Business Opportunities to Start a Company in Switzerland

Switzerland can boast of a modern economy with a high level of freedom given to its active participants. Despite its small size, the country has the necessary economic and historic conditions for making successful businesses. Due to effective government regulations, established through the centuries, Switzerland has progressed in producing high-quality goods which are world-famous for their quality. Furthermore, the banking system provides a stable service for any member of the community. The reputation of Swiss banks makes the environment for setting up a business very strong and attractive. However, this is not the decisive factor for investors when they choose an area for business development. What matters is the developed infrastructure of every Swiss canton which provides secure taxation policies and thus gives Swiss companies prestigious status.

There are various types of business entity that can be opened in Switzerland. To set up a company one has to obtain a Swiss residence permit even if you live in one of the countries belonging to the EU. Switzerland doesn't have EU membership, which affects the political and economic decision-making in almost every sphere of life. To form a Swiss company means that at least the director has to have an official permit from the authorities to work and live in the country. Partners and shareholders of the company may be foreign residents, but they need to contribute to the start-up capital of the future economic entity. There are two main options for investors to set up their company: they may form a corporation or a limited liability company. In the latter case a sum of CHF20,000 is required as the initial capital. To form a Swiss corporation one has to deposit the minimum share equity of CHF100,000 in a bank account. The differences in the two types of economic entities lie deeper than simply the amount of the capital, however.

The registration of a corporation completes in four to six weeks after payment and taxation issues are discussed and solved. The obligatory membership of three shareholders is necessary to form a legal entity. The main features of a corporation formation process in Switzerland are:

• The majority of Board of Directors are Swiss residents
• 50 % payment of the initial capital
• Anonymous character of registration procedure for shareholders

The fact that Swiss Commercial Register does not reveal information on company's founders seems to be very advantageous. This factor turns to be decisive for Switzerland companies' formation. Many businessmen are likely to hide their participation in some business entities, and Swiss regulations allow foreigners to stay anonymous.

As for Swiss companies with limited liability for their owners, the costs of their formation are considerably low. To register the company, one has to know that the law requires at least two original founders. But the Swiss Commercial Register does not provide anonymity for these company founders. That is why this type of company suits small businesses, especially family-based ones.

Thus, before making the first steps to register your company, it is necessary to determine:

• The legal form of your business;
• The peculiarities of Swiss regulation rules for a certain type of company (either a corporation or a limited liability company)

A well-balanced business plan may be of use for beginners. It helps to clarify your goals and reveal your potential for prospective investors.