Legal forms in Liechtenstein and Switzerland

This depends on several factors: the size of your business, your capital requirements, the desired limitation of liability and the nature of your planned activities. A public limited company (AG) is often the preferred choice for larger businesses seeking to raise capital through shareholders. A limited liability company (GmbH) offers greater flexibility and is well suited to SMEs or family-owned businesses.

Example: An IT company planning international expansion and looking to attract investors may choose an AG to raise capital more easily. A regional trading business with a small number of owners will typically benefit more from a GmbH.

Yes, it is possible for foreign investors to establish an AG, GmbH or Anstalt. However, depending on the legal form, there are different requirements regarding the registered office, local management or legal representation. In some cases, appointing a local director or board member may be necessary.

Example: A UK entrepreneur could establish a holding AG in Switzerland to centrally manage equity interests across Europe.
A Liechtenstein Anstalt may be an ideal vehicle for a private client from the United States looking to structure and protect personal wealth.

In addition to one-off incorporation costs, ongoing expenses arise for accounting, tax filings and administrative services. The level of these costs largely depends on the size of the company and the nature of its business activities. Larger companies often require external tax advisors or auditors, while smaller businesses typically incur lower ongoing costs.

Example: Small businesses with few transactions and simple bookkeeping can expect annual costs starting at around CHF 5,000 (including accounting and tax returns).
Larger companies with complex international structures may face annual costs of CHF 100,000 or more, for example for tax optimisation, reporting and audit services.

Both countries offer attractive tax frameworks, depending on the chosen legal form and business activity. Liechtenstein is particularly attractive for foundations and trusts, as assets can be managed in a tax-efficient way. In Switzerland, tax rates vary by canton – some cantons offer significantly lower corporate tax rates than others.

Example: An entrepreneur looking to secure family wealth in the long term might set up a Liechtenstein foundation, as it offers optimised tax treatment.
A manufacturing company could choose Switzerland and benefit from low corporate tax rates in cantons such as Zug.

Yes, in many cases a conversion is possible – for example, changing from a GmbH to an AG if the company’s needs evolve. However, the legal and tax implications should be carefully assessed. In some situations, the conversion may be tax-neutral, while in others, additional costs or reporting obligations may arise.

Example: A growing consultancy initially set up as a GmbH might convert into an AG after bringing in new investors and facing increased capital requirements, to facilitate equity financing.