The Principality of Liechtenstein

The Principality of Liechtenstein is located at the Upper Rhine, between the Swiss canton of St. Gallen and the Austrian province of Vorarlberg. Being the fourth-smallest country in Europe – approximately 30,000 inhabitants live on 160 square kilometres - it has become one of the most attractive business locations in Europe, which is in particular due to the large political and economic stability of the country, the high level of education of its population, and its liberal economic policy.

With a continuously low unemployment rate (that has remained below 2 % over the last 20 years), around 1.6 % of the work force are employed in the 1st sector (agriculture and forestry), almost 46,8 % in the 2nd sector (trade and industry), and approximately 51,6 % in the 3rd sector (services). Over one third of jobs is occupied by employees from neighbouring countries. (1)

Under the constitution of 1921, the Principality of Liechtenstein is a constitutional hereditary monarchy on a democratic and parliamentary basis. State power is held by the Prince as well as the people and is exercised by both in accordance with the provisions of the constitution.
 
 
Some aspects of Liechtenstein’s company law

The company law of the Principality of Liechtenstein is mainly regulated in the Personen- und Gesellschaftsrecht (PGR, Persons and Companies Act) of 20.1.1926 (2) and the Gesetz über das Treuunternehmen (TrUG, Act on Trust Enterprises) of 10.4.1928. (3)

The PGR provides the following legal forms for legal entities:

  • the association
  • the public limited company
  • the limited partnership
  • the limited participation company
  • the private limited company
  • the cooperative society
  • the mutual insurance association and the relief funds
  • the establishment
  • the foundation


Representation

Legal persons according to the law of Liechtenstein have to be represented before the authorities by a member of the E.E.A. who is domiciled in the Principality of Liechtenstein.
 
1) Liechtenstein in Zahlen 1998, Department for Public Economy, Vaduz
2) LGBl 1926, no. 4, see also revision of the PGR of 15.4.1980, LGBl 1980,
no. 39
3) LGBl 1928, no. 6