CONTACT US
Privacy police

Invest in Switzerland, Forming Swiss Company

As one of the world’s most stable economies and boosting some of the best business-focused government legislation, it’s no surprise that businesses choose

Why invest in Switzerland?

Swiss Business Hubs

To streamline investor business development and business operations, the Swiss Government has developed a sort of "one-stop-shop" system which is designed to create a seamless workflow of business development activities for those interested in Switzerland as an investment country. The program works as a way for investors to contact their manufacturers, or find new ones, as well as locate and interact with other essential business information.

Workforce

As Switzerland is made up of 22% foreign and temporary workers, the country's citizens are supportive and understanding of foreign nationals and there are very little signs of community prejudice against these workers. The highly diverse population in Switzerland also results in a heavily-multilingual society which extends to those employed in the country. This means that businesses have a range of options when employing workers, with a number of languages to choose from including English, German, French, Italian and Romansh.

The workforce is also highly educated and skilled, meaning that business offering high quality and technical services should have no issue sourcing talent for these positions.

Taxes

A heavily business focused taxation system presents Switzerland as one of the worlds most investor and business friendly countries in the world. There is a range of tax incentives which are implemented across all three levels of the government allowing businesses to benefit greatly no matter where in Switzerland they decide to headquarter. One standout tax feature of the Swiss taxation system is that in some cantons a business is able to operate and profit for an entire decade without being required to pay taxes. On top of this, at federal levels, there are also 10-year long tax breaks available for certain businesses.

It's important to note that these tax benefits are available under circumstances and often require a business to meet a number of requirements prior to the tax break being granted. When cantonal level governments are concerned, a number of businesses can expect tax reductions, incentives or breaks if the business can prove it will create a number of new jobs for the community, normally in the range of 10 to 20. As well as these cuts, on a federal level, there are also subsidised loans for businesses who plan to develop infrastructure in the country. These subsidies are in place to encourage businesses to develop facilities in the country, which are often tourism, communications or training focused.

Social Benefits

As Switzerland features a workforce with high salaries, a society that is one of the worlds most liveable and a business focused economy, it can often be expensive and costly to live. Though, the benefits that Switzerland presents to its citizens is directly in correlation with the price of living. The nation is one of the most developed and offers state of the art healthcare and transportation systems as well as other utilities.

Millions of people around the world view Switzerland as a leading nation for raising a family with regards to healthcare, education, language skills as well as higher education. The job and career prospects that children raised in Switzerland are presented with are second to none. With direct access to high-tech and advanced businesses that focus on artificial intelligence, advanced research and development, leading universities and computer science companies, children raised in Switzerland are given opportunities that are unmatched by any other country on earth.

In Swiss culture, there is no apparent prejudice between the classes and in a general scope, the Swiss people are not negatively judgmental of those who are substantially wealthier than they are. The Swiss government has created an extremely people-focused government where there are major connections between the people and government, allowing open forums and citizen opinions run free. With no national religion or political stance, Switzerland has almost topped the UN's most liveable nations list, coming in third, behind Norway and Australia respectively.

Stable economy

A primary focal point for investors in Switzerland is the stability of the banking and financial sectors. Unparalleled bank secrecy and other fund policies have meant that Swiss investors are well protected as well as benefit from an economy that is almost entirely resistant to the swings of the international economy. Switzerland's location in Europe also means that it has been able to connect financially with European nations and benefit from trade agreements, further adding to economic stability.

For investors, the Swiss franc is often perceived as a currency refuge as over time it barely fluctuates in its worth. Since the early 70s, the currency has been utilised by American businessmen and companies to bypass any and all international and domestic inflation as the franc rarely changes its worth. With today's highly unstable economy, the Swiss franc looks better than ever for investors to store their funds in as it has continued to remain incredibly stable.

Pairing the above currency stability along with low government debt, almost non-existent inflation, low unemployment and a strong economic growth, Switzerland show that it is one of the world leading investment nations and presents an almost-unlimited number of opportunities for businesses and investors.

For more information on the Swiss economy or investing and developing businesses in Switzerland, you can contact our business consultants and our company formation teams. This will give you all of the information you need to make a decision on whether to invest in the country and how to do it.
As one of the world's most stable economies and boosting some of the best business-focused government legislation, it's no surprise that businesses choose to invest in Switzerland and that entrepreneurs focus on forming a Swiss company. Its not uncommon for foreign companies to even headquarter their operations in Switzerland, even if they operate primarily internationally, the Swiss business climate is just too enticing.

The country being centrally located in Europe and having some of the strongest international connections means that business ventures or simple currency investments are certain to be surrounded by high growth.

There are also a number of shelf companies you can choose to purchase if you don't wish to launch from scratch. If you've got any questions about investing in Switzerland or forming a Swiss company then feel free to reach out to us.

Why form a Swiss company?

One of the first things you might notice about forming a Swiss company is that it costs more to launch than a few other countries, like Cyprus. Though, many investors don't realise is that a company coming from Switzerland has a prestigious appeal that almost no other country in the world can provide.

On top of a good brand perception, Swiss companies are also subject to some of the worlds best business infrastructure systems, government systems as well as some of the lowest corporate tax rates currently on offer around the world. Swiss tax rates are also far lower than neighbouring countries.

A quick overview and some research will show you that in some Swiss cantons corporate tax for both local and international operating businesses can be as low as just 11%. Though it's best to look around to ensure the canton you're thinking of launching a business in is the best available.

Where to invest in Switzerland?

There are a few things to note if you're in the early stage of company formation in Switzerland, and that is each cantons different tax laws and regulations.

If your first canton choice is currently Genève you should possibly look toward moving to Neuchatel thanks to their dramatic corporate tax rate change dropping from 10% down to 5% in 2016. Another reason to choose Neuchatel is the cantons major influx of high-tech brands and innovative firms. This means that the canton has its foot in the market and is growing at great speeds.

On top of the aforementioned tax cut, Neuchatel is also becoming a rather powerful 'silicon valley' of sorts, even more than Zug. It really is the new it-address for an entrepreneur to invest in Switzerland.

The cost of forming a company in Switzerland?

Starting your own business is expensive no matter where you live, but in Switzerland launching your own business offers far greater returns for your expense. Government incentives and low taxes alone offset the launch of a business within just a few months.

The price per type of company in Switzerland changes, though the main small business sizes are priced as follows:

  • A public limited company or an AG: 1,750 – 3,000 CHF
  • A limited liability company or GmbH: 1,230 – 2,000 CHF
  • A sole enterprise: 500 – 900 CHF
  • A limited partnership: 300 – 900 CHF
The prices listed above are simply outlines and you might experience a higher or lower price point depending on where you're looking to launch your business and what type of business type you want to create.

If you would like some help with forming a Swiss company(check Swiss laws) then feel free to reach out to us. Our team will be able to take you through every step in the launch and ensure you meet all requirements before an operation begins, and this can save you from unnecessary penalty fees or delays during launch.

Each one of our services is priced slightly different due to the work involved, so get in touch and let us know exactly what we'll be doing and we'll be more than happy to help!

Swiss company maintenance

A few final things you'll need to know about forming a Swiss company is ensuring that the company continues to be viable and meets all local and federal requirements of a business. This means that a compliance document or assessment is required on an ongoing or annual basis to show that the business is still in line with local laws.

If you require any assistance with ongoing maintenance don't hesitate to reach out to us for anything you might need.

The leading reasons for investing in Switzerland

Switzerland can easily be described as the Hong Kong or Singapore of Europe. Its unrivalled business market and asset management, as well as it's prime location make it an investment nation that is one of the most stable and secure in the world.

A few things, in particular, make Switzerland a global leader in foreign investment, and we've listed them below.

  • The country is in a relatively central European location.
  • The enterprise environment is entirely open.
  • It's political outlook and International relations are exceptionally stable.
  • The economy is supported by international partners as well as its own high-tech sectors.
  • The banking system is designed for both local and international investing in Switzerland.
  • The Swiss franc is one of the worlds most stable currencies.
  • There is currently no foreign exchange control.
  • Corporate loans are low interest and can be freely borrowed.
  • The Swiss nation has a massive global network of infrastructure partners.
  • Taxes and social charges are low and paired with great tax incentives
  • VAT is low
  • Labour laws are flexible
The above list truly outlines that Switzerland is an International leader when it comes to foreign and local investment. Stability alone makes it one of the worlds most secure places to invest.

Swiss tax incentives and other benefits

There are a couple of taxation incentives in Switzerland that businesses and investors can benefit from when investing in Switzerland is concerned. These incentives are typically geared toward foreign businesses and their income sources, mainly income from outside Switzerland.

If you have any business taxation questions in particular, feel free to visit our taxation services page for more information on how we can assist.

On top of income incentives, there are also freezes or 'holidays' where companies are granted pauses on taxes while they launch, or if they offer a specific Swiss Canton an economic boost or create a number of new jobs.

In short, there are two major incentives:

  • Taxation incentives are granted to businesses that are almost entirely operated outside of Switzerland. In order to meet the requirements for this, a company must have at least 80% of their income coming from sources outside of Switzerland. On top of this, the company's expenses must also be comprised of at least 80% out-of-Switzerland services and goods.
  • Taxation holidays, of which can last up to 10 years, are also a great business incentive. In order to meet the requirements for these holidays, your business must be able to prove that in its operational location it is either; creating a myriad of new employment opportunities for local residents OR; creating great value for the canton in which it operates.

If you're looking for some assistance when investing in Switzerland or expanding your business operations from outside the country and need some additional information, don't hesitate to reach out to us for some extra help.

COMMENTS

OTHER ARTICLES