Switzerland Company Formation 

Switzerland is distinguished by amazingly beautiful nature, high production technologies and a stable financial mechanism; it allows state to remain a neutral country (not part of the EU, any military organizations, offshore lists). Developed infrastructure, political and economic stability, in addition to a low level of taxes, make it possible to create – this state is very attractive not only for living and recreation, but also for realizing mercantil activities. If you wonder about direction of Switzerland company formation, it’s worth noting in recent years huge numbers of new companies were founded in such areas as handicrafts, consulting firms, retail, real estate (buying/renting a home), finance and insurance. If you need help with establishment and launch of business-project in Switzerland, Eli-Swiss service specialists are ready to provide you with comprehensive professional support, applying all their extensive knowledge and many years of experience.

Organizations forms 

Switzerland is one of the most attractive states among foreign entrepreneurs for making commercial operations in Europe. This state has favorable economic climate and one of the most developed financial systems in the world. The country has signed tax treaties with more than 100 countries, and this fact certainly makes life easier for entrepreneurs who intend to work in several countries. There’s no doubt Switzerland is one of the safest and most stable European countries when it comes to politics, banking and investment. The most popular cantons for doing business in Switzerland are: Zug, Vaud, Lucerne.

There are 2 main commercial forms for non-residents.

  1. LLC (GmbH) – most popular type in Switzerland for small and medium-sized firms.
  2. An open joint stock firm (AG) is the most commonly used model for large organizations.

Registered capital for LLC is at least CHF 20,000. In addition, you will need to list a partner as a founder, as well as an executive director – a manager with signature rights. One of the executive directors needs to live in this state. To make things easier, founding shareholder and the chief executive may legally be the same person.

To register AG, you need to possess initial capital of at least CHF 100,000. In addition, you need to have one person on board of directors and one shareholder – technically, these two positions can be occupied by the same person. It’s mandatory to know that majority of board representatives who sign authority should live there.

Documents for firm establishment 

  1. Notarized translation of internal passport.
  2. Notarized passport.
  3. Banking reference.

Now, it’s one of the few jurisdictions providing a wide range of banking establishments for account creation after registering organization. Initially, in process of registering your firm and depositing the authorized capital, you’ll create a technical account for depositing the initial capital, which you can then use, you need to inform the bank of such a desire and go through check.

Privileges of doing commercials in Switzerland

By choosing this state, you get the following benefits.

  1. Organization with excellent reputation, which is always appreciated by international partners.
  2. Strict confidentiality guaranteed to their customers. But it is worth considering in order to create account, most banking establishments require a certain deposit amount, which can exceed CHF 500,000 (EUR 463,000), as well as the amount of a mandatory cash balance.
  3. Absence of corruption and transparent legislative regulation.
  4. Avoiding double taxes.
  5. Opportunity to choose canton with most favorable taxation system, since each of them is autonomous in the field of taxes (according to the tax reform of 2020, the lowest corporate tax rates are set in the canton of Nidwalden – 11.97%, in the canton of Zug – 11.9% and in Geneva – 13.99%).
  6. One of the lowest VAT rates in Europe – 7.7%.
  7. The ability to conduct permitted activities in field of cryptocurrencies.
  8. Lack of currency control.

Establishing Swiss organizations, it should be taken into account that legislative basis is two-tiered (federal and regional), and may differ locally. In addition, one should remember the need to have a company’s authorized reserve, which can reach 20% of the paid-in authorized capital and is used in exceptional cases (economic crisis, large losses, etc.).

Switzerland is not an offshore zone, but a jurisdiction with preferential taxes, so term offshore used should be interpreted as registration and doing business at reduced tax rates.

For your enterprise in this state to start operating, you must:

  • choose and agree on a name;
  • determine the location of the office;
  • draft a charter and memorandum;
  • open a consignment bank account;
  • credit authorized capital to consignment account and receive a certificate from bank;
  • register firm with inscription in state register;
  • open a permanent company account.

The scheme of work of a Swiss joint-stock company differs from an offshore one, where the nominal value immediately issues a general power of attorney to the beneficiary. The Swiss manager will always discuss with his shareholder what activities the company will conduct and whether there is any crime there, since he is liable up to criminal liability for possible violations of the law. It usually takes 3 weeks to comply with all the formalities required by Swiss law. Final procedure for making changes to mercantil register takes up to 3 weeks, opening an account in a Swiss bank takes some time to agree on all issues related to the origin and transfer of money.

Benefits of doing business there are as follows.

  1. Authority in international markets
  2. Easy access to European partners
  3. Stable economy and currency
  4. No currency control
  5. Avoidance of double taxes
  6. Developed legal basis
  7. Reasonable amount of taxes
  8. No corruption
  9. Information privacy

You can be calm about passing your business to children. Business schools in Switzerland are considered among the best in the world, so here your students will receive all the necessary business knowledge.

If you are not confident in your own abilities, it is better to contact Eli-Swiss specialists in the migration field, who will reduce your participation in the registration procedure to a minimum, save your nerves, time and money.