Liechtenstein is renowned as a financial center in Europe and in the world, which is why it counts an impressive number of financial institutions. Moreover, the Financial Market Authority (FMA), the regulatory body in charge with the approval of financial companies’ licenses, provides for very strict regulations for those seeking to set up this type of companies in Liechtenstein. The FMA also divides financial companies into:
- – banking institutions;
- – investment companies;
- – e-money companies;
- – payment companies;
- – insurance companies and intermediaries;
- – investment funds;
- – pension funds and schemes.
The government enabled several laws which provide for the control of all financial companies in Liechtenstein. Our company formation agents in Liechtenstein can offer information on the laws related to opening a financial institution in the Principality.
Registering a financial company in Liechtenstein
The creation of a financial company in the Principality of Liechtenstein falls under the provisions of the Commercial Code in the beginning. This means that before applying for the specific financial licenses issued by the FMA, a company must be registered with the Trade Register based on the articles of association which must state the activities of the company. It should also be noted that the most employed type of structure used to set up financial company in Liechtenstein is the joint stock company.
Licensing requirements for financial companies in Liechtenstein
In order to be issued a license, a financial company in Liechtenstein must comply with several requirements. Among these are:
- – clearly defining the geographical area in which it will operate;
- – appointing a board of directors which must supervise the company’s activities;
- – complying with the share capital requirements.
With respect to the share capital, a bank must have an initial capital of 10 million Swiss francs or the equivalent in euros and US dollars. In the case of investment companies, the minimum capital accepted is 1.5 million Swiss francs. In the case of insurance companies, the capital depends on its main activities:
- – for life insurance companies, the minimum amount accepted is 3.7 million Swiss francs;
- – for non-life insurance companies, a minimum of 2.5 million Swiss francs is required;
- – for reinsurance companies, the minimum share capital is 3.6 million Swiss francs.
For full information on the requirements for opening a financial company in the Principality, please feel free to contact our company registration consultants in Liechtenstein.