business structures

Switzerland is offering a very attractive business environment, including for foreign investors. The Swiss laws allow anyone, including foreigners to start a business in Switzerland, to form a company or to have a financial interest in one.

What you should know before you start your own business in Switzerland

However, there are certain conditions that are required. Only persons that hold a valid C permit, the spouse of a C permit holder or the spouse of a Swiss citizen have the legal right to start their own businesses in the country.

In terms of well – developed industries in Switzerland, tourism is certainly one of them. Switzerland is home of numerous lakes, mountain villages, cities with medieval quarters and many popular tourist landmarks. It should come as no surprise that many entrepreneurs are interested in opening a hotel or creating a successful hotel chain in Switzerland.

Managing a Swiss company automatically implies having a board of directors, as it is one of the legal requirements in order to incorporate in Switzerland. Company shareholders appoint the company directors. However, company directors must meet certain requirements, depending on the type of company. The main regulatory framework that applies when appointing company directors is the Swiss Code of Obligations.

The choice of location for a business has become extremely important in today’s competitive economy. Switzerland offers many unique advantages for entrepreneurs willing to invest in the country, on economical, political and social level. Here are the most important reasons why you should consider investing in Switzerland, a small, yet highly developed country.

Branch offices are commercially independent businesses of a parent company. Foreign companies are able to open branch offices in Switzerland. Company branches are legally dependent of the head office, thus they do not have a legal personality. The company branch has limited commercial independence. It means that it must carry out the same type of commercial activity as the parent company, in order to form a commercial whole with it.

Switzerland has decided to permanently quit joining the European Union, formally withdrawing a request made in this regard, sitting in the drawers of EU’s officials buried for 24 years.

Swiss Foreign Minister, Didier Burkhalter, forwarded a response to officials in Brussels to consider the application "as withdrawn" in June 2016. The event took place just a week before the referendum that decided the fate of Britain in the European Union, concluded as what is now known as “Brexit”.

Most global companies that are leaders in their respective fields choose to manage and practice their intellectual property rights from Switzerland. Why? Because there are many reasons to choose Switzerland as a location, regardless if it’s a large enterprise or a small company looking to make profit from patents, software or other type of intellectual property.

Products and services offered by Swiss companies enjoy a very good reputation on global level, due tot positive references on quality, authenticity and precision regarding products “made in Switzerland”. Switzerland is also known for luxury products, as many foreign companies establish company branches and subsidiaries in this country. Most common authenticity markers are de red and white cross and references including the label “made in Switzerland”.

The legal form for a Swiss corporation is the “Aktiengesellschaft” (AG), which is governed by the Swiss Code of Obligations. This type of company is best suited for multinational corporations looking to expand their activity on the Swiss market.

The liability of the shareholders of an AG is limited to the unpaid amount of shares they hold within the company. However, it is enough to have only one shareholder, while there are no limitations regarding the maximum number of shareholders, thus making the AG a very flexible business structure.

A trademark is a legally protected sign, used to distinguish products and services belonging to different businesses. Any graphic representations can be used as trademarks according to the law, including words, letter combinations, numericals, graphic images, slogans, three-dimensional forms, tones, or combinations of all these elements.