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:
- 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.
- 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.
- 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.
