Switzerland has always been appealing for those seeking to start businesses or work in the financial industry, thanks to the country’s good reputation from this point of view. In recent years, Switzerland has diversified its economy, so if you plan to launch a company there now, you can add several additional benefits to the former.
Why should you start a business in Switzerland nowadays? Let’s review some of the perks that come with having a company there.
Economic stability
Economic stability is without a doubt a number one reason for some investors, especially foreign ones, to start a business in a country. This is what Switzerland offers: predictability. With top ratings from the largest credit score agencies for years in a row and high rankings in indexes and reports compiled by financial institutions and prestigious magazines, Switzerland offers the much-need predictability companies need to thrive.
The high income of the population also contributes to the Swiss economy through increased purchase power, which makes this country appealing from an investment point of view.
You can search about the types of companies you could start, or you can go directly for help when forming a company in Switzerland. BridgeWest Switzerland can definitely help you choose the most suitable company type for your business needs. This will also save you a lot of time with procedures and documentation.
Strong digital and financial infrastructures
While relying on one of the best financial services sectors in the world, the Swiss government understood really quickly that investing in a steady and reliable Internet connection to enable people and companies to complete transactions rapidly. When supported by strong cybersecurity measures and data centers that ensure the safety of financial operations.
Flexible business structures
Moving on to a more practical side of doing business in Switzerland, it is worth reviewing the legal forms under which commercial activities can be carried out there. If you want to register a company, you can choose between:
- private and joint stock companies, which are the most used business forms;
- partnerships, with a focus on limited ones, which are often used in the financial and investment fund sectors;
- sole proprietorships, which are suited for professionals and craftsmen, for example, for those making luxury watches.
How do you choose between them? There are a few aspects you should consider, among which:
- the size of the operations;
- your budget, to which you need to add the minimum share capital imposed by law when it comes to private and joint stock entities;
- the sector you will operate in.
The unique administration system
In Europe, at least, Switzerland has a unique administration system made up of federal and cantonal authorities. Why should this be a reason to choose Switzerland? Simply because when interacting locally, things will move a lot faster. Also, in some cantons, there are certain industries that perform at their best, while in others, there are different sectors that thrive thanks to local agencies and business incubators.
Zurich, for example, is best known for the powerful investment industry, Geneva for luxury manufacturing, and Basel-Stadt for the development of the pharma and life sciences sector.
Taxation
When discussing a country to open a company in, we need to tackle the taxation system. In Switzerland, it means flexibility thanks to that unique administration system. Specifically, businesses must pay a federal income tax on corporate profits, as well as a cantonal one. While the first one is levied at a fixed rate of 8.5%, cantonal taxes vary in percentage, with Zug, Schwyz, Nidwalden, and Geneva imposing the lowest ones. Even so, the average corporate tax in Switzerland does not exceed the EU average. As such, you can choose this country without worrying that you will be paying more taxes.
Company credibility
Here is one of the best reasons to start a business in Switzerland: companies here have one of the highest credibility levels in the world. The strict legislation and supervision of enterprises operating here will lead to a good reputation, which will attract investors and partners.
Credibility also means access to consumers all over the world, as Switzerland is a trademark of quality itself. So, establishing any operations here will generate good income, no matter the sector of activity.
Still considering a country to base your operation in? Hopefully, the information above will make you consider Switzerland among the top contenders.
