Enabling Digital Company Foundations Across Borders

The customer (Equanimity), based in Singapore, faced a significant challenge in establishing a Liechtenstein Venture Cooperative (LVC) remotely. At the time, it was not possible to complete the company registration process online from abroad; all steps required physical presence. Furthermore, no existing service providers in Liechtenstein offered support for establishing an LVC.

The customer's primary need was to leverage the unique advantages of the LVC structure during an early phase of their product development. Specifically, the LVC allows for dynamic adjustments of shares to reflect various forms of invested capital, a feature unavailable with other legal structures. To achieve this, the customer also required a solution to electronically verify their identity, ensuring a secure and efficient digital process for the company registration. These challenges prompted the engagement of digihub.li’s services.

The digital transformation of business formation processes in Liechtenstein has been significantly advanced through a collaboration between digihub.li and their beneficiary, Beck Vision. Together, they developed an innovative platform that customises and generates the necessary documents for establishing a Liechtenstein legal entity. In a future phase, this platform will enable fully digital business formation, marking a groundbreaking shift in administrative efficiency.

A key feature of the platform is its integration with Liechtenstein’s electronic identity (eID). Beck Vision became the first private-sector provider to verify identity through the eID, setting a precedent for secure, digital identity verification. Initially, the platform supports the generation of documents for the Liechtenstein Venture Cooperative (LVC) legal form, with plans to expand to additional legal forms in subsequent phases.

Another challenge addressed was the requirement for a physical, postal proxy to submit signed documents. While this obstacle persists, Beck Vision and digihub.li are actively working on digital solutions to eliminate this need, aiming to streamline the process entirely.

The rationale for the public/private investment in this initiative lies in its strategic importance. This project represents a critical first step toward fully digital company formation and the seamless integration of electronic identity solutions. By facilitating efficient, paperless administrative processes, the initiative supports Liechtenstein’s economic competitiveness, enhances its appeal as a business location, and promotes sustainable resource management.

The collaboration has delivered significant and measurable results, showcasing the impact of digital innovation in business formation. One of the most notable achievements is the development of a document generator that enables the creation of all necessary documents for founding a Liechtenstein Venture Cooperative (LVC) in just 45 minutes. This solution eliminates the need for physical presence, allowing company formation to take place entirely remotely.

Furthermore, the service facilitates cross-border business relationships and provides users with the ability to verify their identities electronically in a state-recognised manner. The customer also contributed valuable insights, helping to clarify how unregistered LVCs can open bank accounts, a crucial step for many new businesses.

The project's influence extends beyond direct service delivery. The customer has actively promoted the solution, facilitating four additional company formations through referrals and further enhancing the ecosystem's growth.

The investment in this initiative amounted to CHF 500, yielding a return on investment of 900%. This translates to savings of CHF 4,500 compared to traditional company formation services. The document generator, now fully operational, empowers users to establish an LVC for CHF 500, offering an accessible and efficient alternative to conventional methods.

This project highlights the power of digital tools in reducing barriers, cutting costs, and enhancing efficiency in business creation, making it a pivotal success for both digihub.li and its partners.

One key takeaway has been the critical importance of raising awareness among local authorities and banks regarding the unique characteristics of the LVC company structure. Both sectors demonstrated a lack of familiarity with this form, creating barriers for startups in Liechtenstein. These obstacles included challenges in opening bank accounts and limited knowledge within administrative offices, which often complicated processes for entrepreneurs.

Furthermore, the attractiveness of Liechtenstein as a location for startups remains under-promoted. Despite its many advantages, startups often face difficulties in navigating local systems, which could deter potential businesses from choosing this region. More strategic marketing of the location's benefits could help address this gap.

What did not work: A notable hurdle emerged during the electronic identity registration process. An attempt to register via video conference from Singapore proved unsuccessful, ultimately forcing the founders to relocate to another country. While this issue is currently being addressed in collaboration with the responsible PSO, it highlights the need for improved flexibility and international accessibility in such processes.

Advice for the Future: For EDIHs and other stakeholders, it is crucial to proactively address knowledge gaps within key institutions like banks and administrative offices. Educational workshops or targeted communication campaigns could help build a foundation of understanding that supports innovative business models. Additionally, enhancing the visibility of the region's startup-friendly features through more aggressive marketing efforts can help attract and retain new businesses. Lastly, ensuring that digital processes such as identity registration are robust and accessible from a global perspective will be pivotal in strengthening the ecosystem for international entrepreneurs.