Company Types in Switzerland
Our firm is helping clients to set up their company in Switzerland. Our experts can advise you regarding the optimum corporate structure for your business needs. Although different company entities are available in Switzerland, but most commonly used setup is a limited liability company. Foreign corporates are allowed to register their representative or branch office in Switzerland.
Switzerland Limited Liability Company
• We can assist you in setting up a limited liability company in this country with only i) CHF 20,000 of share capital ii) 1 shareholder iii) 1 director.
• At least 1 director of the company must be a resident of Switzerland. Our experts can assist you to find a passive and professional nominee director to comply with this requirement.
• You can opt to a branch if share capital requirement presents too large of any investment.
• Every company is set up by notarial deed because Switzerland is a civil law country. Companies are thereafter registered in the commercial register.
• Due to this system, Switzerland companies do not have any certificate of incorporation. Rather, trade registry extracts are used to show the important information about a company.
• Foreign entrepreneurs seeking to establish a subsidiary in this country are required to legalize or endorsing their documentation before submitting to commercial register.
• Depending on Canton, in which companies are incorporated, Swiss corporate documents are either in Italian, German or French.
• The governing document or constitution of Swiss companies are known as their “statutes.”
• Based on their place of incorporation, Swiss companies are supposed to pay different corporate tax rather that varies from 12.5 percent to 25 percent. If companies exceed 2 of the 3 thresholds, financial statements must be audited; i) annual income over CHF 40 million ii) over 250 employees and iii) assets over CHF 20 million.
Swiss Public Limited Company
• Such a Swiss business entity is used for opening large and medium companies that can either be public or private listed. Such companies can be incorporated by 1 shareholder, who must i) contribute at least U.S $107,000 with either 20% paid up at incorporation, and appoint ii) at least 3 directors including 1 resident of Switzerland iii) 1 auditor registered in this country.
• Every public limited company registered in this country is required to submit annual audited financial statements.
Switzerland Holding Company
Such a company in Switzerland is only allowed to hold as well as transfer shares of other foreign and Swiss companies. It is not allowed to conduct productive or commercial operations. The incorporation requirements are similar to a Limited Liability Company.
A holding company in Singapore can enjoy exemption from the corporate tax at canton and communal levels, if i) the equity investment of a holding company represents more than 66 percent of its total assets ii) if the income generated by an the investment represents more than 66 percent of a company’s yearly income.
Companies that are not eligible for holding status can still apply for i) mixed/auxiliary status if less than 20 percent of their sales are generated from Switzerland ii) domiciliary status, if they are not running any productive or commercial operations in Switzerland.
• According to the Swiss Company Law, branch offices can be 100 percent foreign owned.
• Branch of a company is not autonomous. The parent company will define the scope of operations and management of a branch.
• A key benefit to apply for a branch in this country is to avoid the need of a share capital limit of CHF 20,000.
• Swiss branches are straightforward ways to establish the presence of physical business in Switzerland to serve their local customers.
• The use of branch will allow easier consolidation of your international business accounts.
• You do not have to pay any withholding taxes on your branch’s profits sent abroad. Rather company branch will pay a corporate tax at a local rate on the Swiss income.
• A branch is not required to register with the assistance of a notary.
• A resident branch manager is required for Swiss branches.
• The documentation of parent company should be translated into the Canton’s language, either French, Italian or German.
Although it can be 100 percent foreign owned, but it is not allowed to pursue commercial or production related activities. A representative office is required to get the account audited as well as its compliance requirements are same as a branch.
Our experts can assist you with a complete turnkey solution, including;
1. Switzerland ready-made GmbH as well as pre-registered corporate tax number
2. Legally registered Switzerland address, and
3. Corporate bank account already approved
With this strategy, we can efficiently supply to our clients within a week i) an already approved corporate bank account number with an international reputable bank ii) existing dormant company as well as a tax registration number, and iii) registered business address.
Its alternate is to setup a new Swiss company as well as a corporate bank account, but that can take a month. Most clients purchase Swiss turnkey solution if they, i) require a corporate bank account number ii) to immediately close important deals iii) a company registration number fast.
We also have swiss readymade companies. These swiss shelf companies come with and without bank account. Contact Us.