Foreign companies seeking to establish operations in Liechtenstein have three alternatives: to open a subsidiary, a branch office or a representative office. The main difference between these types of companies is that the subsidiary is independent from the parent company, while the branch office is dependent on the mother company. The representative office may not engage in commercial activities in Liechtenstein.
For a detailed comparison between the structures available for foreign companies, you can ask our Liechtenstein company formation agents.
You can also find out from the video below how to establish a subsidiary in Liechtenstein:
The subsidiary is an independent company through which a foreign business carries out commercial activities in Liechtenstein. The main advantage of opening a subsidiary in Liechtenstein is that the parent company can use one of the following types of companies to set it up:
The main difference between these two types of entities is that the public company may trade its shares on the capital markets, while the private limited liability company may not. Differences are also in the share capital required to set up the two types of subsidiaries in Liechtenstein: the minimum amount required for a private company is 30,000 CHF, while the minimum capital required to open a public company is 50,000 CHF.
All companies in Liechtenstein, including subsidiaries of foreign companies must be registered with the Commercial Register. In order to do that, the following documents must be filed with the Trade Register in Liechtenstein:
The Liechtenstein subsidiary must also have a registered address in this country.
From a taxation point of view, the subsidiary will be taxed as any other company in Liechtenstein and can benefit from all the advantages this country offers. For example, Liechtenstein has a corporate tax rate of only 12.5%.
As mentioned above, the subsidiary is an independent entity when compared to the branch establishment. This is one of the advantages of creating a Liechtenstein subsidiary: it can carry out other commercial activities than its parent company. The subsidiary may also have a different management, if the parent company wants.
One of the greatest benefits of a foreign company opening a subsidiary in Liechtenstein is that it can benefit from the Parent-Subsidiary regulation which protects both companies from the risks incurred by one of the entities. Our Liechtenstein company formation consultants can explain how this regulation applies.
The subsidiary can carry out various types of activities, among which:
For assistance in setting up a subsidiary in Liechtenstein, please contact us. Our company registration agents can also assist you in opening any other type of company in Liechtenstein.