Company Formation in Switzerland

Exploring the Company Formation in Switzerland

Switzerland is known for its business-friendly environment due to a plethora of factors. It is known for its political stability and rule of law. Switzerland has also been a consistent top performer in the ease of doing business reports. Switzerland also has an excellent infrastructure and well-developed lines of transportation and communication network. All of these factors contribute to making Switzerland the most sought-after destination for global investors.

Company formation in Switzerland is a simpler and quicker process. All that you require is the necessary capital for your company formation in Switzerland. You can engage in company formation in Switzerland, irrespective of your nationality. Foreigners can also engage in company incorporation in Switzerland. However, before company incorporation in Switzerland, you are required to obtain a residence permit. You can engage in company formation in Switzerland by sitting in any part of the world. There is no requirement to be physically present in Switzerland to engage in company formation.

Exploring Business Frameworks: Options of Company Formation in Switzerland's

Sole Proprietorship

It is the most common form of business model in Switzerland. It is usually chosen by individuals who want to start a small business without engaging in many formalities. The owner here is solely responsible for all the debts and obligations of the company. It is easy to engage in company incorporation in Switzerland, and it doesn’t require any minimum capital.

General Partnership (GP)

When 2 or more people join together to register a business, it is called a General Partnership. In such business models, every partner is responsible for the company's debts and obligations. It is also easy to register and doesn't require any minimum capital.

Swiss Limited Liability Company (GmbH)

In this business model, the owners are liable only to the extent of their capital contribution and are not liable for all the debts and obligations of the company. To register this company, you require a minimum capital of CHF 20,000.

Swiss Joint Stock Company (SA/AG)

In this business model, the debts of the company are separated from its owners. This means that the shareholder is only liable to the extent of their capital contribution. To register this company, you require a minimum capital of CHF 100,000.

Limited Partnership

There are two types of partners in this partnership, namely general partners and limited partners. The General Partners are liable for all the debts and obligations of the company, whereas the Limited Partners are only liable for the amount of the capital contributed.

Public Limited Company (SA)

 A minimum capital of CHF 10,000- 50,000 is required for public limited company formation in Switzerland.

Private Limited Company (SARLs)

A minimum capital of CHF 20,000 is required for private limited company formation in Switzerland.

Swiss Subsidiary

In this business model, the capital is either entirely owned or partially owned by the foreign companies. They are governed under the Swiss Laws.

Swiss Branch Office

The Swiss Branch office represents the interests of its parent company. It is not a separate legal entity. However, it has to be registered with the Swiss Commercial Register with at least one Swiss resident on its board of management and should have a registered office in Switzerland.

Swiss Representative Office or Liaison Office

A Swiss representative office does not have its legal status; however, it is governed by the rules and regulations of Swiss law. It can be set up by both foreign investors and non-governmental organizations.

necessary papers Required for Company Formation in Switzerland

The following necessary papers must be kept in handy before starting up your company incorporation in Switzerland process-

1. Name and residential addresses of the company owners
2. Proof of Identity, such as a passport
3. Proof of residency, such as a utility bill
4. Copy of the certificate of company incorporation in Switzerland
5. List of persons authorized to sign on behalf of the company
6. Name and address of directors of the Company (along with a copy of passport/residential address proof)
7. Proposed  name of the company
8. Type of the company structure
9. Authorised capital of the company
10. Paid-up share capital of the company
11. Nominee Director Arrangements
12. The objective of company formation in Switzerland

Partner with Enterslice for Company formation in Switzerland

Together, let us start this journey of company formation in Switzerland. We shall help in your company incorporation in Switzerland through our reliable services-

• We at Enterslice provide tailor-made solutions for your company formation in Switzerland through our holistic approach.
• Guidance in choosing the most appropriate business model for your company formation in Switzerland.
• Providing legal advisory services to ensure timely compliance after your company's formation in Switzerland.
• Obtaining necessary permits and licenses so that you can effortlessly start your business operations after company formation.
• Financial planning and budgeting services
• Annual Bookkeeping services
• Tax advisory services to optimize tax planning
• Legal necessary papers Preparation
• Legal Compliances
• Nominee Director Services

Eligibility Criteria for Company formation in Switzerland

Shareholders

At least one shareholder is required for company formation in Switzerland.

Directors

 At least one director is required for the private companies. At the same time, 3 directors are required for the stock corporations.

Minimum Share Capital

It depends upon the type of company you want to register in Switzerland.

Navigating Swiss Business Establishment: The Process of Company Formation in Switzerland

Business Plan Evaluation

The first step is to develop a comprehensive business plan for the business activities, target market, and financial projections. And create a suitable legal structure based on the size and nature of the business.

 Company Name Reservation

You must choose a unique company name and then check its availability with the Swiss Commercial Register.

Notarize Memorandum of Association and Articles of Association

After successfully registering your company name, you have to draft the MoA and AoA of your proposed company and notarise it before the Swiss Notary Public.

Corporate Bank Account Opening

After the successful company incorporation in Switzerland, you can proceed to open up a corporate bank account in the company's name.

Commercial Register

You must submit the given necessary papers to the local commercial register office:-

1. Notarised MoA and AoA of your company
2. Bank confirmation of the share capital deposit in the bank
3. Proof of name reservation of the proposed company

Compliances for Company Formation in Switzerland

• Accounting reports must be filed annually and not later than 6 months from the end of the financial year.
• Issuing invoices and letterheads of the company
• Opening up of corporate bank account
• VAT Registration after company incorporation in Switzerland
• Applying for Switzerland work visa
• Obtaining licenses and permits

We at Enterslice can act as your trusted partner and can provide ongoing company compliance for you.

Advantages of Company Formation in Switzerland

Reliable Banking services

Switzerland is known among investors for its high-quality banking services. It has a long-standing reputation as a global financial hub. The Swiss banking sector is known for its stability, privacy, and its commitment to providing high-quality financial services. The Swiss banks provide efficient currency exchange services. Stringent data protection laws complied by Swiss banks ensure privacy for clients.

Free trade Policy with European and American countries

Switzerland has an open trade policy and various agreements with American and European countries to facilitate free trade. Switzerland is a member of the European Free Trade Association (EFTA) and has a well-established network of free trade agreements (FTAs) with several countries. Switzerland also has several bilateral agreements with the EU. The most significant bilateral agreements are the Bilateral I Agreement (1999) and the Bilateral II Agreements (2004). 

Crypto-friendly Country

Switzerland has a well-developed regulatory framework for cryptocurrency and blockchain projects. The country has a business-friendly environment that promotes innovation while protecting the financial market integrity. The "Crypto Valley" in the canton of Zug, has become a global hub for cryptocurrency and blockchain companies. The Crypto Valley Association facilitates collaboration between startups, government, and academia in the area of blockchain technology.

Optimizing Finances: Unraveling the Tax Structure for Company Formation in Switzerland

Banking Laws

The banking laws of Switzerland provide a high confidentiality standard to their account holders, which attracts overseas investors.

Levels of Taxation

Switzerland has a decentralized taxation system at three levels namely federal, cantonal (State), and municipal levels. The different types of taxes in Switzerland are Corporate Tax, Dividend Tax, Issuance Stamp Tax, Securities Transfer Tax, and Real Estate Capital Gains Tax. The tax structure varies depending on the canton where the company incorporation in Switzerland occurs. The federal corporate income tax is uniform across all cantons. The corporate income tax is at the rate of  8.5%. The Cantons and municipalities in Switzerland can set their own corporate income tax rates. Switzerland has a VAT rate of 7.7%. There is also a reduced slab of 2.5% VAT rate for selected goods and services.

Withholding Tax

Switzerland does not impose withholding tax on dividends paid to domestic or foreign shareholders. There is no withholding tax on interest payments as well. There are, however, withholding taxes on royalties, but double taxation treaties significantly reduce this tax.

Transfer Pricing Rules

Companies operating in Switzerland must adhere to transfer pricing rules to ensure that transactions between related entities are conducted at arm’s length.

Foreign Direct Investment

The government of Switzerland encourages FDI and has implemented measures to attract investment from foreign entities.

Global Crypto Compliance 2024: Regulations in Every Country

Global Crypto Compliance 2024 provides a comprehensive overview of cryptocurrency regulations across the globe.

Download PDF

Ideal Locations for Company Formation in Switzerland

Zurich

It is a major economic hub of Switzerland with excellent infrastructure and proximity to the international airports.

Geneva

It is Switzerland's financial hub and is known for international trade.

Basel

It is the hub for research and development. Many healthcare industries dominate this region.

Zug

Popularly known as CryptoValley of the Switzerland. It is known for the blockchain-based industries.

Challenges Faced during Company Formation in Switzerland

Complex Regulatory Framework

Switzerland has a complex regulatory environment, which becomes a hindrance during the company incorporation in Switzerland process due to the strict adherence to various federal, cantonal, and municipal regulations.

High Living Costs

Switzerland has high living costs, including rent, salaries, and other expenses. This can prove to be challenging for startups and small businesses.

Language and Cultural Differences

Switzerland has multiple official languages, such as German, French, Italian, and Roman which can pose challenges for non-Swiss business investors.

Corporate Taxation Variability

Corporate tax rates vary for different companies. Understanding the tax implications for your company is sine qua non before engaging in company formation in Switzerland.

Avoiding Common Mistakes in Company Formation in Switzerland

• Providing inaccurate information to directors and shareholders
• Selecting an incorrect business model
• Selecting inappropriate business names
• Not filing annual returns
• Keeping up with the compliances

Why should you trust Enterslice for company formation in Switzerland?

Client-Centric

Our team at Enterslice delivers client-centric services. We focus on the needs and complaints of our clients while offering them any business service.

Timely Compliance

Enterslice focuses on time management and ensures timely filing of financial statements of our clients before the agreed timelines.

AI-powered

We leverage our AI-powered services to ensure hassle-free company formation in Switzerland for our clients.

In-depth knowledge of local rules and regulations

We have an in-depth knowledge of local rules and regulations related to company formation in Switzerland.

Connection with Switzerland Authorities

We have a reliable connection with the Swiss authorities. They ensure smoother interactions and regulatory support with the agencies.

Marking Milestone in Company Formation in Switzerland

We have 10+ years of experience in Company formation in Switzerland. We have a global network of legal consultants who have achieved hassle-free Company formation in Switzerland. We provide high-quality service and client-centric company incorporation in Switzerland service. We at Enterslice can streamline your company formation in Switzerland.