Switzerland

Switzerland is our project which no doubt will interest Latvian and foreign entrepreneurs.

Stability of the Swiss Frank and political environment, freedom of entrepreneurship, beneficial geographical location in the very center of Europe – all this makes Switzerland an exceptionally attractive country for living and doing business. Proper usage of Swiss tax legislation in combination with tax legislation of Latvia and other countries gives advantages in optimizing taxes in a legal way.

Safety and confidence are the most distinct traits of doing business in Switzerland.

Further we will present you with different aspects of conducting business in Switzerland.

Company registration.

Legal entity types

Any foreign citizen is eligible to launch a company in Switzerland and conduct business both within the country and outside its borders from Latvia or any other country.

Swiss legislation imposes much less impediments than other countries.

The most common company types in Switzerland are Private Limited Company (Ltd.) and Public Limited Company (Plc.). Registration is possible in many towns and cantons that have different beneficial tax rates.

Public Limited Company (AG in Swiss) is the most popular form of business in Switzerland.

Foreign companies choose to form AG when planning big deals with several partners. Minimum declared capital is 100,000 Swiss Franks. 50% of this sum must be paid when registering a company.

Private limited company (GmbH in Swiss) is a legal entity consisting of one or more owners (physical or legal bodies). An owner is liable with the amount of contributed capital, no less than 20,000 Swiss Franks.

Owners of small and medium size businesses usually prefer exactly this type of company. Registration of Private Limited companies (Ltds) is easier and cheaper that registration of Public Limited companies (Plcs). Administrative costs are also lower.

Companies which do not operate on the territory of Switzerland may not have an office, personnel or main assets in the country. It is enough to register a legal address.

Procedure of registering Ltd (GmbH) can take up to 3 weeks (from the moment of paying declared capital until receiving a decision from Commercial Register that a company has been registered).

For those who do not wish to distract monetary resources on formation of declared capital we suggest purchasing already operating companies.

Further to that, we provide the full package of business consulting and services:

  • Legal support of commercial activities;
  • Administration and representation of your interests to tax and other authorities;
  • Accounting and reporting;
  • Tax consulting;
  • Opening of bank accounts;
  • Support in negotiations.

Taxes in Switzerland.

In Switzerland, taxes for both physical and legal bodies are lower than in many other European or American countries.

Companies are taxed on three levels – state level (8.5%), canton level and municipal level. Each canton has its own tax legislation and is eligible to define tax rates and tax benefits itself. In some specific cases a canton can make a company that operates exclusively outside Switzerland (so-called domiciliary companies) exempt from paying corporate tax.

Domiciliary companies have a legal address in Switzerland, but they do not have an office, personnel or real estate within the country.

Today many cantons are ready to offer benefits to foreign companies for the purpose of stimulating investments.

Switzerland is one of the world’s “holding” jurisdictions, one of the ideal places for the creation of foreign office for a parent company. Apart from prestige, it has a number of economic benefits. Taxation in Switzerland can be almost at the same level as in off-shore areas. At the same time Swiss companies enjoy the benefits of international tax agreements (more than with 60 countries; for comparison, in Latvia, conventions about avoidance of double taxation are signed with 24 countries) that are inaccessible for the off-shores.

Moreover, a Swiss company can perform the functions of a “transitory” company.

n some specific situations, holding companies are fully or partially exempt from local corporation tax (the exceptions are Geneva and Uri cantons).

No other jurisdiction in the world can offer such advantages.

Investments

Switzerland is claimed to be one of the most attractive countries for investing. Ideal combination of political and economic stability, high safety and living standards, relatively low taxes – all this attracts foreign investors who are interested in receiving a boosted income and multiplying their capital.

The fact that there are no tax on inheritance and donations given to a husband or a wife is also significant.

Swiss legislation prohibits foreigners who do not have a residence permit to purchase real estate freely. However, a foreigner can still make a purchase if he or she registers a company in Switzerland and buy real estate on the name of this company.

Bank accounts.

Switzerland has banking traditions that are centuries-old.

Swiss banks are very attractive because of loyal legal system, wide and firm international networks and absolute confidence granted by political and economic stability.

Swiss banking secrecy.

Swiss banking secrecy is a right of any person to possess property, which is enforced by the constitution. Switzerland’s financial institutions are obliged to keep information about their clients’ accounts in absolute confidentiality from any third party. The fact of existence of a bank account is a secret too.

In Switzerland, confidentiality of bank accounts is one of the main constituents of financial business. But certainly Swiss banking secrecy does not protect criminals and money of criminal origin. Switzerland has strict laws regarding money laundering.

Opening of a bank account in Switzerland.

Switzerland’s commercial banks offer a wide range of services.

Together with opening of an account in a Swiss bank, a client receives secrecy guarantees. Services are provided on main international languages. A client has possibility to acquire credit cards on his or her name or on the name of his or her Swiss company. It is also possible to operate an account through the Internet.

We render help and assistance in opening of both corporate and private accounts in Swiss banks.

Representations.

Your local and foreign clients will feel more comfortable if they work with you as with a Swiss company.

We will help you to organize your business in Switzerland without big investments. We offer a set of services that will assist you to develop successfully under conditions of tough competition.

The full set of representation services:

  • Legal support of your business, representation of your interests in state institutions,
  • Consulting regarding Swiss legislation (business, taxes, banks, accounting),
  • Provision with information on legal bodies registered in Switzerland,
  • Registration of new and purchase of already existing companies,
  • Opening of corporate bank accounts,
  • Legal address, secretary services, organization of business meetings.

Thank you for choosing us for realization of your ideas and trust!

Contact us: info@fintrust.lv