Foundation of a Limited Liability Company (LLC., Ltd.) in Liechtenstein

Legal Structure

A Limited Liability Company (LLC., Ltd.) in Liechtenstein is a commercial company with its own legal personality. It may consist of one or more than one shareholder. The assets of a Limited Liability Company (LLC., Ltd.) in Liechtenstein are wholly liable for the company‘s liabilities.

A Limited Liability Company (LLC., Ltd.) in Liechtenstein may be formed, as may a Public Limited Company (PLC., Corp.) in Liechtenstein, for the pursuit of commercial or non-commercial purposes.

A Limited Liability Company (LLC., Ltd.) is particularly suitable for small and medium-sized start-ups and companies.

Foundation

A Limited Liability Company (LLC., Ltd.) is formed through the filing of the notarised formation deed and the articles of association to the competent Liechtenstein authority. It is not required that the founding member(s) of a Limited Liability Company (LLC., Ltd.) be present at the filing of the aforementioned documents. A Limited Liability Company (LLC., Ltd.) officially comes into existence upon its registration in the Commercial Register. The Commercial Register is a public register.

A simple and cost-effective establishment without public certification is possible for a Limited Liability Company (LLC., Ltd.) with a maximum of three shareholders and one managing director.

Minimum Capital

For the formation of a Limited Liability Company (LLC., Ltd.) in Liechtenstein, a minimum of 10,000 Swiss Francs or Euros or US Dollars must be contributed to its capital at the time of formation. The said contribution may be in the form of cash or non-cash contribution. The initial contribution of each shareholder must amount to at least 50 Swiss Francs and may not be reclaimed. Where the initial contribution is in the form of a non-cash contribution, 100% must be paid in. A Limited Liability Company (LLC., Ltd.) can also be established as a one-man Limited Liability Company (LLC., Ltd.).

Organisation

General Meeting

A Limited Liability Company (LLC., Ltd.) must hold a General Meeting at least once per year.

Managing Director

The General Meeting of a Limited Liability Company (LLC., Ltd.) in Liechtenstein appoints the Managing Director.

Appointment of an Auditor

In addition, a Limited Liability Company (LLC., Ltd.) in Liechtenstein must appoint an auditor, unless the founder(s) expressly state in the articles of association that an auditor will not be appointed. If a Limited Liability Company (LLC., Ltd.) in Liechtenstein carries out a commercial activity or its statutory purpose allows the operation of such a business, the appointment of an auditor is mandatory.

Liquidation

The earliest point at which a Limited Liability Company (LLC., Ltd.) can be liquidated is after the expiry of a period of six months following the issuing of the third notice to the creditors. A Limited Liability Company (LLC., Ltd.) can relocate its registered office abroad at any time.

Tax Structure of a Limited Liability Company (LLC., Ltd.) in Liechtenstein

Stamp duty in the form of a sales charge of 1% must be paid by a Limited Liability Company (LLC., Ltd.) in Liechtenstein when it is formed and, secondly, if there is an increase in its capital. Notwithstanding this, no stamp duty is required to be paid on the first one million Swiss Francs.

In addition, a Limited Limited Company (LLC., Ltd.) in Liechtenstein is required to pay an annual flat income tax rate of 12.5 %. Furthermore, following the introduction of the Private Asset Structure (PAS), Limited Limited Companies (LLC., Ltd.) in Liechtenstein which satisfy the appropriate requirements set out in Liechtenstein’s Tax Law of 1st January 2011 are required only to pay the minimum income tax of 1,200 Swiss Francs.

Following Liechtenstein‘s tax reform, the capital and coupon taxes have been abolished. Furthermore, tax is not payable on dividends or capital gains made through liquidation or sale proceeds.