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Swiss Incorporation: Swiss company formation requirements. |
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Incorporating in Switzerland is relatively easier than in any other countries in Europe but it still requires a considerable amount of time, money and effort. As there are two types of companies you can incorporate in Switzerland, there are a few differences in the procedures and requirements of each.
Swiss GmbH
Swiss GmbH is a Limited Liability Company primarily undertaken by small businesses because of lower costs in registration requirements and capital investment. Incorporation fee of a Limited Liability Company is estimated at CHF 7,500 (Swiss Francs) or roughly USD5,700. The capital investment should remain at CHF 20.000 (roughly 12,320 in Euro). In excess of this amount, your company will already be considered as a corporation and as such should be registered under Swiss AG. There should be at least two partners to form a Swiss GmbH; and at least one director is a local resident.
Swiss AG
Swiss AG is a Corporation where much stricter requirements are necessary to be able to incorporate this kind of company. A capital investment of 100, 000 Swiss Francs is required; half of which should be paid up front upon application. A minimum of three shareholders is required but unlike in the Swiss GmbH, shareholders in a Swiss AG remain anonymous. And unlike with the Swiss Limited Liability Company, the majority of the company’s directors should be local residents.
Regular requirements for both are the payment of stamp duties, registration for taxes and enrollment for Social Security. Taxes differ from one Canton to the next and are also dependent on applicable federal taxation regulations. Compared to other offshore destinations, incorporating in Switzerland may appear to be a bit more exacting but its reputation is held in the highest regard. It has the most sophisticated and elaborate infrastructure that offshore companies are sure to benefit from.
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