Looking forward to opening a company in Switzerland? This guide reveals what you need to know and why you should consider starting a business in Switzerland.
How to open a company in Switzerland
Switzerland has maintained a leading position on the global innovation index, year after another. It also boasts of having the most significant number of patents per person and being ranked among the best 10 countries with quality life, safety, and work balance.
The country is renowned in life sciences, health care, political and economic stability. It's also one of the most advanced free-market economies in the world. Read on to learn how to open a company in Switzerland.
Is it easy to open a company in Switzerland?
Switzerland is not one of the largest counties in Europe regarding population, but it has marked its place in the world economy. It has one of the highest GDP per capita globally and has severally ranked first in terms of competitiveness and innovation; setting up a business in such a market gives a direct advantage.
Luckily, starting a company in Switzerland is very easy. Once the investor has the required capital for registration, they are good to go. Foreigners must obtain Swiss residency to obtain a permit to run a business in the country.
What are the legal requirements for setting up a company in Switzerland?
The only requirements for foreign investors include:
- They must have acquired Swiss residency, or:
- Have a partner who is a Swiss citizen.
- Provide the minimum capital required for some companies.
Types of companies Switzerland
Common companies for foreigners are limited liability and public limited companies, but you can set up any of the following legal entities:
- Sole proprietorship- this is the most basic legal form an investor can set up. in this case, the owner and the business are considered one legal entity. There is no minimum capital requirement for this type of business.
- Partnership- this legal form requires two or more investors working as partners. The partners can all be non-residents, provided they have obtained Swiss residency, or at least one must be a resident.
- Limited partnership- one or more partners in this type of company has limited liability, meaning if the company goes under, their personal assets will not be affected.
- Limited liability company- this is the most common type of legal form among foreign investors. A minimum capital of 20,000 CFH is required for this type of business.
- Branch office- this legal form and can carry out the same or different business from the head office. It’s not considered a legal entity on its own since its dependent on the parent company.
Steps to open a company in Switzerland
Once you have done due diligence, you can take the following steps to register the corporation:
- Complete an application form to register.
- Process the necessary documents, including corporate charter and statutes.
- Draft the article of association (AOA) before the notary public.
- File the AOA with the company registrar.
- Apply for an escrow account for capital.
- Make a payment of 1% of the capital as stamp tax.
You must provide supporting papers for authentication by the registrar. Tax registration should be carried out once incorporation has been approved.
Benefits of setting up your company in Switzerland
There is a tone of reasons to start a company in Switzerland, including:
Top-notch infrastructure.
The quality of life and high standards of living speaks volumes about the infrastructure of Switzerland. The transport network is efficient, allowing investors to get around quickly. It's also home to beautiful sceneries that attract professionals to live and work in the country.
Developed industries
Zurich is a world financial center thanks to highly developed sectors such as banking and insurance. The country also has a solid reputation in the field of research and development and pharmaceuticals. Such a competitive and well-developed market makes a suitable location for incorporation.
Environmental awareness
Switzerland is covered in forests, lakes, and mountains, hence the concern for the environment. The country emphasizes making use of natural resources in an eco-friendly manner. Both the private and public sectors are required to invest in programs that preserve the environment.
Competitive tax rates
The country has over 70 double taxation agreements, making it possible for companies to benefit from a lower tax rate. A firm is subjected to a tax rate between 12%-25% and participation relief for dividends and capital gain. Taxes levied on federal, municipal, and cantonal are very low.
Takeaway
Starting a company might seem challenging, especially if you do not know the regulations of the country. SIGTAX offers legal advice for everyone trying to open a company in Switzerland. Feel free to reach out for a consultancy tailored to meet your needs.