Liechtenstein as a Funds Centre

When establishing an investment fund or an investment company many considerations have to be made. One of the most important considerations is the choice of the location. The Principality of Liechtenstein offers ideal conditions as a funds centre:

• Thank to Liechtenstein’s membership in the European Economic Area (EEA) Liechtenstein fund products are considered European and equivalent with those of other EU countries (single-license principle).

• Liechtenstein offers a high level of investor protection and one of the most progressive laws on investment funds worldwide.

• Liechtenstein investment funds are largely excluded from domestic taxes.

• The Liechtenstein financial centre is supervised by the Liechtenstein Finance Market Authority (FMA), an independent and integrated authority that complies with strict European standards.

• As a funds centre, Liechtenstein offers many benefits in terms of flexibility, individuality, transparency and quality.

Special features of the Liechtenstein fund centre

The Law on Investment Undertakings (Investment Undertakings Act; IUA), which was passed in 1996 and completely revised in 2005, forms a modern, innovative and up-to-date legal framework and meets the highest international standards. The law is liberal and permits many approaches to individual solutions.

Investor protection has maximum priority:
Article 1 of the Law on Investment Undertakings says: «… the object of the Act is to protect investors and ensure confidence in the Liechtenstein fund centre and the Liechtenstein financial system».

Characteristics of the Law on Investment Undertakings (IUA):

• Liberal formation of funds with preservation of individuality and an orientation that complies with European standards.

• In international comparison, Liechtenstein provides legally stipulated, short periods for the authorisation of funds by the Finance Market Authority (FMA).

• The elimination of capital tax for investment companies, the Law on Asset Management (Asset Management Act; AMA) as well as the supervising authority’s integration into and cooperation with professional organisations, associations and societies complement this optimal framework for launching investment funds or investment companies.