Switzerland is one of the most politically and economically stable countries in the world. Switzerland is divided into 23 Cantons, each with its own tax system. There are two types of Swiss companies best suited to foreign investors: the AG (corporation or joint stock company) and a GmbH (limited liability company). The following information will help you determine whether Swiss company formation is the optimum corporate structure to fulfill your international objectives.

Because of preferential tax rates offered in different cantons for domicile companies, Switzerland company formation is attractive for multinationals wishing to set up global headquarters in the country, provided the company's activities take place outside Switzerland. For example, in the canton of Berne, both domicile and holding companies are exempt from municipal or cantonal profit taxes, paying only a maximum tax of 0.42% of capital.

Switzerland company formation requires a minimum of one director. Corporate directors are not permitted.

Switzerland company formation allows entrepreneurs to gain access to a network of double taxation treaties Switzerland has signed, with countries including Australia, China, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, New Zealand, Russia, Singapore, South Africa, the US and the UK.

Switzerland is positively ranked as the 8th-least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Switzerland ranks first as the most competitive country in theworld, according to the Global Competitiveness Report 2010-2011, compiled by the World Economic Forum.

It is easy to open international corporate bank accounts to support Switzerland company formation. Healy Consultants works with local Swiss banks such as Credit Suisse, Postfinance, Coop to provide corporate bank account services.

Following Switzerland company formation, the company can freely remit profits outside the country. Switzerland is positively ranked as the world's 6th-freest economy, according to the Heritage Foundation's 2011 Index of Economic Freedom, a measure of the freedoms enjoyed in countries determined by business, trade, monetary, financial, investment and labour markets liberties.

According to the World Bank's 2011 Doing Business Survey, Switzerland is the world's 27th-easiest place to do business. The survey measures the ease of doing busines in a country, using factors such as business start up procedures, time, cost and minimum capital required to start a business.

In its 2010 World Competitiveness Yearbook, Switzerland ranks as the world’s 4th-most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure.

Zurich ranks 3rd in the Monocle Quality of Life Index. The index bases its ranking on factors such as quality of housing, urban scale, crime rates, and quality of education and healthcare.

According to the 2010 Quality of Living Survey by Mercer Human Resources, Switzerland offers the 2nd-highest standards of living in Europe, with three Swiss cities rated amongst the Top 10 cities globally.

A Swiss resident company is liable to pay federal corporate income tax, municipal (cantonal) corporate tax and municipal net worth tax. Federal corporation tax is 8.5%.

A Swiss GmbH requires a minimum of two shareholders, while an AG requires three. The minimum capital requirement for a GmbH is CHF20,000 Swiss francs (US$22,650) and CHF100,000 (US$113,250) for an AG company. One director must be resident in Switzerland.

The majority of an AG's board members must be Swiss nationals or residing nationals of a European Union (EU) or European Free Trade Area (EFTA) member state.

Following Switzerland company formation, a Swiss company is obliged to register for value added tax (VAT) if turnover exceeds CHF75,000 (US$84,900). The standard rate of VAT is 8%.

Following Switzerland company formation, annual tax returns and audited financial statements must be submitted.

Following Switzerland company formation, a public register is available showing directors' and shareholders' details.

For more information on Switzerland company formation, contact us by email or telephone in Switzerland at (+41) 44 51 52 59 0.