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Incorporate Company In Switzerland Without any Confusions
From an investor-friendly economy to an almost 100% educated workforce, Switzerland has everything you want from a business-friendly country in the modern world. Being a part of the EU, the benefits are already in place. On top of that, there are numerous government incentives as well. Switzerland gives plenty of opportunities and options in the fields of IT, manufacturing, health, finances, engineering, etc. Well, you are already familiar with these facts, and as you now want to incorporate company in Switzerland, before you can run a business.
3E Accounting is the one place to go if you want to incorporate a company in Switzerland. We had been hearing complaints of confusion regarding company incorporation in the country. Thus, from now on, 3E Accounting is also available in Switzerland. By working with us, you will only need to know the basics of business structure in Switzerland, and you are ready to go. We will take you through the entire registration process. Just know what type of business you want, contact us and relax as we do the job for you.
Type of company
- Limited Liability Company
The most appealing business structure for foreigners in Switzerland is the limited liability company, or Gesellschaft mit beschränkter Haftung. It needs a minimum share capital of CHF 20,000 (Almost equivalent to USD). You will also need at least one resident director and two shareholders.
- Joint Stock Company
Another popular choice is opening a stock corporation in Switzerland or the Aktiengesellschaft. Basically, you need at least three shareholders and a minimum share capital of CHF 100,000. Some of these shareholders also need to play the role of manager(s) in an Aktiengesellschaft and they should be permanent Switzerland residents.
- Sole Proprietorship
Some investors might also choose to enter the Switzerland market by registering a sole proprietorship. This is all fine if a suitable business plan is already present. There isn’t a minimum share capital requirement for a sole proprietorship in Switzerland. Meanwhile, a partnership has similar requirements, but there are multiple owners running the business.
Tax System in Switzerland
You need to be clear about the tax system if you are to incorporate company in Switzerland. You need to pay taxes at three different levels., i.e. federal tax, cantonal tax, and communal tax. The federal tax rate is a flat 8.5% on the profit you make. The cantonal tax depends on the canton on which the business is registered (the type of the business). It varies between 11.5% to 24.2%.
Value-Added Tax (VAT)
The Value Added Tax (VAT) is 7.7% but goes down in some special cases. For example, books, newspapers, medicines and such only have a VAT rate of 2.5%
The great thing about Swiss tax for foreign companies is that they only need to pay taxes on the income which they derived in Switzerland. This means they only need to pay taxes on the profit and capital gains from their business, establishments or real estate.
All in all, we can say that the Switzerland corporate tax rate is very favorable for business. Actually, it is also one of the main reasons for attracting worldwide investors to open a business in Switzerland.
Need more information about company incorporation in Switzerland? Or want to incorporate company in Switzerland? 3E Accounting is here for you. Contact us here.