Switzerland is one of the most business-friendly countries. This is because it lacks the many legal hurdles that make it challenging for foreigners to register and operate a business in the country. The tax system is favorable, the financial systems impeccable and the legislations business-friendly. But even with that, few people know the steps they can take to register company in Switzerland.
So how do you go about it? What does it take to register a company in Switzerland, and what do you need?
Read on as we get deeper into how to form a company in Switzerland.
Register Company in Switzerland
Company registration in Switzerland isn't a stringent process, even if you are a foreigner. You only need to have at least one Swiss citizen as part of your board to register a company if you are a foreigner.
There are four types of companies you can register in Switzerland:
- Limited Liability Company (LLC) - This is a company whose owners aren't liable for the debts of the company. That means it is a separate legal entity from the owner. The board of directors can be foreign, but there has to be one Swiss citizen.
- Branch Office - This is where you set up a branch of your overseas company in Switzerland. The branch is accountable to the head office and is thus identical to the parent branch commercially and legally. The branch can't engage in any activity that the head office doesn't.
- Liaison Office - A liaison office is much like a branch office because it can't have its legal status.
- A sole proprietorship - This is a company that you are the sole owner. Such companies will often have a few employees, but the owner bears responsibility for everything.
Opening these companies will require you to have certain documents just like you would in any other part of the world.
Steps to Register a Company in Switzerland
Once you have identified a market gap, done your research and are ready to open a business in Switzerland, you follow the below steps:
- Fill the company registration forms. These are easy to find online or at the registry.
- Prepare your company documents. You need to ensure you don't forget any document lest it slow down your registration process.
- Write the Articles of Association. The notary public needs to approve this step before you can proceed.
- Open an escrow account that will hold your company's paid-up capital.
- Formalize your company by taking the Articles of Association to the country's company register.
- Pay stamp tax. This should be 1 percent of your capital except for the first 1million Swiss Francs.
- Publish in the canton's official journal.
- Register your company for VAT.
- Finally, you need to enter your employees into the social insurance schemes at both the canton and federal level.
You will need to provide the supporting documents for each of these steps to make the process smoother. The registry should take some time to consider your application while proof checking for authenticity before approving the registration of your company.
Why Should You Consider Registering a Company in Switzerland?
They Have a Strong Economy
Switzerland's economy is one of the strongest in Europe. That means opening a company there will have better prospects for your company. Your business will thrive, and you will have higher chances of expanding to other parts of Europe.
Liberal and Favorable Tax Systems
Perhaps one of the best qualities of starting a business in Switzerland is their tax system. They have one of the most favorable tax systems in the world. That's has attracted many other international corporations.
Therefore, you will be in good company if you decide to take advantage of that as well.
A Liberal Labor Market
A liberal labor market means you have a better chance of getting and keeping the best talent in your company. That's a recipe for the fast growth of your company.
You will also love opening a business in Switzerland thanks to the superb infrastructure system they have. It isn’t only the roads that are top tier, but also the financial infrastructure. All those will give your company a higher chance of succeeding.
Of course, you will have to put in the hard work first.
How can I Register a Company in Switzerland?
There are many agents and companies that can help you set up your company in Switzerland. However, reliability might be an issue for some of them. We at Sigtax are committed to ensuring you go through the registration process as smoothly as possible.
We will help register your company and help with bookkeeping services, auditing, tax planning, and helping your employees acquire work permits.
Trusting us to help with your company registration will be the first step towards getting a foothold in the Swiss market. You need not look any further if you want the best corporate services.
If you plan to register a company in Switzerland, we hope what we have shared help. Trusting Sigtax will give you a better chance to make everything work smoothly. All the best.