Set up a business in Switzerland?
Setting up a company in Switzerland takes 18 days’ time. It is required to submit all the documents properly in the process of company incorporation in Switzerland which consists of six steps. It also requires depositing share capital in a bank account before registration.
Hire personnel in Switzerland?
A recruitment process is carried over by placing advertisements in newspapers or on online job portals or simply by hiring recruitment agencies. Switzerland has always been an appealing location for the candidates looking for jobs because of high leaving standards and attractive salary packages. Because of this, the unemployment rate in Switzerland is generally lower than in neighboring countries. One of the reasons that Switzerland companies find it very easy to hire suitable candidates for the vacant positions is because of EU state membership. Also it is an advantage for nationals from the EU countries to work freely in Switzerland. However in case of candidates outside EU should have appropriate residence and work permits.
Interest for foreign investors in Switzerland?
The service system in Switzerland is mostly based on banking system. Because of the high confidentiality and advantageous conditions, many foreign investors are opening their account in a Swiss bank. In the Swiss economy, there is an important role of insurance sector. As many foreigners choose to enjoy their holidays, Switzerland has a very developed tourism sector along with other economic sectors. The main strengths of the industry are the electronics, the manufacturing of IT, high-tech equipment and biotechnology. Also sectors like pharmaceuticals, real estate, health sector and many others are very well developed and monitored. That is again a very important reason for Switzerland to maintain high standard of living and a wealthy economy, with a high GDP. The low unemployment rate is attracting the foreign entities to open branches and new companies here. It is a renowned trading country with partners like Austria, Germany, Netherlands, Luxembourg, UK, and France.
Advantages of a holding company in Switzerland
If some conditions are accomplished such as having capital obtained from gains from the disposal of shares held for more than 12 months and necessary to represent at least 10% of the company’s shares with voting rights attached, Swiss holding companies may get exemption from federal corporate income tax. These companies have certain incomes from dividends, capital gains, and liquidation dividends which come under this exemption.
In order to stay under this exemption, it is required that these dividends come from a subsidiary which has market value of at least CHF 1 million or 10% of the nominal share capital is held by the Swiss holding company. VAT refund granted to the holding companies is also another advantage. The vast network of double tax treaties is assuring the foreign investors that their profits won’t be charged in the country of origin and in Switzerland and a minimized or exempt withholding tax on dividends, interests, and royalties that is signed by Switzerland all over the years.
For more information about how to open a company in Switzerland and the procedure of the incorporation, feel free to contact our Swiss lawyers. We will be more than happy to assist you with legal advice and consultancy tailored to your business needs.