Why incorporate your company in Switzerland?
From Lindt Chocolate to famous Rolex watches, Switzerland seems to have it all. Breathtaking sceneries, prominent fashion players, skiing, delicious food, you name it and Switzerland seems to be your best option making it your one-stop dream destination #paradise. Swiss cities have topped the global list of best locations to work and live in over the last 10 years.
But what about setting up your own business here?
Here are a few key elements which will reassure you that Switzerland is one of the finest and the most reliable country across the globe to establish your business there.
- Number One Tech Hub in the World
Switzerland has a technologically advanced workforce when compared to other countries. Swiss technologies are business-friendly and motivate new business models and strategies of the new era.
Artificial intelligence (AI) – Switzerland is world-renowned for its cutting-edge research in the field of AI and hence renowned tech giants like Google, IBM and Microsoft run their AI research from here.
Robotics – Switzerland is considered the ” Silicon Valley of Robotics,” as they are renowned for developing robots of extremely high quality and precision.
Zug’s crypto valley in Switzerland is another convincing evidence of technology that provides Blockchain’s community huge potential for research and development. Taking advantage of this Facebook has made Zug the new home for its cryptocurrency Libra. Switzerland took its technology to the greatest heights with the launch of its first Ethereum blockchain IPO.
- Extensive Global Approach to Research & Development
The Research and Development expenditure (% of GDP) in Switzerland was reported at 3.3729 % in 2017, according to the World Bank collection of development indicators).
Due to this reason, it attracts the world’s best researchers and developers to flock to this country and enhance it in every possible way. This creates a direct impact on globalization and hence there are advancements in business strategies and models.
Some prominent R&D and healthcare leaders in the pharmaceutical industry like Novartis and Roche have their headquarters in Basel, Switzerland.
- Whatever You Do, Wherever You Go, You need to go via Switzerland
Switzerland enjoys the luxury of being situated centrally with substantial countries like Germany, Italy, and France are considered as the core of the European market. Due to its tempting location, logistics have become extremely easy which highly encourages major business activities. Because of these reasons, many corporates choose Switzerland as their base for operations and warehousing.
One of the major benefits which Switzerland experiences is that cross-border transactions regarding industrial goods and services built from the European Union are exempt from customs duties and other charges. Since Switzerland is a member of the European Free Trade Association and possesses various Bilateral Agreements with the EU, they enjoy this enormous benefit making it a politically attractive nation for business.
Corporate taxes in Switzerland are significantly low when compared with Germany, the USA, and Japan.
- Switzerland is the best location for Company Incorporation
- Switzerland is the intersection point of major European markets like Germany, France, and Italy, thus making it the central hub for transportation
- Switzerland is a multilingual country and the workforce is comfortable in English which allows foreign companies to easily come and establish themselves
- It takes hardly one or two hours by plane to travel from Switzerland to any of Europe’s other major economic centers. This proximity enables Switzerland to be extremely tempting for business establishments
- Employee-Employer Relationship
For business establishments that need a highly qualified, efficient, and technology conversant workforce, Switzerland is the best location. Employees are punctual, hard-working, and extremely serious when it comes to their work. They are the specialist in their tasks and hence employers reciprocate by providing the employees with the gift of work-life balance (eg: they have the flexibility to pursue their hobbies). And hence companies like Novartis, Roche, Nestle, Syngenta, UMB, and CSP in Switzerland are considered to be the best workplaces in their respective categories in Switzerland.
- Economic Neutrality
More than 6,500 foreign companies already have their headquarters set up in Switzerland due to Switzerland’s Economic Neutrality. They have the highest purchasing power in the world making them a pillar of national economic importance.
Switzerland promotes a friendly investment climate for start-ups and established businesses (eg: by providing tax relief, low inflation, etc). Geneva and Zurich happen to be amongst the most important financial locations in the world and this has been ranked as the best to provide ultimate stability for businessmen across the globe.
- The Swiss Tax Reform (TRAF)
This was put into force on January 1, 2020. This has provided immense tax measures to maintain competitiveness and also to safeguard jobs and businesses in Switzerland. Key features include:
- Up to 50% deduction for Research and Development expenditure
- Maximum tax relief granted under the new measures is limited at the cantonal level
- Partial taxation of dividends
- Income tax rate cuts
- Abolition of regimes for cantonal status companies
This has ultimately helped the SMEs and other businesses to flourish tremendously. Companies and industries can be easily set up here within two to four weeks with the least amount of legal pressure or other business establishment obstacles and with the present headquarters of top companies like Nestle, Glencore, Cargill International, Roche, and others, Switzerland has earned a name for itself.
So what are you waiting for? Let us get connected….