Since globalization, the concept of multinational companies has been increasing at a rapid speed. However, one major concern that stands along with the foreign company incorporation is the tax proceedings that an investor needs to bear during and after company formation.
A strong move that reliefs an investor from paying high-end tax from international business incorporation is the ground of Offshore.
The offshore industry deals with company establishment wherein the business investor can set up a business entity in a different location from his residence. This idea is widely accepted when someone seeks to invest in the international market or look forward to protecting the wealth and assets generated.
If you plan to set up an offshore company, then one of the reliable destinations stands as Switzerland.
Switzerland is a perfect offshore business destination that the business investors widely prefer to incorporate their business identity.
This guide outlines the seven steps that you need to proceed with to reach the goal of incompletion.
Swiss Offshore Company
Switzerland is considered one of the most convenient jurisdictions for offshore corporation formation because of the low taxation enabled by the peculiar low tax laws.
Officially, Switzerland is not an offshore jurisdiction, but due to its taxation system, it has an offshore zone and becomes very attractive for the offshore company formation.
Switzerland has agreements with more than 100 other states for double taxation avoidance. The tax system in Switzerland is different for every canton, so it is possible to register a canton company that offers the lowest taxation.
At the moment, Schwyz and Zug are the most attractive cantons for the offshore company formation in Switzerland.
To know more, have a look at Why is Switzerland Offshore a Tax Haven?
Features of an Offshore Corporation in Switzerland
Before one proceeds to the offshore company formation, it is beneficial to have a clear idea regarding the features of a Swiss offshore business entity, which includes the following :
- Foreigners can own all the shares in an offshore company
- Only one shareholder is required to form an offshore company
- Only one director is required who can also be the sole shareholder
- Shareholder’s name is not listed in the government’s public registry
- For added privacy, nominee shareholders and directors are available
Here’s a treatise on the 10 Points to Consider Before Opening an Offshore Business in Switzerland.
Advantages of an Offshore Corporation in Switzerland
Now, since you are aware of the key parameters that are to be considered before incorporation, let’s look at the core advantages of incorporating an offshore business in Switzerland.
- Switzerland is a reputed jurisdiction among the other offshore business destinations
- Foreign investors can enter into the international trading market
- The jurisdiction is favourable for asset and wealth protection and management
- The business activities can be carried out remotely
- High-end tax exemptions
- Can be incorporated with the presence of one director and shareholder
- The business owners can hold an offshore bank account
Types of Business Structures in Switzerland
Any jurisdiction allows the business investor to choose from a wide range of business structures.
When it comes to Switzerland, it allows the business investors to choose any entity from the following:
- Aktiengesellschaft (AG)
- Private LLC
- Societe Anonyme (SA)
How to Start an Offshore Company in Switzerland?
To start an offshore business in Switzerland, one has to go through the following steps:
1.Seek Professional Guidance
For any foreign investor, it becomes highly impossible to grab the legal knowledge at one. Even if one does, it will take a long duration.
To play smartly and utilize the available time in the best possible way, business investors prefer to grab the guidance of business experts.
Professionals are well-versed with the offshore setup process and can assist you to clear the complete scenario in a hassle-free way.
2.Decide the Company Name
After joining hands with your business experts, you need to decide the respective trade name for your business.
While doing so, make sure that the company name is not a copy of the competitors existing in the market. Also, the selected business name shouldn’t sound offensive.
3.Select the Business Structure
After deciding on the company name, you need to make sure to select the perfect business structure.
Selection of the same depends on the availability of the business capital and the number of shareholders available.
Make sure to discuss the same with your guide and choose the best business incorporation entity.
4.Be Ready with the Company Papers
You need to make sure that the respective set of business papers are submitted accordingly. In general, the following are to be submitted:
- An application form for offshore company incorporation
- Draft of the Articles of Association
- Information about the company and its shareholders
- Letter from the Power of Attorney
- Confirmation of the paid-up capital
- A copy of the official publication of incorporation
- Notarized Public Deed of Incorporation
- Bank Confirmation stating that the share capital required is in the account
- Consent to act forms signed by the proposed directors
- Declaration of applicants
- Completed official application form detailing the documentation and a notarized signature of the representative of the company
5.Submit the Essentials and Grab the Approvals
The above documents are to be submitted to the respective government authority, who will inspect the papers. If everything meets the requirements, the authority would grant the approval.
In case if the papers get rejected, you need to discuss the same with your business advisor, get the errors rectified and submit the same to get the approval.
6.Open an Offshore Bank Account
After completion, you need to open an offshore bank account to continue the business transactions.
An offshore bank account allows business investors to grab a wide range of investment opportunities.
To know more, have a look at the Advantages of Offshore Banking that will help you to grab more insights.
It is recommended to open an offshore bank account at the time of company incorporation.
Are you wondering why? Well, your answer is just below:
7.Commence the Business Activities
Finally, once the bank account gets opened, you can carry out the business transactions at ease.
8.Make Sure to Maintain the Business Records
After the business activities are carried out, make sure to keep track of the business activities. It is recommended to maintain complete books of accounting and bookkeeping (even if it doesn’t stand mandatory in the specific jurisdiction).
Maintaining the records helps a business to track the growth at any point in time.
Thus, you have got a snapshot of the steps that need to be looked into to set up your offshore company in Switzerland.
As stated earlier, a certified offshore business expert can help you to sort the process in shorter duration as compared to the scenario where you try to complete the complete process alone.
At Business Setup, we are a team of experts, who focus on providing the best and affordable business setup solutions to our esteemed clients.
If you are interested in starting a business in Switzerland, then we at Business Setup Worldwide can be your go-to firm. Our advisors will help you with the process and make the incorporation process hassle-free. Contact us today.
Can a foreigner incorporate an offshore company in Switzerland?
Why do foreigners want to incorporate offshore companies in Switzerland?
Highly competitive economy
What is the company registration cost in Switzerland?
What are the different types of shares for offshore companies in Switzerland?
Shares with or without voting rights
Shares with or without value.