Purchase a Company in Liechtenstein - Tailored Support for Investors
Purchase a Company in LiechtensteinUpdated on Thursday 07th October 2021
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Liechtenstein is a German speaking country in a mountainous region in central Europe. With one of the highest GDPs on the continent, Liechtenstein is a strong economy and an inspired place to develop your business. If you are interested to purchase a company in Liechtenstein, you could use the legal solutions provided by our Liechtenstein lawyers and enter a market which is supporting foreign investments.
Advantages of company acquisition in Liechtenstein
Many foreign investors who intend to develop a business in Liechtenstein initially think to start the business from scratch. However, this is not the only available solution provided by the local legislation. A very popular alternative is to buy a ready-made company. One of the most costly periods of company formation is the building of a customer base. When you purchase a company in Liechtenstein, in case you intend to keep its line of activity, then you might have the advantage of an already trained market with loyal customers. Nevertheless, a good reputation and business history will grant your stability from the beginning.
Each company formation implies an immense work in the organization and structuring of the business activity. But with a company acquisition in Liechtenstein you can build on what is already there, what has already been proved to be functional in the local conditions. The acquisition procedures are much simpler than the registration of a new company, and our attorneys in Liechtenstein are ready to offer legal assistance and representation for the transfer of ownership.
Ways through which a company can be purchased in Liechtenstein
Foreign investors who want to come to Liechtenstein have several ways through which they can run their own businesses. From registering new entities, to using a franchise which is a guarantee for success, however, it requires a serious investment, these are just two of the means through which an entrepreneur can have his/her own company.
The Company Law in Liechtenstein also provides for other means through which a businessperson can own a company in this country. These are:
- the acquisition of a ready-made or shelf company which is one of the fastest ways of having a business in Liechtenstein;
- mergers and acquisitions which are governed by special regulations;
- takeover is also a way of purchasing a company in Liechtenstein;
- acquisition through the purchase of shares in a company is a simple way of becoming the owner of a business in Liechtenstein.
Our law firm in Liechtenstein is at your disposal with detailed information on the regulations related to purchasing companies in this country through the procedures presented above.
The following video presented by our lawyers highligts the main aspects related to purchasing a company in Liechtenstein:
The procedure of company acquisition in Liechtenstein
The most important aspects to consider are:
- which type of company to incorporate,
- how to find it,
- how to choose it.
For this you need to elaborate a clear list of your main objectives and requirements. You might be interested to employ a due-diligence service who can check for you on the hidden risks of a company that you would be interested to buy. You might as well need professional help with negotiation and the elaboration of the required paperwork. The financial statements and sale records need to be revised and evaluated, a list of liabilities must be elaborated, and copies made of the contracts and all legal documents.
After the purchase is complete, VAT registration in Liechtenstein may be required, depending on a certain turnover threshold.
Investors who buy a company in Liechtenstein will also need to apply for special permits and licenses in some cases. Moreover, EORI registration will be required for trade activities within the EU.
Buying a ready-made company – a simple business acquisition procedure
One of the simplest ways of purchasing a company in Liechtenstein is by acquiring a shelf company. Also known as ready-made or aged company, this is a dormant business that has been incorporated and has been kept inactive with the purpose of being sold.
Shelf companies are usually sold by specific service providers and their purchase imply signing a deed of transfer of the shareholding ownership. Then, several modifications must be made with the Trade Register in Liechtenstein, for the new owner to be recognized.
Purchasing a shelf company in Liechtenstein has several advantages, among which the fact that the procedure is completed in a few days and the amendments to the company’s statutory documents can be done in another few days. However, this is option is more expensive than starting a new business, for example. The cost of the company itself is higher of the fees related to business registration, for example.
Our lawyers in Liechtenstein can provide more information on the purchase of a ready-made company.
Mergers and acquisitions in Liechtenstein
Mergers and acquisitions are procedures that occur all over the world, however, they are quite complex in terms of documents, procedures and even timeframe.
Mergers and acquisitions usually imply companies taking control over other companies, which is why the process is complicated and requires respecting various laws, including the Civil Code and the Liechtenstein Employment Law which provides for what happens to the workers of the company taken over by the other enterprise.
While mergers imply the unification of two companies under one name, acquisitions refer to the entire integration of an enterprise in the one purchasing it. In both situations, due diligence and verifications will be completed by relevant authorities in Liechtenstein, among which ministries in charge of the industries these enterprises operate.
Our Liechtenstein law firm can provide extensive services related to mergers and acquisitions and can guide you through the complexities of such procedures.
Purchasing shares in an existing company in Liechtenstein
Foreign citizens who want to relocate to Liechtenstein and want to ensure a stable income can acquire a company by purchasing shares in it. In the case of seasoned entrepreneurs, the procedure can be completed through a direct negotiation with the shareholders, or through international stock exchanges.
Liechtenstein is an export-oriented economy, with many public companies having their shares listed on international stock exchanges. Moreover, based on the number of shares a business sells, a foreign investor can become a majority shareholder in the respective enterprise.
If you are interested in this means of buying a company in Liechtenstein, our lawyers can explain how this mechanism works.
Liechtenstein’s economy in numbers
Liechtenstein is one of the richest countries in Europe which makes it very appealing as an investment destination. According to the latest data:
- the country’s Gross Domestic Product (GDP) in 2018 was 6.84 billion USD;
- its GDP represents 0.01% of the world’s gross domestic product;
- by the end of 2021, its GDP is expected to reach 6.10 billion USD, while recovering from the coronavirus health crisis;
- 2022 is predicted to be a better year with GDP growth forecasts to reach 6.30 billion USD.
Among the main reasons you should choose to invest in Liechtenstein is the low corporate tax set at a rate of 12.5%.
Don’t hesitate to contact our law firm in Liechtenstein for a complete and hassle free incorporation procedure. Our experienced lawyers will make sure every document is in order when you purchase a company in Liechtenstein.