For national, and more notably international, business opportunities, Switzerland has become sort of famous for its many financial benefits and incorporating a company under Swiss institutions is something of a shared goal for many internationally growing companies.
Commonly these companies include banking, insurance, pharmaceutical, electronics and other IT-related business, and real estate due to the prevalence of these industries within the Swiss economy.
As a foreign party, navigating the Swiss incorporation procedure may be slightly confusing or difficult, but much of this will be handled by Swiss professionals.
What Makes Swiss Incorporation Popular?
Other than the fact that international business is an incredible opportunity for a company in general, many companies are drawn toward Swiss incorporation for several reasons.
- Stability on all fronts: financial, economic, political, and social.
- Two major Swiss cities, Geneva and Zug, are major trading centres.
- Businesses in Switzerland have excellent business resources and professionals at their disposal, such as bankers, insurance companies, accountants, and lawyers. These professionals, including your own workforce, are multilingual or bilingual for enhanced international communication.
- Country location in Europe’s centre is ideal for cross-country trading, among other things.
Not only are Swiss tax procedures extremely efficient, but one of the most notable benefits of Swiss company formationis the many tax exemptions or reductions.
Generally speaking, Swiss corporate taxes are lower than most other countries, and when certain criteria is met, companies may see further tax reductions and frequently even complete exemptions.
Your incorporation options include all of the following:
- Swiss holding company
- Swiss control centre company
- Finance company
- Management company
- Branch office
The exact benefits will vary depending on your company structure, and typically, Swiss holding companies see the greatest tax exemptions when conditions are met.
These conditions usually concern your business operations within Switzerland, which for cantonal tax exemptions typically needs to be limited to investment management with little to no operating business activities in Switzerland.
Company Formation Procedures
The legal and financial procedures for incorporating in Switzerland will be handled almost entirely by local professionals, who you will work with to determine an appropriate plan.
This includes preparation and completion of various legal agreements, as well as the opening of a bank account and drawing up specific documentation. You must also register with the Swiss commercial register, which involves a thorough application process.
These legal and financial documentation processes can typically be completed via the Internet or regular mail, but will vary depending on the type of company you wish to register.
While cooperation and collaboration will be required, as long as you have all of the necessary documentation, all registration aspects will be handled by your formation company.