The banking system of Liechtenstein is considered one of the most reliable and efficient in the world. Due to the high level of development of the banking sector, low taxes and liberal legislation the country is gradually becoming the business center of Europe. Taken together, these factors are the reason for the high popularity of the country both among local entrepreneurs and foreign ones.
Advantages and disadvantages of accounts in Liechtenstein
The banking system of the country is aimed at attracting foreign capital and favorable conditions are created for non-residents. It is worth opening a bank account in Liechtenstein for the following reasons:
- High reliability of the banking sector, ensured by the stability of the economic and political component of the country.
- Since 1995 Liechtenstein has been a member of the European Economic Area and a full member of the European Union. In addition, the country is in a customs union with Switzerland, and the official currency is the Swiss franc.
- Simple procedure of account opening, no excessive requirements.
- Privacy policies and a high level of client loyalty.
- Favorable fees and conditions for bank account servicing.
- Possibility to manage the account remotely.
In spite of these advantages, there is at least one serious drawback, which is the high requirements banks set for the minimum balance of an account or deposit. Every bank has different requirements, but typically, to open an account for individuals a deposit of 5 thousand Euro and for legal entities from 100 thousand Euro is required.
List of documents
List of documents necessary for account opening is typical. Typically, banks are asked to present:
- An application in the form established by the bank.
- Basic documents of the applicant: internal and foreign passports and income information.
- Power of attorney if a representative is involved.
- Statutory documents of the legal entity.
- Statements on open accounts in other banks, preferably foreign.
- Information about the main activities of the organization and the purpose of registration of foreign bank accounts.
The presented package of documents is indicative and can vary depending on the chosen institution and its conditions upwards as well as downwards.
Registration procedure
In general, the bank account application procedure is as follows:
- Collecting and preparing the documents requested by a particular bank.
- Waiting for the preliminary answer and, if approved, providing the missing information if necessary.
- Opening an account and obtaining all the necessary details.
Despite the relative simplicity of the whole procedure, for its successful completion it is required to strictly follow the existing requirements. Lawrange can help to understand all the peculiarities of the process and guarantee the opening of a bank account in Liechtenstein.
Reasons for refusal in registration of the account
The most probable reason for refusal in registration of the account is non-observance of formal requirements. For example, the documents are improperly executed or deadlines are not met. Usually after the mentioned reasons are eliminated, banks reconsider the application and make a new decision.
However, in some cases the chance of opening an account is minimal due to the bank’s unwillingness to cooperate with a particular client. For example, in order to preserve their reputation many financial institutions refuse to work with clients who have a dubious source of income, including income from:
- Gambling, betting, gambling.
- Illegal activities, such as trading in seized items, fraud.
In each case, the bank decides for itself whether it is possible to open an account for the client. In some cases, even the applicant’s refusal of such activities will not affect the position of the institution.
The cost of the service of opening an account in Liechtenstein
The final cost of the service is formed from the company fee, as well as other associated costs.
The most significant expenditure will be the payment for the account registration. Depending on the chosen bank, the amount may vary, but usually it is about 800 euros. The preparation of documents will also require the assistance of translators, notaries and other specialists.
Given the above, the average cost of providing a comprehensive service starts at 3000 euros.
The total cost includes all services necessary to guarantee account opening:
- Counseling on issues at each stage of the procedure.
- Assistance in collecting and preparing documents, making changes if necessary.
- Negotiations with bank representatives.
- Responding to all incoming requests.
Applying to Lawrange, you will get a comprehensive package of services to ensure successful registration of the bank account.
Conclusions
The banking sector in Liechtenstein is considered one of the most stable and reliable in the world. The combination with the developed economy makes the country extremely attractive for foreign entrepreneurs. The main peculiarity of local bank accounts for non-residents is obligatory keeping of large sums, which makes services less accessible for small legal entities.
FAQ
How to open an account in Liechtenstein online?
Some banks in Liechtenstein allow you to open an account remotely and without a personal visit to the country. Sometimes for confirmation of identity and verification it is enough to pass the Internet-interview, in other cases bank rules may provide a meeting with representatives on the territory of Russia. For example, Verwaltungs-und Privat-Bank AG (VP Bank) has an office in Moscow.
What is the most reliable bank in Liechtenstein?
The total number of banks in Liechtenstein may seem small compared to other countries, but they are all highly reliable and offer advantageous conditions. The largest banks with a good credit rating from various international agencies are LLB AG, LGT and VP Bank AG.
What are the terms for opening an account in Liechtenstein?
Terms for opening an account in Liechtenstein depend on the chosen bank and the peculiarities of the particular situation, but on average range from 2 weeks to several months.
