IT consulting in the heart of Europe: remote Switzerland business setup
Our Indian client is a leading IT management and consulting firm, based in Hyderabad, with subsidiaries all around the globe. The company aims to expand their global reach on all continents within five years;
Registering IT companies in Europe has been a trend over the past decade, due to strong regulations, significant market, competitive presence of global players and very often optimized taxation. Our Client wishes to tap into this important market and its high ROE potential;
Switzerland was chosen as place of operations due to i) low corporate taxation ii) abundance of R&D Government grants and ongoing support for business start ups iii) high quality staffing solutions and infrastructure;
Our Client prefers to retain full 100% control of the company and remain as sole parent company to the local subsidiary, without initial local presence in the country. Our client prefers remote company setup service from Healy Consultants, where the structure and bank account opening process are completed without personal travel;
Because Switzerland requires the appointment of resident director, Healy Consultants are ready to offer this service as part of the engagement.
Over a 3-way conference call, initially over the phone and then over Skype, David and Petar described the initial due diligence requirements and specific steps required to register a new business in Switzerland without personal travel of the beneficial owners. Furthermore, Petar described additional professional fees that our Client may need during the engagement, such as nominee directorship and ongoing accounting and tax obligations;
David explained further the differences between choosing one Swiss canton over another, thus minimizing taxation burdens for the new company;
During the call, Mr. Aidan Healy, the managing director of Healy Consultants, further explained in detail that Switzerland is not part of the European Union, nor the single currency market, and while businesses enjoy lower taxation burdens, operational and employment costs are one of the highest in Europe and globally;
Our Indian client understood their obligations, tax exposure and additional service options, then advanced to approve and sign and stamp Healy Consultants’ client engagement letter. Over the coming weeks, the Client supplied the bulk of the required due diligence in a scanned form via email;
Following settlement of our initial instalment, within a week, Petar supplied our Indian Client with multiple engagement deliverables, including: i) detailed engagement project plan ii) detailed business plan iii) updated partially paid invoice and iv) initial company setup forms for review and approval;
To negate the risk of errors and engagement delays, our quality deliverables and updates to our Client were reviewed by senior management team from our head office. This way, Healy Consultants ensures our Client receive timely up-to-date feedback for the work concluded on the ground.
Immediately after instalment fee settlement and company form completion, Petar advised our client of the legalization process, mandatory for all company registration papers. All company application forms and power of attorney, are required to be sighted and legalized by our Client in India, in the closest Switzerland Embassy and couriered back to Europe for submission. This process took two business weeks to complete;
During this process, Petar initiates the opening of a capital account in Switzerland with a top online bank. Our Client transfer the minimal required share capital, and within a week, the bank supplies Peta with a certificate of deposit (support paper required to complete the company setup);
Following receipt of the legalized set of due diligence, Power of Attorney and setup forms, Petar submits quality company setup application to the Switzerland business registry and obtains company numbers within two business weeks.
Because, all companies in Switzerland need to appoint a resident director, present at all times in the country, Healy Consultants supplies our Client with a quality, professional nominee directorship service;
Within a week from services payment, our Client receives a detailed set of personal and professional due diligence on our nominee, inclusive of Criminal record proof. Thereafter, the nominee is lodged in the Swiss Registry within two business weeks to comply with local legal regulatory requirements.
Now that our Client’s company is successfully registered, Petar began negotiation with the same reputable online Swiss bank for transition from capital account to corporate ban account;
As part of the bank’s due diligence process, our Client’s two ultimate beneficial owners convene a conference call over specialized video software with the branch director;
Within 3 business weeks thereafter, our Client obtained approval from the bank’s compliance department, and managed to receive corporate bank account numbers;
Online banking in English is activated within a business week, with receipt of bank account opening kit, inclusive of online login details and token device.