At the crossroads of Europe, Switzerland is a meeting point for three of Europe’s major cultures: German, French, and Italian. The country is known for its Mediterranean coastal areas, Alpine landscapes, breath-taking countryside, historic villages and of course, business hubs! With four spoken languages and amiable local citizens, Switzerland is a versatile country and a very welcoming environment for leisure and business.
If you are planning to start your company in Switzerland, here are the 10 reasons why you should consider Switzerland.
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. Moreover, Switzerland sees highly skilled manpower and a low unemployment rate, which is an add-on to its urbanized service sector. The Swiss economy has continued its rapid growth in the second quarter of 2018; its GDP grew by 0.7%, significantly grown in export services and manufacturing industry. The takeaway here is that the economy of Switzerland has been growing year-on-year, and is conducive for trade and commerce.
2. Lenient Tax Regime
Switzerland has signed double taxation treaties with about 60 countries, most of these are western industrial countries. These treaties were borne to prevent problems associated with double taxation. 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)
Swiss holding companies have the leverage of full exemption on income tax on cantonal and communal level. A business in Switzerland is considered to pay taxes if it has been registered with the effective office in Switzerland. The taxable period for the company is the company’s accounting year in Switzerland, which is a very progressive tax system.
3. Sizeable Labor Market
The Swiss labor market is celebrated for its unwavering and firm labor market. The number of workers in Switzerland is almost 4.5 billion. In other words, Switzerland benefits from an abundance of skilled labor force. Thus, Switzerland ranks at the second highest position in terms of employment rate, at a whopping 79.6%. Moreover, according to the international labor organization (ILO), Switzerland has one of the lowest unemployment rates.
4. State-of-the-Art Infrastructure
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 is made efficient and easy for your potential business.
With 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.
5. High Consumption Index
The Swiss people, on an 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.
6. Concentrated Network of Corporation and Banks
To start any business, having 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.
7. 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.
8. Stable Currency
Swiss economy is the one of the stable economies in the world with Swiss franc being one of the strongest and stable currencies. The franc’s stability attracts Swiss and international investors.
9. Business Friendly Eco-System
Business friendly eco-system in this context refers to the pro-business incentives provided by the government to the start ups. 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.
10. 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.
These are the reasons that make Switzerland and ideal location to set up your business. The country provides excellent infrastructure and abundant business opportunities. We at Business Setup Worldwide have our team of experienced business advisors helping corporate firms and entrepreneurs for decades in business-oriented solutions in Switzerland, including company registration, accounting & bookkeeping, tax consulting, intellectual property protection, visa issuance and corporate secretarial services. If you are planning to start your business in Switzerland, or for any related information, do contact us – we’d be happy to help!