The Establishment in Liechtenstein: A Unique Legal Entity

Josef Bergt
2023

The private law establishment, or "Anstalt," is a unique legal entity in Liechtenstein law. It is a legally independent and organized company dedicated to a permanent economic or other purpose with its own legal personality. The establishment can pursue any commercial or non-commercial purpose, provided it is legally admissible. It is mandatory for the establishment to be entered in the Commercial Register.

An establishment may be founded by one or more natural persons or legal entities. The establishment acquires legal personality once it has been entered in the Commercial Register. The articles of the establishment must contain the information and provisions required by law. The articles or by-laws must also contain more detailed provisions concerning any possible beneficiaries. In the absence of such a provision, there is a legal presumption that the holder of the founder's rights is himself a beneficiary.

The establishment may be organized in the manner of a foundation, i.e., without members and without capital divided into shares, or in a corporate manner. In the case of an establishment with founder’s rights, the holder or holders of the founder’s rights constitute, as a rule, the supreme body. The articles can, however, also entrust the powers of the supreme body to the management, which is usually the case with establishments organized in the manner of a foundation.

The management conducts the business and represents the establishment externally and may consist of one or more members. The holder or holders of the founder's rights may also be members of the management themselves. In the case of establishments that do not engage in activities of a commercial nature, a member of the management authorized to manage and represent the establishment must fulfill the requirements pursuant to Art. 180a Para. 1 or 2 of the Liechtenstein Persons and Companies Act (“PGR”) a be licensed as a professional Liechtenstein fiduciary respectively trustee.

The minimum capital of the establishment is CHF, EUR or USD 30’000.00. If the establishment capital is divided into shares, it must amount to at least CHF, EUR or USD 50’000.00. In both cases only the assets of the establishment are liable for its liabilities.

Source: Factsheet AJU/ h70.005e.03

Executive Summary:

• The private law establishment, or "Anstalt," is a unique legal entity in Liechtenstein law with its own legal personality.
• An establishment may be founded by one or more natural persons or legal entities and acquires legal personality once it has been entered in the Commercial Register.
• The establishment may be organized in the manner of a foundation, i.e., without members and without capital divided into shares, or in a corporate manner like a company limited by shares.
• The management conducts the business and represents the establishment externally and may consist of one or more members.
• The minimum capital of the establishment is CHF 30’000.00. If the capital is divided into shares the minimum capital is CHF 50’000.00.