Switzerland is ranked 33rd for ease of doing business & 19th for ease of taxation. The Swiss economy, the main sectors of which are manufacturing & trade, is deservedly called one of the most stable in the world.
The Swiss business environment is extremely favorable for entrepreneurs seeking to open a business in Switzerland. Each of Switzerland’s 26 cantons (administrative & territorial units) can provide them with its own advantages, which are guaranteed at the federal level. The country’s tax system is extremely business-friendly & provides incentives for attracting foreign investments.
Switzerland has a first-class infrastructure & a highly skilled workforce. The Swiss franc is very stable and, therefore, used as a reserve currency.
Taxation
Switzerland is considered a country with one of the highest tax rates. The corporate tax rate (13%) differs from one canton to another. The most business-friendly cantons are the ones located in central Switzerland (e.g. Zug & Zurich). Switzerland has one of the lowest corporate tax rates in the EU (second only to Ireland & Cyprus). It also provides tax breaks for holding, pre-owned, mixed & service companies.
Those seeking to open a company in Switzerland will have to pay the following taxes:
- real estate assessment tax (up to 5%);
- social security tax for workers (12%);
- VAT (up to 7.7%);
- inheritance tax (excluding Zug);
- wealth tax is (1.5%).
Switzerland has signed agreements on the avoidance of double taxation with many countries of the world.
Company Registration in Switzerland: Requirements
Those considering registering a company in Switzerland can choose from one the following organizational & legal forms:
- GmbH;
- AG;
- Einzelfirma;
- Kollektivgesellschaft;
- Kommanditgesellschaft;
- Genossenschaft;
- branch.
Please note that the 2 most popular organizational & legal forms are GmbH & AG.
What Does it Take to Register a Company in Switzerland?
Those seeking to register a Swiss company must:
- choose a name for your company (must be different from already registered ones & indicate a company’s legal form; mustn’t contain any prohibited words);
- conclude an agreement between its founders (for registering a GmbH in Switzerland) ;
- deposit funds into a bank account ;
- submit documents to the register of companies (after a positive decision, applicants receive a certificate of registration);
- have a registered office;
- have no less than one director (resident) & one shareholder.
Normally, registering a Swiss company takes up to 2 weeks.
Considering establishing a company in Switzerland? Need advice on company registration in Switzerland? Why not contact IQ Decision UK?
