Why You Should Consider Incorporating Your Business in Switzerland
When you own a business, part of making it successful is making the best decisions regarding the legal status of your company. Depending on how your company is legally defined, and where is it hosted, your tax structure could be drastically different. Some people find it very helpful to incorporate their business offshore, in a different country from the one where they reside. There can be many advantages to this, and it can also involve a lot of paperwork and bureaucracy. If you are considering incorporating your business offshore, you may want to think about choosing Switzerland.
There are many potential advantages to choosing Switzerland for incorporating your business. Unlike some other common offshore locations, Switzerland is located in the heart of Europe, which provides great location-based advantages. Switzerland isn’t part of the European Union (EU), but it is part of several bilateral treaties with the EU. Additionally, it offers a much lower tax rate than many other offshore locations, and is part of multiple International Double Tax Treaties.
Some people choose to eventually relocate their lives to the offshore country that hosts their business. When you choose to incorporate into a Switzerland offshore company, you have the option of living in a beautiful, politically stable country. Switzerland is a wealthy country with a relatively low population and reasonable tax structure. Its reputation for financial security is well-known throughout the world.
Types of Companies
There are three basic types of companies you can use for your business in Switzerland. A Swiss Holding Company has the primary purpose of holding and managing participation in other companies. On the other hand, a Swiss Mixed Company can have different legal constitutions. It can be a holding company or a branch of a company based in another country. In fact, ‘Mixed Company’ is not a legal description; it actually refers to a tax classification. A mixed company is where the majority of the business transactions take place outside Switzerland, and any transactions that happen in Swiss areas are secondary or incidental.
A Swiss Trading Company is another category of business. Many people choose to form a trading company, as it can be used in a wide variety of situations. A trading company can stand on its own, or be part of an international group structure. Trading companies are often used to facilitate the purchase of goods and services among different countries.
Setting Up Your Company
While many businesses could benefit from an offshore setup in Switzerland, the process can be overwhelming. If you are interested in learning more about how to incorporate your business in Switzerland, you can contact a company formation and administration firm. This type of business is staffed by experts who are well-versed in the laws governing Swiss offshore companies. Working with a company formation firm can drastically reduce the time involved in your setup process and ensure that you follow all the legal requirements of Switzerland. You can have your Swiss offshore company up and running quickly and take advantage of all the benefits.