From an economic perspective, Switzerland is very attractive due to its political stability and a flourishing financial industry. From an economic perspective, Switzerland is very attractive due to its political stability and a flourishing financial industry. Several cantons offer tax exemptions of up to 10 years for new businesses. In 2020, the country ranked 36th in the World Bank's Doing Business Report (> www.doingbusiness.org).
In the same year, Switzerland ranked 10th in the Kearney Foreign Direct Investment Confidence Index. At the beginning of 2020, a new law was passed under which domestic and foreign companies are taxed at the same rate at the cantonal level.
Virtual office in Switzerland
A virtual office in Switzerland offers entrepreneurs the opportunity to run their businesses in a professional manner without the requirement of setting up actual office space. The advantage of this type of office is that it does not entail leasing costs and alsofrees the entrepreneur from all other necessary costs, such as labour and maintenance costs, tax burdens, etc., that are incurred by a physical office. Whether you are interested in limited liability company formation in Switzerland or in the formation of other companies, a virtual office can be used for the registration of any type of company.
Types of companies in Switzerland
A limited liability company (GmbH) in Switzerland is formed by at least two shareholders with a share capital of at least CHF 20,000 and with the liability of the members limited by their capital amount. The management of the Swiss company is provided by the general meeting of shareholders and one or more directors, at least one of whom must be resident in Switzerland.
The company limited by shares (AG) in Switzerland can be established by at least three shareholders with CHF 100,000. The liability of the members is also limited by their amount of capital and the management is guaranteed by the general meeting of shareholders and by a board of managers. Investors must agree that the managers must be Swiss citizens and shareholders of the company.
Branch office in Switzerland
The decision to establish a branch depends on the autonomy of the parent company, which requires the new trading structure. The most important feature of a Swiss branch is its dependence on the parent company. In particular, the foreign company is responsible for all responsibilities of the Swiss branch, and our team of specialists in company formation in Switzerland can advise you on this. The parent company must also apply for the licences required to operate in Switzerland, and the Swiss company will be limited to carrying out the same activities as the parent company. An advantage for the branch is that it can be registered faster due to fewer requirements compared to the subsidiary.
However, a Swiss branch is generally subject to the same financial obligations as local companies, including those relating to employees.
Swiss branches can hire local employees or transfer employees from the head office. The registration of a branch in Switzerland offers, among other things, the advantage of being exempt from withholding tax (parent company). If a double taxation agreement is concluded with the country of residence of the parent company, the branch may also benefit from tax exemption on profits accrued in Switzerland.