Foundation of a Branch Office in Liechtenstein
The establishment of an independent branch in Liechtenstein makes sense for the spin-off of business areas, preparation of corporate transactions because of the advantages of legal arrangements, because of the tax framework and possibilities for tax optimization.
The branch office cannot be a bearer of rights and obligations itself, it is dependent on the parent company. It can be managed as an independent company and act independently in economic and business terms. It is subject to Liechtenstein law and is treated like a Liechtenstein company. However, it is not a Liechtenstein company.
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Branches can be established in Liechtenstein by foreign corporations. A minimum capital is not required. However, a business license and an entry in the commercial register are necessary. The company name must include the name and location of the main branch office as well as the location of the branch office.
Back office, business registration, traderegisterregistration, management, tax accounting
Distinction from subsidiary and permanent establishment
The establishment of a true subsidiary creates a legally independent company that operates independently of its parent company.
At least the existence of a permanent establishment is required in Liechtenstein in order to carry on a trade. The related tax law problems are difficult and usually require advice.