Switzerland is perhaps the most popular location for a holding company, and with so many benefits, it isn’t hard to understand why this economically stable country that is set in the Alps, is such a desired location to set up a company. One of the major attractions is the very low rates of taxation, and traditionally, Switzerland has always done what it could do attract wealth, with very agreeable personal taxation that attracts the rich and famous. If you are contemplating setting up a holding company, here are some details about the benefits you can drive from selecting Switzerland as the venue.
The Objectives of a holding company
A holding company is set up purely to “hold” stock in other companies, and as such, the holding company does not sell a product or service, but rather exists to manage assets, which could be in the form of company shares or stock. Swiss holding companies are given generous tax exemption on certain business activities, which holding companies happen to be involved in. A holding company could be set up to manage intellectual property rights, or other corporate assets, and in that case, some Cantons in Switzerland offer an exemption for this type of company. Capital gains can also offer an exemption or a reduction, again depending on the Canton where the company is registered.
To enter such a complex process without the help of a company that specialise in Swiss company formation, would certainly cause you some stress, and with so many additional services on tap that you might require, they can really be invaluable to the foreign investor. You might want to set up a virtual office in Switzerland, and this can easily be arranged, along with website design and construction, and even virtual reception facilities if you require it.
Multiple Taxation Levels
Switzerland has a complex taxation system, and you would be levied at three levels, namely, Canton, federal and communal. If a holding company is trading with non-Swiss companies, then you are exempt from income tax on dividends earned from such activities. The system is very complicated, which is why you should enlist the help of a professional company that offers this type of service to foreign nationals.
Full Range of Business Amenities
You might not require a Swiss office, and only need your mail forwarded, or it might be necessary to hold business meetings, which would require the use of a conference room. Some people prefer to have a virtual office, with professional receptionists answering and forwarding calls, and that way, you can project a successful image with minimal cost.
More and more private investors are realising how beneficial a Swiss holding company would be, and with expert guidance, the process can soon be completed, and your new enterprise can grow steadily on a solid business platform in a very prestigious country. A quick online search will put you in touch with the right organisation who can get the process started and guide you to success.