Several fortune 500 companies have their headquarters in Switzerland including Nestle, Holcim, and Migros. The Swiss
Gmbh is famous around the world. To correctly establish a GmbH in Switzerland, you need to be aware of the Swiss Gmbh
requirements.
Here at Sigtax, we love to take the stress off you. We have trained agents that are available to take you through the
entire Gmbh formation process completely stress-free. We have gained enough experience from conducting these procedures
over the years, so you can rest assured that you are in safe hands.
Benefits of having a Swiss GmbH company
- Being an LLC means that the liability is limited to the contribution of the shareholder
- The financial system is developed.
- Corporate tax rates are lower
- The company can be owned by a complete foreigner.
- Ownership can be confidential, following set KYC and CRS rules.
What does the Swiss Gmbh Company entail?
GmbH is short for Gesellschaft mit beschränkter Haftung which is what a Limited Liability Company is called in Swiss.
This company type is not as popular as the Corporation, but the entire incorporation process is straightforward. Here
are the various processes of the GmbH company, and the specific requirements for each process.
Management requirement
Appointing a board of directors to run the Gmbh company is not required. The director of the company takes on the
responsibility. At least one shareholder is required to start up a GmbH. This means that the company can be singly
owned. The director must be a Swiss citizen.
Tax requirement
A Swiss GmbH will be required to pay corporate tax. All commercial establishments in Switzerlands pay the Corporate tax,
and this can be paid on three different levels which are:
- Federal
- Cantonal
- Municipal
At the federal level, the tax is applied at the rate of 8.5% of the annual profit of the company. When adding the
cantonal and municipal levels, the corporate tax automatically increases. Different cantons have different tax rates.
The GmbH also pays a VAT which is 8% of the annual profits; this is one of the least tax rates in the whole of Europe.
Foreign LLCs operating in Switzerland are also expected to pay tax on their annual profit from their company.
Corporate details
This includes the sensitive issue of confidentiality in a GmbH company. The details of the beneficial owner of this
company are not accessible. They could be disclosed in some important cases, for instance, when banks need to make deep
investigations, but they are strictly unavailable.
Liability requirements
The extent of the investment of a shareholder in the company will determine the extent of the liability of the
shareholder.
Naming requirements
The owner of the company is entitled to use any suitable name for the company as long as stipulations are maintained.
One of such stipulations is that if a business is operating as a branch, then the parent company and the branch in Swiss
must have the same name.
Another rule is that the abbreviation; GmbH, must be added to any name that the company has chosen.
Since each company should have a unique name, it is pertinent for the company owners to mention their proposed company
name to necessary institutions and confirm the availability of the name. A name is available if it is not currently
being found in the registry records as belonging to someone else. When the name has been confirmed available, the owner
can then register it in the Central Business Names Index (CBNI) under the registry, and legally own the name of the
company.
Documents requirements
To proceed with the company formation process, the company shareholders must have certain documents. Here are the
documents and the steps taken to utilize them;
- Documents of personal details like passport and proof of address.
- Filing documents with the registry
- Filing documents with the registry
-
Preparation of the Articles of association: Here are the details expected to be found in the articles of association;
- The chosen name of the company with the term GmbH attached to it.
- The local address of the company.
- The purpose of company formation.
- Appointment of directors and auditors.
Verifying a Swiss GmbH
There is no need to register financial statements. However, it is important to keep financial records so that they can
be presented when requested by the tax authorities or shareholders. The GmbH company will need to turn in a financial
statement of the company to the tax authorities annually. This will ensure that all payments are being made correctly
and no party is being cheated. The company should also be audited regularly unless in cases where;
- The employees of the company are less than 250.
- Its asset value is less than CHF 20,000,000 or the yearly turnover is less than CHF 40,000,000.
Setting up a GmbH in Switzerland is easy, but we understand that for a novice, this can be a bit overwhelming. This is
why Sigtax exists! We have trained agents and personnel willing to hold your hands and walk with you every step of the
journey.
We have been in business for years, helping several businesses, owned by both citizens and foreigners start-up in
Switzerland. Your business is our priority and we treat it accordingly. Waste no further time in contacting us, and we
will tell you all Gmbh company requirements and make the process seamless for you.