Liechtenstein is a microstate or Principality in Western Europe, bordering Austria and Switzerland. It is a member of the European Economic Area and the WTO and at the same time not a member of the European Union. So, it has its own official currency, which is the Swiss franc (CHF). Despite its small territories and small population, the country has a thriving economy. The standard of living of its people is one of the highest in the world.
- The GDP growth rate of this state always hovers around 4%.
- The inflation rate for June 2020 is -1.3%.
- According to the latest data in 2018, the unemployment rate was 1.7%.
- Both women and men - citizens of Liechtenstein - retire at the age of 64.
- Export prevails over imports almost 2 times.
- The country's credit rating, compiled by S&P in 2016, has the best possible indicator - AAA.
Because of Liechtenstein is a microstate, access to natural resources is limited, and supplies are from Switzerland. Therefore, the main industrial activity in the country is processing. Due to the good climate and its unusual territorial and political status - tourism, services and agriculture flourish. The latter is mainly focused on meeting the needs of local residents.
In Liechtenstein, as in any other microstate - legislation is not very developed. Since Switzerland is the closest big neighbor, Liechtenstein is heavily dependent on it and its laws.
In Liechtenstein, the process of starting and running the business is quite free and simple:
- There is no state organization involved in the control and regulation of foreign and national investments;
- No restrictions on company mergers;
- Firms are not required to have their own office on the territory of the Principality;
At the same time, there are a number of limitations that should be kept in mind:
- According to the Commercial Act of 1969, only a person, who has been living there for > 10 years can establish a company;
- The government decides, which companies are useless for the country and can carry out its liquidation;
- The company must have local representatives in Liechtenstein;
The basics of the country's tax system are set out in the Law on National and Municipal Taxes and the Tax Code of the country;
Types of companies
The following types of companies are common in Liechtenstein:
- joint-stock company - AG;
- institution - Anstalt;
- closed limited liability company - GmbH;
- closed stock company - Stiftung;
- trust company - Trust Enterprise;
- branch of a foreign company.
|
AG |
Anstalt |
GmbH |
Stiftung |
Trust Enterprise |
Number of shareholders |
>=2 |
0 |
>=1 |
0 |
|
Min share capital |
50.000 CHF |
50.000 CHF |
30.000 CHF |
30.000 CHF |
30.000 CHF |
Management |
Board of directors (in case of one of them is permanent living in the country) |
Board of directors |
Directors |
Board of directors |
Trustees |
The advantage of opening a company in Liechtenstein is low taxes and an offshore zone.
Taxes
- Corporate - 12.5% (minimum amount - from 1,200 CHF);
- For businesses with a balance of < CHF 500,000 for 3 years;
- Income for individuals - 22.4%;
- From sales - 7.7%;
- VAT
- The general rate is 8%;
- Foodstuffs, printed matter, medical products - 2.5%;
- Hotel business - 3.8%;
- On capital - 0.2%;
- Coupon - 4%;
- Turnover
- Sales from wholesalers to retailers - 9.3%;
- Sales from wholesalers to consumers - 6.2%;
- Sale of essential goods - 0%;
- Stamp duty - 1%;
- Insurance premiums - 5%;
- With a one-time payment - 2.5%;
- For the circulation of securities - 0.15-0.3%;
Tax incentives:
- Companies like Anstalt do not pay taxes on profits, but pay a fixed annual fee of 1000 CHF - 0.1% of the capital.
- There is an agreement on the avoidance of double taxation with Austria, England, Germany, Switzerland, Hong Kong and 12 more countries;
No licenses are required to do business in Liechtenstein, except companies, operating in the financial sector.
Documents
The set of documents, required for registering different types of companies, is approximately the same and consists of:
- Extract from the commercial register and tax office;
- Charter of the company;
- Memorandum of Association;
- Founders’ passports.
It should be remembered
- The name of the company must be unique;
- Using in the name such words as «bank» and «insurance company» requires special permission;
You can learn more about the registration process for opening a company, calling our professional specialists.
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