Switzerland
Legal stability, tax system and standard of living make Switzerland one of the best countries to conduct business and to live in.
Switzerland enjoys huge reputation in the business world based on the following:
Moderate and fair tax system, high level of legal security and political stability. Neutrality, liberal market, high level of legal security represent the foundation of stability for centuries. One of the basic preconditions for this stability is dominant awareness about partnership relations between citizens, economic entities and government.
Schwyz, small canton located on the shore of Zurich lake, just 30 minutes away from Zurich, represents ideal prestige business environment for the new start – restructuring, consolidation and certainty. Adequate infrastructure, business environment, vicinity of banks and other government institutions, as well as its tax system are reasons why many world famous companies choose this place for their head offices.
Company legal forms
| GmbH | AG | |
|---|---|---|
| Personal responsibility | Up to company capital | Up to company capital |
| Capital | Minimum CHF 20.000 | Minimum CHF 100.000 |
| Paid up capital | 100% | 20 %, but not less than CHF 50.000 |
| Capital forms | Ownership listed in Handelsregistar | Nominal or bearer shares |
| Public records about owners | Yes | No |
| Company management | Director (1 or more) | Board of Directors (1 or more) |
| Min. 1 person with unlimited powers to represent company, must be a resident of Switzerland | Min. 1 person with unlimited powers to represent company, must be a resident of Switzerland | |
| Accounting and Audit | Accounting is mandatory. Generally, Audit is obligatory, however it is possible to avoid it in certain cases. | Accounting is mandatory. Generally, Audit is obligatory, however it is possible to avoid it in certain cases. |
| Benefits | Limited Liability low capital requirements
In most cases no Audit required |
Simple and fast transfer of ownership Limited Liability
High level of anonymity |
Tax System
Federal income tax – tax rate is 8,5%
Income tax at the cantonal level – standard rate 2,52%
Capital tax – maximum 0,4%
Withholding tax (paid on the payment of dividends) – 35% – it may be avoided by making use use of the contracts on avoidance under the double taxation agreements.
Income Tax
The possibility of contracting a universal tax rate, impairment on the basis of income from abroad, holding activities, activities of asset management etc.
Value-added Tax
The obligation to pay value added tax (VAT) generally referrs to companies with an annual turnover in Switzerland in excess of CHF 100,000, although there is a possibility of opt-in to this obligation. VAT rate in Switzerland is 8%.
Withholding Tax
Withholding tax of 35% is payable on gross income from movable property. This includes interest income and share in the profits. The tax is levied at the source, or with a bank that pays interest or, in the case of dividends, the companies that pay out profits. Natural and legal persons registered or residing abroad may reclaim due taxes in their home countries if there is a contract on avoidance of double taxation (Russia, Ukraine, Kazakhstan, Uzbekistan, most of the EU countries etc.)
Special tax treatments
Taxation of domicile of the company
The companies, whose owners are foreigners, performing only administrative work while in Switzerland, without carrying out activities in Switzerland.
Holding Companies
Company principally engaged in property ownership in the country and abroad.
Mixed Management Companies
Corporations dealing mainly with international operations and their activity in Switzerland is small.
Procedure for the establishment of the company
- Consultation and choice of legal form of the company (AG or GmbH)
- Collection of necessary documentation, filling out basic forms related to company formation
- Opening an account for paying up company capital
- Drafting and notarizing company incorporation documents, registration and entry into Handelsregistar
- Opening an account of the company
