Start to Set Up Business in Liechtenstein
You can now start to set up a business in Liechtenstein because of its good profile. Liechtenstein, a western European country that is located between Switzerland and Austria, is one of the smallest countries in Europe. Liechtenstein is a landlocked country situated in the Rhine River Valley, bordering Austria to the East, Switzerland to the South and West. As of now, Liechtenstein is home to the population of 38,262, which is equivalent to 0.0005% of the total world population (based on the latest United Nations estimation).
Liechtenstein is gaining traction as one of the preferred investment destinations among European countries. For one, it has one of the most stable economies in Europe – rating agencies have offered triple-A ratings for several years in a row due to economic stability. These triple-A ratings, coupled with the stable economy, have driven many foreign investments in Liechtenstein.
1. Pro-Business System
Liechtenstein’s attractive taxation system is one of the main reasons that appeal to foreign investors. With a maximum income tax rate of 20% and a slew of tax and investments agreements, Liechtenstein offers many other benefits to global investors. The corporate tax in Liechtenstein stood at 12.5%, which is one of the smallest rates in Europe.
On top of that, the simple company registration process in Liechtenstein impresses many global investors. In Liechtenstein, the company incorporation process is simple and easy where you need to provide the Public Registry details and documents about your proposed business and minimum share capital of EUR 30,000 for a limited liability company. You can have your company incorporated within a few working days.
2. Access to Large Markets
Liechtenstein is part of the European Economic Area (EEA) – the EEA includes European Union (EU) countries as well as Iceland, Liechtenstein and Norway. Therefore, Liechtenstein is also part of the EU’s single market – global investors can tap the huge EU markets via Liechtenstein.
Liechtenstein ranks among the best countries in the world in setting up insurance companies and investment funds. Though Liechtenstein is not an EU member, it has signed quite a number of agreements with the EU states that enable investors from EU states to set up businesses in the investment funds sector in Liechtenstein.
3. Highly Industrialised Country
Liechtenstein is a highly industrialised country. Small and medium-sized enterprises are the backbone of Liechtenstein’s economy that underpins its economic growth. Approximately 40% of the workforce is employed in the industrial sector, along with the manufacturing sector that has generated almost 40% of the country’s gross value added.
Advantages of Starting to Set Up Business in Liechtenstein at a Glance:
- Political Continuity and Stability
- EcOnomic Stability
- Robust Investment Climate
- Springboard to Access to Two Markets (i.e. Europe and Switzerland)
- Liberal Economic Policy
- Attractive Taxation System
- Liberal Corporate Law
- AAA Credit Rating
- Swiss Franc as Official Currency
- Modern Infrastructure
Long story short, Liechtenstein is an excellent investment destination with a good corporate environment and attractive growth perspectives. If you are tapping the EU markets, Liechtenstein could make a great start. 3E accounting can guide you to start a business in Liechtenstein, contact us now.