Lihctenstein companies

Why starting a company in Liechtenstein, Europe?

The Principality of Liechtenstein is found in Central Europe, between Austria and Switzerland. Liechtenstein is a constitutional hereditary monarchy with a Prince as head of State and a democratically elected parliament. Liechtenstein is a modern politically stable democratic State. Banking and financial services is one of the main industries in Liechtenstein and within this industry exists high levels of secrecy with strict sanctions imposed on violations of confidentiality. One of the main attractions of Liechtenstein is extremely flexible company laws, that allow the formation of any type of legal organization that is recognized by the legislation of any jurisdiction in the world. The low taxes and flexible incorporation regulations have induced approximately 74,000 companies that provide an estimated 30% of the State´s income. Liechtenstein has developed into a prosperous and highly industrialized free enterprise economy with vital financial services.

The country participates in a customs union with Switzerland and has been a member of the European Free Trade Association (AELC) and of the EU since May 1995. Liechtenstein´s geographic location, focus of local and foreign politics, legal and economic framework, gives it excellent qualities as a business center. Liechtenstein´s close ties with Switzerland as well as being part of the European Economic Union (EEE), creates a broad and potential field of activity for industry, trade, financial services and foreign investors.

The legal system of Liechtenstein consists of local and penal civil codes based on a civil code system. The system also contains dispositions for the legal verification of legislative acts in the Federal Constitutional Court.

Civil law, also known as continental law or the Roman-Germanic law is the legal system that mainly prevails in the world. The main difference between civil law and common law is that common law points to abstract rules that the judges should request from the different cases they handle. In other words, historically speaking, common law is based on the traditions and the laws are codified according to court judgements. On the other hand, the laws of civil law are the first to be codified and applied.

Conditions of Offshore Company Incorporation

Offshore vehicles are not allowed to participate in trade activities.

  • The holding is not limited to where the assets are held. Therefore, it can operate in Liechtenstein as long as it adheres to exploitation activities.
  • Domiciliary entity “is limited to the foreign trade operations, but is allowed to carry out certain internal activities.
  • The establishment (Anstalt) can operate freely in Liechtenstein on an exemption base as long as it adheres (no trade) to the possession and operations of the investment type.
  • The foundation (Stiftung) and the Foundation is not limited from the tax standpoint in relation to investment activities and is allowed to carry them out in Liechtenstein and abroad.
  • There are no costly registration requirements for these entities.
  • There are no nationality requirements in relation to the majority of the official positions.
  • Non-commercial entities, such as the Foundation do not require audited accounts.
  • Confidentiality is guaranteed; information is disclosed only if criminal activity is involved.

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