Ensuring you choose the prime location when it comes to company incorporation and administration is crucial; and Switzerland brings many economical, political and social benefits, making it one of the most popular countries for company incorporation.
This might seem risky as Switzerland is a small country. However, it is developed to a high scale, meaning it carries an array of advantages for company incorporation. In fact, it’s said that over 6,500 foreign companies currently have their headquarters located in Switzerland.
In this article, we will discuss the most significant reasons why your business should invest in Swiss company formation and administration.
Switzerland Has A Central Location
One of the main factors that makes Switzerland a hot spot for company incorporation is because it’s located in Western Europe, giving it a central location. Being centrally located gives Switzerland a strategic advantage as it’s in the perfect position for creating economically strong relationships with countries such as Germany, Italy and France. Therefore, it’s perfect as a starting point for foreign countries who want to test the waters with a new product or service before branching out into the rest of Europe.
Switzerland is also brilliant for testing the success of new products and services because even though it’s not a member of the EU, it is a member of the European Free Trade Association. Therefore, it has a range of agreements in place with the EU, meaning approximately 80% of Swiss imports come from the EU and around 60% of Swiss exports go to EU countries.
Switzerland Has A Skilled Workforce
Another significant factor that makes Swiss schooling rein above any other is their vast focus on cultural and lingual teachings. In fact, schools in Switzerland tend to teach in three common languages, German, French and Italian and English is sometimes used too. Teaching in these languages is not just used due to Switzerland being in close proximity to these countries, but it’s also primarily because of the fact it is known for having an integrated local business environment. This leads to why Switzerland is recognised as one of the best countries to incorporate your company.
As well as a multilingual education system, Switzerland is also known for providing a range of apprenticeships, internships and training programmes which is what ensures employees are set for highly skilled jobs in the future. This also comes with a range of the best resources available.
Switzerland Has Developed Industries
As well as a highly skilled workforce, Switzerland is well known for some of its significantly developed industries, such as banking and insurance in the cantons, Geneva and Zurich. However, it’s not only these industries that encourage companies to incorporate into Switzerland. It also has a strong pharmaceutical sector which includes life sciences. This is due to Switzerland’s heavy investment into research and development which is said to make up nearly 3% of Switzerland’s GDP. Due to its high level of research and development, universities and research institutes are continuously producing exceptional results.
Switzerland’s Competitive Tax Rates
Another main factor that companies choose to incorporate into Switzerland is due to its low tax rates that are levied at a federal, cantonal and municipal level. During Swiss company incorporation, you will be entitled to tax rates between 12% and 25%, depending on your circumstances. Companies do have to ensure they maintain sufficient tax planning but when they have done this, they can benefit from the vast tax benefits in Switzerland. Tax authorities also have good relationships with companies incorporated in Switzerland so you will always have a good level of support.
Switzerland Has Outstanding Infrastructure
Lastly, Switzerland is known for having an excellent reputation when it comes to the quality of life and a safe business environment. It also has a good healthcare system and public transport which makes travelling throughout Switzerland more efficient, attracting foreign professionals looking to incorporate their company and even families looking to start a new life there. Not to mention the beautiful scenery that Switzerland provides.
Are You Looking To Incorporate Your Company In Switzerland?
If you’re undecided on what country is best for you when it comes to company incorporation, you can find more detailed information about Switzerland here with our investment guide.
Alternatively, if you know Switzerland is the ideal country for your company incorporation, then our company formation and administration experts can advise you. You can contact our team at CO-Handelszentrum here or call us today on +41 (0)41 766 31 50.