Switzerland has a long-standing reputation of a reliable jurisdiction. At the moment, it also opens numerous new opportunities for doing business in the financial sphere. Prifinance specialists have prepared for you the main information you may need to know preliminary about this country.
Major Legal Forms of Entities
- Limited Liability Company (SARL/GmbH) – the most preferable option to set up a company in Switzerland. The liability of shareholders is restricted here to the value of their contributions only. The minimal threshold for this type of entity is CHF 20,000.
- Joint-Stock Company (SA/AG) – the vehicle that is more preferable for entering stock markets. It requires the share capital in the amount of CHF 100,000.
Registration Requirements and Steps
Starting a company in Switzerland usually covers these basic steps:
- Defining the types of activities for the anticipated corporate entity.
- Choosing and verification of the future business name for your company.
- Collecting information about the founders of the future company, including information about their financial state.
- Selecting the company’s registered address.
- Preparing statutory documents and registration forms.
- Submitting the set of registration documents to the respective Commercial Register.
- Registration for tax and social security purposes.
Legal Framework
The legislation is stable and transparent, flexible enough for starting a new business, including in financial sectors.
Advantages of the Jurisdiction
Switzerland as your potential target jurisdiction can offer at least these benefits:
- Clear and transparent business environment
- Openness to major European markets
- Skilled and experienced specialists
Tax System
Here are major highlights on taxation in Switzerland:
- Corporate income tax rate – the overall tax rate may vary from 11.9% to 21.6 % as you need to pay federal and cantonal taxes. The exact rate depends on the place of incorporation
- VAT rate – 7.7 %
- Withholding tax rate (for non-residents) – may vary for (i) dividends –between 0 and 35 %, (ii) interests – between 0 and 35 %,(iii) royalties – 0%
- Capital gains overall tax rate (corporate) – from 11.9% to 21.6 %
How Prifinance Specialists May Help You
Prifinance specialists may consult you comprehensively about possible benefits you may enjoy after company formation in Switzerland or elsewhere. Reach us shortly for more precise discussions.