Understanding the Employer of Record System in Liechtenstein
Skuad’s Liechtenstein Employer of Record (EOR) solution is the answer to your global expansion plans. It helps you expand into Liechtenstein without setting up a physical entity there. To simplify your expansion, Skuad’s automated, high-tech global human resource (HR) platform will aid you in every aspect of growing your business. From recruitment to managing an entirely remote team, including their payroll and benefits, Skuad’s international network will accelerate your global expansion venture in Liechtenstein. To learn more, get in touch with Skuad experts today.
Liechtenstein at a Glance
Population: 38,557 thousand people (as of 2019)
Currency: Swiss franc (CHF)
Capital city: Vaduz
Languages spoken: German
Gross Domestic Product (GDP): USD 181,402.8 (as of 2018)
One platform to grow your global team
Hire and pay talent globally, the hassle -free way with SkuadTalk to an expert
Employment in Liechtenstein
The favorable tax laws and the strong economy of Liechtenstein have often attracted foreign investment companies. However, expanding your business in Liechtenstein takes significant effort. A major number of sectors in Liechtenstein are governed by collective employment laws known as Gesamtarbeitsvertrag. The laws are strict, consist of several employee entitlements, and you need to qualify as per the legislation before you are allowed to establish your company there.
This creates unnecessary complexities for the company. To simplify the process, it is always recommended to work through a local payroll provider or an international employer organization. These organizations have substantial knowledge of the laws of the country and have the required connections that will help them establish a subsidiary and set up a remote team on your behalf seamlessly. Skuad EOR solution comes with a unified employment platform that enables seamless expansion into Liechtenstein.. Our EOR solution for Liechtenstein can kick-start your expansion endeavors!
You can avail yourself of Skuad’s EOR services to manage your expansion in a timely, hassle-free manner in compliance with the local laws. Talk to Skuad experts for more details.
Contractors vs. Full-time Employees
When you are expanding in Liechtenstein, you can either choose to opt for full-time employees or independent contractors.
The following section will help you understand the difference between hiring a full-time employee and a contractor in Liechtenstein.
When to Hire Full-time Employees
- For long-term association
- For a core department of your company
- When you need to undergo training and work under your supervision
- If you want them to focus entirely on your company’s projects
- To keep trade secrets and company knowledge within the organization
When to Hire Contractors
- For short-term association
- When they will be a part of a supporting department and not the core
- If you are looking for a professional who doesn’t need much guidance
- For projects that allow flexibility
- To save on costs associated with providing employee benefits to full-time workers
Both collective employment agreements and individual contracts are legally binding in Liechtenstein.
Skuad can recruit, hire, and onboard full-time employees or independent contractors for your organization, as per your needs. Talk to Skuad experts today to learn more!
Hiring in Liechtenstein
European labor laws require employers in Liechtenstein to provide a detailed contract to the employees explaining the conditions of work. Whether you are hiring full-time employees or contractual workers, your hiring process will usually include the following.
- Assessing your requirement and drafting a job description thereafter
- Advertising the position on various job portals
- Reviewing the applicants and proceeding with the suitable candidates
- Interviewing/screening the selected candidates
- Running a background check and cross-checking against the reference mentioned by the candidate
- Choosing the most suitable candidate and drafting the contract
Popular Job Portals in Liechtenstein
The following job portals are most used by employers to advertise job openings.
Advantages of Recruiting through Job Portals
- You get plenty of candidate applications.
- It is comparatively more affordable than other forms of advertising.
- The interface of job portals makes it easier for you to review resumes.
Disadvantages of Recruiting through Job Portals
- You do not get any guidance on the legal requirements for recruitment. Legal requirements are subjective and depend on the country in which you are choosing to expand.
- There is no one to assist you in the onboarding process or employee payroll and other benefits.
Skuad provides a comprehensive EOR solution for all your recruitment requirements. It provides you with an automated, unified platform to take care of every aspect of recruiting employees from Liechtenstein. You can rely on us to take care of your onboarding process, invoices, payments, and taxation on a single HR platform. This will expedite the recruitment of your new team in Liechtenstein at a lower investment. Contact us to learn more and book a demo today.
Probation & Termination
Generally, the trial period lasts only a month. However, according to the Liechtenstein employment law, it may be extended up to three months and needs to be authenticated by an employment contract. Also, if the employee falls sick or has an accident during the probation period, they have the right to extend it by another three months.
Termination of Service
Termination of service in Liechtenstein is governed by Swiss labor laws.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Liechtenstein, talk to Skuad experts and book a demo.
EOR Solution in Liechtenstein
If your company is planning to expand to Liechtenstein, it is prudent to take the help of an EOR service. When you begin to operate in a new country, you are not aware of the critical employment laws. This makes recruiting employees from that country, onboarding them into your team, and managing them cumbersome. A Liechtenstein EOR service such as Skuad will provide a simplified solution and take care of all the HR legwork on your behalf so that you can expedite your expansion without hassle.
General EOR Service Terms
Outsourcing Employment through an Employer of Record
One of the most important steps of expanding overseas is choosing the right way to execute your plan. Whether you decide to establish a branch in that country or carry out your work through an EOR service, the option you choose will impact how your expansion journey unfolds. To reduce the hassle of expanding in a foreign country and dealing with strict employment laws, most companies prefer to select an EOR service for Liechtenstein. To kick-start your expansion in Liechtenstein, talk to Skuad experts today.
Types of Visas in Liechtenstein
The migration process in Liechtenstein is governed by the Foreigner’s Act. Swiss residents are legally permitted to work in Liechtenstein without a visa or permit. Further, residents of European Economic Area (EEA) countries can also work with a permit, provided they register with the Migration and Passport Office within 10 days of starting at their new job.
However, if the employee belongs to any other country other than the ones mentioned above, they will need to apply for a Liechtenstein Employment Visa.
Talk to us and get more information and guidance related to types of visas and work visa requirements in Liechtenstein. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
The following table contains the relevant information regarding work permits in Liechtenstein.
Securing work permits for your employees is one of Skuad’s foremost EOR features. To expedite your expansion, book a demo with Skuad experts today.
Payroll & Taxes in Liechtenstein
Things You Must Know to Set Up Payroll in Liechtenstein
Before you set out to hire employees from Liechtenstein and expand your business here, you must learn more about the tax laws governed by Liechtenstein’s New Tax Laws there. An important part of expanding is to play within the country’s payroll and taxation rules for your employees. However, as a foreign company in a new land, you first need to learn more about how different taxes and other financial requirements work there.
There are two ways to set up payroll.
- You can set up your team in Liechtenstein and operate directly from there.
- You can also hire a local payroll specialist or a Liechtenstein EOR service to do the job on your behalf.
Hiring an employment outsourcing expert such as Skuad will reduce your workload and increase the efficiency of the expansion process. Plus, having an expert to help you will ensure that you do not fall prey to rookie mistakes.
Taxes in Liechtenstein
To find out more about how Skuad can assist you to set up payroll and manage taxation, talk to Skuad experts.
Incorporation: How to Set Up a Subsidiary in Liechtenstein
If you are looking forward to setting up a subsidiary in Liechtenstein, the following steps need to be kept in mind.
- The minutes of the meeting where the decision of expansion was taken,
- Either the original or certified copy of the articles of association,
- The date on which the articles of association were accepted,
- The registered details of the company,
- Aim of the company,
- Duration of the establishment (if applicable),
- Share capital amount,
- Details about the shareholders, and
- Details about the board members and representatives.
- Next, you need to gather investors and razor capital for your subsidiary in Liechtenstein.
- Once your application is approved, your company will be registered with the Liechtenstein commercial register.
- After the registration, you need to apply for additional permits and licenses depending on the service you provide for smooth functioning.
When there are so many steps to maneuver before setting up a subsidiary, having a local partner such as Skuad can help simplify the HR tasks of the process. Partnering with an EOR firm with local connections can give you a better insight into the expansion procedure and help you manage the paperwork to ensure that your company gets registered on time. To learn more about how we can help you, get in touch with Skuad experts and book a demo.
Professional Employer Organization (PEO)
Professional employer organizations (PEO) lease out employees to employers and enter a joint employment relationship. This means they share the load of managing the employees. They cannot be held liable in case of compliance-related issues. Further, PEOs can only operate if your company has an entity set up in the country in which you wish to expand.
On the other hand, EORs act as the HR body with complete control over the employees. They even help businesses expand in various countries without setting up a legal entity. Since they act as the legal employer on behalf of your organization, an EOR firm handles all compliance requirements and is responsible for issues that may arise due to the same.
If you want to outsource all the HR-related work and ensure smooth functioning without much hassle, availing the services of a PEO or EOR firm for Liechtenstein is the right choice for you.
Skuad provides EOR services for organizations. We can help you manage your employees and look after all their needs on your behalf. This ensures that you can shift all your focus on scaling up your business. Our global reach and excellent interface guarantee that your expansion endeavors will succeed without a hitch, in compliance with the local laws. Get in touch with us to learn more.
Conclusion: What Gives Skuad’s Liechtenstein Solutions an Edge?
Employees are the supporting pillars of your company. If you want to expand your business, you need to recruit skilled, suitable employees. However, that can't be your only focus. There are numerous other HR tasks such as payroll, taxation, probation, termination, and securing visas and permits to take care of. Skuad’s high-tech, integrated HR platform can manage all your hiring needs while ensuring compliance with the laws of the land. To avail yourself of our expertise, talk to us to know more.