On the one hand, a branch office is dependent on the parent company and cannot be the bearer of rights and duties, for example. On the other hand, the branch office can operate relatively independently at an economic and commercial level, which means that it could be run as an independent business without any significant changes. Indeed, a branch office of a foreign company is not a Liechtenstein enterprise, because the foreign parent company is financially responsible, but it is governed by Liechtenstein law and it is treated like a Liechtenstein company.

Formation

Branch offices can be set up by a company limited by shares (AG), a company with limited liability (GmbH) or by commercial general partnerships and limited partnerships. The formation of a branch office does not require any minimum capital. However, a business licence for qualified trade respectively a business registration for simple trade and the entry in the commercial register are required. The administrative costs incurred as a result of the entry amounts to CHF 200.00 to 350.00.

Disclosure requirements

In most enterprises, a separate profit and loss account and balance sheet are maintained for each branch office.

Corporate name

Apart from the unchanged corporate name of the head office and its location, the corporate name of the branch office must contain the express designation as branch office and the location of the branch office.

Pros and cons

  • Professional positioning of an additional company site
  • The costs of formation are low
  • No minimum capital required
  • A largely independent division ensures the professional positioning of a domestic or foreign enterprise
  • The branch office enjoys a certain degree of economic independence 
  • For the branch office of a foreign enterprise certain documents of the main office must be translated

4 reasons for the establishment of a branch office

  • A branch office permits the professional positioning of an additional site
  • A branch office can be relatively independent economically
  • The formation of a branch office does not require any minimum capital
  • The costs incurred for the establishment of a branch office are relatively low

Statutory Basis (German only)

Persons and Companies Act (Personen- und Gesellschaftsrecht - PGR) of 20 January 1926

Ordinance of 11 February 2003 on the Land Register and Commercial Register Fees (Verordnung vom 11. Februar 2003 über das Handelsregister)

Collection of laws of the Principality of Liechtenstein

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