In Switzerland, there are two main forms of business for non-residents:
- The limited liability company (GmbH) is the most popular type of business in Switzerland for small and medium-sized companies.
- The Public Company (AG) is the most commonly used business model for large companies.
- Limited Liability Company (GmbH) – as the name suggests, those who own a limited liability company only risk the capital they have invested; their assets are not at risk if the company goes bankrupt.
The minimum share capital required to register a limited liability company is at least CHF 20,000. Besides, you will need to specify the partner as the founder, as well as the executive director – a signature manager in Switzerland. At least one of the executive directors must live in Switzerland. To simplify matters, the founding shareholder and the executive director may by law be the same person.
Public limited company (AG) is the most popular model for large companies in Switzerland and the most commonly used business structure for financial companies.
To register a joint-stock company (AG) in Switzerland, you need to have a minimum share capital of at least CHF 100,000. Besides, you need to have at least one person on the board of directors and one shareholder – technically, these two positions can be occupied by the same person. It is important to know that most of the board members who are authorized to sign must live in Switzerland.
Unlike a limited liability company, investors in a Swiss joint-stock company can maintain their anonymity. The only drawback when opening a joint-stock company is that the minimum authorized capital is quite large.
The statutory fund can be disposed of and fully spent immediately after the creation of the Company.
Switzerland is one of the few jurisdictions that provide the option of depositing share capital in cryptocurrency, for more information, contact our specialists.
Documents required to open a company in Switzerland
Registration of a Swiss company is not a complicated process, for this, you will need:
- Notarized translation of the internal passport;
- Passport notarized;
- Your bank reference and C
Also, an important nuance is the contribution of the authorized capital of the company, for this, a technical account will be opened in Switzerland.
General information about Switzerland from a business point of view
- Switzerland is a separate enclave within the European Union with its own business rules, regulations, legislation, and banking system.
- Owning a Swiss company, like owning a Rolex or Patek Philippe, brings only positive emotions.
- The high level of political stability and the friendliness of the banking system to international business makes it easy to do business.
- If you have a company and an account in Switzerland, you do not fall under the CRS (Common Report Standard).
- Opening an account in Switzerland for a Swiss company is much easier in terms of compliance, this link allows you to avoid a series of bureaucracy, which is now inherent in many European banks.
- Switzerland is a solution that has shown its stability and payback at a distance in the case of a competent approach to the organization.
Key advantages of Switzerland for doing business
Switzerland has many advantages:
- Ease of doing business and company management;
- A wide range of banks and banks’ loyalty to this jurisdiction;
- Low-income tax in comparison with other EU countries and simple reporting system;
- The ability to hide your identity in the event of an AG registration;
- Stable political and legal system.
Taxation in Switzerland
Switzerland has a progressive scale of taxation, depending on the canton, the tax can range from 12% to 16%, in the case of holding activities, the corporate tax rate can be reduced to 4%. This year, a massive tax reform began in Switzerland, as a result of which the corporate tax rate for non-residents was decided to equal the rate for residents.
The most tax-loyal cantons in 2021 are:
- Basel, this year for the first time topped the rating, having risen by 8 positions, the corporate tax rate is 13.04%.
- In second place is Zug, which this year yielded the palm to Basel, the corporate tax rate is 13.5%, it is planned to decrease it to 12%.
- The third place is the canton of Geneva, the corporate tax rate is 13.99%.
- VAT – no VAT when working with EU countries.
- Capital gains tax – none
- Stamp duty – none.
- Foreign exchange control is not.