Switzerland

Original price was: $ 15,999.00.Current price is: $ 13,900.00.

Categories: Tags:
Over 1,000 businesses partner with us for our company services. |  Ready to register ? | Speak with our Experts |Over 1,000 businesses partner with us for our company services. |  Ready to register ? | Speak with our Experts |

Incorporation Details

Fee schedule
Country First year Annual fee
Switzerland US$ 13,900 US$ 11,900

*** To maintain good standing, your Switzerland company must pay an annual renewal fee. This fee is a flat rate and free from hidden charges.

What’s included for 13900
  • Incorporation of Company
  • Local director
  • Switzerland Government Registration Fees
  • Registered Office for 1 year
  • Company Secretary for 1 year
  • Certificate of Incorporation
  • Memorandum of Association
  • Register of Members
  • Membership Certificates
  • Lifetime support

Why Switzerland

Switzerland is one of the most popular locations in the world to set up a company. There are numerous reasons why so many entrepreneurs are attracted to Swiss “shores”. Political stability, friendly corporate legislation, fast and easy incorporation, financial privacy, low taxes, lack of corruption, reputability, and a highly developed economy and infrastructure, are but a few of the benefits that Switzerland offers as a landscape for incorporating a company. It is no wonder why more wealthy foreign investors and ambitious entrepreneurs are choosing Switzerland as their financial and corporate “home base”.

Benefits of opening a company in Switzerland

Switzerland is considered to be one of the best places in the world to set up a business because of its favorable economic environment. Here are a few key points that make Switzerland an attractive destination for businesses :

– Economic and political stability: Switzerland enjoys solid economic and political stability, which creates a business-friendly environment. Government policies generally favour entrepreneurship and economic growth.
– Legal and fiscal framework: Switzerland has a stable and transparent legal framework. Swiss laws are business-friendly, offering strong investment protection and intellectual property rights. The Swiss tax system is also attractive, with competitive tax rates and double taxation agreements with many countries.
– High-quality infrastructure: Switzerland benefits from a state-of-the-art infrastructure, including well-developed transport networks, reliable communications services and an excellent quality of life. Companies can benefit from easy access to European and international markets.
– Highly qualified workforce: Switzerland has a highly qualified and multilingual workforce. The Swiss education system is renowned for its quality, and the country attracts talent from all over the world. Swiss workers are often regarded as productive, well-trained and highly innovative.
– Market access: Although Switzerland is not part of the European Union, it enjoys access to European markets thanks to a series of bilateral agreements. In addition, it has signed free trade agreements with numerous countries, facilitating international trade.
– Support for business and innovation: Switzerland encourages entrepreneurship and innovation through specific support measures, subsidies and tax incentives. The country also has a dynamic ecosystem of start-ups, research centers and technology parks.
– High quality of life: Switzerland is renowned for its high quality of life, offering a safe, clean and well-organized environment. Health, education and leisure facilities are first-class, which attracts international talent and makes it easy to recruit skilled employees.

Types of Business Entities in Switzerland

Anyone wanting to set up or restructure a business needs to decide on a legal structure. Be careful, as not all legal structures are suitable for all businesses.

This section will provide future entrepreneurs with all the necessary information to choose the most appropriate legal structure for their business.

The three most common structures for SMEs in Switzerland are:

  • The Sole Proprietorship.
  • General Partnership (GP).
  • The Swiss Limited Liability Company (SARL/GMBH).
  • The Joint Stock (SA/AG).
  • Limited Partnership (LP).

Partnerships and capital firms are mainly differentiated by risk-taking. Anyone wanting – or able – to assume risks on their own and take on liability for debts using their own assets can simply register with the trade register as a sole proprietorship.  On the other hand, entrepreneurs setting up with colleagues will be served better by setting up a general partnership or a limited partnership.

Anyone wanting to take less financial risk can limit themselves to a certain amount by setting up a capital firm, i.e. a limited liability company (SARL) or a limited company (SA). It is also possible to provide financial backing for a commercial activity within an association or a cooperative company.

Here are a few factors to be taken into account when choosing the legal structure:

  • Capital: the set-up costs, necessary funding and minimum capital requirements vary depending on the legal structure. Capital requirements for the current year as well as for the next 3 to 5 years need to be taken into account.
  • Risk/Liability: as a general rule, the greater the business risk or the larger the financial contribution, the better it is to opt for a limited liability company.
  • Independence: depending on the legal structure, room for maneuver is restricted. It is therefore a question of ascertaining whether the entrepreneur wants to work on their own or with partners, and whether they prefer to include investors or partners in their activity.
  • Tax: depending on the company structure, the income and assets of the business and of the owner are taxed separately or together. The tendency is to tax the significant income of capital firms less than a partnership or sole proprietorship.
  • Social security: some social insurance schemes are mandatory, optional or non-existent, depending on the legal structure. Owners of a sole proprietorship are not insured against unemployment and signing up for a pension fund is optional. By contrast, in the case of SAs and SARLs, the director of the company is also considered an employee and included in social insurance schemes.

Legal forms of business in Switzerland: Everything you need to know to choose the best option

Switzerland is known for its thriving economy and successful businesses. Whether you are a first-time entrepreneur, an experimented entrepreneur or a foreign investor, it is important to understand the different legal forms of business in Switzerland in order to choose the one that best suits your situation.

Here are the main legal forms of business in Switzerland:

  1. SOLE PROPRIETORSHIP

The sole proprietorship is the simplest and most common form of business in Switzerland. It is often chosen by beginners who want to start a small business without too many formalities. In this type of business, the owner is responsible for all debts and obligations of the business. In other words, there is no legal separation between the business and the owner.

The sole proprietorship is easy to set up and does not require a minimum capital. However, it presents significant risks for the owner, who may lose his or her personal assets in the event of bankruptcy.

  1. GENERAL PARTNERSHIP (GP)

A general partnership is a form of business in which two or more people join together to carry out a business activity. In a SNC, each partner is responsible for the debts and obligations of the business. The profits of the business are divided among the partners according to their shareholding.

The SNC is relatively easy to set up and does not require a minimum capital. However, it also presents significant risks for the partners, who are liable for all the debts of the business.

  1. SWISS LIMITED LIABILITY COMPANY (SÀRL/GMBH)

The limited liability company is a form of business in which the owners are only liable to the extent of their capital contribution. This means that the debts and obligations of the company are separate from those of the owners. The owners of a GmbH are called “partners” and their liability is limited to the amount of their capital contribution.

The Swiss LLC is the most common form of company in Switzerland. It offers some protection to the owners and makes it easier to raise funds. However, the creation of a limited liability company requires a minimum capital of CHF 20,000 and involves more complex administrative formalities than sole proprietorships or partnerships.

  1. SWISS JOINT STOCK (SA/AG)

The public limited company is a form of company in which the owners are shareholders and the management is carried out by a board of directors. In an SA/AG, the debts and obligations of the company are also separated from those of the owners. The shareholders are only liable to the extent of their capital holding.

The SA/AG is often used by SMEs and listed companies. It offers great flexibility in raising funds, but requires a minimum capital of CHF 100,000 and is a complex administrative structure. Shareholders also have voting rights, which depend on the number of shares they hold.

One of the advantages of the legal form of a public limited company (SA/AG) in Switzerland is that the names of the shareholders do not have to be published in the commercial register. This means that shareholders can remain anonymous, unlike other legal forms of business where the owners must be registered in public documents (Sàrl/GmbH).

This confidentiality can be an advantage for shareholders who prefer not to be publicly associated with a company, or for companies that do not want to reveal their ownership structure to competitors or other interested parties.

However, it is important to note that the names of the company’s directors must be registered in the commercial register, which means that this information is publicly available. In addition, the shareholders must be registered with the company itself, which means that the company will have information about the identity of its shareholders.

It is also important to remember that shareholder confidentiality is not absolute. Swiss courts may require disclosure of shareholder information in certain circumstances, such as criminal investigations or court proceedings.

In summary, although the SA/AG offers the possibility of keeping the names of shareholders confidential in the commercial register, it is important to take into account other factors that may affect shareholder confidentiality.

  1. LIMITED PARTNERSHIP (LP)

The limited partnership is a form of business in which there are two types of partners: general partners and limited partners. The general partners are liable for the debts and obligations of the company, while the limited partners are only liable for the amount of their capital contribution. The limited partners have no right to participate in the management of the company.

The SCS is often used in sectors where it is common to use outside investors, such as real estate or investment funds. However, it is less common than other legal forms of business in Switzerland.

In Switzerland, there are several legal forms of business, each with its own advantages and disadvantages. The choice of legal form will depend on several factors, such as the size of the business, the objectives of the entrepreneur and the complexity of the legal structure. It is important to understand the different legal forms of business in Switzerland before starting a business or investing in an existing business. If in doubt, it is recommended to consult an expert Swiss fiduciary for professional advice tailored to your situation.

Incorporation Procedure

Documents from individuals:

  • Certified Copy of a Passport
  • Certified Copy of a Utility Bill e.g., Gas / Electrical or Bank Statement (dated within the last 3 months)
  • 3 Proposed company name
  • Application Form (we will provide).
  • CVs/Resume.

Documents from legal entities:

  • Copy of the Certificate of Incorporation;
  • Copies of incorporation documents (Articles of Association and Memorandum of Association).
  • Register of directors/shareholders/members.

Note: Where documents are in a language other than English, a certified translation of the full document into English must be provided, with the original document.

Company Structure
  • Directors: One local director above 18 years is mandatory in Singapore. However, a nominee director can be appointed.
  • Shareholders: : One shareholder is required for companies in Singapore. A director can be a shareholder. And they can be an individual or corporate entity.
Timeline

Once we have received all the required identification documents, the company formation process will take approximately 10-12 working days subject to compliance review.

Taxation Policies

In Switzerland, taxes are levied by the federal government, the cantons and the municipalities. Tax sovereignty is regulated by law

The Swiss federal government levies corporate income tax at a flat rate of 8.5% on profit after tax of corporations and cooperatives. For associations, foundations, and other legal entities as well as investment trusts, a flat rate of 4.25% applies. At the federal level, no capital tax is levied.

Corporate Income Tax

 Federal Level The Swiss federal government levies corporate income tax at a flat rate of 8.5% on profit after tax of corporations and cooperatives. For associations, foundations, and other legal entities as well as investment trusts, a flat rate of 4.25% applies. At the federal level, no capital tax is levied

Taxable Persons Taxable

persons include Swiss resident legal entities, i.e. Swiss stock corporations, limited liability companies, and partnerships limited by shares, cooperatives, clubs and foundations, and collective investment schemes with direct ownership. Companies which have their registered office or place of effective management in Switzerland are generally considered resident for tax purposes.

Taxable Income

 Resident companies are subject to corporate income tax on their worldwide income with the exception of income attributable to foreign permanent establishments or foreign real estate (immovable property). Such income is excluded from the Swiss tax base and is only taken into account for rate progression purposes in cantons that still apply progressive tax rates. Non-resident companies are subject to tax only on Swiss source income, i.e., income and capital gains derived from Swiss business, permanent establishments, or immovable property, whereas income from immovable property includes income from trading in immovable property. As a matter of principle, the legally prescribed/statutory accounts of a Swiss company and – in the case of a foreign company the branch accounts – form the basis for determining taxable income. With the exception specific tax adjustments, expenditures recorded pursuant to commercial law are therefore tax deductible, provided that they comply with the dealing-at-arm’s-length principle. Revenues from qualifying shareholdings (dividend returns and capital gains) constitute indirect tax exemptions. For tax purposes, losses can generally be carried forward for a maximum of seven years

Accounting and Audit Requirements

All Swiss companies have to register with the Swiss Commercial Registry and have their accounting undertaken by a Swiss accountant or by a Swiss Certified Public Accountant.

Swiss Accounting Regulations and Chart of Accounts

A chart of accounts is a list of financial accounts set up, usually by an accountant, for an organisation, and available for use by the bookkeeper for recording transactions in the organisation’s general ledger

There is no official chart of accounts in Switzerland. Certain industries nonetheless are governed by Swiss accounting regulations and Swiss GAAP.

Companies can refer to principles defined by:

  • Swiss Law
  • The Swiss Audit Manual
  • IAS
  • US-GAAP Standards

Company Obligations

The Board of Directors of a Swiss company is required to produce an annual report for each financial year, within six months of the end of the relevant financial year.

Every company has to keep physical or digital records of all its business transactions for a period of ten years.

Annual Reports

The annual report consists of the Swiss company’s financial statements in the form of, the balance sheet, profit and loss account, the corresponding notes, and a management report.

The annual report includes the turnover for the preceding financial year and must follow the Swiss accounting principles (see below).

The annual report, together with the corporate tax return, must be filed with the relevant cantonal tax authority by 30 November of the calendar year (at the latest), following the end of the financial year.

Publishing Results

In Switzerland, publication requirements are very limited. Only individual and consolidated financial statements of listed companies must be published.

Swiss Audit Requirements

The organisation’s size and economic importance of the Swiss company determine whether a company is subject to an ordinary or limited audit. Under certain conditions, smaller companies are not audited.

  1. Ordinary Audit

This is required, if for two consecutive fiscal years, two of the threshold values, detailed below, are exceeded.

  • Balance sheet of CHF 20 million or more,
  • Turnover of CHF 40 million or more,
  • 250 or more full-time employees.

A company must also undergo an ordinary audit; if it has an obligation to consolidate, or if a group of shareholders holding at least 10% of the company’s shares request such an audit to be performed.

An ordinary audit may be specified in the company’s articles of incorporation or voted on a general meeting.

  1. Limited Audit

Most Swiss SMEs do not meet the above criteria and are therefore subject to a limited audit.

This requires a summary report to be sent to the members of the general meeting. The process includes an interview with the management, verification of details and an analytical audit.

  1. No Audit

If the company employs less than 10 full-time employees and all of the shareholders unanimously consent, it is not necessary to carry out an audit (opting-out).

Swiss Holding Company: Consolidating Financial Statements

Every Swiss holding company must establish consolidated accounts according to the Swiss Code of Obligations.

Consolidation means aggregating annual reports from the different companies which make up the group to obtain a single annual report describing the situation of the group.

In terms of Swiss accounting law, two or more companies form a group, if they meet the following two conditions:

  • If 50% of the company are held by the Group, holding company of the Group, or by another company within the Group.
  • If they have similar objectives and purpose.

Small groups are exempt from consolidating their accounts and are so defined if they meet two of the three following criteria:

  • A total balance sheet less than CHF10 million,
  • Fewer than 200 employees,
  • A turnover of less than CHF20 million.

The company must also conform to the conditions detailed below:

  • The company must not have shares quoted on the stock market.
  • No shareholder, owning more than 10% of the capital has demanded consolidation.

Swiss Accounting Principles

  • Swiss Financial Reporting Principles

Financial reporting serves the purpose of presenting the economic situation of a company in such a way to enable third parties to make a reliable judgement.

Financial reporting is based on the assumption that the company will remain an “going concern” for the foreseeable future and is not in danger of insolvency.

  • Currency and Languages

Accounting in Switzerland is carried out in Swiss francs (CHF) or in any other currency required for business operations. If a foreign currency is used, values must also be shown in Swiss francs.

The foreign exchange rates used are those as published by the Swiss Federal Tax Administrator and must be disclosed in the notes.

Swiss accounting has to be undertaken in one of the official Swiss languages or in English. It may be carried out in writing, electronically, or in a comparable manner.

Contact us for complete assistance in opening an offshore company in Switzerland.

Country Reviews

Reviews

There are no reviews yet.

Be the first to review “Switzerland”

Your email address will not be published. Required fields are marked *

Related Jurisdiction

Follow the right path with the right procedure

STEP 01

Select package and submit KYC documents

STEP 02

Sign application forms and do due diligence requirements

STEP 03

Submit the application and receive corporate documents

STEP 04

Annual registration renewal to keep business in good standing