Starting a Startup in Liechtenstein: Essential Guide

Published on and written by Cyril Jarnias

Liechtenstein, a small country nestled between Switzerland and Austria, is becoming a true paradise for innovative entrepreneurs. With its favorable taxation, political and economic stability, and business-friendly environment, the principality is attracting more and more tech startups. Discover in this article why and how to create your startup in Liechtenstein.

Liechtenstein: An Unexpected Paradise for Startups

Liechtenstein offers an extremely favorable environment for creating and developing innovative startups. Here are the main assets that make this small Alpine country a prime destination for entrepreneurs:

Ultra-Competitive Taxation

With a corporate tax rate of only 12.5%, Liechtenstein offers one of the most advantageous tax systems in Europe. Additionally, the country provides numerous tax benefits for innovative companies, such as deductions for research and development.

A Stable Political and Economic Environment

Liechtenstein enjoys great political stability and a strong economy, providing a serene framework for long-term business development. The country also benefits from a AAA credit rating and virtually no public debt.

Privileged Access to European Markets

Although not a member of the European Union, Liechtenstein is part of the European Economic Area, giving it direct access to the European single market. The country also has customs agreements with Switzerland.

A Skilled Workforce

Liechtenstein can rely on a highly skilled workforce, particularly in technological and financial fields. The country also attracts many international talents.

Modern Infrastructure

Despite its small size, Liechtenstein has state-of-the-art infrastructure, particularly in terms of digital connectivity and transportation.

A Thriving Startup Ecosystem

The Liechtenstein government has implemented various initiatives to support innovation and entrepreneurship, such as incubators, acceleration programs, and networking events.

Good to Know:

Liechtenstein is positioning itself as an innovation hub, particularly in the fields of fintech, blockchain, and artificial intelligence. The country has notably adopted pioneering blockchain legislation, attracting numerous startups in this sector.

Ideal Legal Structures for Launching Your Startup in Liechtenstein

Liechtenstein offers several legal forms suitable for startups. Here are the most common ones and their characteristics:

Limited Liability Company (GmbH)

  • Minimum required capital: 10,000 CHF
  • Limited liability for partners
  • Flexibility in management
  • Possibility to have a single partner

Public Limited Company (AG)

  • Minimum capital: 50,000 CHF
  • More formal structure, with a board of directors
  • Facilitates bringing investors into the capital
  • More prestigious brand image

Establishment (Anstalt)

  • Minimum capital: 30,000 CHF
  • Can function as a company or foundation
  • Great freedom in internal organization
  • Ideal for holding structures

Foundation (Stiftung)

  • No shareholders, managed by a foundation board
  • Can engage in commercial activities
  • Tax benefits for certain activities

Good to Know:

The business creation process in Liechtenstein is relatively quick and simple. It is possible to create a company in just a few days, with the help of a local lawyer or incorporation agent.

Funding Your Startup in Liechtenstein: Winning Options

Liechtenstein offers a favorable environment for startup funding, with various options available to entrepreneurs:

Equity and Love Money

As everywhere, founders’ personal contributions and support from their close circle often remain the first source of funding. In Liechtenstein, the amounts required to create a company are relatively accessible.

Business Angels

Liechtenstein has many wealthy private investors ready to support innovative projects. Networks like the Liechtenstein Business Angel Network facilitate connections with these investors.

Venture Capital Funds

Several venture capital funds are active in Liechtenstein, particularly in the fintech and blockchain sectors. International funds are also increasingly interested in Liechtenstein startups.

Government Grants

The Liechtenstein government offers various aids and grants to support innovation and business creation, notably through the Liechtenstein Marketing agency.

Banks

Liechtenstein banks, known for their solidity, offer financing solutions tailored to startups, including government-guaranteed loans.

Crowdfunding

Although less developed than elsewhere, crowdfunding is gaining popularity in Liechtenstein, with dedicated platforms emerging.

ICOs (Initial Coin Offerings)

For blockchain startups, Liechtenstein offers a regulatory framework favorable to ICOs, allowing fundraising through token issuance.

Good to Know:

Liechtenstein is attracting increasing attention from international investors, particularly due to its favorable legislation for cryptocurrencies and blockchain. This opens up new funding opportunities for innovative startups.

Conclusion: Liechtenstein, Promised Land for Innovative Startups

Creating a startup in Liechtenstein offers numerous advantages: attractive taxation, a stable and business-friendly environment, access to European markets, and a thriving innovation ecosystem. With flexible legal structures and varied funding options, the country provides fertile ground for ambitious entrepreneurs.

The principality particularly positions itself as an excellence hub for startups in the fields of fintech, blockchain, and artificial intelligence. Its forward-thinking regulatory framework in financial technologies makes it a prime destination for innovative projects in these sectors.

Although competition is fierce compared to more established startup hubs, Liechtenstein has all the assets to become the next “Silicon Valley of the Alps.” For visionary entrepreneurs ready to think outside the box, creating a startup in this small Alpine country could well be the strategic choice that makes all the difference.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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