International Financial Reporting Standards (IFRS) is an international accounting framework for the preparation of public company financial statements, and is followed by most countries.
Switzerland, known officially as the Swiss Confederation, is located in Western-Central Europe, surrounded by France, Germany, Italy and Austria. It is one of the most developed countries in the world, ranked high on quality of life, public transparency, economic competitiveness, literacy, human development, and research & development.
Switzerland is home to the second-largest United Nations (UN) office. The country has a history of armed neutrality; it has not been in a state of war since 1815. Furthermore, it is actively involved in peace-building processes around the world. Switzerland derives the majority of its GDP from the manufacturing industry – primarily chemicals, pharmaceuticals, watches, electronics, and musical instruments. Nonetheless, the service sector – especially banking & insurance, global organizations, and tourism – is also an important component of the economic landscape of the country.
A company in Switzerland may be incorporated as one of the following legal entities.
A sole proprietorship in Switzerland is owned by a single person (known as the sole proprietor), who bears unlimited liability and whose name is required to appear in the business. Additionally, the sole proprietor must be a Swiss resident. He/she reaps the entirety of the profits, and is also personally liable for the debts and obligations of the company. In case the yearly revenue of a sole proprietorship exceeds CHF100,000, it is required to be registered with the Chamber of Commerce in Switzerland.
A general partnership in Switzerland is a company by 2 or more people, who bear unlimited liability. The partners must be Swiss nationals, and a general partnership calls for a mandatory registration with the Chamber of Commerce.
A limited partnership in Switzerland is similar to a general partnership in all respects except that in the former, few of the partners (general partners) have unlimited liability, whereas others (limited partners) are liable for the company up to a certain extent.
A limited liability company (LLC) in Switzerland can be formed by a minimum of 2 shareholders. The owners of an LLC bear limited liability, i.e., they are not responsible for the debts or obligations of the company in personal capacity. The minimum equity required to start an LLC is CHF20,000.
A joint stock company in Switzerland can be founded by a minimum of 3 shareholders, with a minimum issued capital of CHF100,000. The liability of each member is limited to their contribution to the investment capital. A joint stock company acts as an independent legal entity, with its board comprising Swiss or European citizens in majority. The members of the board are individually liable for the payment of Swiss taxes and social security.
A public shareholding company in Switzerland is is the most popular and widespread legal business entity in the country, and is opened with the primary purpose of holding and managing participation in other companies. It takes a capital requirement of at least CHF100,000 to start such a company.
A subsidiary is a legally independent company affiliated to a foreign entity. It operates as a Swiss company, and may take the form of a limited liability company or a corporation.
A company abroad may open a branch office in Switzerland to expand its product or services in the country. The foreign parent company bears the financial responsibility for it, but since a branch office is subject to Swiss law, it is treated as a Swiss company.
A representative office in Switzerland is an entity set up for non-commercial purposes. It is meant for businesses that want to widen their outreach to different markets to do research and marketing activities. A representative office does not possess a legal entity status and is governed by the rules and regulations imposed under the domicile legislation.
Setting up a company in Switzerland has the following advantages:
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Company formation in Switzerland is a fine option if you are looking to establish a business in Europe, and thinking of the long term. Business Setup Worldwide helps global investors, businessmen, and corporates set up company in Switzerland, our experts taking care of the banking, visa, legal, and licensing formalities.
We keep your business objectives at the centre of our operations. We specialize in business-oriented support activities, in face of the ever-changing global executive environment. We take pride in our ability to adapt to the market and devise innovative strategies to aid firms with their vision.