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Offshore Company Structure in Switzerland

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Initially regarded as the Swiss Confederation, Switzerland is one of the tax-haven jurisdictions and a popular business destination. The region holds a high status and reputation when it comes to business incorporation, and thus, is one of the widely chosen business destinations by the business investors. Additionally, the region also holds one of the best and most reliable financial and banking systems in the world that attracts most of the business entities.

Now, when it comes to the incorporation of a Swiss Offshore, multiple corporate structures can be considered accordingly. Foreign investors have the flexibility to choose one among the multiple options present, depending upon the number of shareholders. So, if you are planning to proceed ahead with offshore company formation in Switzerland, then this is the right time to know about the structure. This guide is meant to outline the essentials about the different business entities present in the tax-haven.

Offshore Business Entities in Switzerland

Selection of a business entity is one of the significant decisions that every business investor/ owner needs to proceed ahead with. Availability of the capital and number of shareholders plays a significant role in finalizing the appropriate structure for the business. Switzerland, being one of the most popular offshore jurisdictions, holds the following business entities.

1.Gesellschaft mit beschrankter Haftung (GmbH) / Limited Liability Company (LLC)

The GmbH is officially regarded as the Limited Liability Company (LLC), in which one or more than one shareholder (individuals/ corporations) take part, and are not liable for the liabilities. It is one of the most common business structures in Switzerland, widely chosen by business investors. This business entity is widely chosen by the small and medium-sized companies and operates on commercial business. The business entity can be incorporated with a minimum capital of CHF 20,000.

2.Aktiengesellschaft (AG)/ Joint Stock Company

The word “Aktiengesellschaft (AG)” is a German word termed for a corporation that is limited by share ownership. In simple terms, the shares of the company hold the flexibility to get listed in the stock market. The business entity is also regarded as a Joint Stock Company. The shareholder’s liability is limited to the amount invested, and they are not solely responsible for the company’s debts.

3.Zweigniederlassung / Autonomous or Dependent Branch Foreign Entity

Another business entity that is widely opted by the business owners is Zweigniederlassung, which is also known as the Branch company. On a legal basis, a branch company is a legal business entity that is dependent on its main branch. Swiss Branch Companies are to be registered with the Commercial Registrar (Article 935, Para 1). In contrast, the foreign branch companies are to be registered at the Commercial Registrar at the Swiss headquarters (Article 935, Para 2).

4.Kommanditgesellchaft (KG)/ Limited Partnership

The next accessible business structure is Kommanditgesellschaft, also called as the Limited Partnership Company. Here the business entity is formed with the involvement of two or more natural or legal persons, wherein one-party is referred as “General Partner”, the one with the unlimited liability, and the other party is referred as “Limited Partner”, who holds a limited liability.

5.Einzelunternehmen / Single Enterprise

Einzelunternehmen is a legal business entity in Switzerland, that is regarded as a single enterprise. According to the commercial rules, a sole proprietorship must enter into a commercial register if the annual turnover is more than CHF 100,000. The company owner is solely responsible for the assets and liabilities.

How to Start an Offshore Business in Switzerland?

The procedure to start an offshore business in Switzerland is stated below.

  • Decide the business entity name
  • Be well-versed with the relevant documents
  • Be handy with the capital required to start the company
  • Submit the documents to the governed authority and get a relevant attestation from the Notary Public
  • After the verification process, the company name gets published in the Official Gazette of Canton.

For more details on the incorporation process, click How to Setup an Offshore Company in Switzerland.

Why Start an Offshore Business in Switzerland?

Some of the significant reasons that drive the business owners to start an offshore business entity in Switzerland are highlighted below.

  • Holds a high reputation among the tax-haven jurisdictions
  • Quick and easy access to financial and banking instruments
  • Flexibility to access numerous Double Taxation Agreements (DTAs)
  • Allowance of bearer shares
  • High-end confidentiality
  • A minimum rate of tax
  • Reputed offshore banking service

You can see that starting an offshore company in Switzerland is a complicated process. However, the process can be turn out simpler if executed with the guidance of an expert.

Why Avail Professional Services?

Global business investors are keen on utilizing their time and money in the best productive way. Some of the core reasons as to why they proceed with professional experts are as follows:

1.High-End Knowledge

Professionals hold high-end knowledge when it comes to company establishment. This knowledge helps the business clients to understand the market scenario and take the respective business moves.

2.Can Handle Legal Proceedings

It becomes challenging for the foreign business owners to comply with the legal rules and proceedings of a nation. Proceeding ahead with experts will help you to clear the required legal processes at ease, as they hold a secure network to clear the respective task.

3.Less Burden

One of the most common reasons that business owners prefer to proceed ahead with experts is that their burden gets shared. While business investors keep planning on the management and business grounds, experts can help them to clear the business proceedings at ease.

4.Assured Quality

Paying experts turn out to be a smart move because they are well-equipped with the process. On the other hand, if you end up delegating the same task to an internal employee, that might take considerable time, with a probability of error.

To get better clarity, click on 4 Core Reasons to Hire an Offshore Consultant.

How Can We Help?

Business Setup Worldwide is one of the best business consultants who has been helping the business minds to shape their business ideas in the best effective way. Our business advisors hold high-end industry experience and are well-versed with the legal proceedings required to be cleared to start an offshore business in Switzerland. In case you hold any query, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist.