The political stability, the advanced infrastructure and the conducive business environment play a significant role in attracting the upcoming entrepreneurs to Switzerland. Famous for its pictorial scenery, various tax benefits and the similar business customs and etiquettes to the other western countries, Switzerland provides many opportunities for the entrepreneurs and businessmen. However, for you to set up a business in Switzerland, the services of a nominee director would be required.
In case you do not know about a nominee director is then fret not. Let’s understand the meaning of the term nominee director and the importance of availing the nominee director services in Switzerland.
Who is a Nominee Director?
A nominee director is a person who has been appointed to the board of directors of a company by the shareholders to represent their interests. Usually, this director would be a part of the administrative functions of the company but would not take part in the operational activities of the company. The services of a nominee director can be beneficial especially in the case of a company that is set up abroad.
Advantages of Having a Nominee Director in Switzerland
In Switzerland, the laws of the country state that all companies in the country must be represented by at least one person who is a resident of the country (Article 718, Swiss Code of Obligations). This rule presents a big problem for foreign businessmen. This is the reason it is necessary for every foreign company in Switzerland to have a nominee director. This nominee director would be a resident of Switzerland and would be nominated by the various stakeholders of the company. The various advantages of hiring the services of a nominee director are:
1.Helps in Setting up a Foreign Company in Switzerland
Article 718 of the Swiss Code of Obligations states that to set up a business in Switzerland, a foreign company must have a Swiss resident on the board of directors. Until and unless this condition is fulfilled, an international company cannot be set up in Switzerland. This is where the services of a nominee director come into play. The nominee director is a resident of Switzerland and can also help in representing the interests of the shareholders.
2.Managing the Administrative Functions of the Company
A nominee director is not only having a single use but can also help in the various administrative functions of the business. Since he is the resident of the country, he can take over the administrative duties of the company which would provide you the much-needed time to focus on the various developmental activities of the business properly.
3.Representing the Company before Banks and Tax Authorities
The nominee director would serve the company in front of all the banks, tax authorities and the government and also while filing Value Added Tax. This would help the company as being the resident of the country; a nominee director would better understand the customs and workings of the country. Also, he would give a familiar face to the company which would be relatable to numerous people in the area.
4.Advising the Company
Being the resident of the country and also having the required experience and knowledge, the nominee director will be in a unique position to give sound and customized advice to the company. He would take a read on the current business situation and would assist to the company which would pave the way to a better future of the business and will also assist in providing various company secretarial services.
5.Open Bank Account in Switzerland
After setting up a company in Switzerland, it would be necessary for the company to open a bank account. A nominee director would help the company to choose a bank in which it wants to open a bank account. This decision would be taken according to the business environment, the entrepreneurial strategy of the company, etc. After choosing a bank, the nominee director would be the one who would represent the company in front of the bank.
We can see that availing the services of a nominee director are an absolute necessity for forming a business in Switzerland. Without hiring a nominee director, it would be nearly impossible for a foreigner to conduct business in the country. Hiring the nominee director would also require a level of trust and expertise, as he would be having access to sensitive data about the company which in the wrong hands could lead to the downfall of the company. Thus, it would be preferred that the services are hired from a reputed and trustworthy source.
If you are looking to hire a nominee director in Switzerland, then look no further.
Business Setup Worldwide would help you in starting a business in Switzerland and will also help you by providing various other corporate secretarial services. We would take care of all the procedures required for setting up a business, leaving you free to focus appropriately on the future growth of the company. For more information on any of our service do contact us – we would be happy to help!