Switzerland in general:
Switzerland is one of the few countries in the world, where everyone would like to live, work and conduct business activities. This State offers you economic and political stability, safe and “clean” environment, and relatively low tax rates. A European center with excellent infrastructure (railway, road network, airports, international harbor, high-speed communication). Stable political, economical and legal system. Reliable authorities and courts. Favorable economical and labor environment. Competitive taxes. Sophisticated legal system and corporate law. (Compared to the Cyprus, for example). But at the same time, the tax regime itself is quite complex, although it is relatively qualitative, if we can call it that. In this regard, our company offers services of starting a company in Switzerland.
Swiss Ltd. Swiss Joint Stock Corporation (AG/SA/Ltd/Inc). Swiss LLC Swiss Limited Liability Company (GmbH/LLC/Sarl). Swiss Branch. Swiss General Partnership Swiss Limited Partnership (LP)
Swiss Ltd. – Joint Stock Corporation („Swiss AG“ ): Limited Company by Shares (Ltd./AG/ SA/Inc.). Most widespread form of Company in Switzerland.
Capital: Minimum capital stock (share capital) of CHF 100‘000.00, 1% one-time stamp duty for capital higher than CHF 1 Mio.
Shareholders: Individual or Corporations, Bearer Shares or Registered Shares, Shareholders‘ Liability limited to share capital
Directors: Minimum one Board Member, at least one board member residing in Switzerland. Separate operational Management may be appointed (no residency requirements). Public registry of Board Members but not of Shareholders
Audit and Reports: Annual Tax Filing required. Accounting mandatory. Audit (recommended and/or mandatory depending on size of business)
Procedure of „Swiss AG“ Incorporation:
- “name check“
- Opening of special account with Swiss bank
- Transfer of capital (e.g. CHF 100‘000) to special capital account
- Drafting and signing of Articles of Incorporation (including definition of Company‘s purpose)
- Recording of public deed by notary public with cantonal Commercial (Trade) Registry
- Extract of Commercial Registry
- Opening of bank account and transfer of capital
Company registration Switzerland
The process of company registration in Switzerland is not that simple, and it is always recommended to do it through professionals. Therefore LowTaxCompany.COM is here to help with all legal and bureaucracy issues in order to get your Switzerland company registration most effective way. All companies registered in Switzerland required to be kept in good condition, filing necessary returns and financial accounts, this can be done only by qualified personal in Switzerland. All companies registered by us in Switzerland are provided with all necessary services to keep them running with no issues.
Which companies can be registered in Switzerland?
In the confederacy two types of organizational and legal structures might be registered: open joint-stock company (SA in French or AG in German) or LLC (SarL in French or GmbH in German).
Advantages of the Swiss LLC company:
- Minimum share capital is € 12,320
- No restrictions for foreign registrars
- Two people are needed to open a company
- One of the applicants must be a resident of Switzerland
- Ideal for small and medium-sized businesses
Advantages of the joint-stock company:
- Minimum share capital is € 61,600
- 50% of the capital must be paid at the beginning of the application
- Shareholders may remain anonymous
- Most directors must be residents of Switzerland
- Ideal for large and medium-sized businesses
The level of bureaucracy in Switzerland is much lower than in such influential countries of the European Union as Italy, Germany, France and the United Kingdom, comparing conditions of applying for company registration.
Tax privileges during company registration in Switzerland:
You should pay special attention to the type of the company, when registering a company in Switzerland, because firms from different categories are subjects to different taxation. Here are four types: Holding company, domiciled company, mixed company or service company. Also in each canton (region, county) are their own tax rules, due to this it can turn out that the canton of Zug may be more profitable for the registration of the holding company than service.
Holding is an organization that directly manages other companies. According to the rules, a holding company in Switzerland should receive more than 60% of all its income from investment activities of other companies (whether foreign or not), and more than 60% of all company assets should be invested in other firms.
Domicile companies are all those organizations that operate outside Switzerland. Such firms have only legal address in Switzerland, but the presence of personnel or property is not necessary.
Mixed company is a combination of holding and domicile type, when less than 20% of income comes from activities in Switzerland. This type of company benefits operate only in certain cantons.
Service company is a small subsidiary with its own office in Switzerland, which carries out only marketing or administrative activities for its parent company.
The company in Switzerland is quite time-consuming affair at first glance, it is best to work with specialist, write or call us! If you have specific questions about opening a company in Switzerland, then LowTaxCompany will help you.
Main differences between Swiss Joint Stock Corporation („Swiss AG“) and Swiss Limited Liability Company („Swiss GmbH“):
Minimum capital AG/SA/Ltd/Inc 100‘000 CHF but for GmbH/LLC/Sarl 20‘000 CHF
AG/SA/Ltd/Inc more confidential: bearer shares possible; registered shares not in public share registry; registry of Board Members but not of Shareholders. Same time in GmbH/ LLC/Sarl: Public registry of Shareholders and Management
AG/SA/Ltd/Inc higher reputation, easier handling for transfer of shares etc. Possible splitting between Board and Management.
Swiss Branch: No separate legal entity according to Swiss law. Branch office from foreign Parent Company. No capital. One Swiss residing Branch Manager required. Name structure as follows „Company name Ltd, Swiss Branch“. No Swiss withholding tax (subject to some “substance” requirements)
Swiss Taxes overview: 26 Cantons and 26 different cantonal tax laws and tax rates. OneFederal tax law. In general negotiations with tax authorities are possible and tax rulings granting stability for a limited period are available. Ordinary Corporate Income Tax from 12-29 % depending on Canton. Tax Exemption for HOLDING companies. Tax Exemption for TRADING companies.
Corporate income tax rates on ordinarily taxed companies (federal tax included):
Canton of Obwalden: 12.6%
Canton of Schwyz: 15.4%
Canton of Zug: 16.3%
Canton of Zurich: 21.3%
Other cantons higher
Average of all Swiss cantons: 20.6%
Capital tax: – Federal: 0%
Cantonal and Municipal: from 0.001% to approx. 0.6%
VAT Value added tax: reduced 2.5%, 3.7% and ordinary rate 8.0%
Swiss Tax Ruling: It is highly recommended to apply and negotiate for an appropriate Tax Ruling with responsible tax authorities. Tax ruling regarding management and service costs for operational (trading) companies; up to 50 % of costs tax deductible. Tax ruling regarding application of EU Parent Subsidiary Directive (zero withholding tax on distributed dividends subject to SUBSTANCE requirement).
Contact us if you have any questions about company registration in Switzerland, or if you want to place your order.