director who shall be a citizen of Liechtenstein. The maximum number of company directors is not limited.
- Company secretary – not required.
Taxes and duties that an AG in Liechtenstein has to pay
- Standard profit tax — 12.5%.
- Capital tax — 0.1% of the company assets per year but not less than 1,800 CHF. Payable by a company that does not have any income.
- Coupon tax on dividends — 4%. Payable by the securities subscriber.
- Added Value Tax – 7.7%. Levied on goods and services traded inside Liechtenstein. Imported goods are also taxed. Imported services are taxed if their cost exceeds 10,000 CHF. The VAT is not applicable to exported items.
- There are also various duties to be paid such as the registration fee, the deposit fee, a fee for the abstract from the Company Register, and a few others.
- Submission of annual financial reports — not later than 6 months after the completion of the previous fiscal year. An audit is required before submitting the reports.
The process of registering an AG in Liechtenstein
If you would like to register a limited liability company in Liechtenstein, please contact us by email, telephone, or live chat and request an initial consultation. If you are happy with the results of the conversation, the process of company registration in Liechtenstein will be launched. It is going to contain the following steps:
- Signing of service agreement and payment of the contract price.
- Selection of company name and its inspection for uniqueness.
- Collection of application documents, their translation into German.
- Opening of a corporate account in Liechtenstein, depositing the registered capital.
- Submission of application for company incorporation to the State Company Register.
- Acquisition of the corporate documents that will be sent to the company owner with a courier.
The cost of registering an AG company in Liechtenstein
The cost of InternationalWealth expert services and legal support in Liechtenstein starts at 6 500 CHF. The ultimate price will be determined after the initial consultation, as it will depend on the number of additional services that you may want to order.
Please bear in mind that company maintenance costs in Liechtenstein start at 9,500 CHF (not including the payment of annual state duties). If you are interested in this offer, please contact us by writing to firstname.lastname@example.org and we will gladly help you set up a limited liability company in Liechtenstein.
How much does it cost to register a company Liechtenstein?
The cost of our services starts at 6 500 CHF. The total cost of company registration is going to be higher.
Who may be interested in establishing an AG in Liechtenstein?
Any business that can afford investing over 50,000 CHF in setting up a limited liability company in Liechtenstein will certainly benefit from this decision. Besides, rich families often set up AGs in Liechtenstein to protect their assets and safely transfer them to the heirs.
What are the audit requirements in Liechtenstein?
Every company registered in the country shall keep the books, submit annual reports certified by the auditor, and hold shareholders’ meetings.