Registration of company in Switzerland Zug - GmbH

Company registration in Switzerland

Switzerland, or the Swiss Confederation, is a country situated in Central Europe.

The official languages in Switzerland are French, Italian and German.

The capital of the Confederation is Bern. The national currency is the Swiss franc (SFr).

On the international plane Switzerland has an image of a wealthy country, it is associated with bankers, jewellers and watchmakers. The abovementioned is partly true, since the most reliable banks, the most famous brands of jewelry and watches can be found only in Switzerland. Despite this fact, middle class feels quite convenient in Switzerland, as everything is comfortably arranged.

Currently Switzerland and the canton of Zug are perfect places for company registration with a view to tax planning and participating in government tenders.

Why is it so profitable to buy or register a company in Switzerland (the canton of Zug)?

• Minimum taxes;
• Favourable conditions for company tax planning;
• Prestige in the international arena;
• Guarantee of assets protection from political instability.

Switzerland offers the most favourable tax conditions for companies, although it is not an offshore jurisdiction (e.g. in Cyprus companies income tax is equal to 10%, while in Switzerland it is 8%, being reduced to 4% in case of holding activities).

High standard of living, stable legislation and developed legal system are the most weighty arguments in favour of company registration in Switzerland (Zug).

It is quite simple to obtain residence and work permits (or to become a resident of Switzerland). You may enjoy the rights exercised by Swiss citizens (in particular, the possibility to pay fixed tax on all incomes in any country of the world).

Legislative framework in Switzerland

Activities of companies in Switzerland are governed by the Obligationenrecht Act.

Forms of business in Switzerland

Two main forms of companies are:

• Public joint-stock company, Aktiengesellschaft (AG);
• Limited liability company, Gesellschaft mit baschrankter Haftung (GmbH).

First and foremost steps to register a company in Switzerland:

Before registering, you should select a name of the company (it is better to prepare several variants of the name). Subsequently, it is essential to check the name's availability with the federal authority. This stage is carried out to make sure that there is no registered company with identical or similar name.
The information about business activities of a company should be filed. Further you need to provide data about the founders, the directors and on whose behalf the registration of company in Switzerland is planned.

Once the required set of documents has been provided, company set up takes around a week to complete. The term may vary, depending on the current workload of the authorities.

A company in Switzerland must have a legal address. It can open an account in Swiss bank, which enables to obtain not only qualified service in respect of investments, but also guarantees of confidentiality and possibility of being serviced in international languages. This account can be managed via phone and the Internet for convenience.

Registration of a limited liability company (GMBH) in Switzerland - main provisions

• Minimum capital is equal to 20,000 Swiss francs. This amount should be paid in full at the time of registration;
• Shareholders can be individuals or legal persons, whatever citizenship or nationality;
• There shall be at least one director. He must be Swiss resident; one of his duty is to carry out communication with public authorities. The director also has responsibility to fulfil company obligations owed to the register and the tax service;
• Annual meeting of shareholders is obligatory;
• Company must have Swiss registered office;
• Company management bodies are the following:
  • General Meeting,
  • Board of Directors,
  • Supervisory Board (optional).
• Company is under the obligation to submit financial reports.

Accountancy in Switzerland

All Swiss companies shall be annually audited.

Auditors can be either independent persons, or auditing companies with legal address in Switzerland.

Reports shall be submitted annually to the State Register of Companies.

Taxes in Switzerland

The tax system of Switzerland favourably differs from the tax systems in most EU countries, since rates in Switzerland are lower.

Taxes are levied according to the three-tier system: federal, cantonal and communal. Each canton has its own legislation in the field of taxation and may independently determine the amount of taxes and introduce tax incentives.

In case a company is not engaged in commercial activities in Switzerland, it pays taxes only at the federal level (thus, the income tax is 8.5%).

You can obtain tax benefits even at the cantonal level, namely:

The holding company can enjoy such tax benefits, if the main type of its activity is long-term ownership of the shares of another company (or companies), while holding activity should bring at least 2/3 of the company income. 100% of the income of such company are exempt from tax at the cantonal level.
Given reasonable tax planning, company pays no more than 0.5% of the annual turnover to cover taxes in Switzerland. The withholding tax on payment of dividends applies to non-residents in the amount of 35%.

We will register ready-made company in Switzerland for you within the shortest time possible. Buying a company in Switzerland is now easier than ever before. Meanwhile, company registration is one of the simplest and cheapest ways to start legitimate international business. Company registration is one of the most important directions of our activity.