Forming A Company In Liechtenstein: Complete Guide

Published on October 2, 2025 and written by Cyril Jarnias

Liechtenstein, a small principality nestled between Switzerland and Austria, is attracting more and more international entrepreneurs looking to establish their companies there. With its favorable taxation, political and economic stability, and business-friendly regulatory framework, Liechtenstein offers numerous advantages for foreign investors. In this article, we will explore in detail the benefits and procedures for setting up a company in this European tax haven.

Liechtenstein’s Advantages for Establishing Your Company

Liechtenstein offers several major advantages that make it a prime destination for business establishment:

Highly attractive taxation: With a corporate tax rate of only 12.5%, Liechtenstein offers one of Europe’s most favorable tax systems. Additionally, the country provides numerous tax exemptions and deductions.

A stable political and economic environment: Liechtenstein benefits from great political stability and a prosperous economy, providing a secure framework for investors.

Business-friendly regulations: The country has established a modern and flexible legal framework, facilitating company creation and management.

Privileged access to European markets: As a member of the European Economic Area, Liechtenstein provides easy access to the single European market.

Excellent financial reputation: Liechtenstein is recognized for its leading banking sector and compliance with international standards.

Privacy protection: The country offers a high level of confidentiality while respecting international financial transparency standards.

Main Legal Structures in Liechtenstein

Liechtenstein offers several legal forms for company creation. The most common are:

Public Limited Company (Aktiengesellschaft – AG): This is the most commonly used form for commercial and industrial activities. It offers great flexibility and limited liability for shareholders.

Establishment (Anstalt): A structure unique to Liechtenstein, very flexible and can be used for various activities. It may or may not have founding members.

Foundation (Stiftung): Ideal for wealth management and succession planning, it allows separation of asset ownership and control.

Limited Liability Company (Gesellschaft mit beschränkter Haftung – GmbH): Suitable for small and medium-sized enterprises, it offers a simpler structure than the public limited company.

Limited Partnership (Kommanditgesellschaft – KG): Used for business partnerships, it combines limited and unlimited liability partners.

Each structure has its own advantages and disadvantages in terms of flexibility, liability, and taxation. The choice will depend on your specific objectives and the nature of your business.

Corporate Taxation in Liechtenstein: An Advantageous System

Liechtenstein’s tax system is one of the most competitive in Europe, with several attractive characteristics:

Corporate tax: The corporate profit tax rate is 12.5%, one of the lowest in Europe.

Dividend and capital gains exemption: Dividends received and capital gains from the sale of participations are generally tax-exempt.

Notional interest deduction: Companies can deduct notional interest on their equity, thereby reducing their tax base.

Privileged tax regime for holdings: Holding companies benefit from a particularly advantageous tax regime.

No withholding tax: There is no withholding tax on dividends, interest, and royalties paid to non-residents.

Extensive tax treaty network: Liechtenstein has signed numerous double taxation agreements, facilitating international operations.

Patent box regime: Income from intellectual property benefits from a reduced tax rate of 80%.

This advantageous tax regime, combined with the country’s political and economic stability, makes Liechtenstein a prime destination for international corporate tax optimization.

Creating Your Company in Liechtenstein: Key Steps

Creating a company in Liechtenstein involves several steps:

1. Choose the legal form: Select the structure most suitable for your business (AG, Anstalt, Stiftung, etc.).

2. Check name availability: Ensure the chosen name for your company is available with the commercial register.

3. Prepare the articles of association: Draft your company’s articles of association, which must be in German.

4. Raise capital: Contribute the minimum required capital (generally 30,000 CHF for an AG or Anstalt).

5. Appoint directors: Name the administrators and, if necessary, a local representative.

6. Obtain an address: Secure a physical address in Liechtenstein for the registered office.

7. Authenticate documents: Have the articles of association and other constitutive documents authenticated by a notary.

8. Submit documents: Submit all required documents to the commercial register (Handelsregister).

9. Pay registration fees: Pay the registration fees with the commercial register.

10. Obtain registration: After verification, your company will be registered and receive its registration number.

11. Open a bank account: Open a corporate bank account with a Liechtenstein bank.

12. Register with tax authorities: Register your company with the Liechtenstein tax administration.

The complete procedure can take 2 to 4 weeks. It is highly recommended to engage a local lawyer or fiduciary to assist you with these procedures.

Liechtenstein vs. Other Offshore Jurisdictions: Comparative Advantages

Liechtenstein stands out from other offshore jurisdictions in several aspects:

Reputation and stability: Unlike some tax havens, Liechtenstein enjoys an excellent reputation and great political and economic stability.

Compliance with international standards: The country has adopted international financial transparency standards while maintaining an attractive tax regime.

Access to European market: As an EEA member, Liechtenstein offers privileged access to the single European market, unlike many tax havens.

Leading banking sector: The country has a sophisticated and reputable banking sector, offering quality services to businesses.

Privacy protection: Liechtenstein maintains a high level of confidentiality while respecting international standards.

Legal structure flexibility: The country offers unique legal forms like the Anstalt, providing great flexibility.

Competitive but non-zero taxation: Unlike some zero-rate tax havens, Liechtenstein applies moderate taxation, making it less likely to be considered an “aggressive” tax haven.

These advantages make Liechtenstein an interesting alternative to other, more controversial offshore jurisdictions.

Social Obligations in Liechtenstein: A Framework Favorable to Employers

Liechtenstein’s social system, while protective for employees, remains relatively favorable to employers:

Social contributions: Social charges are shared between employer and employee. The employer covers approximately 55% of total contributions.

Old Age and Survivors’ Insurance (AHV): The total contribution is 11.79% of gross salary, with 7.55% borne by the employer.

Disability Insurance (IV): The contribution is 1.5% of gross salary, shared equally between employer and employee.

Unemployment Insurance (ALV): The contribution is 1% of gross salary, also shared equally.

Occupational accident insurance: Entirely borne by the employer, the rate varies by industry sector.

Family allowances (FAK): Financed solely by the employer, at 1.9% of gross salary.

Occupational pension: Mandatory for salaries exceeding a certain threshold, with a minimum employer contribution.

Paid leave: Minimum legal requirement of 4 weeks per year.

Working hours: Standard work week is 40 to 45 hours, depending on the sector.

Although these charges may seem significant, they remain competitive compared to many European countries. Additionally, the flexibility of Liechtenstein labor law offers employers some room for maneuver.

Opening a Corporate Bank Account in Liechtenstein: Step-by-Step Guide

Opening a corporate bank account in Liechtenstein is a crucial step for your company. Here’s the procedure to follow:

1. Choose a bank: Select a reputable Liechtenstein bank (LGT Bank, VP Bank, Liechtensteinische Landesbank, etc.).

2. Prepare documents: Gather necessary documents, including: – Company articles of association – Commercial register extract – Passports of directors and beneficial owners – Proof of address – Business plan and financial forecasts – Source of funds

3. Complete account opening form: Carefully complete the form provided by the bank.

4. Provide KYC information: Be prepared to provide detailed information as part of “Know Your Customer” procedures.

5. Meet with bank representative: An in-person interview is generally required to finalize account opening.

6. Make initial deposit: Deposit the minimum amount required to activate the account.

7. Wait for validation: The bank will review your file, which may take several weeks.

8. Receive access codes: Once the account is opened, you will receive the necessary information to manage your online account.

It’s important to note that Liechtenstein banks apply strict due diligence procedures. Be prepared to provide detailed information about your business and source of funds.

Promising Business Sectors in Liechtenstein

Liechtenstein, despite its small size, hosts a diverse and dynamic economy. Here are the most promising sectors for entrepreneurs:

Financial services: The banking sector and wealth management are pillars of the Liechtenstein economy.

High-tech manufacturing industry: The country is renowned for its innovative industrial companies, particularly in precision mechanics and electronics.

Information technology: Liechtenstein actively encourages the development of technology companies, including in the blockchain field.

Business services: Consulting, audit, and legal services activities are booming, particularly to support international companies.

Investment funds: The country offers a favorable regulatory framework for creating and managing investment funds.

International trade: Liechtenstein’s geographical position makes it an interesting hub for international trading activities.

Intellectual property: The advantageous tax regime for intellectual property income attracts many innovative companies.

Luxury tourism: Although limited, the high-end tourism sector offers interesting opportunities.

These sectors benefit not only from a favorable fiscal and regulatory environment but also from the country’s political and economic stability.

Recruiting in Liechtenstein: Keys to Building Your Team

Recruiting in Liechtenstein has certain particularities that are important to know:

Skilled workforce: The country has a highly skilled workforce, particularly in technical and financial fields.

International labor market: Many workers come from neighboring countries (Switzerland, Austria, Germany), expanding the available talent pool.

Recruitment procedure: 1. Precisely define the position and required qualifications. 2. Publish the job offer in local media and specialized job sites. 3. For qualified positions, consider engaging local recruitment agencies. 4. Respect equal opportunity laws in your selection processes. 5. Prepare for interviews in German or English, depending on the position.

Work permit: EU/EEA nationals do not need a work permit. For other nationalities, a permit is required and must be obtained before hiring.

Employment contract: The contract must be written and include essential elements such as compensation, working hours, leave, etc.

Compensation: Salaries in Liechtenstein are generally high, reflecting the local cost of living.

Continuing education: The country places great importance on professional continuing education. Consider offering development opportunities to your employees.

Corporate culture: Corporate culture in Liechtenstein is generally formal and hierarchical, with great respect for punctuality and efficiency.

In conclusion, Liechtenstein offers an exceptional environment for creating and developing international businesses. Its advantageous taxation, political and economic stability, and favorable regulatory framework make it a prime destination for visionary entrepreneurs. Although company formation and bank account opening procedures may seem complex, they guarantee the solidity and reputation of the Liechtenstein financial system. With careful planning and the help of local professionals, establishing your company in Liechtenstein can prove to be a wise strategic decision for the international development of your business.