Company Formation in Switzerland: Services of GLS Law Company
Switzerland is known for its economic stability, favorable conditions for entrepreneurship, and high living standards. The country offers many advantages for international investors looking to expand their business. Noteworthy is its transparent and favorable taxation system. If you are interested in starting a business in Switzerland, turn to the professionals at GLS Law Company for their services.
Company Formation in Switzerland: Benefits for Businessmen
There are numerous reasons why we recommend entrepreneurs to register a company in this jurisdiction:
- The country has a high international reputation, positively affecting the reputation of companies opened in this jurisdiction.
- The state is characterized by not only economic and political but also legislative stability.
- If you are interested in a company in Switzerland, registering a legal entity allows you to expect the absence of double taxation. The country has 42 such agreements, including one with Ukraine.
- Switzerland offers a favorable labor and economic environment due to its developed legal system and corporate law.
- The country does not impose currency controls, enhancing the jurisdiction’s attractiveness for foreign investors due to the freedom of currency operations.
- The concept of an “offshore company” in Switzerland is not associated with tax evasion. On the contrary, the country offers preferential taxation, and under certain conditions, legal entities can claim reduced rates. Switzerland does not have classical offshores: the jurisdiction is not offshore and is not included in the corresponding blacklists of any country in the world.
- A wide selection of banks is available in the country, where entrepreneurs can open accounts for their business.
Registration of Swiss Companies: Legal Forms
If you plan to start a business in Switzerland, we recommend considering a stock corporation (AG) or a limited liability company (GmbH). These common legal forms provide entrepreneurs with the broadest possibilities.
Registration of a Swiss Stock Corporation (AG)
Opening an AG has the following features:
- The share capital – from 100,000 Swiss francs. Half of this amount should be deposited into a temporary bank account at the company registration stage.
- Issuance of both registered and bearer shares is allowed. Their minimum value is 0.01 francs.
- At least 1 director (a physical person resident) who owns at least 1 share is required. Non-residents can also be present on the Board of Directors, but the majority of directors must still be residents.
- The company must have at least 1 shareholder, which can be a physical or legal entity. No residency requirements are imposed.
- The company may not have a secretary.
- An auditor must always be employed by the company.
- Information about the directors is publicly available.
- Registration of a company in Switzerland requires maintaining and annually preparing financial statements.
Registration of a Swiss Limited Liability Company (GmbH)
Creating a GmbH also has its requirements and features:
- The share capital – from 20,000 francs. The entire amount must be deposited into a bank account during the company registration.
- Shares – ordinary, with a value of 100 francs each.
- The requirements for directors are identical to those in stock corporations: 1 physical person resident or non-residents, but the majority in the Board of Directors must be residents.
- Shareholders – at least 1 (physical or legal entities). No residency requirements are imposed.
- A secretary is not required.
- Registration of companies in Switzerland ensures that information about directors and shareholders is public.
- The organization must keep and annually prepare financial reports.
Company Registration in Switzerland: Taxation Nuances
The country operates a three-tier taxation system, including federal, cantonal, and municipal taxes. Each canton has its tax legislation, so they have the right to set their rates and benefits.
The federal tax is 8.5%. Cantonal taxes are usually higher because they depend on the ratio of profit to capital. Their size varies from 6 to 31%.
Deciding to start a business in Switzerland, you will need to pay withholding taxes on income sources at a rate of 35% (dividends and interest). There is no taxation for royalties and branch payments. The value-added tax equals 7.6%.
Company Registration in Switzerland: Audit and Reporting
All registered companies must maintain accounting records. Deciding to open a company in Switzerland, you will need to keep financial reports at the registered office. These records are not publicly available and are prepared according to international standards: Swiss, GAP, etc.
A standard audit is conducted by stock companies and companies with free financial reporting. Specifically, legal entities that meet at least two of the three conditions:
- Annual turnover – from 20 million francs.
- Total asset value – from 10 million francs.
- The number of employees – from 50.
How to Open a Company in Switzerland: Services of GLS Law Company
If you are interested in services related to business registration in this jurisdiction, submit an application on our website. You can also contact the specialists of GLS Law Company by phone.
Experts will answer all your questions about how to quickly and attractively price open a company in Switzerland. After agreeing on all details, we will proceed with document preparation, submission of relevant requests to state bodies, etc.
