Swiss Company Formation

Forming a Company in Switzerland

Why start a company in Switzerland? What are the advantages of Switzerland?

Switzerland, a country located in central Europe, is a convenient solution for many entrepreneurs.

The local currency is the Swiss Franc (CHF).

Switzerland is made up of 26 “countries” – cantons, similar to the states in the US.

Switzerland is a convenient gateway to the European market, with relatively easy maintenance and a local market that understands the English language very well.

Switzerland continues to attract international entrepreneurs and established businesses looking for a stable, transparent and tax-efficient country. Setting up a company in Switzerland is not only about reputation, but also about strategic advantages, market access and legal certainty.

Switzerland is a perfect place for investment and business expansion. The Swiss government is eager to boost the economy by providing incentives to foreign investors.

For the financiers among us, Switzerland specializes in the financial market with hedge funds and other instruments.

Switzerland is characterized by political stability and neutrality, an AAA credit rating and strong state institutions.

The Swiss economy is experiencing significant growth with solid foundations in the country’s democratic mechanisms thanks to which The economic system is considered one of the best in the world. All these factors together make Switzerland a reliable and important business partner for foreign investors.

Confidentiality regarding the identity of shareholders
For centuries, Switzerland has been characterized by secrecy regarding the identity of the company's shareholders. Recently, due to the need to align with global policies regarding the prohibition of money laundering and terrorist financing, disclosure of the identity of shareholders has become mandatory.

However, tradition cannot be taken away from the Swiss, and today all that is required is to declare who the shareholders are in the company, but there is no obligation to publish the identity of the owner in the commercial register. In other words, the identity of the owner is still confidential and is kept that way at the company level.

The process of opening a company in Switzerland
Establishing a company in Switzerland is a process that follows clear steps. Foreigners are allowed to establish a limited liability company in Switzerland without residency.

Opening a company in Switzerland begins with the signing of a notarized power of attorney to open a company by a local agent. The document is then sent by courier to Switzerland for processing with a local Swiss notary. After several processes in Switzerland, the client is required to sign the application for registration in the commercial register ("handlesregister"), and again send the document to Switzerland. At this point, the company already exists legally and can begin business activity.

In Switzerland, you also do not need any European citizenship to open a company. You can open a Swiss company even if you are an Israeli citizen.

This means that you can open the company with 100% shareholding in the name of an Israeli citizen - in your name, or even in the name of an Israeli company. The director can be Israeli.

Local director or local authorized signatory
At least one authorized signatory in the new company must reside in Switzerland. Therefore, in Switzerland, a local director or at least a local authorized signatory is required.

Our office can provide this requirement for you in Switzerland.

Equity Capital and Opening a Bank Account in Switzerland – Current Account for the Company
In order to open a company, a minimum equity deposit of 20,000 Swiss francs is required, which is approximately 21,500 euros.

In Switzerland, an actual deposit of the aforementioned equity amount is required. Therefore, as part of the process, a bank account is opened for the purpose of depositing the equity.

In most cases, it is required to come to Switzerland to open the account, but we know of banks that will allow you to open the company account remotely without coming to Switzerland.

After opening the bank account and depositing the equity, the company is opened and a company deed is issued from the commercial register (this is the Swiss certificate of incorporation).

After opening the company, the bank account that was opened can be used for the purpose of depositing the equity. In other words, the equity account becomes an active checking account for all intents and purposes.

Tax in Switzerland
Corporate tax in Switzerland is determined by the canton in which the company is registered, similar to the US, and its rate ranges from 11% to 18%. So in any case, corporate tax is much lower than in Israel.

For sales to the domestic Swiss market, VAT is only 8.1%.

Double Taxation Treaty: Switzerland has signed over 100 double tax treaties, which provide relief from withholding tax and eliminate double taxation.

Company Maintenance
The company requires annual maintenance of fees, annual filings, a local address (which we will provide for you), and filings with the tax authority.

Questions and Answers
Question: Is it necessary to physically fly to Switzerland to open a company in Switzerland?
Answer: The process of opening a company in Switzerland is carried out remotely and there is no need to physically come to Switzerland. There is no need to fly to Switzerland to open the company. Regarding opening a bank account, in most cases it is required to come to Switzerland to open the account, however, we know banks that will allow you to open the company account remotely without coming to Switzerland. The entire process of opening the company and in most cases also the company's bank account, is carried out remotely without setting foot on Swiss soil.

Question: Who provides the local address for the company in Switzerland new?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Switzerland?
Answer: We will connect you with a local accountant.

Question: If I want to come to Switzerland to open a bank account, what should I do?
Answer: We will try to arrange an appointment for you at the branch in advance to sign the account opening forms, so that everything is in order before you arrive, so that you do not have to wander around the city in order to find a branch that will accept you and open a bank account for your new Switzerland company.

Question: What type of company in Switzerland should I open?
Answer: There are two types of companies in Switzerland:
The first type is a limited liability company (Gesellschaft mit beschränkter Haftung, or "GmbH" for short). This is the LLC.
LLCs are considered more flexible in terms of organizational structure and easier to operate on a daily basis. They are suitable for investments of various sizes.
The equity capital required here is 20,000 Swiss francs, which is about 21,500 Euro.

The second type is a "joint stock company", which is how I imagine it could be translated into Hebrew. In English this type is called a Joint Stock Company (JSC) and in Switzerland it is called Aktiengesellschaft, or AG for short.
JSC companies are generally intended for large-scale investments. As a result, they are less flexible from a legal perspective and much more formal in terms of organizational structure and ongoing operations. On the other hand, they are great for raising capital, since their shares can be issued on the Swiss stock exchange, and they can issue various types of securities.

The equity capital required for an AG is 100,000 Swiss francs, which is about 107,000 euros, with half of this amount required to be actually deposited (the other half remains as a debt to the company).

Foreign investors usually choose LLCs, i.e. companies of the first type, unless their business requires the company to be a JSC (for example, if a new bank or insurance company is planned).

Question: Do you need a European passport to open a company in Switzerland?
Answer: There is no need for a European passport. We can open a company in Switzerland for any Israeli citizen as long as they have a valid passport.
Question: How long does it take to open a company in Switzerland?

Answer: The process of opening a company, including signing and sending the power of attorney, should take about 4 weeks. After that, the process of opening a bank account takes between 3-4 weeks, depending on the banks' willingness to accept the new company as a client. Of course, these times depend on third parties and are therefore only an estimate.

Question: Is it possible to open a company in Switzerland for a person with American citizenship or a person living in the United States?
Answer: Yes. We know how to open a company in Switzerland for a person with American citizenship or a person living in the United States.

It may seem trivial that a person with ties to the US could open a company in Switzerland, but we assure you that this is not the case. Today, all banks in Switzerland, without exception, refuse to open an account for a new Swiss company if its owner has any ties to the US. Therefore, we are probably the only ones in Israel, and certainly one of the few in Switzerland, who know how to open a company in Switzerland for a person with American citizenship or who lives in the US.

Question: Is it possible to define that any Israeli company will be a subsidiary of a company in Switzerland?
Answer: Yes, absolutely, we know how to do such a process with the Israeli Registrar of Companies without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Switzerland?

Answer: Click here to contact us and get an up-to-date quote for free!

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