Liechtenstein company formation for non-residents

Why founders choose Liechtenstein

Liechtenstein combines EEA membership with a customs and currency union with Switzerland. A company there can passport some regulated services into the EEA and trade with Swiss clients in Swiss francs. Few other jurisdictions offer both.

Its private law is also unusual. The Persons and Companies Act (PGR) of 1926 provides the foundation (Stiftung) and the establishment (Anstalt) alongside the familiar AG and GmbH. Families use foundations to hold assets across generations, with rules on beneficiaries that are set out in law.

The trade-off is cost. You need a qualified local board member, a registered office, often an auditor and, for an AG, CHF 50,000 of paid-in capital. It suits owners who value stability over the lowest running cost.

Corporate income tax and VAT

Legal entities pay a flat corporate income tax (Ertragssteuer) of 12.5% on net taxable income. Every entity also pays a minimum tax of CHF 1,800 a year, credited against the income tax. Small businesses that run a commercial enterprise may be exempt from the minimum tax.

Dividends and capital gains from qualifying shareholdings are generally exempt, which is why holding companies use Liechtenstein. An equity interest deduction can also lower the taxable base; the rate is set each year (confirm the current rate with your specialist).

VAT follows Swiss law under a treaty with Switzerland. The standard rate is 8.1% from 1 January 2024. The reduced rate is 2.6% and the accommodation rate 3.8%. The Steuerverwaltung administers both income tax and VAT.

• Corporate income tax: 12.5% flat
• Minimum tax: CHF 1,800 a year, credited against the tax
• VAT: 8.1% standard, 3.8% accommodation, 2.6% reduced

AG, GmbH or foundation

The AG is the standard choice for an operating or holding company. The minimum capital is CHF 50,000, or the same amount in euro or US dollars, and it must be fully paid at formation. A GmbH needs CHF 10,000, also fully paid (Office of Justice). One person can hold all the shares of either form.

A GmbH needs less capital and suits smaller trading companies. A foundation has no shareholders; it holds assets for beneficiaries under its statutes and suits family wealth planning. Your specialist compares the three before you pay.

The Art. 180a board member

Art. 180a of the PGR requires at least one member of the board who can manage and represent the company to meet two conditions. The person must be an EEA national or treated as one under a treaty, and must hold a licence under the Trustee Act or a comparable qualification.

In practice this is a licensed Liechtenstein trustee. We arrange one through a licensed partner firm. You can also sit on the board, but decisions need the qualified member's involvement.

This rule is why Liechtenstein companies usually have real local management. It also helps show that the company is managed in Liechtenstein, although your home country applies its own residence tests.

How formation works

First we agree the structure and check the name with the Office of Justice (Amt für Justiz), which keeps the commercial register. KYC covers every founder and beneficial owner, including source of wealth.

For an AG, the capital is paid into a Liechtenstein bank and the bank confirms the deposit. The founding documents are publicly certified. You usually sign a certified power of attorney at home, so no travel is needed.

The Office of Justice then enters the company in the commercial register, and the company gains legal personality on that date. We quote 2–4 weeks after KYC approval. The capital account is often the slowest step, because the bank runs its own checks.

Foundations follow a different route. A foundation is formed by a deed and, depending on its type, entered in the commercial register or deposited with the Office of Justice. Your specialist explains which applies to your plan (confirm with your specialist).

Registers, audit and annual duties

The commercial register is public and shows the company name, seat, purpose, capital and board. Beneficial owners are reported to a separate register kept under the law on beneficial owners, and access is limited to authorities, AML-obliged firms and people with a legitimate interest (confirm with your specialist).

An AG normally appoints an auditor (Revisionsstelle). Smaller companies may waive the audit with shareholder consent, and your specialist confirms whether that is open to you. Annual accounts and a tax return go to the Steuerverwaltung each year.

Banking takes time. Liechtenstein and Swiss banks apply thorough source-of-wealth checks and set minimum balances. We introduce suitable banks and prepare the file; the bank decides.

Costs, and whether Liechtenstein fits

Year 1 costs a fixed quote all-in with OCC, with government fees included, and year 2 renews at a fixed quote. Your quote lists every item before you pay.

Three items are quoted separately because they depend on your structure: the fee of the qualified local board member, the auditor where one is required, and accounting and tax returns. The share capital is your money and stays in the company.

Liechtenstein banks may also set minimum balances or account fees. We tell you what to expect before you sign.

Liechtenstein fits families and holding companies that value legal stability, EEA access and a Swiss-franc environment, and that accept higher running costs. Foundations in particular have no close equivalent in most other jurisdictions.

It fits less well for a small trading company that needs low running costs or a bank account within days. Your specialist can compare it with the Isle of Man or Gibraltar before you pay.

Tax residence still matters. Where you live, and where the company's decisions are really taken, can bring the company into your home country's tax net (confirm with your specialist).