When thinking of setting up a company or even a holding company, there are a number of things that you need to look at, especially the taxes due in that country. The idea of setting up a holding company is attractive because you can manage the shares from other companies. Switzerland is one such country that offers very favourable tax benefits to any foreign investors who are thinking of setting up shop there. In order to set up a holding copany in Switzerland there are some things that you need to undertand and we will list some of them here.
- Tax Benefits.
If the businesses are based in other countries other than Switzerland, then the holding company based in Switzerland will get certain tax advantages and the kind of business you conduct will dictate the tax rate that you pay. Holding companies however, get the most tax advantages if investment in the foreign company is at the least, two thirds of the assets or revenues. The tax regime floats in and around the eight per cent mark which is about 7.8% for corporate tax and the rest for the corporate officer tax. Many will tell you that the standard tax rate for Switzerland is thirty five per cent but if you are thinking about a company formation, Swiss taxation officers will help you to reduce this rate well below that due to the double tax treaties in effect.
- Requirements To Set Up A Holding Company.
If you wish to set up a holding company in Switzerland under the Swiss tax autoririty then you must meet their conditions. The company is not permitted to conduct and commercial business within the country and the company must own at least twenty per cent of another corporations outstanding assets. Setting up the company shouldn’t take long and usually takes about three weeks. You need to register your company but the shareholders of a public limited company can remain anonymous if they want to.
One important item to consider before you decide to set up a holding company in the great country of Switzerland is to check and make sure that Switzerland does in fact have some kind of tax treaty with your country or origin. You need to find out all the conditions and different regulations that are attached to that also. If you are a country that has the relevant tax treaties with Switzerland, then you can look forward to the numerous tax advantages there are, as well as many other advantages not mentioned here.
Be sure to check out the different tax rates offered by different cantons in Switzerland so that you can choose the right location for your holding company. Some cantons have taxes that are quite a bit lower than others, so it is essential that you know and understand their rates and the term that go with them. Deciding on the type of holding company you want is your final consideration with the public limited company offering the best options.