Starting a Business in Liechtenstein: An Expat’s Guide

Published on October 1, 2025 and written by Cyril Jarnias

Built on exemplary economic dynamism and enviable political-financial stability, Liechtenstein proves to be a prime destination for entrepreneurs aspiring to start their business abroad. Nestled between Switzerland and Austria, this small yet powerful territory offers a business-friendly regulatory framework with numerous opportunities for expatriates determined to conquer new markets.

Thanks to an attractive tax environment and consistent support for new initiatives, embarking on the entrepreneurial adventure in Liechtenstein could be the cornerstone of success for those seeking to broaden their professional horizons.

Understanding Legal Structures for Starting a Business in Liechtenstein

Legal Structures in Liechtenstein

Liechtenstein offers a variety of legal structures for business creation, each with specific advantages and disadvantages.

Types of Structures:

• Sole Proprietorship (Einzelunternehmen): Suitable for small-scale activities, it does not require minimum share capital. Liability is personal and unlimited.
• Limited Liability Company (GmbH): Similar to the French SARL, it requires a minimum share capital of 30,000 CHF. Partners’ liability is limited to their contributions.
• Public Limited Company (AG): Suitable for large-scale projects, it requires a minimum share capital of 50,000 CHF. Shareholders’ liability is limited to their contributions.
• Foundation (Stiftung): Used for family wealth management or philanthropic purposes, it separates ownership and control of assets.

Legal Requirements

Structure	Minimum Share Capital	Partner Liability	Tax Obligations
GmbH	30,000 CHF	Limited	Profit tax
AG	50,000 CHF	Limited	Profit tax
Foundation	Variable	Separation of ownership and control	Possible tax exemption
Sole Proprietorship	None	Unlimited	Income tax

Administrative Procedures

To register a business in Liechtenstein, it is necessary to:

• File the company’s articles of association.
• Register the company with the Commercial Register.
• Establish a board of directors (for AG and GmbH).
• Deposit the required minimum share capital.

Specifics of the Legal Framework

Liechtenstein offers an attractive legal framework thanks to its favorable taxation, economic stability, and robust banking system. This makes it a popular choice for foreign investors. The Anstalt structure, unique to Liechtenstein, combines aspects of a foundation and a commercial company, offering great flexibility.

Advantages and Disadvantages for an Expatriate Entrepreneur

• Advantages: Favorable taxation, economic stability, robust banking system.
• Disadvantages: Administrative complexity, high costs for setting up and maintaining a company.

Practical Example

An expatriate entrepreneur wishing to start a service business in Liechtenstein might opt for a GmbH due to its simplicity and limited liability. However, if they seek to manage family wealth, a Stiftung might be more appropriate.

Essential Administrative Steps for Expatriate Entrepreneurship

Business Registration Process in Liechtenstein

1. Choosing the Legal Structure

The main available legal forms are:

• Public Limited Company (Aktiengesellschaft – AG): Limited liability for shareholders, suitable for commercial and industrial activities.
• Limited Liability Company (Gesellschaft mit beschränkter Haftung – GmbH): Ideal for SMEs, simpler structure than AG.
• Establishment (Anstalt): Local specificity offering great flexibility, often chosen by foreign investors for its tax advantages.
• Foundation (Stiftung): Intended for wealth management and estate planning.
• Limited Partnership (Kommanditgesellschaft – KG): For commercial partnerships with limited and unlimited liability partners.

Structure	Liability	Flexibility	Primary Use
AG	Limited to contributions	High	Commercial/industrial activities
GmbH	Limited to contributions	Medium	SMEs
Anstalt	Variable	Very high	Asset management, investments
Stiftung	N/A	Medium	Wealth/estate management
KG	Limited/Unlimited	Medium	Partnership

2. Key Steps

• Reserve the company name with the competent register
• Prepare the required statutory documents
• Open a professional bank account to deposit the required minimum share capital
• Register the company with local and tax authorities
• Appoint a legal representative or supervisory authority according to the chosen structure

Residence or Work Permits for Entrepreneurial Expatriates

To obtain a permit in Liechtenstein:

• Demonstrate the economic interest of the project or justify a viable entrepreneurial activity
• Provide proof of sufficient financial resources and sometimes a detailed business plan
• Submit the application to the competent authorities: National Migration Office (« Ausländer-und Passamt »)

Legal requirements include:

• Proof of initial investment if creating a business;
• Criminal record extract;
• Valid health insurance in the country;
• Employment contract or statutes proving your role in the company.

Approval is selective due to strict quotas applicable to non-European foreign nationals.

Opening a Professional Bank Account

Practical tips:

• Present signed constitutive statutes along with proof of the registered office located in Liechtenstein
• Provide identification document(s) of beneficial owners, local equivalent of Kbis extract, and complete anti-money laundering dossier according to international standards

Local banks are known for strict compliance; it is advisable to meticulously prepare all requested documents before any appointment.

Important Tax Procedures

Essential obligations:

• Tax registration upon incorporation via the tax identification number assigned by the local tax administration (« Steuerverwaltung »)
• Regular maintenance of compliant accounting and annual filing of company accounts

Corporate taxation is attractive but requires transparency and documentary rigor from registration.

Local Resources and Useful Services for Foreign Entrepreneurs

Non-exhaustive lists:

• Liechtenstein Chamber of Commerce (« Wirtschaftskammer Liechtenstein ») — administrative support, training, networking
• Sectoral professional associations facilitating B2B connections
• Local specialized firms assisting with multilingual legal/tax procedures

To maximize your chances when launching in Liechtenstein, systematically consult these organizations that provide indispensable local regulatory expertise

Tax Considerations and Access to Financing for International Entrepreneurs

Liechtenstein Tax Regime

Liechtenstein applies a single corporate profit tax rate of 12.5%, plus an annual minimum tax of 1,800 CHF, applicable to all legal entities except in very limited exceptions. This rate applies to both domestic companies and those owned by foreign investors. Dividends received and most capital gains on holdings are generally tax-exempt, as are certain incomes from real estate or permanent establishments located abroad.

Individual entrepreneurs or partners in transparent companies are taxed personally according to a progressive scale that can reach 22.4% depending on total income, wealth, and municipality of residence.

Reporting obligations include:

• Mandatory accounting maintenance on an accrual basis
• Annual tax return detailing adjusted taxable income
• Compliance with specific rules for exclusion or deduction of certain incomes (dividends, capital gains on shares…)

The regime also provides for a notional interest deduction on equity to encourage capital financing.

Tax incentives:
Although the framework is already advantageous compared to European and global standards, there are currently no direct tax incentives specifically aimed at new foreign entrepreneurs. However, the possibility of excluding certain incomes and the generally low rate themselves constitute a major asset for establishment.

Financing Opportunities for Foreign Investors

Common types:

• Traditional bank loans from local banks (commercial loans with guarantees)
• Dedicated credit lines for international businesses
• One-time grants awarded under specific conditions (particularly in certain innovative or strategic industries)
• Special programs managed by public institutions aimed at supporting technological innovation

Frequent regulatory requirements to obtain financing:

• Detailed presentation of the business plan and realistic financial projections
• Clear legal justification regarding the shareholding structure and effective seat in Liechtenstein
• Proof of minimum capital at incorporation (30,000 CHF for an AG; 20,000 CHF for a GmbH)
• Complete dossiers complying with strict anti-money laundering standards

Practical Tips for Navigating the Tax System

Systematically engage a recognized local tax firm from the preparatory stage

• Adapt your legal structure based not only on tax objectives but also banking considerations.
• Plan from the outset for rigorous administrative organization to ensure accounting compliance.
• Anticipate potential international developments (e.g., OECD/GloBE rules) that could affect your effective tax level.
• Regularly inform yourself with local economic chambers regarding any relevant regulatory changes.

Useful Local Resources

Resource	Main Role	Contact/Recommendation
Liechtenstein Chamber of Commerce (“Wirtschaftskammer”)	General orientation & networking	Official platform
Liechtenstein private banks	Financial advice & account opening	LGT Bank / VP Bank
Specialized firms in international tax consulting	Tax optimization & compliance	TTA Treuhand / PwC Liechtenstein
Public agencies “Standortförderung”	Information on grants/financing	Dedicated government service

Note: Close collaboration with these partners generally allows international entrepreneurs not only to secure their administrative procedures but also to access local bank credit more quickly.

Checklist of Key Points:

• Single corporate tax rate: 12.5%
• Annual minimum tax: 1,800 CHF
• Frequent exemptions on dividends/capital gains
• No direct “tax incentive” but overall very attractive framework

To succeed financially in establishing in Liechtenstein:

1. Carefully study each possible legal form before creation.
2. Be prepared to provide total transparency towards banks/financial institutions.
3. Prioritize local professional support throughout the administrative/tax/accounting process.

⧉ Personalized support is essential given the increasing complexity of international tax requirements.

Resources and Support for Succeeding in Your Business Project in Liechtenstein

Available resources for entrepreneurs in Liechtenstein:

• Chambers of Commerce
  • The Liechtenstein Chamber of Commerce and Industry (LCCI/LIHK) brings together industrial companies, banks, and major service companies in the country. It works to defend economic interests, provides an expert network, and regularly organizes events to foster entrepreneurial development.
  • The Chamber of Commerce Switzerland-Austria-Liechtenstein offers a trinational network, facilitating exchanges with Switzerland and Austria. It provides advice, specialized publications, and events aimed at energizing regional economic cooperation.

Resource	Description
LIHK (LCCI)	Support for members, economic lobbying, access to a local/international network
Switzerland-Austria-Liechtenstein Chamber	Trinational connections, specialized sector information

• Incubators & accelerators
  • Liechtenstein heavily invests in technological innovation and digitalization. This climate fosters the emergence of local incubators supporting high-tech and fintech startups; these structures offer specialized mentorship and personalized support.

• Financing programs
  • Local financial institutions – notably the country’s three major banks – offer various adapted financing solutions: traditional professional credits or those specific to innovative startups.
  • The Liechtenstein regulatory framework is particularly favorable to the creation of investment funds; there are also incentive schemes to attract foreign capital or rapidly develop international activity.

• Government support & aids/grants
  • The government implements various aid programs specifically targeting young innovative companies: direct grants for technological innovation, temporary tax exemptions for certain categories of strategic activities or emerging technologies.

“Liechtenstein actively encourages the development of technology companies… These sectors benefit not only from a favorable fiscal and regulatory environment…”

• Professional networks & associations
  • Several associations bring together local/expatriate entrepreneurs around sectoral themes (high-tech industry, digital finance…). They regularly organize professional meetings and thematic workshops aimed at effective networking.

Typical list:

• Local entrepreneurial clubs
• International business networks active in the principality
• Annual events like regional economic forums

• Networking events
  • Chambers of commerce as well as various professional associations organize regular sectoral conferences where potential investors, industry experts, and public decision-makers meet.

Simplified Administrative Procedures:

The administrative process for creating a company is recognized as fast thanks to:

• An efficient commercial register,
• A single window centralizing formalities,
• Clear taxation offering predictability from project launch.

Legal/Accounting Advice Adapted for Expatriates

Specialized firms present on site provide:

• Comprehensive support in choosing the optimal structural/fiscal setup,
• Legal advice on local regulations,
• Accounting services adapted to Liechtenstein’s international requirements (particularly concerning cross-border management).

To Remember:

Starting your business in Liechtenstein therefore benefits not only from a dynamic ecosystem but also a multitude of dedicated resources combining strong local expertise and accessibility.