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11 Reasons to Set Up Your Business in Switzerland

Are you looking forward to a new investment platform or want to expand your business internationally?

Well, then let me tell you that you are in the right place. Switzerland, the meeting point for three of Europe’s significant cultures: German, French, and Italian, is a perfect choice!

The country is known for its Mediterranean coastal areas, Alpine landscapes, breath-taking countryside, historic villages and, of course, business hubs!

Are you wondering why to start a business in Switzerland? Well, then this guide reveals the complete answers.

1. A Stable Economy

Switzerland has one of the most affluent, thriving, and successful economies of the world, with a 5% increase in growth rate, and ranking 19th in the world.

Being a business owner, one must be concerned about the economic condition of the nation where he/she plans to establish the business roots.

A stabilized economy is widely preferred as it allows the investors to experience growth and to reach the break-even point at ease.

Moreover, Switzerland sees highly skilled manpower and a low unemployment rate, which is an add-on to its urbanized service sector.

The Swiss Constitution opens the gateways for business investors to come forward and incorporate their business entity at ease.

Here’s more on How Economic Growth Impact Businesses in Switzerland, that will help you to fetch-in more details.

2. Lenient Tax Regime

Tax is one of the major concerns for business investors when it comes to company incorporation.

While you plan to start a business in a foreign land, it is essential to understand the legal regulations that need to be abiding by.

One of the widely preferred legal move taken by the Swiss Government is to proceed ahead with the Double Taxation Agreement (DTA).

Switzerland has signed double taxation treaties with about 60 countries, most of these are western industrial countries.

By far, Switzerland has the lowest value-added tax rate in all of Europe. The regular value-added tax (VAT) is 8%. However, goods and services associated with medical care and association are totally exempted. Essential, taxes in Switzerland are levied on 3 levels:

  • National (Federal)
  • Cantonal
  • Communal

Swiss holding companies have the leverage of full exemption on income tax on a cantonal and communal level. Here’s a guide to the Value Added Taxation Registration in Switzerland that one needs to focus on before investing in Switzerland.

3. Energetic and Flexible Workforce

Switzerland holds a flexible labour market that makes it flexible for business investors to come forward and start their business in the region.

The number of workers in Switzerland is almost 4.5 billion, and even the wage costs are comparatively lower.

The region also provides flexibility to the business investors to hire foreign staff and workers based on the business needs. Thus, Switzerland ranks at the second-highest position in terms of employment rate, at a whopping 79.6%.

Moreover, according to the international labour organization (ILO), Switzerland has one of the lowest unemployment rates.

4. Multiple Business Entity Types

The jurisdiction provides the flexibility to the business owners to choose among the different business entity types based on the available number of shareholders and the initial capital.

 Being an investor, you should be aware of the different business structures that are available, that will help you to choose the perfect option wisely.

Here’s a guide on the different types of business entities in Switzerland, which will help you to have a clear idea of the available structures.

5. State-of-the-Art Infrastructure

Network connectivity is another major concern for business investors when it comes to carrying out business operations.

Not only to transport the raw materials from one corner to another part of the country, but network connectivity also plays a major role even for the business investors to visit the office premise at any point in time.

Apart from its top-notch railway network, its well-connected airway grid makes Switzerland a world-class business destination.

With 4 airports strategically placed across the country in 4 locations (Geneva, Zurich, Basel and Bern), transport and logistics are made efficient and easy for your potential business.

With a modern marine network connecting the Rhine River to the North Sea, it can carry out various river cargos. Needless to say, Switzerland has a well-established logistics system which can be a helping hand if you wish to set up a business in Switzerland.

6. High Consumption Index

The Swiss people, on average, have a high standard of living. This is seen as an advantage, especially from a business standpoint.

With a higher standard of living comes a higher consumption rate. The consumption rate in the third quarter of 2018 has increased by about 92700 million CHF.

This only goes on to prove that the long-term viability of a business is secured in the Swiss market. A high standard of living also provides increased market opportunities.

7. Concentrated Network of Corporation and Banks

To start any business, having a good network is of utmost priority to the entrepreneurs. Switzerland is an ideal place to meet potential investors, corporates or mentors.

Apart from numerous banks, Switzerland is home to no less than fifteen Fortune 500 companies in numerous sectors such as financial services, insurance, commodities, food & beverages or pharmaceuticals.

It is always beneficial for the business owners to open a bank account in Switzerland along with the company formation process. Are you wondering why?

Well, here’s your answer- Benefits of Switzerland Company Formation with Bank Account.

8. Quality of Life/Standard of Living

Switzerland cities are ranked among the best places to live in the world according to various surveys.

The country also performs very well in many measures of well-being relative to most other countries in the OECD Better Life Index, ranking above the average in subjective well-being, jobs and earnings, income and wealth, health status, social connections, environmental quality, education and skills, work-life balance, housing and personal security.

9. Stable Currency

The Swiss economy is one of the stable economies in the world with the Swiss franc being one of the strongest and stable currencies. The franc’s stability attracts Swiss and international investors.

10. Business Friendly Eco-System

A business-friendly eco-system in this context refers to the pro-business incentives provided by the government to the startups. The Swiss government operates much like one of its famous chronometer watches.

It has a stated goal of treating companies and potential investors like customers. Advisors are readily available to guide business people through the process of making a move there.

11. Concentration on Innovation

In 2017, Switzerland has been ranked number one in innovation for the seventh year in a row. Switzerland scored particularly high in the category ‘knowledge and technology outputs’ as the Swiss have the highest ratio of European patent applications to population.

Thus, incorporating a business in Switzerland is a profitable move for any business investor as it helps them to earn higher returns and fetch business-oriented solutions.

Clearing the complete process might turn out to be a difficult process if one is not aware of the complete legal procedures. It is highly recommended to proceed ahead with professional services to clear the services in a hassle-free way.

If you are planning to start your business in Switzerland, or for any related information, do contact us – we’d be happy to help!