Everyone has the opportunity to register a company in Switzerland. The legislation of this state has fewer barriers to entrepreneurship than any other European country. A company in Switzerland will allow you to do business throughout the EU. Next, we will look at how to register a company in Switzerland?
There are several organizational forms for doing business in Switzerland:
| 1. AG | a joint stock incorporate company or corporation |
| 2. GMBH | a limited liability company |
You will be able to choose one of the two options listed. You can manage your company register search in Switzerland or entrust this task to a management company. Quite a lot of business people use the last option.
AG is the most popular form of doing business. Most foreigners choose it to start their own business. It is also great for opening an enterprise’s subsidiaries. Opening a joint stock company requires having a charter capital of one hundred thousand Swiss francs. Moreover, fifty of them must be paid at company registration in Switzerland.
GMBH – legal entity, which is a person that includes one or more individuals or firms. An important point is that the volume of the authorized capital limits the liability of a given business entity. The latter must be twenty thousand Swiss francs or more.
Registering an LLC in Switzerland has recently been greatly simplified. It is now much easier than registering a joint stock company, and the registration procedure costs have also been significantly reduced. This has led to many owners of small and medium-sized businesses beginning to start Swiss company register in the GMBH format. At the same time, administrative costs for maintaining an LLC are lower than for a joint-stock company.
According to the law, there is no strict time frame within which the employees of the commercial register office must consider the request and start Swiss company register —initially, authorized persons of the authority to analyze the documents, after which they enter the cantonal register. After this stage, another week is required for the data to be transferred to the Federal Office of the Commercial Register and approved there.
The entire procedure, from submitting documents for registration to completion, takes up to two weeks; it is also worth setting aside time for the preliminary preparation of documents and resolving issues with capital. If an entrepreneur plans to open a business using a loan, the process will also be longer. As for lending for foreigners, it is only available if the applicant has lived in Switzerland for more than six months, has a current residence permit (type B, C, G), and has a stable income.
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A company must use Swiss company register search and register with the Federal Tax Administration (FTA) to become subject to taxation in Switzerland. When contacting the authority, you must have confirmation of the company’s registration, that is, the UID number. You can personally request registration at territorial offices or carry out the procedure online. The applicant does not receive additional data or a separate taxpayer number; subsequent tax procedures are implemented through the UID code.
Swiss law requires individuals to pay income tax at the federal, cantonal, and municipal levels. The general government tax depends on the amount of profit and is calculated on a progressive scale; its maximum is 11.5%. Local tax rates are set individually by region. The total tax burden does not exceed 40%. Uniform rates apply to foreigners and citizens.
There are two types of fees for legal entities: profit and capital. The first is also paid at three levels:
Organizations whose annual profits exceed CHF 100,000/EUR 106,000 must also pay VAT. The rates of this tax in the country are relatively low – the standard rate is 8.1%. For some niches, preferential rates are established (for everyday goods – 3.8%), or exemption from VAT is provided (financial transactions, real estate transactions, healthcare).
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Switzerland has a loyal tax policy. There are options for exempting or reducing the VAT rate depending on the turnover and niche of the organization. It is also worth considering that there are optimization solutions for joint-stock companies’ seemingly unprofitable double taxation. Under the latest corporate tax reform, dividends are subject to a levy of 60% on private assets and 50% on business assets, significantly leveling out costs.
Investing in an existing business is available to foreigners under the same conditions as registering an incorporate company in Switzerland from scratch. To work and earn a profit in the state in this way, you must either hold the appropriate residence permit or request it from the cantonal migration authority.
From the point of view of the organizational process, buying a business in Switzerland is easier than starting from scratch. The applicant needs to consider offers on the market, assess the business prospects, and agree on the terms of the rights transfer. There are plenty of options for selling a business in the country. The procedure will differ slightly depending on the company’s form of activity. For example, in the case of partnerships or individual entrepreneurs, a transaction is carried out with assets when purchasing an LLC, with shares (complete transfer or partial sale). After agreeing on all the nuances, the parties sign a purchase and sale agreement and enter updated data into the trade Swiss company register and other funds.
The Swiss company register is a public record that allows individuals and businesses to officially register their company in Switzerland. The process is straightforward, with fewer barriers compared to other European countries. Registration grants the ability to conduct business across the EU, providing significant benefits in terms of market access and business credibility.
In Switzerland, you can register two primary types of companies: AG (joint-stock company) and GMBH (limited liability company). AG requires a charter capital of CHF 100,000, with CHF 50,000 paid upon registration. GMBH, on the other hand, needs a minimum capital of CHF 20,000. GMBH registration is simpler and less costly, making it a popular choice for small and medium-sized businesses.
Registering a company in Switzerland typically takes up to two weeks from document submission to completion. Costs include a registration fee of around CHF 10,000. Additional expenses may arise if using loans, which require residency and a stable income. Foreign entrepreneurs should prepare for preliminary document preparation and capital arrangement, which can extend the registration timeline.
Companies in Switzerland must register with the Federal Tax Administration (FTA) and obtain a UID number for taxation. Swiss taxation includes profit and capital taxes, with profit tax paid at federal, cantonal, and municipal levels. VAT is also applicable for businesses with annual profits exceeding CHF 100,000. Rates vary, but Switzerland offers relatively low taxes and potential benefits.
Swiss tax rates for individuals are progressive, with a federal maximum of 11.5% and local taxes varying by canton, not exceeding a combined 40%. For legal entities, profit tax includes a flat federal rate of 8.5% and varying local rates. The standard VAT rate is 8.1%, with lower rates for everyday goods and certain exemptions.
Yes, Switzerland offers various tax benefits, including VAT exemptions or reductions based on turnover and industry. Recent reforms have reduced dividend taxes to 60% on private assets and 50% on business assets, optimizing the tax burden. These benefits make Switzerland attractive for both domestic and international businesses.
To register a company in Switzerland, start by selecting a unique business name and verifying it with the Federal Commercial Registry. Prepare necessary business details and submit all required documents. Registration typically takes up to two weeks, depending on the canton’s workload. After approval, your company will be officially registered, and you can start operations.
A Swiss company register search involves verifying the availability of a business name and checking the registration status of existing companies. This ensures no duplication and confirms the legal status of entities. You can conduct the search online or through local authorities, helping you make informed decisions when setting up or investing in businesses in Switzerland.
Yes, foreigners can buy an existing business in Switzerland under similar conditions as starting a new one. This process may be easier, involving market research, business evaluation, and agreement on transfer terms. Depending on the business type, transactions involve asset or share transfers, followed by updating the Swiss company register and other relevant records.
Incorporating a company in Switzerland offers access to a stable economy, favourable tax environment, and strategic location within Europe. It enhances business credibility, provides ease of entry into European markets, and offers various tax benefits. Switzerland’s business-friendly regulations and robust infrastructure make it an ideal choice for international business ventures.
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