When Swiss companies make sense
When Swiss companies make sense
Many international holding structures use offshore companies. They are easy to use and relatively inexpensive. But they are not always the right solution – and since September 2001, they often attract unwelcome attention.
Onshore companies can sometimes be the best answer since, placed in the right jurisdiction, they can enjoy a favourable tax regime as well as the benefits of a double taxation treaty network. This works, for example, by reducing or even eliminating withholding tax payable on dividend, interest, or royalty payments to the onshore entity.
Onshore can be more tax efficient
As a result, onshore structures may be more tax efficient than tax-haven vehicles. Moreover, some of the additional requirements for an onshore company (director responsibility, register of officers and signatory powers, audits, bookkeeping and other controls required by law, etc.) are a small price to pay for the security and substance they bring.
Using an AG …
In general, Swiss companies are not bought “off the shelf” but are established specifically for a particular purpose. Normally, the appropriate vehicle is an Aktiengesellschaft (AG) which has a minimum capital of CHF 100,000, of which at least CHF 50,000 must be paid into a separate blocked account before incorporation.
… or a GmbH
A Gesellschaft mit beschraenkte Haftung (GmbH) or limited liability company may also be used. The initial capital for a GmbH is only CHF 20,000, however there are some practical disadvantages to using this type of company in an international business structure.
Zug offers attractive tax advantages
Zug is an ideal jurisdiction for an onshore company. Some highly attractive tax and depreciation rates are available, together with the use of the extensive Swiss double taxation treaty network and the possibility of obtaining specific rulings from the local tax administration.
Rosetrust can help
Rosetrust has many years’ experience of running Swiss companies. We can set up and run these companies, providing all administration and bookkeeping expertise, and accessing legal, tax and strategic advice through our sister law firm Howard Rosen Solicitors.
Although we cannot act also as an auditor, Rosetrust has excellent links with a number of well-regarded local auditing firms and will be happy to make recommendations. Under Swiss law, Swiss companies must have one director domiciled in Switzerland. Rosetrust can provide such directors as long as it is actively involved in the management of the company.
Taking the next steps
Rosetrust will need to conduct due diligence in relation to new clients and has a questionnaire ready. This must be completed and returned before the incorporation process can begin. The proposed company name will need to be checked with the Federal Ministry of Justice in Berne. This normally takes about three working days. The entire incorporation process for a new company should take about four weeks in the Canton of Zug, from the time the initial share capital is paid into the blocked account.
Interested? Contact us to start the process.