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Why Businesses Choose Switzerland To Incorporate

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:

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

  1. A Great Business Environment

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

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.

  1. 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:

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

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