
About Liechtenstein
Liechtenstein is a small, landlocked country in Central Europe, bordered by Switzerland to the west and south, and Austria to the east and north. It's one of the smallest countries in the world, with an area of just about 160 square kilometers (62 square miles) and a population of around 40,000 people.
Liechtenstein
History
Early History
i) Prehistoric Times:
Evidence of human settlement in the area dates back to the Stone Age, with archaeological finds from the Bronze and Iron Ages.
ii) Roman Era:
Around the 1st century AD, the area became part of the Roman province of Raetia. Roman roads and settlements were established.
Middle Ages
i) After the fall of the Roman Empire, the region came under Alemanni control in the 5th century and later became part of the Frankish Empire.
ii) During the Holy Roman Empire, the land was divided into various small feudal territories, including the County of Vaduz and the Lordship of Schellenberg.
Creation of Liechtenstein (1719)
i) In 1699, Prince Johann Adam Andreas of Liechtenstein purchased the Lordship of Schellenberg, and in 1712, he acquired the County of Vaduz.
ii) On January 23, 1719, Emperor Charles VI of the Holy Roman Empire united both territories and declared them the Principality of Liechtenstein, granting the name from the Liechtenstein noble family.
iii) Interestingly, the Liechtenstein family ruled but didn’t actually live there until the 19th century.
19th Century: Napoleonic Era and Independence
i) Liechtenstein became part of the Confederation of the Rhine under Napoleon in 1806, gaining full sovereignty.
ii) After Napoleon’s fall, Liechtenstein joined the German Confederation in 1815.
iii) In 1866, the Confederation dissolved, and Liechtenstein became truly independent.
20th Century: Neutrality and Economic Transformation
i) World War I & II:
Liechtenstein remained neutral during both world wars.
ii) Post-WWI, it formed a customs and monetary union with Switzerland, stabilizing its economy.
iii) In WWII, Liechtenstein remained unoccupied and continued neutrality.
iv) The country shifted from an agricultural society to a highly industrialized and financial hub in the post-war era.
Modern Era
i) In the 1980s–2000s, Liechtenstein became known for its banking secrecy laws, although more transparency has been implemented in recent years.
ii) The country has a constitutional monarchy, with Prince Hans-Adam II and later his son Prince Alois (acting regent) playing significant political roles.
iii) It joined the United Nations in 1990 and the European Economic Area in 1995.
Interesting Facts
i) It's one of the world’s smallest countries (about 160 km²).
ii) Liechtenstein has no military, relying on Switzerland for defense.
iii) It’s one of the wealthiest countries per capita.
iv) The country is a direct democracy, with regular referendums.
v) It’s also one of the few countries named after a family, not a region.






Economy
Liechtenstein has a highly developed and diversified economy. It is known for its financial services, including banking and investment, which make up a significant portion of its GDP. The country also has a strong industrial sector, with firms specializing in precision instruments, electronics, and machinery.



Offshore Jurisdiction
Liechtenstein is a small, highly regarded jurisdiction for setting up companies, known for its business-friendly environment, low taxes, and privacy protections. Below is an overview of the key aspects of the company jurisdiction in Liechtenstein.
Key Features of Liechtenstein Offshore Jurisdiction
2. Taxation
i) Liechtenstein offers competitive tax rates, with a corporate tax rate of 12.5% on profits, which is lower than many European countries.
ii) Additionally, there are no inheritance or wealth taxes for companies, and there is no capital gains tax on the sale of shares in a company.
iii) VAT (Value Added Tax) is set at 8% for most goods and services.
1. Types of Companies
i) Aktiengesellschaft (AG) – Public limited company, similar to a corporation. Minimum capital required is CHF 50,000, and the company can be listed on the stock exchange.
ii) Gesellschaft mit beschränkter Haftung (GmbH) – Limited liability company, which is popular among smaller businesses. Minimum capital required is CHF 30,000.
iii) Establishment of Branches – Foreign companies can establish branches in Liechtenstein to conduct business activities.
3. Privacy and Confidentiality
Liechtenstein has strong privacy laws, providing confidentiality for company owners and shareholders. Public records of directors and shareholders are minimal.
4. Financial Services
i) Liechtenstein has a well-regulated financial sector and is known for its banking services, making it an attractive option for investment and wealth management companies.
ii) The financial sector is supervised by the Financial Market Authority (FMA).
5. Company Registration
i) The company formation process is relatively straightforward. It usually takes a few weeks to set up a company, depending on the complexity.
ii) Companies are required to have a registered office and a local director in some cases.
6. Legal Framework
i) Liechtenstein follows a civil law system, with laws based on the principles of the German legal system.
ii) The country is a member of the European Economic Area (EEA), providing access to the European market.


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