Foreign investors are attracted by several investment incentives Liechtenstein offers. Among these, low share capital requirements and advantageous taxation system. However, not only foreign enterprisers seek to open new companies, but also foreign companies wanting to have an established presence in Liechtenstein. In order to support multinational companies and even smaller ones, the Company Act in Liechtenstein provides for several types of entities. Among these, subsidiaries, commercial and non-commercial establishments and branch establishments or offices.
Our company formation agents in Liechtenstein can help you choose the right type of structure when opening a business here.
You can also watch the video below for information on how to create a branch office in Liechtenstein:
The branch establishment is considered any place of business of a local or foreign company in Liechtenstein. The branch office will be tied to the commercial activities of the parent company and will be registered with the Companies Registrar in Liechtenstein. The Company Law also specifies that the parent company will be held liable for the actions of its branch office. Even if the Liechtenstein branch office will be registered and dissolved in accordance with the local legislation, the relation between it and the foreign parent company will be subject to the law applicable in the parent company’s resident country.
A branch office must be registered with the Liechtenstein Trade Register. The main requirements to open a branch establishment in Liechtenstein is to have a registered address and a legal representative who is domiciled in the country. The legal representative can also be a Liechtenstein company which must be appointed by the management board of the parent company.
Just like in the case of other types of companies, the branch office must also have a memorandum and articles of association which can be filed with the Trade Register and which can be amended in accordance with the local laws. From an accounting point of view, a branch office registered in Liechtenstein will be subject to the local accounting requirements.
For information about the taxation and accounting standards applicable to branch establishments in the Principality, please contact our company registration consultants in Liechtenstein.