FAQs - Frequently Asked Questions

Extracts from Daily Counselling

How do I know that the name I have chosen for my trust or company is still available? 

We present your chosen names to the Public Registry requesting availability. As there are many names already in use, we recommend that you list at least three different names in order of preference.


What contracts are necessary for setting up a Liechtenstein company?  

To set up a company , we require a written mandate agreement, the authority to form the company (formation order) as well as the business profile according to the Liechtenstein Professional Diligence Laws. Click here for further details on due care and attention.


What costs are involved?  

Basically, one differentiates between the costs of setting up a company and the annual fixed costs. In the year of formation, both costs are incurred. Only the annual costs are incurred in the following years. These cover the costs of domicile and the directorship fee of the company. Necessary administration costs (secretarial, accounting, legal assistance and special activities etc.) are invoiced at our current hourly rates on the basis of the time and work involved.   


After forming, is the initial capital available again for the statutory fulfilments of the company's purpose?  

Liechtenstein Persons- and Company Law (PGR) is very clear: initial capital may not fall under 50% - otherwise the company must be restructured or, if necessary, liquidated. The founder is obliged to ensure that the annual accounts show capital of at least CHF 15'000 for foundations and establishments or CHF 25'000 for stock corporations.


What are the implications of the source tax which Liechtenstein, together with Switzerland, will introduce as a comparable measure to the EU tax on interest in 2005?

At the meeting of EU finance ministers in Luxemburg in June 2004 it was made known that the European Commission had reached an agreement with all Third States (see details in following question) with regard to the introduction of a source tax, as comparable measure to the EU interest tax in 2005.  


When source tax is paid to the investor's EU country of domicile, will in any way the Liechtenstein bank secrecy laws be infringed?

No, Liechtenstein and Switzerland achieved along with the EU states Belgium, Luxemburg and Austria, protection of their bank secrecy laws. While all other EU States will participate in an information exchange between banks and tax authorities on interest gained by EU citizens, these countries will levy a source tax without transferring personal data. This will take place in tri-annual steps of 15%, increasing to 20% and by the year 2011 to 35%. 75% of this will flow to the domicile state of the investor, 25% remaining in the country of investment.   


Is source tax levied on Liechtenstein foundations? 

Liechtenstein foundations are exempt from source tax, making it even more interesting for you, as your assets would normally be subjected to EU interest tax. 


Is it possible for a Liechtenstein company to deal in stocks and shares in its own name for third parties?  

No, such transactions are governed by the regulations on investment companies. Investment companies require a government concession in order to commence investment trading.  


Can a Liechtenstein foundation acquire agricultural land within the European Union? 
Is it little known that, in accordance with the judgement of the European Court of Jurisdiction, on 23rd September 2003 agricultural land within the EU can be acquired by a Liechtenstein foundation providing it is guaranteed that the land is being farmed i.e. let out to a farmer. Contrary to earlier legal practise, the buyer of agricultural land must no longer be a farmer.