Although Liechtenstein is among the smallest countries in Europe, there are numerous business opportunities here, for local or foreign entrepreneurs. The fruitful economy makes investors consider Liechtenstein a proper field for further businesses. But besides the large sectors of investments, a citizen can set up a sole trader in Liechtenstein, as the first step for a small entrepreneur. This is the easiest way of starting a business, but complete information and details can be obtained from our lawyers in Liechtenstein.
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Registering a sole trader in Liechtenstein
Being a sole trader in Liechtenstein gives the possibility of working from home and having just a few clients at the beginning. Besides that, the taxes are low because the sole proprietorships fall under the Small Business Law in Liechtenstein. If you want to register as a sole trader, you must receive the authorization of doing business from the Office of Economic Affairs, the entity in charge of such matters in Liechtenstein. The next step is to draft the documents with the Trade Register in the country, in order to obtain a certificate of registration as a sole proprietorship in Liechtenstein. Consider the following requirements when registering a sole trader and ask for legal advice from our attorneys in Liechtenstein:
• reserve and submit the name of your company with the Trade Register;
• register for social contributions like VAT or any other taxes;
• provide to the authorities the address of your company.
It is good to know that a sole proprietorship in Liechtenstein can register under a particular name which can be different from the one of the owner.
The following video describes the process of setting up a sole trader in Liechtenstein:
Taxes for sole proprietorships in Liechtenstein
In Liechtenstein, the profits of a sole trading company are considered the revenues of the owner, which is why a personal income tax will be enforced. A sole proprietorship in Liechtenstein is levied with reduced taxes compared to big companies in the country, and the tax rate is comprised between 1% and 8% from the obtained profits.
If you have decided to activate as a sole trader in Liechtenstein it is recommended to hire an accountant who supervises the financial activity of your business. Income statements, bookkeeping, audits, and balance sheets are among important aspects an accountant takes care of your small business.
When tradign with other EU countries, the law requires economic operators (whether natural or legal persons) to register for EORI purposes. Sole traders interested in import/export activities should observe this requirement.
We invite you to contact our law firm in Liechtenstein who can offer complete guidance and legal service if you want to set up a sole trader in Liechtenstein.