Draft the Articles of Association in the presence of the notary public, Create an escrow account to hold a paid-up capital, File the Articles of Association with the Switzerland company register to become a legal entity, Pay a stamp tax- 1% of capital with the first CHF1 million exempt, Publication in official journal of the canton, Enter the employees of your organization into the social insurance schemes on the federal and cantonment level. There are a number of things one must consider before registering a business in Switzerland. However, as a global trading partner to the EU, Swiss companies are subject to a variety of tax rules and must be comfortable doing business in any number of currencies. The Federal State of Switzerland is made up of 26 cantons and as such, Swiss laws are divided up among the national level, the cantonal level, and the municipal levels of government. Included below are some key areas to help you think about the business you would like to start and identify the Swiss legal structure that best fits your business startup in Switzerland. Depending on the business entity and the business activity followed by your company, you may be required to register for taxation. Follow Us A community built resource for cross-cultural etiquette and understanding P.O. The exchange rate makes the Swiss market favourable for British exporters and Swiss purchasing power is one of the worlds highest. This type of company is cheaper to start than a limited company, but – contrary to the AG/SA – the shareholders are publicly listed in the commercial register. The Limited partners (investors and creditors) assume subsidiary and joint and several liabilities, up to the total amount of their share. This prerequisite can also be met if two members of the board or two directors have joint signatory rights and are residents of Switzerland. Next, focusing on employment in Switzerland, our particular area of expertise. What difference will you bring to the market? Essentially, ANOBAG allows non-resident foreign employers to be free from paying Swiss social security contributions for employees located in Switzerland under certain circumstances. Further, any companies based in the EU or with a subsidiary based in the EU, should take note of a Swiss employment and tax regulation called ANOBAG (“Arbeitnehmer ohne beitragspflichtigen Arbeitgeber”). It can take the form of a corporation or a limited liability company. Mergers & Acquisitions, Resource Center After following these instructions you can continue with the following steps: Your initial steps must only contain researching the Swiss market. The Swiss “Gesellschaft mit beschränkter Haftung” or abbreviated “GmbH” is a limited liability company established in cases where the founders have access only to the limited amount for the capital invested in the company. It must carry out the same type of commercial activity as the parent company and form a commercial whole with it. Doing Business in Switzerland Guide produced by IMA in association with the Institute of Export & International Trade (IOE&IT). Denver, CO 80205 Switzerland offers major export opportunities in the areas of pharmaceuticals, financial and business services, energy, ICT and to large scientific research centres. This is because cantonal regulations can vary and may have a significant impact on the overall cost of doing business in Switzerland. Depending on the legal form of the business, taxes on the company’s profit are either due by the business owner directly (in the case of sole proprietorships or partnerships) or by the legal entity (corporations and limited liability companies). This legal structure is one of the most popular and widespread one in Switzerland. This is a much less common version of the general partnership. Enter your email address to subscribe to this blog and receive notifications of new posts by email. Find out who your competitors are and whether the market can sustain the business you are thinking of doing. PKF International Limited (PKFI) administers PKF network of legally independent member firma PKFI is the 10TH largest global accountancy network and its member firms have $2.4 billion aggregate fee The reason why Switzerland is the most sought-after country for starting a business is due to its political and economic stability, central European location and liberal legal framework. Business Setup Worldwide PKF Œ Doing Business in Switzerland Forword Think Global, Act Local PKF Switzerland is a member of the PKF International network. One Swiss resident with legal authority is necessary. This type of business entity is usually engaged in trade, manufacturing, and commerce and has no legal personality. The representative office in Switzerland is more flexible than the branch office. If you are considering setting up an offshore company, i.e. Conduct some research to see whether your idea is really feasible. If your company is thinking about global expansion, consider the following best practices for doing business in Switzerland. Before diving deep, let us first understand the benefits of incorporating your business in Switzerland. This is the most common form for businesses, where the corporation is an independent legal entity. For foreigner wanting to setup a business in Switzerland, it is important to note that they must be a Swiss resident or have a Swiss legal entity or a partner who is a Swiss resident. Read more about Swiss visas and permits. We can help you make the best decision for entering the Swiss market without overpaying to operate in the country. Sole proprietorships and partnerships, which generated sales revenues of less than CHF 500,000 in the last financial year. Additionally, the population of foreign nationals working in Switzerland has been increasing up to approximately 1.5 million foreign nationals employed in the country. Finally, as discussed, Switzerland is a wonderfully attractive commercial market with great access to the rest of the EU. one that is registered, established, or incorporated outside of your country of residence, there are several major pros and cons you should bear in mind. Prajakta Deshpande is a digital marketer who possesses escalator wit and elevator wisdom. Processing the registration generally takes between two and four weeks, after which the company is a legal entity. The procedure for registering a small business at the Swiss company register is simple as long as you are aware of all the necessary documents that shall be submitted to the registry. All rights reserved. Firstly, it is essential to understand whether you have a successful business idea and secondly, to choose the right business structure for it. They can employ staff and can do market research, other than that they cannot perform any other activities. News Privacy Policy | Terms of Service. Switzerland has strict allocation for foreign workers moving to Switzerland, although one option is to set yourself up as a self-employed or freelance worker, or start a business in Switzerland. Switzerland’s labor market enjoys some of the highest average salaries in the world while also maintaining one of the lowest unemployment rates at approximately 3%. If your company is thinking about global expansion, consider the following best practices for doing business in Switzerland. Switzerland has strict allocation for foreign workers moving to Switzerland, although one option is to set yourself up as a self-employed or freelance worker, or start a business in Switzerland. the Swiss market without overpaying to operate in the country. New immigrants must first get a valid residence and work permit. Entrepreneurs need to have a clear business idea in Switzerland before they eventually move to start a business there. Chamber of Commerce and Commercial Registry, Registration with the Chamber of Commerce, Swiss taxes for businesses and self-employment. Foundations exempt from appointing an auditor as per art. An established company in a foreign land can set up their branch office in Switzerland as long as they abide by the Swiss law. QAD … Careers Employees from the EU/EFTA area can benefit from the Agreement on the Free Movement of Persons. Sources for Further Information Expatfocus - Switzerland Business Culture Jobs.ac - Business Etiquette in Switzerland Expatica - Business Culture in Switzerland Contact Us. There are a number of things you need to consider before starting your business. This also explains how to register, establish, or incorporate your offshore business. In general, all members participate jointly in the management and representation of the GmbH/Sàrl, however, the management of the company may be conferred to non-members. Switzerland is one of the few unique European countries that enjoy a strong reputation as a commercial powerhouse while being an interesting multicultural and multilingual society. There are many reasons to start your company in Switzerland; some of them are listed down. Business Setup Worldwide can help you start your small business in Switzerland. annual average of 250 full-time equivalent employees (FTEs), works in his/her own name and own account. It is most suitable for sole owners of a business or other professionals who work for themselves, such as freelancers, small businesses, and individual entrepreneurs. For foreigners wanting to start a business in Switzerland, one main factor is that you must also be a Swiss resident, or have a Swiss legal entity or partner who is a Swiss resident. Moreover, employers should also take note of the required 13th-month salary and the fact that health insurance is mandatory for all employees under Swiss law, but the insurance scheme is operated through private insurance companies instead of a single-payer system. Global Consulting Blog We will help you right from choosing your business structure to registering your employees with the social insurance scheme. The limited partnership in Switzerland does not require you to have a start-up capital. NOTE: These settings will only apply to the browser and device you are currently using. Liability is limited to the value of the company’s assets and the minimum amount of shareholders’ equity is CHF 100,000, of which CHF 50,000 must be fully paid for. There are advantages and disadvantages to consider for each. Which cookies and scripts are used and how they impact your visit is specified on the left. The duty to keep accounts and prepare financial reports is applicable to the following: The following are only obliged to keep accounts on their receipts and disbursements (cash method of accounting) and their financial position: By law, privately held Swiss companies require a statutory audit if certain thresholds are met. 10th Floor, Trade Centre 2, The company must comply with formal incorporation procedures.

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