Incorporating a company (such as a public limited company) in Liechtenstein requires an initial capital contribution.

This can generally be done as cash contribution by depositing cash into an escrow account at a bank in the EU, EEA, or Switzerland or by contributing assets as non-cash contribution. In addition to traditional asset for non-cash contributions, Liechtenstein permits companies to use crypto assets as non-cash contributions for incorporation.

This blog post provides a practical overview of how to establish a corporation in Liechtenstein using crypto assets.

1. Which crypto assets are accepted as non-cash contributions in Liechtenstein?

The Liechtenstein Office of Justice generally recognizes crypto assets listed on CoinMarketCap as eligible non-cash contributions. To date, Bitcoin (BTC), Ethereum (ETH) and Stablecoins have been used as non-cash contribution for incorporation.

If the initial capital contribution is to be provided in a crypto assets other than Bitcoin or Ethereum, it is advisable to consult with the Office of Justice in advance to ensure that the chosen crypto asset is recognized as a valid non-cash contribution.

2. Non-cash contribution agreement

When incorporating a company using crypto assets, a non-cash contribution agreement must be prepared. This agreement between company and founder(s) must specify:

The exact designation of the crypto assets;
Its abbreviation (e.g., Bitcoin (BTC) or Ethereum (ETH));
The value of the crypto asset, which must be at least equal to the statutory minimum share capital (for a public limited company, this is at least CHF/EUR/USD 50,000).

The valuation method used, the trading platform referenced, and the market value at the time of valuation must be clearly stated.

Due to frequent market fluctuations, it is recommendable to include a security buffer in the agreement to compensate for potential value changes. Alternatively, a stablecoin can be used to minimize volatility risks.

3. No expert report required

If crypto assets are used as non-cash contribution, an expert report is not required. This exemption is due to the fact that crypto assets like Bitcoin and Ethereum are publicly traded and have an objective price, which is published daily on platforms such as the platform of the Swiss Federal Tax Administration (ICTAX).

4. Adjusting the articles of association

When the initial capital is contributed in crypto assets, the articles of association must include the following details:

• The specific non-cash contribution (e.g., Bitcoin or Ethereum);
• The name of the depositor (founder);
• acceptance of shares or other payments in lieu of payment, stating the number of shares;
• and precise information about any kind of founder’s benefits.

5. Conclusion: The future of incorporation with crypto assets

Incorporating a company in Liechtenstein using crypto assets as a non-cash contribution offers a modern and flexible way to provide the initial capital. With crypto assets as non-cash contribution being officially recognized, Liechtenstein provides a forward-thinking regulatory environment for businesses looking to leverage digital assets.

Start with us now and contact us at office@isp.law or use our fully automated booking tool to make an appointment directly for an initial consultation at https://www.isp.law/termin-buchen/.