Setting up a sole trader in Liechtenstein means that you are the sole owner of the business that you are running. Sole proprietorships are created the same way as any other type of company. They are also governed by the Persons and Company Law which requires that the sole proprietorship must be registered with the Public Register. The business that the sole proprietor in Liechtenstein is running does not have a separate legal entity, although it can have a name that is different from that of its owner. This means that the obligations of the business are the liabilities of the owner and his/her personal assets are not excluded. The good thing about being a sole trader is that you enjoy the simplicity and full control of the business. This is ideal for small and medium enterprises. Let our experts in company incorporation in Liechtenstein guide you in setting up a sole trader.
A sole proprietorship in Liechtenstein is regulated similarly as any other company, although it is much easier to set up. The sole proprietor just needs to register the business on his/her own name and secure a permit to do business with the office of Economic Affairs. Registration is done with the Public Register. Once registration is completed, the business can begin to operate. Our experts can guide you on how to set up a company in Liechtenstein as well as a sole trader.
Taxation for sole proprietorships in Liechtenstein is very simple because the income of the business is considered as the income of the owner. This means that personal income tax is imposed on business profits. Currently, the personal income tax rate is from 1% to 8%, depending on the amount of income the sole proprietorship earned from the operation of the business. This rate is relatively lower than if you open a company in Liechtenstein as a corporation because it is taxed at 25%.
All establishments engaged in commercial activities must have a book of accounts. Since sole proprietorships in Liechtenstein are regulated similarly as other corporations, they must also comply with this requirement. All necessary documents, such as balance sheets and income statements, must be ready within six months from the last day of the fiscal year. Auditing must be conducted by certified public accountants.
Please watch our video on the simplest form of doing business in Liechtenstein:
If you plan on becoming a sole trader, just contact our experts in company formation in Liechtenstein. They will provide you with the information you need.