An Overview of Business Record Management in Liechtenstein

Josef Bergt
2023

In the realm of business, maintaining accurate and comprehensive records is not just a matter of good practice, but a legal requirement. This article, aims to elucidate the principles and practices of maintaining, storing, and archiving business records in the Principality of Liechtenstein pursuant to the Liechtenstein Persons and Companies Act (“PGR”) and the Liechtenstein Persons and Companies Ordinance.

It is important to adhere to recognized commercial principles when maintaining business records and capturing booking receipts. These records, along with business correspondence, must be carefully organized and protected from harmful influences. The storage period for business records, booking receipts, and business correspondence is generally ten years pursuant to Art. 1059(1) PGR, commencing from the end of the business year in which the last entries were made, the booking receipts were created, and the business papers were sent or received.

The availability of these records must be ensured. They must be stored in a manner that allows authorized personnel to review and inspect them within a reasonable period until the end of the retention period. If necessary, the relevant personnel and equipment or tools must be made available for inspection and review.

Moreover, the importance of documentation needs to be stressed. Depending on the nature and scope of the business, the organization, responsibilities, processes, and infrastructure used in maintaining and storing business records must be documented in work instructions. These instructions must be updated and stored following the same principles and for the same duration as the business records maintained according to them.

In terms of electronic record keeping, electronic business records, receipts, and business papers have the same evidentiary value as physically maintained documents, provided legal requirements are met. They must be maintained and stored in a way that they cannot be altered without detection.

The business books and financial statements of a dissolved company or an equivalent association must be stored at a secure location determined by the liquidators, at the expense of the liquidation estate, for a duration of ten years. After this period, the liquidators can use these documents at their discretion. If an association is dissolved through bankruptcy, the bankruptcy administration makes specific arrangements for storage at the expense of the bankruptcy estate.

Archived information must be separated from current information or marked in a way that allows differentiation. The responsibility for archived information must be clearly regulated and documented. Access to archived data must be possible within a useful period.

The information must be systematically inventoried and protected from unauthorized access. Accesses and entries must be recorded. These records are subject to the same storage obligation as the data carriers.

For the storage of documents, the following are permissible: unchangeable information carriers, specifically paper, image carriers, and unchangeable data carriers; and changeable information carriers. 

Information carriers are considered changeable if the information stored on them can be changed or deleted without the change or deletion being detectable on the data carrier (such as magnetic tapes, magnetic or magneto-optical disks, hard or interchangeable disks, solid-state memory).

Changeable information carriers are permissible if technical procedures are used that ensure the integrity of the stored information (e.g., digital signature procedures); the time of storage of the information is verifiably unalterable (e.g., through "timestamps"); the existing further regulations on the use of the relevant technical procedures at the time of storage are complied with; and the processes and procedures for their use are defined and documented, and the corresponding auxiliary information (such as protocols and log files) is also stored.

The information carriers must be regularly checked for their integrity and readability. Data can be transferred to a different format or other information carriers (data migration) if it is ensured that the completeness and correctness of the information is maintained, and the availability and readability continue to meet legal requirements. The data transfer from one information carrier to another must be logged. The log must be stored together with the information.

Executive Summary:

• Business records, booking receipts, and business correspondence must be carefully maintained and stored, adhering to recognized commercial principles.
• The storage period for these documents is generally ten years, starting from the end of the business year in which the last entries were made.
• These records must be stored in a manner that allows authorized personnel to review and inspect them within a reasonable period.
• The organization, responsibilities, processes, and infrastructure used in maintaining and storing business records must be documented in work instructions.
• Electronic business records, receipts, and business papers have the same evidentiary value as physically maintained documents, provided legal requirements are met.
• Electronic records must be maintained and stored in a way that they cannot be altered without detection.
• Detailed instructions are provided for the use of mutable information carriers, regular integrity checks, and data migration.
• Archived data must be distinguishable from current information.
• Responsibilities for archived data must be clearly defined and documented.
• Access to archived data should be possible within a reasonable timeframe.
• Information must be systematically cataloged and safeguarded from unauthorized access.
• All accesses and entries must be recorded and stored as per data carrier storage obligations.
• Both unchangeable (e.g., paper, image carriers) and changeable information carriers are acceptable for document storage.
• Changeable carriers are those where stored information can be altered or deleted without detection.
• Changeable carriers are permissible if they use technical procedures ensuring data integrity, have verifiable timestamps, comply with relevant regulations, and have defined and documented processes for use.
• Regular checks for integrity and readability of information carriers are necessary.
• Data migration is allowed if it ensures information accuracy and completeness, and continues to meet legal requirements.
• Data transfer must be logged, and the log must be stored with the transferred information.