The Establishment in Liechtenstein
The establishment is a legally independent company permanently devoted to economic purposes or to other stipulations, which is registered in the Public Register and has no character under public law. The company assets (establishment capital, reserves and profit brought forward) are liable for the obligations.
The establishment can be employed in many different ways and comes into being with its entry in the Public Register of the Principality of Liechtenstein (commercial register).
The establishment is particularly suitable for commercial transactions, but also as an administrative and holding company. The purpose should be statutorily determined and may be of a profitable or non-profitable nature.
The purpose should reflect the actual activity of the establishment to be founded. It should be specified whether a commercially run business is planned. The establishment can be both a holding and a domiciliary company. The capital of the establishment is not usually split into shares. There are no members or participants, or shareholders, but there are destinatories (beneficiaries), who can derive economic benefit from the establishment.
The minimum capital amounts to CHF 30,000.00, for those establishments whose capital is not split into shares, and should be fully paid up.
The executive organs of the establishment are
1. Holder of the founder’s rights
2. Board of Directors
3. Auditors, where necessary
The company business is conducted by the Board of Directors, which may consist of one or more members. At least one member of the Executive Board must be resident in Liechtenstein. The latter must be a professionally accredited lawyer, legal agent, trustee, accountant, or possess another commercial qualification recognized by the government. In addition to the Liechtenstein contingent, any natural persons, but also legal persons resident in Liechtenstein or abroad, may be appointed to the Board of Directors.
Should a commercially oriented business be run, or should the statutes allow such business, a third executive organ must be appointed as auditors. The latter need to be authorised by the Liechtenstein government.
The proprietary rights are usually determined in the so-called by-laws. In the case of the establishment, the entitlement to beneficially use the income and/or assets is allocated either to the establisher (founder) or, depending on the statutory provision, another executive body.
The by-laws constitute a basic integral part of the statutes; they need not be deposited with the Public Registry Office.
A bookkeeping system is stipulated for any establishment with a commercial purpose.
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