Company Formation in Switzerland
Switzerland is a preferred jurisdiction for company registration because it offers reliability, respectability and privacy, together with limited liability and tax advantages. The Swiss Constitution guarantees economic freedom and allows anyone, including foreign nationals, to form or hold an interest in a Swiss company.
Switzerland acts as a magnet for qualified workers from abroad and retains the talent it nurtures. Swiss workers are generally well-educated, motivated and reliable employees, and Switzerland’s labour market is characterised by liberal legislation, light-touch regulation, and exceptional social stability.
Switzerland’s federal tax system is a successful model: taxes are determined and levied at the federal, cantonal and municipal levels. Domestic tax competition plays a significant role in the very low rates of taxation. The most attractive cantons in tax terms are international leaders in respect of both corporate taxes and the tax imposed on highly skilled workers.
Sovereign Trust (Switzerland) can assist companies that are considering internationalisation or are already globally active to exploit Switzerland’s potential as a location for technological innovation and future growth. Thanks to versatile high-tech clusters in a manageable space, companies in Switzerland are in an excellent position to establish close contact with market leaders and innovation drivers and test new applications in an open market or optimise processes.
Choosing the right business set up
When founding a business, at least one of the people involved must have right of residence in Switzerland. EU/EFTA citizens have the right to freedom of residence and work in Switzerland, while citizens from third countries require work and residence permits to conduct business in Switzerland on a permanent basis.
Many entrepreneurs favour sole proprietorship, which is ideal for business activities that are closely linked to the owner and where only one natural person is involved in the activity. The only requirement for set up is an entry in the trade register. However, the owner is held liable up to the amount of both their business and private assets.
Sole proprietorships with turnover of less than CHF500,000 only need to keep simplified accounts that list income, expenses and assets. If turnover exceeds CHF500,000 during the previous fiscal year, accounts must be kept and presented in accordance with the rules set forth in the Swiss Code of Obligations.
The principal types of company providing limited liability in Switzerland are the:
- Company limited by shares – Société Anonyme (SA) or Aktiengesellschaft (AG).
- Limited liability company – Société à Responsabilité Limitée (Sàrl) or Gesellschaft mit beschränkter Haftung (GmbH).
Choosing the right business set up
Sovereign Switzerland
Sovereign Trust (Switzerland) is located in the Canton of Zug, which has the lowest CIT rate in Switzerland. The effective rate of tax is 11.91%.
We provide our clients with the following corporate services in Switzerland:
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
