1. Industry research suggests that China will soon rank first in the world as a source of clients. Have you experienced an increase in demand for your company incorporation services from this region?
China is a thriving economy in the Asian market. With about 1.3 billion people and ranked as one of the largest economies worldwide, there is a Chinese HNWI population with about 500,000 individuals, most of whom have generated their wealth as first-generation entrepreneurs. Alleghenies Treuunternehmen (ATU) as a family office service provider during the last 86 years notes that many rich Chinese people are 50 years old or younger, and older entrepreneurs are ready to transfer wealth to the younger, internationally educated generation. The transfer of assets means unexpected complexity in the international world and increases the demand for our wealth management services.
2. What is the single most important advantage your jurisdiction provides for Chinese clients?
Liechtenstein financial products: that means foundations, trusts and companies, which are interchangeable at first sight with the structures of other jurisdictions. What, however, is not interchangeable is the 88-year-old experience of the financial center of Liechtenstein in the international trust and company law fields. Substantial key elements of the financial center of Liechtenstein are the customs agreement with Switzerland of 1924, the takeover of the Swiss franc as a legal currency in the following year, as well as the entry to the European Economic Area (EEA) in 1995. Family Office services mean trust and long-lasting relationships, something Liechtenstein can easily demonstrate for generations, since 1926.
3.What is the main reason a Chinese client would consider using a shelf company in your jurisdiction?
One of the reasons is closely linked to the transition of wealth. The openness of the next generation is remarkable. Many members of the younger generation have attended renowned universities abroad or participated in education programs with a strong affiliation to the field of finance. The younger generation has worked for international banks, law firms, consultation agencies or international corporations. They look for professionals showing a waterproof long-lasting track record on family office services.
4. What is your jurisdiction’s unique selling point in setting up offshore companies for Chinese clients?
Political, economic, cultural and financial sectors in Liechtenstein are as stable as in Switzerland. Liechtenstein directors perform effective Management. As mentioned under point 2, ATU has a long history with experience and tailored-made services. This is the most important point required by the wealthy Chinese clients who require real solutions for the cross-border financial situation.
5. It has been suggested that price remains a major factor for consideration for Chinese clients. Do you agree with this statement, and how do you think this will change in the years to come? Are you noticing a shifting emphasis on price to an emphasis on the quality of offshore structures?
Price will be of less importance in future. Internationally operating families are increasingly faced with the fact that one property structuring can be more effective for a family which operates internationally than a family who lives exclusively in one country and is working there. Here, elbowroom arises, which does not open for families or members of the families, who do not change their residence. One example is that a member of the family who moves to Switzerland with a tailor-made trust or a tailor-made foundation manages to prevent the assets and yields from being attributed to the person residing in Switzerland, which opens up enormous space for maneuvering. A good family office provider can offer such tailor-made solutions.
6. Do you agree that as the industry comes under increasing regulatory pressure, Chinese business will gravitate to jurisdictions that are perceived as more transparent?
In today's world of increasing transparency and cooperation between countries, an growing gap stands out between the expectations in property structuring with respect to the maintenance of personal control and influence on the one hand, and discretion or confidentiality and effectiveness on the other hand. Noticeably, these two expectations are contradictory.
A professional Family Office advisor knows how to take care of the cultural circumstances of such expectations, listens and justifies the trust of his customers, when he represents their interests reliably and responsibly. Based on the expectations of his customers, he will offer tailor-made solutions in the context of Family Office support.
7. Opening a bank account for newly set-up companies has been a challenge for some jurisdictions in the past few years. Is this the case in your jurisdiction? How quickly can a company in your jurisdiction have their bank account set up?
The Liechtenstein trustee is highly regulated, and the cooperation between trustees and bankers is very professional. Therefore, the account opening process often does not take more than five days.
8. If you could describe the incorporation industry as it relates to China in one word, what would that be?
More promising than in other countries.
Source: Alleghenies Treuunternehmen
