Are you a business-oriented person and would like to have your own business established in Switzerland? This is possible and very easy to achieve, as long as you follow all the necessary steps and procedures before you do it; this is to avoid going against their laws.
Switzerland is a destination for many foreign investors. There are numerous favorable factors like low taxes, transparency that does not accord for corruption, and many more. If you have no idea how you can achieve that or have Swiss resident director services when you create a Switzerland business, this article will give you a better understanding.
How to start a company/business in Switzerland?
Switzerland allows every person interested in starting a business to do so without too many restrictions. That includes foreign investors, but they have to follow the constitution’s laws.
For foreign investors, they must first have a valid C permit from a third-party Country, a spouse to the C permit holder, or a spouse to a Swiss resident.
The following are necessary steps of the application process to start a business in Switzerland;
It would be best if you had a clear business plan that will pass the evaluation process. You should also have an existing relationship with other similar companies about what you want to put up.
Your application must also have a commercial registration entry and foundation charter. For a successful application, you are guaranteed a short-term permit for the third-party Country persons, also the L permit, or a resident permit also the B permit, which can last for up to a year and is subject to renewal.
Starting a Limited Liability Company (GMbH) (SARL)
If you are a local, the steps are simple before starting your business/company. The LLC is registered by a single owner, whereby they must have a minimum paid-up capital of CHF 20,000. According to the Switzerland constitution of article 718 Swiss Code of Obligation.
The company has the obligation of submitting each year’s financial statement to the Swiss authority. (Annual audit report required-waiver is possible for small companies)
The taxes may differ depending on the province in the business. They may be set up and maybe subjected to audit if the company has over 250 employees, assets exceeding CHF 2 million, and above CHF 40 million as the turnover. Similarly, for foreign investors, you must have the paid-up capital for registration, following the same procedures and steps, and have a local representative residing in Switzerland.
The unlimited number of shareholders allowed but at least one founder (individual or legal entity). The Shareholder’s liability is limited to the amount subscribed.
The Resident Director
The resident director of a Swiss company can be a Swiss or foreign national, but they must be resident in the country. The other directors of the company may come from elsewhere. The board appoints him to act as the shield of the shareholders and other directors. They should be very professional and must be at least 18 years old. They must also meet the legal law set before assuming any fiduciary role entrusted to them.
Duties of the Swiss resident director
The resident director’s role does not mandate to control the company without the board of directors’ and shareholders’ consent. You only act as a representative of the company before third parties like banks or tax authorities.
They also play a role in managing the administrative functions, preparing the general meetings conducted annually, and taking reports and minutes of the attended meeting. He also takes care of the accounting and auditing, and he has the power to meet and negotiate with the business’s creditors.
In dissolving a company, the resident director ensures all the proper procedures are followed before its dissolution and that every shareholder and board members’ interest were met. Sometimes the business objectives may have been achieved, and you wish to dissolve or expand in other areas. The resident director is primarily involved in the business’s daily activities and not its operational activity.
Switzerland has been a home for many potential business people, and they have always profited from their investment by the laws set to protect them. By now, you know where to start from and what is expected of you before having any business. A financial services company can provide entrepreneurs such services and accomplish the administrative formalities involved in setting up a new company and ensure you get a resident director to push your business to profitability.