Cost of Establishing a Company in Liechtenstein

Published on and written by Cyril Jarnias

Liechtenstein, a small principality nestled between Switzerland and Austria, attracts numerous entrepreneurs thanks to its favorable taxation and business-friendly regulatory framework. However, before embarking on the entrepreneurial adventure in this country, it’s crucial to have a clear vision of the costs associated with establishing a company. Let’s examine in detail the various financial aspects to consider.

Essential Registration Fees

The first step in creating your company in Liechtenstein involves registration fees with the competent authorities. These costs vary depending on the type of legal structure chosen:

  • For a public limited company (AG): approximately 30,000 CHF minimum capital and registration fees of about 700 CHF
  • For a limited liability company (GmbH): approximately 20,000 CHF minimum capital and registration fees of about 600 CHF
  • For a foundation: approximately 30,000 CHF initial endowment and registration fees of about 800 CHF

In addition to these amounts are the fees of a local notary, typically ranging between 1,500 and 3,000 CHF, for drafting and authenticating your company’s statutes.

It’s important to note that these fees may vary slightly depending on service providers and the complexity of your structure.

Complying with Rules: A Necessary Investment

Regulatory compliance represents a significant expense item in Liechtenstein. Here are the main costs to anticipate:

  • Appointment of a local agent: between 2,000 and 5,000 CHF per year
  • Bookkeeping: starting from 3,000 CHF per year
  • Annual audit (mandatory for certain structures): between 5,000 and 15,000 CHF
  • Tax filings: approximately 2,000 CHF per year

These compliance costs are essential to keep your company in good standing and avoid any legal or tax issues.

Starting Your Business: What Initial Investment?

Beyond registration and compliance fees, you need to plan for an initial investment to concretely launch your activity:

  • Office rental: starting from 500 CHF/m²/year in prime business areas
  • IT equipment and furniture: minimum budget of 10,000 CHF
  • Staff recruitment and training: variable depending on your needs, but plan at least 5,000 CHF per employee
  • Website development and marketing tools: between 5,000 and 20,000 CHF

The initial investment greatly depends on the nature and scale of your project. Meticulous planning is essential to avoid unpleasant surprises.

The Lifeblood: Operational Expenses

Once your company is created and operational, several recurring expenses need to be anticipated:

  • Salaries: the average salary in Liechtenstein is about 6,500 CHF per month
  • Social charges: approximately 20% of gross salary
  • Rent and utilities: variable depending on location, but count at least 2,000 CHF per month for a small office
  • Professional insurance: starting from 1,000 CHF per year
  • Bank fees: approximately 500 CHF per year for a standard business account

Rigorous management of these operational expenses is crucial to ensure the sustainability of your business.

Optimizing Your Costs: Winning Strategies

Although setting up a company in Liechtenstein represents a significant investment, there are strategies to optimize your costs:

  • Opt for shared offices or remote work in the early stages
  • Outsource certain non-essential functions (accounting, marketing) to specialized providers
  • Take advantage of tax incentives offered by the Liechtenstein government for new businesses
  • Negotiate preferential rates with your suppliers by committing long-term
  • Invest in effective management tools to optimize your processes and reduce operational costs

A strategic approach to cost management from the outset can make a real difference in the success of your entrepreneurial project in Liechtenstein.

Good to Know:

Although initial costs may seem high, Liechtenstein offers a very advantageous tax environment in the long term. With a corporate tax rate of only 12.5%, one of the lowest in Europe, the savings made on taxation can quickly offset startup costs.

Setting up a company in Liechtenstein represents a significant investment, but potentially very profitable if your project is well-designed and executed. Meticulous planning, rigorous cost management, and a good understanding of the local environment are essential to maximize your chances of success in this attractive jurisdiction.

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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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