Why Start a Company in Switzerland?
As one of the world’s most business-friendly, forward-thinking and stable countries it’s no wonder that Switzerland is often at the top of every entrepreneur’s list when it comes to company formation. If you’re interested in launching or incorporating a holding, service or trading business in the most advanced business environment, then Swiss company formation is certainly for you.
If you need some assistance with the launch or incorporation of a company in Switzerland, then don’t hesitate to reach out to Goldblum and Partners.
Why form a company in Switzerland?
There are a myriad of advantages presented to investors and business developers who choose Switzerland as home base for their companies. A few of these advantages include:
- During Swiss company formation, a company will not be treated as an offshore company even if it operates as so. This means that many major business perks and government assistance is available.
- All businesses operating within Switzerland will have organic and unhindered access to one of Europes most advanced and highly developed business markets. That means access to some of the worlds leading law firms, accounting teams as well as very attractive taxation systems.
- Although the Swiss banking system may be experiencing a slight ripple in recent years, businesses are still well and truly in good hands with the world’s most resilient and stable economy.
- The Swiss tax treaty network extends across more than 100 countries meaning that businesses need not worry about dual taxation or issues with technicalities when operating in multiple countries.
- There is no doubt that Switzerland is by far the most secure and stable nation in Europe when politics, banking and investment is concerned.
What companies are allowed to be formed in Switzerland?
The Swiss government allows for companies (both local and foreign) to operate in almost any way that you would find in any other country around the world. That means that there aren’t too many limits on legal activities and operation business activities.
A few company purposes you might find in Switzerland or be forming yourself, are as follows: trading firms, brokerage firms, investment businesses, financial transaction processors as well as countless other legal businesses.
There are also a few different business structures that Swiss businesses follow, with the most popular being a GmBH, AG, sole proprietorship, and limited partnership. All of which require their own set of prerequisites to be met before launch.
Disadvantages of a Swiss Company?
Although there are always drawbacks or risks with any business decision, the Swiss government and business infrastructure try their best to reduce the risks associated with a business launch in Switzerland.
One of the main disadvantages is the incorporate fee that is required of businesses in order to be formed. The fee sits at 4,700 euro which also includes government fees, though it is 5,500 euro if you factor in the domiciliation.
Another smaller disadvantage is that the company being formed in Switzerland must have their director be a Swiss or European resident. This would incur a fee of 3,000 euro. When compared to most offshore business incorporations, the Swiss company formation seems rather expensive. Though, when you compare all the benefits of operating in Switzerland, like the low tax rate, a stable economy as well as strong currency, there is simply no other alternative as good as Switzerland.
The Swiss nation truly has no competition when it comes to business launch benefits and economic stability.
Although there are countless tax benefits for businesses in Switzerland, what’s more, surprising are the tax benefits for companies who don’t operate within Switzerland. That means that companies working outside Switzerland but headquartered within the country are still eligible for Swiss tax breaks.
One of the cantons we recommend for Swiss company formation is in the canton of Neuchatel, which has a tax rate similar to the global favourite, Zug. The current tax rate in the area is just 11%, making it one of the lowest corporate taxes available, in the world. Another major perk of Neuchatel is that it brings in a number of high-tech businesses, meaning that the area is supported by the global tech boom.
If you’re looking for some assistance on Swiss company formation, or need a capable team to reduce your chance of risk and investment issues, then feel free to reach out to us. You can find some more information on our corporate and M&A services on our website.