10 Points to Consider Before Opening an Offshore Business in Switzerland

Offshore Business in Switzerland

In the event that you incorporate a company in Switzerland as a non-inhabitant, you are right on-pattern. Probably the biggest worldwide companies are settled in Switzerland.

Noticeable instances of enormous companies in Switzerland are Google and Adobe.

There is a startup boom, in fact. In 2018, 43,185 Swiss companies were established.

Over 33% of the investors are foreign investors without a home in Switzerland. Setting up an offshore company in Switzerland takes just two to six weeks.

Development, political strength, no debasement, obscurity for investors, liberal enactment, great banking framework, low taxes, personal satisfaction, and significantly more make a Company Formation in Switzerland alluring. Wealthy foreigners are protecting their worldwide assets with Swiss companies.

Follow the guide to learn about registering a zero tax offshore company as well as opening an offshore bank account to enjoy the benefits.

Top Utilizations of a Swiss AG Offshore Company

  • Holding Company
  • Trading Company 
  • Sole Member businesses
  • Startups
  • Entrepeunres

[Read: How to Open an Offshore Bank Account in Switzerland.]

X Points to Consider Before Opening an Offshore Business in Switzerland

One should keep a few things in mind before opening an offshore business in Switzerland. Some of the points of consideration are as follows:

1. How do you start an offshore business in Switzerland?

Various points must be considered before beginning your business. Initially, it is essential to comprehend whether you have a fruitful business idea and pick the correct Swiss business legal structure for it.

2. What do you need before you start?

Before you start, see whether there is an enthusiasm for purchasing your products or services. Discover who your rivals are and whether the market can continue your business. You can likewise observe which company names are accessible through Switzerland's commercial register.

Explore whether your idea is truly practical. This includes assembling, breaking down, and assessing data to assist you in detailing your business objectives.

3. Which Swiss business structure should you choose?

Picking your business structure is a significant choice, so you must investigate every alternative cautiously. What kind of business structure will you utilize? Will you be a sole merchant in an organization or a legal entity? There are preferences and drawbacks to consider for each.

In case you are thinking of starting a company in Switzerland, you should know that there are seven distinct kinds of companies to browse:

  • Sole proprietorship
  • General partnership
  • Limited partnership
  • Joint-stock company (AG/SA)
  • Limited liability company (GmbH/Sàrl)
  • Subsidiary
  • Branch

4. Setting up an offshore business in Switzerland as a foreigner

You should be a Swiss occupant to run a company either as an independently employed individual (sole ownership and partnership companies) or as director/representative of a lawful entity (corporations and limited liability companies).

Switzerland has a double framework for conceding Swiss work grants to foreign workers. Workers from the EU/EFTA zone can profit from the Agreement on the Free Movement of Persons. Grants for individuals from nations outside the EU/EFTA region are only accessible to the exceptionally qualified workforce, however.

The Federal Administration's SME portal gives additional data on this theme.

5. Setting up an offshore company

Suppose you are considering setting up an offshore company, for example, registered, built up, or fused outside of your nation of habitation. In that case, there are a few significant advantages and disadvantages you should remember.

Offshore incorporation is a direct cycle in all the famous offshore financial centres and tax haven countries around the globe. It can give the company and its directors a wide range of advantages.

6. Accounting for offshore businesses in Switzerland

All businesses must keep appropriate accounting records and hold accounting records and related reports for ten years. In any case, the structure and nature of accounting rely upon the company's financial size.

The obligation to keep accounts and prepare financial reports is pertinent to the following:

  • Sole ownership and partnerships, which produced sales revenues of at least CHF 500,000 in the last financial year.
  • Lawful entities.

Coming up next are only obliged to keep accounts on their receipts and distributions (money technique for accounting) and their financial position:

  • Sole ownership and partnerships, which produced sales benefits of less than CHF 500,000 in the last financial year.
  • Affiliations and foundations without commitment to register with the business register.
  • Foundations excluded from selecting an auditor according to art. 83 para. 2 from the Swiss Civil Code.

[Read: Tax Advantages of Starting a Company in Switzerland.]

7. Auditing requirements 

By law, privately held Swiss companies require a legal audit if certain limits are met. The law sets edges for companies requiring regular audits or limited statutory examination.

Companies surpassing two of the accompanying limits in two sequential business years must have their accounts go through ordinary audits:

  • balance report total of CHF 20 million
  • the income of CHF 40 million
  • the yearly average of 250 full-time equivalent representatives (FTEs)

Companies beneath the edges mentioned above are liable to limited statutory examination or can even quit an audit and assessment altogether if there are under 10 FTEs and with the permission of all shareholders.

8. The cost and time required to establish a company

After you have explained everything from the business plan, legal structure, and company name to the living arrangement permits and financing, you can dispatch your company. Acknowledgement of self-employment by the AHV (Old Age and Survivors' Insurance) is essential while setting up sole ownership or investment in a partnership.

Generally speaking, the cantonal social protection office is responsible for acknowledging self-employment. New settlers should initially obtain a substantial habitation and work license.

If you can't get government-managed retirement acknowledgement for sole ownership, building up a capital company (AG or GmbH) might be another option.

9. Swiss taxes

Depending on the authoritative report of the business, taxes on the company's benefit are either due by the business proprietor directly (on account of sole ownership or partnerships) or by the legitimate entity(partnerships and restricted obligation companies).

To avoid economic double taxation, the profit sum taxable for the investor is diminished by 40% at the government tax level and significantly more in many cantons. Regularly, a sensible blend of both income and profits has proven helpful.

10. Wild West Offshore Banking

Today, a Swiss AG must be operationally dynamic, have its own workplaces and representatives, and show substance.

There is no opening for an account without substance. Account opening applications for offshore shell companies get no opportunity. They are entirely dismissed.

The more substance you can show, the more effective you will be at opening an account.

Before the bank opens an account, it must be confident that there is sufficient cash for a conceivable business model. At this point, a Swiss bank will not open an account without presenting a rental and business contract.

[Read: Top 10 Benefits Of Offshore Company Registration In Switzerland.]


Since you know the requirements for opening an offshore business in Switzerland, the question is, "How do you manage to get a Swiss offshore business?" It isn't as simple as before to open a Swiss bank account for non-inhabitants. Yet, no concerns.

Our proficient experts at Business Setup Worldwide can guide you through all your queries. Ensure you're getting the correct start and keeping all the appropriate rules and regulations by finding expert support. Contact us to get your offshore bank account in Switzerland opened right away. We would be glad to help.