Switzerland Company Formation

Switzerland is one of the most politically and economically stable countries in the world. Switzerland is divided into 23 Cantons, each with its own tax system. There are two types of Swiss company best suited to foreign investors: the AG (corporation or joint stock company) and a GmbH (limited liability company). The following information will help you determine whether Switzerland company formation is the optimum corporate structure to fulfill your international objectives:

Because of preferential tax rates offered in different cantons for domicile companies, Switzerland company formation is attractive for multinationals wishing to set up a global headquarters in the country, provided the company's activities take place outside Switzerland. For example, in the canton of Berne, both domicile and holding companies are exempt from municipal or cantonal profit taxes, paying only a maximum tax of 0.42% of capital.

Switzerland company formation requires a minimum of one director. Corporate directors are not permitted.

Switzerland company formation allows entrepreneurs to gain access to a network of double taxation treaties Switzerland has signed with countries including Australia, China, France, Germany, India, Italy, Japan, Malaysia, New Zealand, Russia, Singapore, South Africa, the US and the UK.

Switzerland is positively-regarded internationally. Switzerland is positively ranked as the 5th least corrupt country in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Switzerland is also ranked 1st in the Global Competitiveness Report 2009-2010 compiled by the World Economic Forum.

It is easy to open global corporate bank accounts to support Switzerland company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Following Switzerland company formation, the company can freely remit profits outside the country. Switzerland is positively ranked as the world's 6th freest economy in the Heritage Foundation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

According to the 2010 Doing Business Survey by the World Bank, Switzerland is the world's 21st easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

In its 2009 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Switzerland as the world’s 4th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure.

Zurich ranks 4th in the Monocle Quality of Life Index. The index bases its ranking on factors like quality of housing, urban scale as well as amount of crime and the quality of education and healthcare.

According to the 2009 Quality of Living Survey by Mercer Human Resources, Germany offers the 3rd highest standards of living in Europe with six of its cities rated amongst the Top 50 cities globally. After incorporating a company in Germany, Healy Consultants assists entrepreneurs obtain Germany employment and residence visas, as well as purchase Germany property.

1.

A Swiss-resident company is liable to pay federal corporate income tax, municipal (cantonal) corporate tax and municipal net worth tax. Federal corporation tax is 8.5%.

2.

A Swiss GmbH requires a minimum of two shareholders, while an AG requires three. The minimum capital requirement for a GmbH is 20,000 Swiss francs (US$18,200) and 100,000 Swiss francs (US$91,100) for an AG company. One director must be resident in Switzerland.

The majority of board members of an AG must be Swiss nationals or residing nationals of a European Union (EU) or European Free Trade Area (EFTA) member state.

Following Switzerland company formation, a Swiss company is obliged to register for value added tax (VAT) if turnover exceeds 75,000 Swiss francs (US$68,300). The standard rate of VAT is 7.6%.

Following Switzerland company formation, annual tax returns and audited financial statements must be submitted.

Following Switzerland company formation, a public register is available showing directors and shareholders' details.