A holding company in Switzerland acquires subsidiaries under financial consolidation. The country is one of the most developed financial centres of Europe. Although it is situated within the European continent, the country is not a Member State in the EU. This allows Switzerland to have an independent viewpoint on many issues. It is beneficial, since any holding company in Switzerland is beyond the influence of the European Commission. That is why foreign investors, who seek a stable economic environment for their holding company, may find the appropriate jurisdiction for their business in Switzerland.
Essential features of holding companies in Switzerland
The activities of any holding company in Switzerland include the management of financial operations in other companies and control over their investments. Thus, the essence of their activity is in possessing valuable assets of some other economic institution. It can manage companies of varying origins; foreign or domestic. It is worth mentioning that benefits on federal and cantonal levels provide stable working conditions for foreign investors. However, to gain those benefits, the holding company should own at least 80 per cent of shares.
Holding in Switzerland and Initial steps of a Swiss holding formation
Once investors decide to establish a holding company in Switzerland, it is necessary to find the markets that are ready to consolidate under a single legal enterprise. The best solution is to search for candidates in the market that has already proved successful for an investor. In this case, market analysis may be of use; it may help anticipate the growth opportunities of different types of business. Building up personal and company strategies is very helpful at the initial stage of establishing a Swiss holding company. Working out a business plan may also be useful; it gives a general overview of the company’s prospective acquisitions and the overall equities. Before the acquisition process, it is essential to determine the sources of finance of the holding company. If the equities are at hand and there is no need to seek potential shareholders of the future holding company, the investor is capable of transactions and company acquisition. In the majority of cases, investors have to provide special documents to prove their solvency. This means that businessmen who want to be incorporated into your holding company receive factual guarantees of investing capability.
Swiss holding companies – the result of successful business planning
A decent business plan may prevent an investor from a number of errors in the ongoing process of company acquisitions. It is advisable to act in the following way:
- Research owners of different companies which are interested in being possessed by an investor;
- Find ways to stay current with the changes in the Swiss economy;
- Be prepared for long-term analysis of prospective acquisitions.
How holding companies in Switzerland get incorporated in the Swiss economic system
Having chosen the canton where the future holding company will be settled, investors have to arrange for the following steps:
- Check if the name of the holding company is unique
- Provide a verified document where the names of the Board of Directors are listed
- Set a registered office for the holding company
- Be prepared to pay filing fees for company formation and registration
The completion of the abovementioned steps leads to registration in the Swiss Commercial Register. After that the company should be listed for VAT.
Company registration is a very complex enterprise for foreigners. That is why certain assistance should be provided to investors. Goldblum and Partners is ready to render you the holding company formation services and advise on the most complicated issues related to holding company formation.