{"id":291,"date":"2023-04-28T11:10:41","date_gmt":"2023-04-28T11:10:41","guid":{"rendered":"https:\/\/companyformationliechtenstein.com\/?p=291"},"modified":"2023-05-12T13:30:08","modified_gmt":"2023-05-12T13:30:08","slug":"establish-a-branch-in-liechtenstein","status":"publish","type":"post","link":"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/","title":{"rendered":"Establish a Branch in Liechtenstein"},"content":{"rendered":"\n<p>Foreign investors are attracted by several&nbsp;<strong>investment incentives Liechtenstein<\/strong>&nbsp;offers. Among these, low share capital requirements and advantageous taxation system. However, not only foreign enterprisers seek to&nbsp;<strong>open new companies<\/strong>, but also foreign companies wanting to have an established presence in Liechtenstein. In order to support multinational companies and even smaller ones, the&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/company-law-in-liechtenstein\">Company Act in Liechtenstein<\/a>&nbsp;provides for several types of entities. Among these, subsidiaries, commercial and non-commercial establishments and&nbsp;<strong>branch establishments<\/strong>&nbsp;or&nbsp;<strong>offices<\/strong>. Both foreign and local companies can have one or more branch offices in Liechtenstein.<\/p>\n\n\n\n<p>Our&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/about-us\">company formation agents in Liechtenstein<\/a>&nbsp;can help you choose the right type of structure when opening a business here.<\/p>\n\n\n\n<p>You can also watch the video below for information on how to&nbsp;<strong>create a branch office in Liechtenstein:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-4-3 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Establish a Branch in Liechtenstein\" width=\"840\" height=\"630\" src=\"https:\/\/www.youtube.com\/embed\/du02QyI1ulI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/#what-is-a-liechtenstein-branch-establishment\" title=\"What is a Liechtenstein branch establishment?\">What is a Liechtenstein branch establishment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/#how-to-register-a-branch-office-in-liechtenstein\" title=\"How to register a branch office in Liechtenstein\">How to register a branch office in Liechtenstein<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/#liability-of-the-branch-establishment-in-liechtenstein\" title=\"Liability of the branch establishment in Liechtenstein\">Liability of the branch establishment in Liechtenstein<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/#types-of-branch-offices-in-liechtenstein\" title=\"Types of branch offices in Liechtenstein\">Types of branch offices in Liechtenstein<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/companyformationliechtenstein.com\/establish-a-branch-in-liechtenstein\/#our-clients-questions-on-branch-offices-in-liechtenstein\" title=\"Our clients\u2019 questions on branch offices in Liechtenstein\">Our clients\u2019 questions on branch offices in Liechtenstein<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-a-liechtenstein-branch-establishment\"><\/span><strong>What is a Liechtenstein branch establishment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>branch establishment<\/strong>&nbsp;is considered any place of business of a local or foreign company&nbsp;<strong>in Liechtenstein<\/strong>. The&nbsp;<strong>branch office<\/strong>&nbsp;will be tied to the commercial activities of the parent company and will be registered with the&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/public-registry-liechtenstein\">Companies Registrar in Liechtenstein<\/a>. The Company Law also specifies that the parent company will be held liable for the actions of its&nbsp;<strong>branch office<\/strong>. Even if the&nbsp;<strong>Liechtenstein branch office<\/strong>&nbsp;will be registered and dissolved in accordance with the local legislation, the relation between it and the foreign parent company will be subject to the law applicable in the parent company\u2019s resident country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-to-register-a-branch-office-in-liechtenstein\"><\/span><strong>How to register a branch office in Liechtenstein<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A&nbsp;<strong>branch office<\/strong>&nbsp;must be registered with the Liechtenstein Trade Register. The main requirements to&nbsp;<strong>open a branch establishment in Liechtenstein<\/strong>&nbsp;is to have a registered address and a legal representative who is domiciled in the country. The legal representative can also be a&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/set-up-a-ag-in-liechtenstein\">Liechtenstein company<\/a>&nbsp;which must be appointed by the management board of the parent company.<\/p>\n\n\n\n<p>Just like in the case of other&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/open-private-limited-company-without-shares-in-liechtenstein\">types of companies<\/a>, the&nbsp;<strong>branch office&nbsp;<\/strong>must also have a memorandum and articles of association which can be filed with the Trade Register and which can be amended in accordance with the local laws. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"liability-of-the-branch-establishment-in-liechtenstein\"><\/span><strong>Liability of the branch establishment in Liechtenstein<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As an extension of the local or&nbsp;<strong>foreign company<\/strong>, the&nbsp;<strong>branch office<\/strong>&nbsp;will not be responsible for the business\u2019 liabilities, as these fall onto the parent company. Also, the parent company has the duty to report with the Liechtenstein Companies Registrar all the changes made in&nbsp;<strong>the branch establishment<\/strong>. From an accounting point of view, a&nbsp;<strong>branch office registered in Liechtenstein<\/strong>&nbsp;will be subject to the local&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/accounting-services-in-liechtenstein\">accounting requirements<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"types-of-branch-offices-in-liechtenstein\"><\/span><strong>Types of branch offices in Liechtenstein<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>Liechtenstein legislation<\/strong>&nbsp;provides for two&nbsp;<strong>types of branch offices<\/strong>&nbsp;a foreign company can establish:<\/p>\n\n\n\n<ul>\n<li>permanent establishments;<\/li>\n\n\n\n<li>secondary establishments.<\/li>\n<\/ul>\n\n\n\n<p>While the&nbsp;<strong>permanent establishment<\/strong>&nbsp;must carry out a trading activity in Liechtenstein, the&nbsp;<strong>secondary branch office<\/strong>&nbsp;has the advantage of having a certain degree of independence from the parent company. The&nbsp;<strong>permanent establishment<\/strong>&nbsp;is usually the most employed form of foreign companies for doing business in Liechtenstein as it is covered by&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/double-tax-treaties-in-liechtenstein\">double taxation agreements<\/a>&nbsp;and benefit from various tax facilities.<\/p>\n\n\n\n<p>Another particularity of the&nbsp;<strong>permanent branch office<\/strong>&nbsp;is that it is regulated by the Tax Law in Liechtenstein.<\/p>\n\n\n\n<p>It should be noted that foreign&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/open-a-company-in-the-insurance-sector-in-liechtenstein\">insurance companies<\/a>&nbsp;may also&nbsp;<strong>set up branch offices in Liechtenstein&nbsp;<\/strong>provided that they obtain the authorization of the Financial Supervisory Authority in the Principality. These will also be subject to various share capital requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"our-clients-questions-on-branch-offices-in-liechtenstein\"><\/span><strong>Our clients\u2019 questions on branch offices in Liechtenstein<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1683896804232\"><strong class=\"schema-faq-question\"><strong>Is there any difference between the Liechtenstein branch office and the subsidiary?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, compared to the autonomy of the\u00a0<strong><a href=\"https:\/\/www.companyformationliechtenstein.com\/create-a-subsidiary-in-liechtenstein\">subsidiary<\/a><\/strong>, the branch office is controlled by the parent company. This means that all decisions are taken by the parent company.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683896817392\"><strong class=\"schema-faq-question\"><strong>Is it hard to register a branch office in Liechtenstein?<\/strong><\/strong> <p class=\"schema-faq-answer\">No, the registration process for a branch office will imply the same steps as for any other company in Liechtenstein.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683896830736\"><strong class=\"schema-faq-question\"><strong>What is the tax the branch office must pay in Liechtenstein?<\/strong><\/strong> <p class=\"schema-faq-answer\">The Liechtenstein branch office will pay the corporate tax of 12.5% for the income generated in the country.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683896843856\"><strong class=\"schema-faq-question\"><strong>Which type of branch office should I register in Liechtenstein: the permanent or the secondary one?<\/strong><\/strong> <p class=\"schema-faq-answer\">This decision should be made based on the types of activities the parent company is interested in. Our\u00a0<strong><a href=\"https:\/\/www.companyformationliechtenstein.com\/\">company registration agents in Liechtenstein<\/a><\/strong>\u00a0can help you make this decision.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683896858879\"><strong class=\"schema-faq-question\"><strong>Do I need to appoint a local director for the branch office in Liechtenstein?<\/strong><\/strong> <p class=\"schema-faq-answer\">The law does not provide for a national to be a director in a Liechtenstein branch office.<\/p> <\/div> <\/div>\n\n\n\n<p>For information about the taxation and accounting standards applicable to&nbsp;<strong>branch establishments<\/strong>&nbsp;in the Principality, please&nbsp;<a href=\"https:\/\/www.companyformationliechtenstein.com\/contact\">contact our company registration consultants in Liechtenstein<\/a><strong>.<\/strong>&nbsp;We can also assist with the&nbsp;<strong>registration of a<\/strong>&nbsp;<strong>branch establishment in Liechtenstein<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign investors are attracted by several&nbsp;investment incentives Liechtenstein&nbsp;offers. Among these, low share capital requirements and advantageous taxation system. However, not only foreign enterprisers seek to&nbsp;open new companies, but also foreign companies wanting to have an established presence in Liechtenstein. In order to support multinational companies and even smaller ones, the&nbsp;Company Act in Liechtenstein&nbsp;provides for several [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[36,35,37,12],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Establish a Branch in Liechtenstein<\/title>\n<meta name=\"description\" content=\"Find here how to set up a branch office or establishment in Liechtenstein. 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