Company Formation in Switzerland

Overview :

The economy of Switzerland is one of the world’s most stable economies. Its policy of long-term monetary security and political stability has made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investment. Because of the country’s small size and high labour specialization, industry and trade are the keys to Switzerland’s economic livelihood. Switzerland has achieved one of the highest per capita incomes in the world with low unemployment rates and a balanced budget. The main areas include micro technology, hitch, biotechnology and pharmaceuticals, as well as banking and insurance know-how.

Advantages of incorporating business in Switzerland

• Incorporating in Switzerland gives your company limited liability and exemptions on various government taxes.
• Switzerland’s economic and political arenas are more stable and progressive than most countries in Western Europe.
• incorporating here is comparatively easier than other countries in Europe
• Switzerland has no exchange control thereby allowing for a flexible investment in any currency.
• There is very little to zero personal and company tax obligations, as well.
• With your business in Switzerland, you will not have a hard time employing highly-skilled and competent local staff.
• Swiss banks are also popular around the globe with most international financial businesses owning at least one bank account here.
• You are particularly assured that when you incorporate in Switzerland, their banking system will protect your assets as well.
• The benefits are seemingly endless and you are bound to discover more once you finally decide to operate offshore and choose to go Swiss.

Attractive Tax Regime

Switzerland is sometimes considered a tax haven due to its general low rate of taxation (Corporate Income Tax Rate is levied progressively at 8.5%), its political stability as well as the various tax exemptions or reductions available to Swiss companies doing business abroad, or foreign persons resident in Switzerland. Switzerland has a “classical” corporate tax system in which a corporation and its owners or shareholders are taxed individually.

Types of entities

Single-owner Company or Sole proprietorship :

The most common type of company after the standard corporation or ‘joint-stock’ company; it is most suitable for sole owners of a business or other professionals who work for themselves, such as freelancers, small businesses and individual entrepreneurs.

General partnership :

A general partnership is an association of people operating a commercial business; it is similar to sole proprietorship but with more than one person involved. This category is used when two or more people jointly operate a company.

Limited partnership :

A much less common version of the General partnership.  In this type of company, general partners have unlimited liability while limited partners may be liable up to an agreed amount.

Corporation/Joint-stock Company :

The most common form taken by businesses; the corporation is considered an independent legal entity. At least three original shareholders are required to form a corporation.  Liability is limited to the value of the company’s assets.

Limited liability Company :

Another legal entity; this type of company requires a minimum shareholders’ equity.  At least one managing director must be a Swiss resident, though not necessarily a Swiss or European citizen and the company must have at least two original shareholders who may be non-Swiss nationals.

Subsidiary :

A legally independent company affiliated to a foreign entity; a subsidiary tends to operate more as a ‘Swiss’ than a ‘branch’ company. It can take the form of a corporation or a limited liability company.

Branch :

A branch is a legally dependent but financially independent wing of a head office that operates outside of its home country. In this type of company, the foreign parent company is liable and the branch is taxed in Switzerland as a Swiss company.

Time Required

It usually takes 18 days to form a company in Switzerland.