Foreign enterprisers set up businesses in various industries in Liechtenstein. While some of them choose large investment sectors like the financial one, there are also citizens who prefer to start small businesses which enable them to work from home and have a few clients only. A large business implies the use of a limited liability company as an entity, while a small one allows the entrepreneur to be a sole trader in Liechtenstein.
There are both advantages and disadvantages of becoming a sole proprietor and our company formation agents in Liechtenstein can explain the legal implications of such type of business form.
Unlike in other European jurisdictions, sole proprietorships fall under the same incorporation regulations as any other type of company in Liechtenstein. The main law governing the establishment of a sole trader is the Persons and Company Law in Liechtenstein. Small businesses, such as sole proprietorships in the Principality operating in the agricultural or publishing sectors fall under the Small Business Law.
In order to become a sole proprietor in Liechtenstein, a foreign and a local citizen must first obtain the permission of doing business with the Office of Economic Affairs. Once this permission is obtained, the sole trader can register with the Trade Register in Liechtenstein.
Just like any other type of company in Liechtenstein, the sole trader must submit his or her name with the Public Register. The proprietor must also have a local address which will serve as a business address and which will be subscribed with the Trade Register.
There is another category of Liechtenstein sole traders and these are professionals, such as accountants, lawyers, financial advisors and trustees who must comply with the laws related to their professions. These must register with the relevant authorities or associations related to their qualifications.
For complete information on how to register as sole trader in Liechtenstein, do not hesitate to contact us. Our company registration consultants in Liechtenstein can also offer information about the taxation of sole proprietors and can also assist with the registration of other types of companies.