Company Law defines a holding company as any business that has defined its primary purpose as holding and managing its participation in other companies. The Swiss Tax Regime clarifies that in order for a company to be classified as a holding company, it should not be involved in conducting any other activity throughout the country. Now, most people already know that Switzerland is a haven for businesses. If you are thinking of setting up a new company, Switzerland should be at the very top of your list. The country offers fantastic opportunities for up-and-coming businesses, and also makes it easy for you to take advantage of tax incentives to grow your business.
However, if you are thinking of setting up a holding company in Switzerland, there are some important things that you need to do. First of all, you need to hire an administrative firm that specialises in the formation of Swiss holding companies. There are strict guidelines and regulations that you will need to meet before you receive the certificate for the commencement of your business. Many of the holding companies are established in Canton Zug, which is basically an administrative division in the country that offers the greatest benefits to holding companies. In fact, one in every four holding companies that are registered in Switzerland are based in Canton Zug. So, here are some essential things that you should know about establishing a holding company in Switzerland.
Understanding the Guidelines
There are specific regulations which apply to holding companies in Switzerland. Even though the administrative firm will give you relevant details about all the guidelines and regulations that you must meet, the following are some of the key things that you should know:
- The investments held by your company, or the revenue generated from your holdings in other companies must be representative of at least two thirds of the revenues generated by your company, or the entire assets that are registered in your company’s name.
- You should have at least one holding that exceeds approximately 10% of the total shares of participation, and whose value must be higher than 1,000,000 in order to qualify.
- Moreover, the minimum holding period of a participating company should be one year at the very least.
The First Steps
When you first contact an administrative firm, they will ask for relevant details regarding your business. Once they have all the relevant information about the kind of company that you want to establish, the administrative firm will acquire the forms, fill them out, and then submit them to the relevant registrar. The administrative firm will also help you in setting up the memorandum of association as well as the articles of association, both of which are essential documents needed by the administrative authorities. Once all of the documents have been filed and your capital accounts have been created, your company will then receive the certificate for commencing its business within Switzerland. For their services, the administrative firm will charge a small fee in advance.