Switzerland is an ideal base for companies that are looking to get into the European market. Because of its central location, offering the most ideal conditions for logistical operations, as well as other essential business operations. Switzerland has a great healthcare system, a dependable public transportation system, and easy access to many of the most breathtaking landscapes in the world, which draws many professionals and families who want to live and work in Switzerland.
Switzerland can also be used to test innovative products and services before taking the step of taking on all of Europe. Switzerland benefits from the proximity to economically powerful nations.
In this article, we will be covering all the reasons to register your company in Switzerland as the best location for your business reasons. Let’s look at the advantages of doing business in Switzerland.
Reasons to register your company in Switzerland
Down below we’ve provided several reasons to register your company in Switzerland, so let’s begin it one by one.
A Stable Economy
- Switzerland is one of the most prosperous, wealthy, and successful economies in the world. It has an increase of 5% in growth and a ranking of 19 on the planet.
- As a business proprietor, one should be aware of the state of the economy in the country where they plan to establish business roots.
- A stable economy is highly regarded as it allows investors to grow and reach the break-even point with ease.
- Furthermore, Switzerland sees highly skilled workers and a low rate which is a bonus to its booming service industry.
- The Swiss Constitution allows investors from the business world to step forward and create their own companies with ease.
Lenient Tax Regime
Tax is among the main concerns of business investors about company incorporation. When you’re planning to begin an enterprise in a foreign country, it is crucial to be aware of the legal rules which you must abide by.
- One of the most popular legal options that are being taken by the Swiss Government is to move forward with an agreement known as the Double Taxation Agreement (DTA).
- Switzerland has signed treaties on double taxation with more than 60 countries, many of them industrialized countries in the west.
- The most notable thing is that Switzerland is the country with the least tax rate on value-added in the entire region of Europe.
- The normal VAT rate for value-added tax (VAT) is 8.8%. However, services and goods related to medical care and associations are exempt from VAT.
A Flexible and Engaged Workforce
- Switzerland has a flexible labour market, which makes it a great place for business owners to join and establish their businesses throughout the country.
- The workforce in Switzerland is close to 4.5 billion. And wages are less.
- It also allows business investors to recruit foreign employees and employees based on the demands of their business. This is why Switzerland is in second place in terms of employment, with a staggering 79.6%.
- In addition, according to International Labour Organization (ILO), Switzerland has one of the lowest rates of unemployment.
Many Types of Business Entity
- The law allows business owners to select between the various business entity types according to the number of shareholders and initial capital.
- If you are an investor, you must know about the many corporate arrangements that are available to help you choose the best option for your needs.
Modern Infrastructure
- Connectivity to networks is a major aspect for business investors to consider in running business operations.
- Not just for transporting the material from one area to another area of the nation, but connectivity to the internet can play a crucial role for business owners to be able to access the office premises anytime.
- Along with its excellent railway system, its highly-connected airway network creates Switzerland an outstanding business destination.
- With four airports strategically placed across the country, in 4 places (Geneva, Zurich, Basel, and Bern) Transport and logistics can be made more efficient and convenient for the potential business.
- An intuitive infrastructure provides an edge for a business to run successfully and that gives an entrepreneur reasons to register your company in Switzerland.
High Consumption Index
- The Swiss population is, on average, living at the highest quality of life. This is considered to be an advantage, particularly from a business perspective.
- With a higher standard of living, comes a higher consumption rate. The consumption rate during the 3rd quarter of this year grew by around 92000 million CHF.
- This is only to show that the success of a company is assured through this Swiss market. The high standard of living is also a great opportunity for market expansion.
Condensed Network of Corporations and Banks
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Standards of Living
- Switzerland cities are listed among the top cities to reside in the world, according to numerous research.
- The country also scores extremely well in a variety of aspects of well-being compared to the majority of other countries on the OECD Better Life Index, being above the averages in terms of subjective well-being, job satisfaction, income and wealth, etc. All such kinds of stuff give entrepreneurs reasons to register your company in Switzerland.
Stable Currency
- It is believed that the Swiss economy is among the most stable economies in the world, with the Swiss Franc being among the most stable and strong currencies.
- The stability of the nation is a draw for Swiss and foreign investors, and these all give entrepreneurs reasons to register your company in Switzerland.
Eco-system for Business that is Business-Friendly
- A business-friendly ecosystem in this sense refers to the incentives for business that are provided by the government to entrepreneurs. The Swiss government functions in a similar way to the famous chronometer watches.
- It has stated the purpose of treating businesses and potential investors like clients. The advisors are available to assist business owners through the process of deciding to move to the next level.
Focus on Innovation
- In 2017 Switzerland was ranked at top of the list for technology for the second time in consecutive years. Switzerland was ranked top in the category of ‘knowledge as well as technology’, as the Swiss possess the top proportion of European patent applications to the population.
- So, incorporating a business with a location in Switzerland is a smart move for any business owner because it helps them gain higher returns and to get business-oriented solutions.
- It could become challenging when one isn’t knowledgeable of the legal procedure. It is strongly recommended to take advantage of professional assistance to complete the process with ease.
Conclusion
Switzerland is a perfect base for firms that are wanting to get into the European market. Because of its prominent location, offering the most favourable conditions for logistical operations, natural resources, as well as other essential business operations.
Well, these are all the various reasons to register your company in Switzerland. If you’re looking to open a company in Switzerland or need any relevant information, please get in touch with Odint Consultancy, we’re happy to assist you.
FAQ’s
Switzerland is among the world’s most renowned tax havens, due to its popular destination for wealthy individuals as well as foreign companies with attractive tax rates, an enviable economy as well as a bank system that is renowned for its secretive nature.
Resident businesses are subject to Swiss corporate income tax (CIT) on the income that is tax-deductible in Switzerland.
Switzerland is one of the most respected and highly regarded countries around the globe. The highly developed insurance and banking sectors and the stability of the economy, the advantageous corporate law, and the geographic place of the country make registering a business with Switzerland attractive indeed.
Swiss citizens as well as foreign workers who hold the right to reside in Switzerland must complete a tax return each year.
The highest rate for Federal income taxes is 11.5%. The various municipal and cantonal taxes are also charged at a progressive rate, with the maximum combined municipal and cantonal rate of 36%.
