(Newswire.net — August 26, 2018) — To open a company in Switzerland, the incorporation process is relatively fast and easy, depending on the availability of the necessary documentation. Usually, a company is incorporated in up to three weeks. The most important steps to open a company in Switzerland are the following:
- Choosing a unique name for the company – name availability can be checked with the Swiss Commercial Register;
- Providing the identification documents of the company’s founders;
- Drafting and notarizing the company’s documents (Articles of Association);
- Opening a bank account with a Swiss bank and depositing the share capital;
- Submitting the registration documents with the Swiss Commercial Register;
- Receiving the certificate of registration from the Swiss Commercial Register.
Hiring personnel in Switzerland
Switzerland is a very appealing location to hire highly skilled personnel, due to the country’s excellent education system, various internship programs and multilingual population. However, it’s important to keep in mind that Switzerland has a quota system for the issuing of work permits for foreign workers, in order to prioritize the hiring a Swiss workers. Therefore, if you want to open a company in Switzerland and hire personnel from abroad, citizens of non-EU member states must submit applications to obtain a Swiss work and residence permit. Having a work contract doesn’t guarantee obtaining a work permit. Citizens of EU member states are able to work freely in Switzerland.
Advantages for foreign investors in Switzerland
Foreign investors and entrepreneurs who want to open a company in Switzerland can benefit from various advantages. For example, Switzerland is world famous for its excellent banking system, because it provides advantageous conditions and high confidentiality standards. In addition to the banking, sector, the insurance sector is also very well developed in Switzerland. Other industry sectors in which Switzerland is constantly developing are tourism, IT, biotechnology, pharmaceuticals, real estate, high-tech equipment and health.
Given these conditions, it comes as no surprise that Switzerland has a high living standard and quality of life, a wealthy economy and low unemployment rate. Probably the most important advantage is represented by the favorable tax system that encourages foreign investments in the country. Many multinationals and corporations have opened company branches or subsidiaries in Switzerland. On top of all, Switzerland is also a reputable trading country, having some of the strongest trading partners such as the UK, France, Germany or the Netherlands.
Swiss holding companies
One of the most common options to open a company in Switzerland, especially for large corporations or group firms is to open a Swiss holding company. Holding companies have a privileged status in Switzerland, because certain incomes such as capital gains, dividends and liquidation dividends are exempt from the corporate tax on federal level, under certain conditions. In order to qualify for tax exemptions, a holding company must have capital obtained from gains of the disposal of shares held for more than 12 months and representing at last 10% of the company’s shares that have voting rights attached. In addition, dividends must be received from subsidiaries in which at least 10% of the shares with voting rights are held by the holding company or the shares have a market value of at least 1 million CHF.
Holding companies are also granted a VAT refund. Due to the large number of double taxation avoidance treaties concluded by Switzerland with countries from all over the world, foreign investors are not at risk of being taxed twice for their profits.
Lastly, in order to open a company in Switzerland it’s necessary to choose a suitable business structure, which is determined by the type of activities conducted in Switzerland, business purpose, available share capital, taxation and other important aspects to consider. Thus, the assistance provided by a specialized firm in incorporation procedures in Switzerland is highly recommended.