Business in Liechtenstein

A business can operate as a sole proprietorship, GmbH, AG, general partnership or limited partnership. A sole proprietorship belongs to one owner, who has personal and unlimited liability; a trade permit is usually required. A GmbH is a separate legal entity from its entry in the Commercial Register and requires at least CHF 10,000, EUR 10,000 or USD 10,000 in fully paid or contributed capital. An AG requires at least CHF 50,000, EUR 50,000 or USD 50,000 in fully paid share capital and is generally subject to an audit requirement, although a review waiver may be possible under the applicable conditions. Other local forms include an establishment, foundation, association, cooperative, SE, EWIV, branch and trust enterprise when their economic organisation or operating function fits the business purpose. The usual setup begins with the business idea, legal form, company-name and register checks, articles or other supporting documents, and registration in the Handelsregister where required. The Amt für Volkswirtschaft, abbreviated AVW, provides central services for business, trade and location promotion. Depending on the activity, the company then files a trade notification or applies for a trade permit. Simple trades require evidence such as legal capacity, reliability, identity, location and business purpose; regulated trades also require professional suitability. The AVW can take up to three months to decide after receiving a complete application. Unauthorised operation can result in a fine of up to CHF 20,000. Changes to the purpose, managing director, business management, location or service address must be reported, while a voluntary suspension and later resumption require written procedures. Since 9 September 2025, new applications and changes for many trades can be submitted digitally through eGewerbe using eID.li. The digital service covers trade notifications and permits as well as several construction, interpreting, road-transport, private-placement and personnel-leasing procedures. Some areas, including certain GDL, HIKG, door-to-door sales and transport forms, continue to use conventional forms. The Amt für Justiz, or AJU, handles the Commercial Register and the Firmenindex. The register is public and its entries affect the publication and proof of liability and representation. Companies, foundations and trust arrangements also report beneficial owners through VwbP, the electronic beneficial-owner reporting system. A business with a permanent market presence normally needs a registered seat or branch in Liechtenstein. GDL, meaning a cross-border service, covers temporary and occasional activity. EEA and Swiss providers generally need lawful establishment in their home country; qualified trades require written advance notification and supporting evidence, usually renewed each year. Swiss providers have a special exemption from certain GDL, posting and foreign-worker notifications for eight days per calendar quarter. Providers from third countries may perform GDL for up to eight days within 90 days, with notification no later than two working days before the start and any required visa. The Tax Administration charges legal entities 12.5% profit tax and a minimum profit tax of CHF 1,800. Individuals, sole proprietors and partnerships are generally assessed through wealth and income tax. The global minimum-tax rules under GloBE apply only to groups meeting the EUR 750 million consolidated-revenue threshold and other conditions. Liechtenstein and Switzerland form one domestic VAT territory under their treaty. VAT registration is generally due without a separate request within 30 days when the business has taxable domestic supplies, a seat, residence or permanent establishment. The usual exemption threshold is CHF 100,000 annual turnover; sports and cultural associations and charitable organisations have a CHF 250,000 threshold. Since 1 January 2024, the rates are 8.1% standard, 2.6% reduced and 3.8% for accommodation. The eMWST portal has been mandatory since 1 January 2025 and is free to use. Self-employed people pay AHV, IV and FAK contributions of 8.250%, 1.350% and 2.1%, plus an administration contribution of 0.585%; the minimum is CHF 368.55 per year when income is below CHF 3,000. They do not pay unemployment-insurance contributions as self-employed people. The AHV-IV-FAK institution assesses whether an activity is genuinely self-employed by considering investment, loss, collection and cost risks, the use of the person’s own name and invoices, and independent organisation, contracts, premises or staff. Employers must report employees, submit wage and FAK information, arrange accident insurance and comply with the occupational-pension affiliation check. Companies prepare annual financial statements with a balance sheet, income statement and, where required, notes. Statements use a true-and-fair-view approach and may be prepared in German or English and in CHF, EUR or USD. AGs, limited partnerships, GmbHs and SEs have disclosure duties, generally no later than the end of the twelfth month after the balance-sheet date. Audit, review and reporting relief depend on the company’s size. The AJU checks formal requirements and completeness, not the substantive accuracy of the accounts. The AVW and Standortförderung coordinate business support. Start-up assistance includes Startup-Koordination, Startfeld, Innosuisse Start-up Coaching and START Summit. Innosuisse coaching can provide vouchers of up to CHF 130,000, subject to programme conditions. Established Liechtenstein SMEs with at least three years of economic activity may qualify for digital, export or innovation checks and support connected with Switzerland Global Enterprise; there is no general start-up financing without programme-specific criteria. During operation, the company maintains permits and register entries, meets tax, VAT and AHV deadlines, and checks whether its activity needs approval from the FMA or a specialist authority, for example in financial, health or legal services. Municipal authorities mainly matter for the business premises, lease, land-register evidence and zoning compatibility. Acquiring property can add land-transfer and premises requirements. A transfer requires early succession planning; support is available through the European Association for Philanthropy, or EAP, and related succession services. More than 99% of approximately 5,500 companies are SMEs, and roughly 15% to 20% may face a succession question within five years, affecting about 5,000 jobs. Closure requires liquidation or insolvency documents where applicable, settlement of liabilities, tax clearance and applications to remove the company from the tax register and Commercial Register. Tax liability generally ends only after liquidation is completed, not automatically when the Commercial Register entry is deleted.