IOS:: Liechtenstein

Tuesday, 7 September 2010

The principality of Liechtenstein is a miniature state, situated practically in the centre of Europe, on the border of Switzerland and Austria. Liechtenstein is an independent constitutional monarchy, which has long had a close customs and monetary union with Switzerland. The Swiss federal government is also responsible for the external affairs and defence of the principality.

Liechtenstein legislation (the Law of 1926 on Persons and Companies) recognises the following types of enterprise:

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the Aktiengesellschaft (a company limited by shares);

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the Gesellschaft mit beschrankter Haftung (a private limited company);

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the Anstalt (an establishment - a commercial entity);

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the Stiftung (a foundation);

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the Treuhandschaft (a trust).

It is the Anstalt that is the most popular form of entity with foreign entrepreneurs, since an Anstalt can carry on practically any commercial activity outside the borders of Liechtenstein - it can carry on a trade, act as a holding company etc - while enjoying tax exemption on its foreign-source income.

GENERAL INFORMATION	Total area - 160 sq km Population - 33,000 Location - click here to see the map of offshore jurisdictions Political status - Constitutional Monarchy Capital - Vaduz Official language - German Official currency - Swiss franc (CHF) Time zone - GMT + 1
Company type	Anstalt
Directors/Officers	Liechtenstein Anstalt companies require a minimum of 1 Director, who must be a natural person; majority of directors must be residents of Liechtenstein. There is no statutory requirement for a Company Secretary to be appointed. Each Liechtenstein Anstalt company must file a Register of its Directors with the Register of Enterprises of Liechtenstein.
Shareholders	In most cases, to keep its tax-free status, Liechtenstein Anstalt company does not distribute shares. The founder of Anstalt company is stated in its by-laws.
Authorised share capital	Standard authorised capital = CHF 30,000. The abovementioned amount must be fully paid at the moment of incorporation.
Company Names	The name of a Liechtenstein Anstalt company must end with the words "Anstalt" or "Establishment". Company names containing restricted words such as "Bank", "Insurance", "Trust" etc. will not be permitted unless an appropriate national operating licence has been obtained by the company.
Beneficial Ownership information	Information with regard to ultimate beneficial ownership must be disclosed to the Registered Agent of the company in Liechtenstein and is held by the agent on a confidential basis.
Filing of Annual Return	There is no requirement to file an Annual Return.
Filing of Financial Statement	Financial Statement must be submitted to the Liechtenstein Tax Administrator each year.
Corporate Taxation	If a Liechtenstein Anstalt company do not distribute shares, then only fixed rate - 0,1 % of company total assets, but at least 1000 CHF/per year, must be paid annually.
Tax Treaties	Liechtenstein has concluded a tax treaty with Austria.
Timeframe for incorporation	10/12 working days. A complete set of company documents can be delivered in 12/14 weeks.
Takeover of management & secretarial services for an existing Liechtenstein Anstalt company	Possible, following verification of Beneficial Ownership and agreement with and discharge of liabilities to previous corporate service provider in Liechtenstein.
"Ready-made"("Shelf") companies	We are happy to register new company in this jurisdiction in accordance with client instructions.
Price of Liechtenstein Anstalt company	Not less than USD 8,680 (basic cost)*, including incorporation costs, full domiciliary (Registered Agent/Office) costs, Nominee services, Government Duty and legal support services for one year.
Cost of annual support services	Not less than *USD 6,480 (basic cost) per year**, including full domiciliary (Registered Agent/Office) costs, annual Government Duty and legal support services for each year.

*- Besides basic cost, there are additional payments for accountant, director and auditor appointment, preparing of financial statement and tax forms, as well as postal services.

INTERNATIONAL OVERSEAS SERVICES has the following comments: -
Liechtenstein has the reputation of a jurisdiction offering an exclusively high degree of confidentiality. The registration of a corporate vehicle in Liechtenstein is a prestigious option, since this jurisdiction is a wealthy and highly developed European state. The comparatively high registration expenses and running costs of an entity, which are prevalent in this jurisdiction, are the price to be paid for this prestige.
It is also important to note that responsibility for a Liechtenstein entity's activities and its financial solvency is borne by its nominee director, who is a resident of Liechtenstein. Consequently, regular supervision of the entity's activities on the part of its nominee director is to be expected.

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