Thursday 17 July 2014

Liechtenstein

One of the richest and hardest working countries in the world according to the GDP and the countries low unemployment rate at only 1.5%. One of the only two doubly landlocked countries in the word. The country lies fully in the alps and the  population mostly consists of German speakers, English is mostly used only for business needs. German is the only official language.


Economy

One thing that may be accounted for the prosperous economy of the Lichtenstein is the fact that there are more registered companies than the population.  Offering very low corporate taxation only at 12.5% which is the second lowest corporate tax in Europe, the first being Andorra with 10% taxation on corporate income.
Liechtenstein tourism is very small part of the economy. Also there is no problem with jobs in Liechtenstein ans the unemployment rate is one of the lowest in the world.

Company in Liechtenstein

There are multiple types of companies available for offshore use. Such as:

  • AG Ltd - A company Limited by shares
  • GmbH - Private limited company without shares 
  • Establishments without shares, for commercial and non commercial use
  • Foundations
  • Registered Trusts and non-registered Trusts

Altho these are the types of companies that can be registered, this vast list is usually only used for special occasions as normally one of the three types of companies are registered: Establishments, family foundations and company limited by shares.
Establishments are regarded as Anstalt in German and are most often used for partial tax evasion. This is a strange type of a company, because it doesn't have to have any members participants or shareholders. This type of company is popular in Liechtenstein because the company can be involved in any kind of business as long the business as long as the company does not get involved in trading activities.

Company registration 

The minimum share capital for a company registered in Liechtenstein varies from the company type. The usual capital is around 25 000 Euro. Again requirements both for the shareholders and company directors vary from the type of company. Usually a local director is required and the requirement for a company secretary is not obligatory. In order to register a company the following documents must be submitted to the public registry:

  • The statues of the company signed by an agent or a subscriber.
  • Share capital, the division and type of shares if necessary for the type of company that is going to be incorporated.
  • The proposed name of the company.(See company name restrictions for more information.)
  • A document that confirms that the minimum share capital has been paid into a bank in Switzerland or Liechtenstein
  • Information about the directors and their consent to act as directors. 
  • A document confirmation of an appointed representative in Liechtenstein.


Restriction on company name

The name of the company may not be similar to a name of a company that has already been registered. A name that is of a big brand in another country. A name that may be insulting to the government, a name that may be undesirable by the company registrar. The name of the company may be in any language as long as the language uses Latin alphabet, the public registry may require a German translation of the name to confirm that the previously mentioned requirements have not been violated.

Incorporation time

The usual time of incorporation for a company in Liechtenstein ranges from 3-5 business days. Altho additional time may be required in special cases.

Travel

Immigration to Liechtenstein isn't the biggest problem. Since the country is in the Schengen Area and any Schengen visa will allow you to freely travel to the country.

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