Following your passion by having your own business undoubtedly feels like a dream coming true. Setting up your own company is challenging. Add some more hurdles into the journey if you wish to start your business in a different country.
The good news is if you have the dedication and anything can’t stop you from following your dreams, then you can start your own venture apparently.
This article is a guide in case you are looking for setting up your business in Switzerland. The guidelines will help you understand the Swiss process of registering companies and how you can set up your business.
Starting the Business in Switzerland
Whenever you start a business in another country, you need to be sure that your idea is appreciable in that country. The first thing while thinking of starting a business is having a business idea with proper planning.
Secondly, choosing the perfect legal Swiss business structure is very crucial.
Keep in mind that the Switzerland govt is very strict regarding foreigners starting their business in the country. A non-resident of Switzerland can only start a business if his/her partner is a Swiss resident.
This is why it is worthy of knowing all the details about Swiss visa permits and Swiss worker permits before starting a business.
Considerations before starting-up
there are some vital things one needs to take into consideration before starting any business anywhere in the world.
- What service or product the owner wants to deliver?
- Whether there is a demand for the product or services in a particular area or town.
- Which type of skills is going to be beneficial for your business?
- Who are the competitors?
- Whether if you have the financial stability to go for the business idea you have given thought about.
Swiss Business Structure—which one to choose
Proper research with investigating every minute detail is significant when you are choosing a Swiss business structure. There are seven different types of company registration possibilities available in Switzerland.
You can select which one suits you, knowing all the advantages and disadvantages of all the structures.
A common type of company structure is a single-owner Company or sole proprietorship company. Persons who work on their own find this structure more suitable. However, one needs to be a Swiss resident to get this registration process completed.
The registration process with the Chamber of commerce is only applicable if the annual sale of the company exceeds CHF 10,000.
Similarly, as Sole proprietorship, but a general partnership is an association of two or more people running a commercial business. The company that will be formed needs to have a Swiss address, and all the partners have to be a Swiss resident.
All partners must possess unlimited liabilities and registration with the Chamber of commerce and commercial registry.
The difference between limited and general partnership is that limited partners do not have unlimited liabilities, which the general partners have. The registration procedure with the Chamber of commerce is compulsory.
Another common form of business is the Corporation. As a rule, one of the board directors has to be a Swiss resident who will possess the authority to sign on account of the company. On the other hand, if two directors have signatory rights, then both of them have to be residents of Switzerland. Registering a company as a corporation may need two to four weeks.
Limited Liability Company
The requirements for forming a limited liability company are:
- CHF 10,000 needs to be paid when the minimum shareholders’ equity is CHF 20,000
- One managing director who has the right to sign on behalf of the company has to be a Swiss resident.
The expense while starting up such companies are cheaper than a Limited company.
This type of entity acts as a Swiss company, even if it is a branch of another foreign one. The main Foreign based company pays all the tax and possesses all the liabilities as a Swiss-based company. RISTER Sàrl fiduciary company can be a great help if you are looking to create and administrate your new Switzerland-based company. All the other necessities, such as human resource management or fiscal management, will be well-catered by the same company.
The name says it all. Setting up a branch means forming a legally dependent company which is financially reliant on a Foreign-based company. In order to maintain the legal procedures, one Swiss resident is required. One can get in touch with a local agent in Switzerland.
How long can it take to form a company in Switzerland
After accumulating all the necessary documents, selecting the legal structure, deciding the company name, and getting the residence permit, one can start their Switzerland
Is it expensive to launch a business in Switzerland
Well, precisely, most of the expense depends on the idea and type of business. However, once you have all the legal documents with you, the World Bank can be a huge help if you want to know about your start-up estimate.
Setting up a business of your own is not an easy task. After deciding the product or service, one needs to concentrate on multiple things like registration, accounting, and taxation. Taking professional help can be a huge step forward because it will be foolish to take a risk if you are not sure about something.
Although, it is also true that once you are sure about what you need to do to get things right, then you will succeed for sure.