How To Start A Business In Liechtenstein

Liechtenstein

Tucked in between Switzerland and Austria, you’ll find Liechtenstein, one of Europe’s smallest countries. With picturesque scenery and castles, it looks like something out of a fairytale. But don’t be fooled, this small but mighty country has built quite the reputation for itself as a business hub.

In fact, it has one of the highest GDPs per capita in the world. And with its political stability and ideal location, it’s no wonder more entrepreneurs are flocking to it to set up shop.

 

Why Start A Business In Liechtenstein?

 

Choosing the right location for your business is one of the biggest decisions you’ll have to make. Liechtenstein in particular has caught the eye of plenty of entrepreneurs and investors, and for good reason.

Stability: The country’s economy is a robust one and even though it’s not part of the European Union, it still has close links with Switzerland and other EU countries.

Good location: Entrepreneurs can easily access Swiss and European markets, especially if they want to trade internationally from the get-go.

High quality of life: The nation prides itself on being clean and safe with working public services.

Government support: The country is highly supportive of entrepreneurship especially in tech industries.

 

Industries With High-Growth Potential

 

Liechtenstein may be small but some of its sectors are really taking off. Here are a few that are worth looking into if you are considering starting a business there.

Finance: The country boasts a globally-recognised and respected finance industry specifically in private banking and insurance.

HealthTech: Liechtenstein is very innovation-focused with a growing interest in medical technology. As a result, more startups in diagnostics and biotechnology are popping up.

Green energy: Like most of its neighbours, the nation is committed to sustainability and startups tackling climate change are welcomed.

Consulting: There is a high demand for legal and financial consulting services given the wealth of the country’s residents.

 

Understanding Liechtenstein’s Tax Regulations

 

Liechtenstein has one of the lowest tax rates in Europe with a corporate income tax of 12.5%. Their Value Added Tax (VAT) rate is set at 7.7% which is the same as Switzerland’s.

There is no capital gains tax or withholding tax which is highly appealing to international investors.

 

 

Would You Encounter Any Language Barriers?

 

While the official language is German, you’ll find that English is widely spoken. While you could get by with day-to-day communication, things like signing contracts or local admin will require an understanding of German.

In this case, it’s always recommended to work with a local translator who can help you with any paperwork.

 

Visa And Residency Requirements For Foreign Entrepreneurs

 

If you are a citizen of the EU or EEA, you are free to live and work in Liechtenstein without any restrictions. If you are not a resident of one of these countries, it gets a bit more complex.

Liechtenstein is known for its very strict immigrant regulations and you would need to apply for a visa through their government or Swiss authorities as they have bilateral agreements in place.

As a business owner, if your company proves to be valuable to the economy, you may be granted residency. Otherwise, obtaining a residence permit is notoriously challenging.

 

How To Start A Business In Lichtenstein

 

If you are up for the challenge and have your eye on Lichtenstein for your startup venture, here is a simplified step-by-step guide on how you can get up and running.

 

Choose Your Business Structure

 

There are a lot of legal structures that you can choose from, although these are the most common options:

Einzelfirma: A sole proprietorship which is suitable if you are a solo entrepreneur.

Aktiengesellschaft: A Public Limited Company, ideal for bigger businesses with multiple founders.

Gesellschaft mit beschränkter Haftung: A Private Limited Liability Company which is usually chosen by small-to-medium-size enterprises (SMEs).

 

Put Together Your Articles of Association

 

This is a document that outlines your company’s structure, ownership details and a registered address. In order to register your business successfully, this document will be required.

 

Deposit The Share Capital

 

You will need to deposit the share capital amount into a Lichtenstein bank account. If you chose a Public Limited Company, it’s a minimum of CHF 50,000 while a Private Limited Liability Company is a minimum of CHF 10,000.

 

Register The Business

 

The next step is to register your business with the Liechtenstein Office of Justice. For this, you will need your Articles of Association, proof that you have deposited the share capital, the name and address of your business and IDs of all owners.

In some cases, you may also be required to share your business plan.

 

Should You Start A Business In Liechtenstein?

 

It may not be the easiest country to start a business in if you aren’t an EU/EEA resident, but the reward would be well-worth the effort. If you are looking for a business-friendly area with low taxes and easy access to European markets, it could be a good move.

It just takes the right entrepreneur with the right long-term vision and some grit to make it work.

Good luck!