For decades, Switzerland has been lauded as the ideal spot to set up shop. While it may not be the least expensive jurisdiction to establish a company presence within, the country offers a number of unique advantages that make this area more attractive than others. Cross-border start-up companies and entrepreneurs who are in Switzerland setting up business accounts often do so to take advantage of these three valuable benefits:

1. Lower Tax Rates

The first reason why businesses typically hear about Switzerland being an ideal country to set up a business in is their tax laws and regulations. The country is often referred to as a “tax haven”. The liability and assessment of taxes are based on Switzerland’s inter-cantonal tax systems. This can be strategically used by companies (and their employees) to save a lot of money each and every year.

There is also a variety of specialised categories which have different tax rulings in the country, which again works to the financial benefit of many businesses. Some of these categories include:

• Financial and holding companies
• Service companies
• Trading and IP licensing companies
• Foreign branches of a Swiss company and Swiss branches of a foreign company

The country is also well known for having low import duties and fewer import quotas than other countries.

2. A Great Business Environment

Apart from being incredibly tax-friendly, the environment in Switzerland is ideal for most businesses.

• Switzerland has a well-developed infrastructure with numerous international airports and superb public transportation
• The residents are skilled and multi-lingual (many are able to speak English, German, French and/or Italian)
• The labour laws are flexible (there is no minimum wage in Switzerland, though some industries may have their own regulations on wages and maximum work hours per week
• An appreciation for innovation
• The country has signed several free trade agreements (including a ground-breaking agreement with China signed in 2013)
• A history of political stability

Switzerland has a positive relationship with a number of key nations and is one of the most economically stable in the world. The country has a liberal attitude and appreciates a high level of discretion and confidentiality.

3. The Banking Benefit

A business that chooses to set up a Swiss commercial or holding company, or a Swiss branch of a foreign company, can immediately benefit by being able to have a bank account within one of Switzerland’s domestic banks. This gives businesses the opportunity to have a legitimate economic base onshore. As long as the founders of a company can prove that they have minimal substance and a valuable purpose for the company, the bank will provide benefits such as:

• A CHF currency account
• A selection of other currencies which can be used for banking purposes
• Debit and credit cards
• Corporate banking operations
• Payment facilities
• International IBANs

• E-banking

These benefits allow business owners to more easily manage and conduct business – even if they are not based in Switzerland.