The recent changes in Switzerland 's financial structures have helped to make the country a desirable choice for company incorporation for people from all over the world. This transition in the banking and financial sector has also benefited the financial industry, making it easier for them to set up an offshore bank account. Because of these advancements, Switzerland 's procedure of opening a bank account has become simple and clear and takes relatively very little time.
Establishing a company in Switzerland can be of great benefit to a foreign business person thanks to the country's stable economy, favorable taxation system, and laws that enable international investors to come to the country to set up a business.
Documents Needed for Switzerland Business Setup
- Enterprise Plan
- Trade Registry approval for the choice made
- Association Articles and Amending Documents
- Bank statement indicating equity capital investment
- Copies of each shareholder's Passport that should be notarized first
- All the persons on the board have signatures
- Tenancy Agreement which will display the company's legal address
What is the Swiss Process to Open a Company?
First, evaluate whether people would like your product/service before you launch, and buy it. Find out who your competitors are and if your business can be sustained in the market. Following these instructions, you should proceed with the following steps:
1.Start by Researching
The initial steps you take must include research into the Swiss market only. Find out who your rivals are and whether the market can sustain your business. You may also check for a company name, and if the name you want is already registered through the Swiss Commercial Registry. Then, run a survey to see if the idea is feasible. It involves gathering information, analyzing it, and evaluating it to help formulate your goal.
2.Register a Company Name
Once you've researched and determined which form of company you 'd like to start, the next ideal move is to register your name. Here, ensure you abide by Switzerland 's company name registration laws and choose the name. Upon decision, submit it for approval to the Switzerland Company Registry.
3.Select an Enterprise Structure
Before registering a business in Switzerland, there are several things one has to consider. Firstly, knowing that you have a good business concept is essential and, secondly, choosing the best business framework for it. There are six different types of enterprises you can start your company in Switzerland through:
A sole proprietorship also called a single-person corporation. It is the company owned by an investor, and it does not share any profit or loss. This type of business enterprise is typically engaged in commerce, manufacturing, and trade and does not have any legal personality. Anyone can start a one-person business at any time and start operations straight away.
b)Limited Liability Company
The Swiss are a limited liability corporation founded in situations where the founders only have access to the total amount of the company's capital invested. It can be defined as a company incorporated with a separate legal personality in which one or more natural or legal persons are involved.
This form of a legal framework is particularly suitable for small private enterprises. When a general partnership wants to expand its funding base, it is always chosen after. In Switzerland, the limited partnership does not demand that you have a start-up fund. The Limited Partners take on subordinate and mutual and other obligations, up to their share limit.
d)Public Shareholding Company
That legal structure is one of Switzerland's most popular and widespread. Not only the spread of this particular legal form, however, is the highest, but its reputation also. Here every partner's liability is limited to the sum of the share capital they deposit. A PSC in Switzerland also has an advantage of 100 percent foreign ownership.
An established company in a foreign country can set up its branch office in Switzerland, as long as it complies with Swiss law. We will register their company in its Swiss location at the business registry. The central office is legally dependent on the main office and consequently has no legal personality. It must carry out the same type of business operation as the parent company, and with it, form a commercial whole.
Switzerland's representative bureau is more flexible than the branch office. Unlike the branch office, however, a RO is not allowed to participate in skilled practices and is not subject to territorial economic participation. They can employ staff and do market research, other than not being able to carry out any other activities.
4) Register a Small Business in Switzerland
For your company, at least one of the directors has to be a Swiss resident. The procedure for registering a small business in the Swiss register of companies is simple as long as you are aware of all the necessary documents to be submitted to the register. The process to open a business in Switzerland open involves the following steps:
- Filling out a company registration submission form
- Preparation of required documents: corporate charter or incorporation papers, laws, demands, etc.
- Draft Articles of Association in the notary public's presence
- Create a deposit account to hold payable capital
- File Articles of Association with the Swiss organization to become a legal entity
- Pay a stamp tax- 1% of the capital with the first one million CHF exempt
- Publication in the cantonal official journal
- VAT register in Switzerland
- Enter your organization's employees into the federal and cantonal social insurance schemes
Once this is done, you have to provide all the supporting documents as well. The Commercial Registry will go through your application and check the authenticity, after which the application will be approved, and your company will register in Switzerland.
5) Register for Tax
You may be required to register for taxation, depending on the business entity and the business activity that your company is following. Upon completion of the incorporation process, an application must be sent to the Federal Tax Administration.
Opening a Corporate Bank Account in Switzerland
The opening of a Swiss corporate bank account in Switzerland is mandatory to register a company in Switzerland. The corporate bank account will be used to carry out all of the company transactions. This bank account will also be used to deposit preference for the company's share capital and will be used for all business transactions later on. It will also help the enterprise during tax filing in Switzerland.
Opening a Swiss corporate bank account has a similar mechanism for setting up a Swiss personal bank account. For a corporate bank account, the provision
of additional documentation requires that a person send
The record that needs to be filed are:
- Articles and an Association Memorandum
- Share Certificate
- Certificate issued by the registrar
- Proof of registered office address
The documents, as mentioned above, need to be submitted to the respective authority to set up a bank account in Switzerland, along with many more. If the management has accounting and bookkeeping services, preparing and compiling the various financial records is effortless for the management of the company.
If you want to establish a business in Switzerland or are looking to set up a bank account in Switzerland, then you should have a look at Business Setup Worldwide 's services. The company will not only take care of the company's incorporation process but will also help the management navigate the treacherous business environments. Contact Us for more details regarding the services. We will be happy to assist you!