An offshore company is simply a company that is registered outside your home country under a foreign jurisdiction. The benefits of having an offshore company depend on the kind of jurisdiction you are registering in, and choosing this jurisdiction again entirely depend on your needs. Some jurisdictions are even designed specifically to cater to specific needs and also to attract foreign investors to boost their economy overall.
Some Of The Benefits Of Having Offshore Jurisdiction
- Asset protection
- Tax benefits
- Privacy laws
- Flexible business laws
- Ease of operation
- Protection from lawsuits
Switzerland, a country located in Western-Central Europe, is often considered as one of the most popular locations in Europe for incorporating an offshore company. The country has a high standard of living and is quite reputable with strong political and economic stability, which is a much favourable environment for businesses to prosper.
Offshore company formation in Switzerland is viable as it has the perks of an offshore jurisdiction mostly because of its taxation laws. Also, the incorporation process is relatively simple, and it is possible to open a company with just one shareholder or founder.
Although it is not a part of the European Union, it has concluded various international and union treaties to avoid double taxation with over 100 countries, which proves to be a motivating factor for entrepreneurs and international companies to flock in.
Starting an offshore company is something most business owners might have considered because of its perks
Top 10 Benefits Of Company Formation In Switzerland
- 100% ownership: It is possible to own 100% of the company shares by a foreigner in Switzerland
- Tax Benefits: The taxes in Switzerland varies from one canton (States) to another. But overall, the tax rate is interestingly low. The standard VAT rate for profits made by a company is 8%, which is the lowest tax rate in all of Europe.
- Avoidance of double taxation: Switzerland signs approximately 80 treaties with over 100 countries worldwide in order to avoid double taxation. This benefit has attracted a lot of foreign international companies and entrepreneurs.
- Anonymous: The names of the business owners are not disclosed and are kept anonymous. Their names are not listed in the government’s public registry.
- Highly developed banking infrastructure: The country is renowned for having one of the best financial systems in the world and is a top preference for an offshore bank account opening. It is home to some of the highly competent lawyers and accountants who are ready to optimize your taxes from which offshore companies can get benefitted.
- One Shareholder: Forming a company could never be simpler when you can literally form a company with a single shareholder or founder in Switzerland.
- Limited Liability Company: The liability of forming an offshore company in Switzerland will only remain limited to the contributions of the shareholders. This ensures that even when your company gets entangled in lawsuits, your private wealth remains safe.
- Asset protection: Switzerland provides similar benefits of protecting your assets from frivolous lawsuits.
- One Director: Forming an offshore company requiring only a minimum of one director is quite rare in this world, but that rareness is possible in the country of Switzerland.
- Possibility of skipping an annual audit: if you have a small business in Switzerland, it is possible that your annual audit can become optional. Annual auditing is compulsory only for those large corporations meeting the following two criteria:
- CHF 40 Mio turnover
- Assets CHF 20 Mio + or 250 Employees
So, with the facility of world-class banking and financial jurisdiction, Switzerland has established itself as a reputable choice for holding, service, or trading companies. This country has offered some of the benefits which no other jurisdiction in the world can offer as of now.
So, if you are a business owner or an aspiring entrepreneur who considers opening an offshore company in Switzerland or other offshore jurisdictions, our experts at Business setup worldwide can help you find your right choice of offshore jurisdiction that will directly curtail according to your needs. For more information, please feel free to contact us anytime.