COMPANY IN SWITZERLAND

Switzerland is a state that has been considered a "treasure trove" with strong European traditions since the earliest times. The wealth of the entire region is concentrated here, which automatically means the high prestige and global influence of local business. Setting up a company in Switzerland is an opportunity to take advantage of a stable currency, highly developed trade, and high legal culture. The influence of individual regions — cantons, which can set their own taxes and other obligations, — is particularly strong in the country.

There are no corruption and genuinely high taxes in this state due to excellent legislation. Business is flourishing, but non-residents need to prove their business reputation before opening their company in Switzerland due to the tough migration policy. Mission of Cortax is to make it as easy as possible to register an entity in one of the most prestigious countries in Europe.

Which form of business is it better to set up?

GmbH and AG are the most advantageous organizational and legal forms for non-residents. GmbH is a limited liability company (similar to LLC), which is perfect for small and medium-sized enterprises. Company members bear risks in accordance with their contributions. AG is more suitable for large firms – it is a joint-stock company that has the right to issue its own securities to the market.

What documents are required?

The general set of documents does not differ from the familiar European standards. The following documents are required to open a business in Switzerland:

• memorandum of association;
• charter;
• statement on the appointment of the director;
• decision of the board of directors or shareholders;
• application.

The applicant also needs to have national and international passports, bank reference, and a CV. A certificate from the bank where a technical account for the company is opened is also a must. All documents must be issued in English or Swiss. The passports must be notarized. Cortax helps carry out a competent translation of all documents and resolve the issue with certification in a short time.

Specifics of starting a business in Switzerland

There are some conditions and requirements for doing business in Switzerland:

• the minimum authorized capital is 20 thous. Francs for GmbH and 50 thous. Francs for AG;
• a cryptocurrency account can be opened;
• investors remain anonymous when investing in firms;
• one of the executive directors must be a resident of Switzerland;
• the founder and the executive director can be the same person;
• information about the members of the organization is publicly available;
• more than 50% of the authorized capital of the company must be deposited at the time of registration.

A notable requirement is that the executive director must be a resident of the country. It is highly desirable that most of the company management resides in Switzerland.

The rules regarding the name of the organization do not differ much from those in other European countries. The name must be in English and unique. The same applies to legal addresses – each local company must have its own location details. All of these important details are available through Cortax.

Following the results of registration, the applicant receives a certificate of incorporation, a certified memorandum of association and charter, a resolution on the appointment of a director and the issue of shares (in case of opening an AG), as well as a company seal. After this, the founder will have all the necessary documentation to start doing business.

What taxes are paid in Switzerland?

The following tax liabilities apply to businesses in Switzerland:

• corporate tax. The average rate is 24.41%. The exact amount depends on the canton;
• VAT. The base rate is 7.6%. A reduced rate applies to some activities;
• dividend tax. The standard rate is 35%.
• mandatory contributions. The employer pays up to 300 Francs to funds;
• Switzerland has a minimum wage of up to 5,300 Francs.

Every Swiss company is required to undergo an annual audit carried out by independent experts or firms. As such, there is an average tax burden in Switzerland that every business will have to reckon with.

However, the country is attractive not due to the existing taxation, but due to its reputation, stability, and access to the world market. Switzerland is perfect for the existing businesses looking to migrate to one of the most reputable hubs on the planet, and Cortax can help with relocation issues.