Registration of a Swiss holding: when is it necessary to use Switzerland in structures?
Do you want to establish a company in an economically and politically stable country, with a reliable banking system? Then you should definitely pay attention to Switzerland.
Switzerland is located in the center of Europe and is considered one of the leaders in the registration of holding companies for a long time. If you are thinking about registering a holding in Switzerland, then this article will definitely help you!
Who will be interested in registering holding in Switzerland and why?
Registering a holding in Switzerland will be interesting, first of all, for large business, large and medium-sized international groups of companies. This can be done by a citizen of any state. A prerequisite is the presence of a representative with a physical address, which is indicated in all accompanying documentation.
Types of companies in Switzerland
There are 2 main types of companies in Switzerland that can be used to organize a holding: joint stock companies (AG), limited liability companies (Gmbh) and branches. Usually the registration procedure ranges from 1 to 2 weeks. It is worth noting that companies in Switzerland are obliged to keep accounts and submit annual reports.
The advantages of registering a holding in Switzerland
Switzerland is well known as a country for registering a holding in various industries. Such industries include: pharmaceuticals, cosmetics, precision engineering, IT, and security.
Among the main advantages are the following:
- simple and clear registration procedure;
- stable economic and political system;
- the possibility of opening an account in a Swiss bank (in this case, your company and the account will be in one country);
- well-developed legal system;
- any changes in legislation are announced long before their adoption;
- there are several important tax exemptions for holding companies – including full exemption from taxes on incoming dividends.
Nevertheless, all the advantages that Switzerland provides are not free. Registering and maintaining a company is more expensive than in many European countries. In particular, the minimum capital for joint-stock companies is 100 thousand francs (of which 50 thousand must be paid immediately upon registration), and for limited liability companies – 20 thousand, and the presence of a local director is a prerequisite for Swiss companies.
What is the taxation for holding companies?
At first glance, the taxation of holding companies in Switzerland may seem complicated, but in fact, all experts agree that it is one of the most profitable in the world today. Taxation occurs at different levels: municipal, cantonal (provincial) and federal, in accordance with which the interest rate of the tax itself may change.
Especially interesting in Switzerland is the fact that the cantonal tax authorities are always open to negotiations on tax cuts for respectable companies, giving them private tax ruling.
As we mentioned before, taxation occurs at different levels. So, holding companies are required to pay federal income tax on capital (in the amount of 0.825% of net assets). The advantage of the holding is that such companies in Switzerland do not pay any cantonal or municipal taxes, but only a small cantonal capital tax, depending on its size. Our recommendation for you will be the low-tax cities, such as Lucerne and Zug.
Another important advantage of Switzerland for the opening of the holding will be that Switzerland has signed double tax treaties with 106 countries.
By registering a Swiss holding in the form of AG, you not only getting a holding, but also a tool for attracting investment. A joint stock company has the right to trade its own shares and attract investments from both qualified and unskilled investors.
Intellectual property protection
Switzerland is known for its system of protection of intellectual rights. Simple registration procedures will help to further protect the intellectual rights of the entire group of companies, which will be united through a holding in Switzerland.
Thus, for many years, Switzerland is not losing its popularity for the registration of a holding. Among well-known businessmen, it was, is and will continue to be considered as a respectable and safe jurisdiction for the holding, ensuring reliable protection of your assets, investments and cash deposits.
If you need any additional information about establishing a company in Switzerland to create a holding, for an investment project or for another purpose – SBSB experts are always at your service!