Switzerland is one of the top destinations for investors wishing to set up subsidiaries in a favourable environment. The country has a number of advantages that make it particularly attractive for companies to expand. Find out about the advantages and disadvantages of setting up a subsidiary in Switzerland.
The advantages of setting up a subsidiary in Switzerland
Switzerland offers important advantages to entrepreneurs. The country is a model of political and economic stability. This is a key factor for foreign entrepreneurs who wish to set up in a stable and reliable environment. In addition to its stability, Switzerland has a number of excellent infrastructures. Thus, creating a company in Switzerland means benefiting from an efficient transport network and easy access to the latest technologies.
Switzerland is also known for its high quality university centres, which guarantees the availability of a qualified workforce for companies. The minimum wage in Switzerland is higher than in EU countries. This can attract the best international talent. You will be able to have competent and well-trained employees.
If you decide to set up your subsidiary in Switzerland, you will also benefit from our expertise to carry out your project in accordance with the country’s regulations. RISTER® is a fiduciary company specialised in the creation and administration of Swiss companies, holding companies and foundations. We offer comprehensive and tailor-made support in the establishment and administration of subsidiaries. In addition, we also offer company domiciliation services and expert advice in the areas of :
– corporate finance,
– accounting,
– taxation.
Tax advantages are also a major asset for investors seeking to establish themselves in Switzerland. Swiss tax rates are among the most advantageous in Europe. This can result in considerable savings on operating costs. Finally, Switzerland has signed important bilateral agreements with the European Union, which makes it much easier to trade. This means that you can easily access European markets and benefit from the free movement of goods and services.
The disadvantages of setting up a subsidiary in Switzerland
Although Switzerland remains an attractive business environment, it does have some disadvantages to consider. Living costs and salaries are high in Switzerland. This can add relatively to the cost of running your business. Competition is also very tough in Switzerland, especially in key sectors such as finance and technology, food processing, trade and transport.
Finally, regulations are strict in the country, which can sometimes make the formalities of setting up and running a business relatively longer and more complex. However, if you plan and prepare your project carefully, these disadvantages can be managed and should not be a barrier to setting up your subsidiary in Switzerland.
Steps to setting up a business in Switzerland
If you are planning to open a subsidiary in Switzerland, it is important to follow the legal process of setting up a company. The first step will be to choose the legal form of your company. The options range from a limited liability company (SARL) to a public limited company (SA) to a sole proprietorship.
You must then draw up the articles of association of the future company. This is an important document that describes in detail the rules of operation of the structure. Drafting the articles of association is a technical and laborious task that requires specific skills. To draft articles of association correctly, nothing beats the know-how of our experienced experts.
Following the articles of association, you must register the company with the cantonal commercial register. This allows you to obtain a tax identification number and to start operating legally. Once the company is registered, you must open a business bank account in the name of the company. This will enable you to manage the company’s tax affairs efficiently and professionally.
Contact us to start your initial consultation now. We would be delighted to get to know you and define the next steps in your project to establish a company in Switzerland.
Fill out our contact form or call us at +41(0)22 566 82 45
