Liechtenstein belongs to those countries where the level of taxation is quite low. It's not a classic offshore zone but at the same time the third of the country national income comes from the tens of thousands of registered offshore companies.
Not everybody can afford to establish and maintain a company in Liechtenstein, because the impressive start-up capital is necessary. However obtaining of further dividends justifies the risk.
So, to register and establish a company in Liechtenstein, you must have:
- 50 thousand Swiss francs, which in dollar terms is more than 55 thousand. This amount is required for the registration of joint-stock company. Liechtenstein is one of the most expensive countries in Europe, and it is difficult to get used to this. However, to register an institution you will need the amount half as much as indicated. This money, in fact, is the registered capital, and until the end of the registration it is frozen. When registration is on the final stage, the owner will have the right to use the capital at his own discretion. The registration lasts for 21 days.
- Residing in Liechtenstein for at least 10 years. This presumption is stated in the Commercial Act dated 10.12.69. Unfortunately, non-residents of Liechtenstein are not eligible to create business in the territory of the country. But this does not prevent foreign representative office to hire a director who is a resident of the country to register a company. Because of this fact Liechtenstein is called the country of directors, because in a relatively small country more than 100 thousand foreign representative offices are registered.
- Legal address and registered office.
The main advantages of doing business in Liechtenstein include:
- Exemption from certain taxes;
- Simple registration;
- Confidentiality of information about the company;
- No control over foreign exchange transactions;
- Development of banking system.
The company in Liechtenstein is unlike any other traditional – firstly, there may be several directors, the Secretary may be absent at all, as well as other staff members. The public authorities of Liechtenstein have no control over the way of carrying out the business. The main thing is to pay taxes on time and the absence of administrative and legal violations. Annual fee for non-profit organizations amounts to approximately 1000 dollars.
In Liechtenstein you can register different types of companies. The most common forms include corporation and institution. However, there are others:
- Fund or Stiftung with a minimum capital of 30 thousand Swiss francs. It is created, as a rule, for control and soundness of assets;
- Trust with a minimum capital of 30 thousand Swiss francs. It is created by the founders and is controlled by the trustees;
- Branch of the foreign representative office is as an analogue of a local company.
Registered company in Liechtenstein is entitled to be engaged in any legal activity. Only financial sphere is subject to licensing.