Switzerland is the first name that pops into our heads when we think about top travel destinations in Europe. Switzerland attracts thousands of tourists every year thanks to picturesque locations, unique traditions, and an overall hospitable environment. At the same time, Switzerland is also well-regarded as a global business hub due to attractive tax incentives, liberal market, and business-friendly laws, among others. So it wouldn’t be wrong to say that starting a business in Switzerland to aid travellers can be a golden opportunity for entrepreneurs.
The country is famous across the globe for boasting one of the most nuanced tourism industries in the world. In addition, the Swiss taxation system is a flexible one which is good news for foreign investors. Finally, the country also enjoys significant popularity due to its strong privacy laws.
Read on to learn more about travel company formation in Switzerland.
Tourism Industry in Switzerland
The tourism sector has remained one of the most significant contributors to the Swiss economy, thanks to the abundance of lakes, forests, mountains, etc., in the country. The Swiss Federal Statistical Office reports that foreign nationals accounted for 21.6 million overnight stays in 2019.
Following a largely disappointing year due to a global pandemic, people all over the world are gearing up for travel again. So what could be a better location than the ever-popular Switzerland?
Besides enjoying a central location in the European continent, the country is trendy for a wide variety of stunning mountain ranges.
A travel company formation in Switzerland can be highly beneficial due to the diverse travel offerings. Travel agencies can also offer unique packages such as health and wellness tourism and so forth.
Investments in Swiss Tourism
Switzerland is not a part of the European Union, but it has maintained excellent relationships with the members of the EU with the help of bilateral agreements. This is great news for foreign investors who plan on going through with travel company incorporation in Switzerland.
Before making a massive investment in the Swiss travel agency, entrepreneurs or businesses must keep certain things in mind. For instance, it is crucial to obtain a Swiss resident permit before making any investments. Foreign nationals can also go down the sole trader route if they want to work on their own.
What Are the Steps for Opening a Travel Business in Switzerland?
People belonging to the EU (European Union) or EFTA (European Free Trade Association) can go ahead with Swiss company registration without a C permit if they meet the following demands:
- They must have a B permit, whose validity is for five years.
- A foreign national must declare the objective of their business activity and provide necessary proof concerning the same.
- They should maintain a valid bank account with a Swiss bank.
- There should be a business plan.
- They should register the travel agency in the commercial registry.
- Registration with the professional register is necessary.
- Foreigners will have to provide social insurance proof for themselves as well as for their employees.
- They must register for VAT.
People hailing from countries other than the ones belonging to EU or EFTA must fulfil any of the following requests:
- The person shall have a Swiss C permit, which allows self-employment in Switzerland
- The person can be married to someone with a C permit
- The person is married to a Swiss citizen
If you don’t meet any of the criteria mentioned above, you can still pursue your dreams of starting a business in Switzerland. However, you will have to give solid proof that your business will end up having a positive and everlasting impact on the Swiss economy. Therefore, you must boast a full-proof business plan up your sleeves.
After foreign nationals have established their business of choice in Switzerland, they will acquire a short-term permit known as the L permit. This permit allows them to conduct and manage business activities in the country for twelve months. After that, they can renew their license after passing a labour law exam.
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