Liechtenstein Company Formation / Registration / Incorporation

GENERAL INFORMATION:

The Principality of Liechtenstein (i/ˈlɪktənstaɪn/ lik-tən-styn; German: Fürstentum Liechtenstein, German pronunciation: [ˈfʏʁstn̩tuːm ˈlɪçtn̩ʃtaɪn][8]) is a doubly landlocked alpine country in Central Europe,[9] bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 square kilometres (62 sq mi), and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan. Liechtenstein has the second highest gross domestic product per person in the world when adjusted by purchasing power parity,[10] and has the world’s lowest external debt. Liechtenstein also has the second lowest unemployment rate in the world at 1.5% (Monaco is first).

Liechtenstein is the smallest yet the richest (by measure of GDP per capita) German-speaking country in the world and the only country to lie entirely within the Alps. It is the only predominantly German-speaking country not to share a common border with Germany and the only predominantly German-speaking nation to have a monarch. It is known as a principality as it is a constitutional monarchy headed by a prince. Liechtenstein is divided into 11 municipalities. Much of its terrain is mountainous, making it a winter sports destination. Many cultivated fields and small farms characterize its landscape both in the south (Oberland, upper land) and in the north (Unterland, lower land). The country has a strong financial sector located in the capital, Vaduz, and has been identified as a tax haven. It is a member of the European Free Trade Association and part of the European Economic Area but not of the European Union.

Despite (or perhaps because of) its limited natural resources, Liechtenstein is one of the few countries in the world with more registered companies than citizens; it has developed a prosperous, highly industrialized free-enterprise economy and boasts a financial service sector as well as a living standard which compares favorably with those of the urban areas of Liechtenstein’s large European neighbours.

Very low business taxes (lowest in Europe)—the maximum tax rate is 20%[26]—as well as easy Rules of Incorporation have induced about 73,700 holding (or so-called ‘letter box’) companies to establish registered offices in Liechtenstein. This provides about 30% of Liechtenstein’s state revenue. Liechtenstein also generates revenue from Stiftungen (“foundations”), which are financial entities created to increase the privacy of nonresident foreigners’ financial holdings. The foundation is registered in the name of a Liechtensteiner, often a lawyer.

Recently, Liechtenstein has shown strong determination to prosecute international money-launderers and has worked to promote the country’s image as a legitimate finance center. In February 2008, the country’s LGT Bank was implicated in a tax-fraud scandal in Germany, which strained the ruling family’s relationship with the German government. Crown Prince Alois has accused the German government of trafficking in stolen goods. This refers to its $7.3 million purchase of private banking information illegally offered by a former employee of LGT Group.[27][28] However, the United States Senate’s subcommittee on tax haven banks said that the LGT bank, which is owned by the royal family, and on whose board they serve, “is a willing partner, and an aider and abettor to clients trying to evade taxes, dodge creditors or defy court orders.