5 Things to Consider before Setting up a Swiss Company
What to consider when setting up a business in Switzerland ?
Besides the obvious benefits of Swiss companies – namely:
low corporate taxes and VAT
the stable currency and legal system
and a reliable banking;
…you can further optimize a Swiss company by looking at some key considerations before incorporating a new company, such as
choice of Canton for the domicile: there being different attractions such as low corporate tax, or incentives to attract business and employment in some Cantons
which company or individual should the shareholder be? Different % of ownership or residence of the shareholder will change dividend distribution taxation…
...read our 5 key points to consider below – before setting up your Swissco.
1. Which type of Swiss company to set up?
There are 2 legal forms of corporations in Switzerland which are Public limited company (AG) and Limited liability company (GmbH). Both types have limited liability, but the main differences are:
Limited liability company (GmbH).
Minimum Share Capital CHF 20’000
Minimum value of CHF 100 per share
Shareholders are listed on the public commercial registry
Public limited company (AG)
Minimum Share Capital CHF 100’000
Minimum value of CHF 0.01 per share
Shareholders can remain anonymous
2. What are the obligations of my company?
The main obligations of AG and GmbH are to:
have at least one local director
file yearly tax return
3. Which tax rate will be applied to my company?
Companies are taxed at three different levels in Switzerland - federal, cantonal, and communal level. Switzerland levies a direct federal tax at a flat rate of 8.5% on profit, however cantonal and communal tax rates depend on the Canton. Therefore, you may want to check the tax rate first before you set up your company in any canton. The 2 most popular cantons for companies are Zurich, for, of course, its reputation, and Zug as it has the lowest tax rate of 11.90%. See corporate tax rates in all cantons.
4. Will my company need any license?
Some business activities in Switzerland require special licenses and in order to apply for these licenses, you may want to choose the type of company which is most suitable. For example, if the company will be applying for a labor leasing license or SRO license, it is generally recommended to setup an AG. Read more about business licenses in Switzerland.
5. Is the structure of my company optimized?
Before setting up a company, you may need to think:
Will you would be holding shares privately or through another company?
Are you planning any dividend distributions or capital gains?
Are there any profits expected? Hence corporate tax level is important.
Taking in consideration those questions before setting up the company may optimize the running of the business later. We firmly believe that a business, well housed, and structured is a determining factor for a successful outcome.
If you are interested in setting up a company in Switzerland or need assistance in company structuring and other services such as accounting and administration, please do not hesitate to contact us at mail@ftrust.ch or call us on + 41 (0)44 266-10-60 for booking an appointment. We offer a completely free consultation to discuss your needs and find the best solution suited for your future business setup.