Switzerland is one of the best business locations to incorporate a company due to its strong ties to markets around the world. Despite its internationalist approach, Switzerland preserves its specific business location advantages such social, political and economic stability, favorable taxation and business-friendly environment. Therefore, if you were thinking about incorporating in Switzerland, here are a few things you should know beforehand:
1. What do you need from a legal point of view to open a Swiss company?
You do not have to necessarily register a company when you want to open a small business. You can operate without a legal entity until you reach the 100,000 CHF income threshold.
It is recommended, however, to register your company because many customers and vendors check whether you are registered or not. To register, you must go to the Commerce Registers and in a few minutes your company will be registered. All you have to do is fill in some forms and have your identity card and work permit. This is how you can register as a partnership or as a sole proprietorship, a business owned by a person. If you want to open an AG or a GmbH, you will need the help of a notary to notarize the company’s documents.
2. Why should you open a company in Switzerland?
Opening a company in Switzerland goes hand in hand with security. You will have fewer obstacles in dealing with the administration and financial institutions. The legislation is very clear, very easy to apply and not as costly as you think. You can also take advantage of the reputation of a Swiss business, which can open many doors, especially at international level. Switzerland is constantly developing, becoming less traditional and changing its approach to a more modern one in which small and medium-sized companies have enough space on the market, in addition to the big players. And, most of the time, these companies are successful.
3. What is the strong point of opening a company in Switzerland?
It is very easy to open your own company and Switzerland supports small and medium businesses by lower taxes or by levying taxes only after reaching a certain threshold. Banks also offer start-up packages which mean you pay lower interest rates in the first year, and that's very helpful.
4. Does being an expat pose certain difficulties to open a company in Switzerland?
Not at all. As long as you have a location to register an office in Switzerland for your company and a Swiss work permit, you will not have any problems. The permit must have certain validity, but you can very easily start a business as an expat.
5. From a tax point of view, is it advantageous to open a company in Switzerland?
It is an advantage to incorporate in Switzerland because you are taxed on the basis of the profit you declare and if you do not make any profit, you do not pay any taxes. You will pay salaries and pension fees for employees, but that's a very normal thing for any company. There is a very important aspect about taxes. Each canton has different tax rates, so you can decide to open your company in a canton that has lower taxes. For example, Vaud has lower taxes than Geneva.
6. Do Swiss companies have a good reputation?
Due to the quality, professionalism and strictness with which the Swiss approach each type of project, Swiss companies have a very good reputation. Swiss companies have always been very involved in what they do and persevered until they obtain the best result.
If you need further assistance regarding incorporating a company in Switzerland, please contact our company formation experts.
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