Switzerland
Forming a company in Switzerland
Switzerland has been a major tourist and economic destination for decades. Its geographical beauty and economic policies along with its policy of neutrality has made it one of the most sought after destinations by businesses and tourists alike. Switzerland was the first country to become a destination for offshore banking due to its stringent security and governmental policy. It is a major tourist destination for skiing, ice skating, trekking and relaxed holidays.
Banking has been the most prominent industry in Switzerland and is defined by stability, privacy and protection of clients' assets and information. The country's tradition for the primacy of banking and privacy was first codified in a 1934 law. All banks in Switzerland are regulated by the Federal Banking Commission (FBC), which derives its authority from a series of federal statutes.
Apart from banking, cosmetics, dairy products and other industries are known world over for their Swiss origins. Swiss Companies come with a good deal of reputation and are acknowledged world over for quality and reliability.
Switzerland enjoys a stable political system and has attracted companies from all over the world because of its federal policies and those of the Cantons (much like US states) that are pro-incorporation and have a high regard for the privacy of members of a corporation. There are two major types of companies that could be set up in Switzerland, A GmbH or a limited liability company or an AG, which is a corporation.
The GmbH is a Limited Liability Company. It is mainly used for smaller businesses because the registration costs and the paid up capital requirements are lower than for a Corporation (Swiss AG). The signed capital must be at least 20.000CHF, half of which must be paid up during the registration. The signed capital cannot exceed 2.000.000 CHF. Higher amounts require the registration of a Corporation (Swiss AG).
Swiss laws do not limit the number of foreign owners nor their nationality. However, with a GmbH all owners are filed publicly with their full name and nationality. The registration of a GmbH does require a local director.
The AG (Aktiengesellschaft) is a Corporation. It enjoys highest reputation, as there are stricter requirements to incorporate this entity. The signed capital must be at least 100.000, CHF, half of which needs to be paid up during the registration. Unlike a Swiss GmbH, the shareholders of a Swiss AG are not filed publicly. Switzerland is one of only few jurisdictions that issue bearer shares. Such shares allow the shareholders to remain completely confidential. Swiss laws therefore also do not limit the number of foreign shareholders. It is however required to have a local director.
Both, Swiss GmbH and Swiss AG are exempted from all taxation if structured as Holding companies. If regular business activities are conducted the Federal taxes apply with 7.83%.
The advantages of incorporating in Switzerland are:
- Straightforward, advantageous fiscal system, for both individuals and companies.
- Secure & politically stable scenario for your company formation.
- 100% tax waiver for Holding companies both by the Cantons and the Federal Government.
- Company formation in Switzerland is an excellent way for international entrepreneurs to live in luxury and enjoy the benefits of the high reputation that comes with Swiss incorporation.
- Both the Cantons and the Federal authorities give preferential treatment to holding companies. There is largely no Federal tax on pure holding companies.
- The Cantons relieve holding companies from all income taxes (holding privilege). The holding company is, therefore, not dependent on an equity holding deduction. The net result is that all dividends, and any profit from the sale thereof, and even interest income, etc. are tax-free.
- Switzerland has a well-established legal system and is a well regulated, stable jurisdiction, thus making it an attractive market for your business incorporation.
- A strategic location, with easy access to major cities; instant global access to state-of-the-art telecommunications; banking and other business services to name a few.
- Confidentiality and a history of strict security for the banking system ensures safety of your wealth.
- Adds excellent reputation to your corporation.
- Excellent Infrastructure
- Switzerland has easy access to the rest of the world via two major airports, Zurich and Geneva, which have daily flights from over 42 countries and most major destinations in Europe and North America.
- Switzerland shares its borders with five countries and is easily accessible from any part of Europe via the Eurorail network. It is also accessible by road and excellent roads and highways run all through the country.
- As the emphasis is on direct taxes, the VAT rate is a maximum of only 7.6%, making it the lowest VAT burden in all of Europe.
- Most of all, the policy of free trade and industry allows everyone, including foreign nationals, to set up any legitimate business in Switzerland or to hold a financial interest in one. An overseas individual or foreign company may choose the type of business which suits them best.
We at Elite Incorporation would be happy to help you incorporate in Switzerland, acquire local directors and perform all end-to-end functions.
Useful Links:
Home page:
http://www.myswitzerland.com/
Switzerland: Economy:
http://www.swissworld.org/en/economy/
Switzerland: Taxation
http://www.taxation.ch
Switzerland: Business Directory
http://www.swissdir.ch/
Switzerland: Property
http://www.swissgetaway.com/home