Let’s first look at some background information on Switzerland before discussing what makes it a trustworthy nation to launch a successful business in today.
Background Information About Switzerland
Table of Contents
The landlocked, mountainous nation of Switzerland, formally the Swiss Confederation, is located in South-Central Europe and is surrounded by Austria, France, Germany, Italy, and Liechtenstein. The country is somewhat less than twice the size of the US state of New Jersey and just slightly larger than the Netherlands, with a total area of 41,285 km2.
Switzerland maintained its top spot as the most inventive nation in the world in 2018, according to The Global Innovation Index. The fact that 25% of the population is foreign-born is another intriguing fact about Switzerland. Thus, a large number of people will be looking for information on how to launch a business in Switzerland while being a foreigner.
In Switzerland, corporate taxes can vary from 12% to 25%, although dividends and share-related capital gains are eligible for participation reduction.Switzerland is now ranked third in Europe for companies and entrepreneurs because to factors like these and many others.
Benefits of Starting a Business in Switzerland
There are several advantages to conducting business in Switzerland. This may be the cause of Google’s continuing expansion of its workforce in Zurich, which has reached 1,600 employees and is continually growing. The third-largest Google office in the world, behind California and New York, is in Zurich.
Here are some amazing benefits of doing business in Switzerland:
- Switzerland is regarded as having the Best corporate Climate in Europe based on elements including the judiciary’s independence, funding accessibility, and a vibrant corporate climate.
- They have extremely advanced industry and a highly trained labor force. This is only one of the benefits of establishing a business in Switzerland. This aptly explains what Rosen Irungu wrote on the lessons she discovered in her twenties.
- Unlike other European nations, Switzerland does not have strict rules that prevent companies from engaging in their legal economic activity.
- With more than 70 double tax treaties and attractive tax rates, Switzerland makes it simple for businesses and entrepreneurs to save money on taxes. An entrepreneur and their business may take advantage of all the benefits the Swiss taxation system has to offer with proper tax preparation.
- For small businesses looking to start their firm in Switzerland, the entrance barriers are minimal. Regulators and industry leaders frequently make things tough for young and developing CEOs in other regions of Europe.
- Switzerland is the first port of entry for small enterprises preparing to join Europe because of its advantageous position, which puts them close to several economically significant nations like Germany, France, and Italy.
Starting a Business in Switzerland Comes with Risks
The following are some of the main obstacles you will probably encounter while attempting to launch a new business in Switzerland as an outsider:
- Extortion and corruption. Bribery is forbidden. …
- In Switzerland, protecting your intellectual property (IP). …
- Gang activity.
- Risks of payment in Switzerland
- Exporting to Switzerland involves currency concern.
- Money transfer from Switzerland.
3 Key Advantages of Launching a New Startup as a Foreigner in Switzerland
1. The Swiss Business World Is Welcoming to Foreigners
It’s easy for a non-Swiss resident of Switzerland to assume that the locals won’t be accepting of a fresh company idea—but not until you go there to establish your venture.
According to the information we learned from the two British siblings who chose to establish a new firm in Switzerland, foreigners are welcome in the Swiss business community. A newly established foreign-owned company in England will have a harder time attracting customers.
You will be invited to display your brand with ease by Swiss newspapers, media outlets, hotels, and large enterprises who would most likely utilize your items. In other European nations, your startup might never encounter this.
2. Startups in Switzerland Are Thriving Tremendously
Co-working spaces have made it incredibly simple for entrepreneurs to succeed in Switzerland. Startup creators in Europe may easily realize their lofty goals from a co-working location without having to fork over thousands of euros in rent.
Co-working space startups may collaborate and take use of one another’s talents to achieve exceptional success in their separate enterprises.
It is untrue that Switzerland is lagging behind other countries in the usage of co-working spaces.
According to statistics on co-working spaces, around 3.1 million startups use these facilities worldwide. Co-working facilities have sprung up in practically every Swiss city during the past five years. This offers international entrepreneurs in Switzerland a significant edge.
3. English Language Is Not a Barrier to Starting a New Business in Switzerland
German is the primary language of more than 60% of the people in Switzerland. The assumption that an American starting a new business in Zurich, Bern, or Geneva would need to learn German, French, Italian, or Romansh is untrue.
You may still be successful in business in Switzerland even if English is your sole language. It’s not required that you bring a German interpreter to meetings.
In order to prevent you from thinking that everything will be peaches and cream, let’s now examine the drawbacks of starting a new business in Switzerland.
ALSO READ:
3 Key Disadvantages of Starting a New Business in Switzerland as an Expat
1. Swiss People Are Extremely Careful of Brands They Patronize
Get your art together before beginning a brand-new company in Zurich, Geneva, Bern, or any other big city in Switzerland. No matter how modest you believe your new venture would be, you don’t just launch it without a solid business strategy.
You must make your number flawless. Before you start, make sure your figures are accurate. You might need to collaborate with a business plan writer or strategist in Switzerland who is knowledgeable with the local business climate.
For example, in the UK, you may be told to launch without thinking too much and see what happens, but in Switzerland, you wouldn’t dare make such a grave error.
2. The Cost of Postage Is Very High
On August 5th, 2021, Swiss Post raised its prices for the first time in the previous 18 years. They not only have predetermined pricing, but they are also rather expensive, so you have to be a little more imaginative if you’re beginning a new business in Switzerland that requires mailing orders.
Please find a more economical way to manage it before starting a new business in Switzerland that will include sending orders.
3. It Can Quite Challenging Starting a New Business in a Quadrilingual Country
We’ve previously proven that speaking just English as a company founder in Switzerland is not a barrier, but it’s still crucial to note that if you fail to regard Switzerland as a quadrilingual country, you will be losing out on a substantial portion of the market.
German, French, Italian, and Romansh are the main languages spoken in Switzerland. Get your labels and marketing materials translated into Swiss German, which is believed to be spoken by 60% of the Swiss population, to guarantee that you don’t lose any market share.
It is far preferable to use a professional Swiss German translator than a simple program. Let’s now address the subject that many people have been asking: “Why Switzerland?”
ALSO READ: Top 7 Important Insurance Types for New Business Owners to Take into Account
Is Switzerland Good for Opening Business?
Yes. Both new and existing firms will find the business climate in Switzerland to be quite inviting. It’s a terrific place to launch a new firm because of its excellent infrastructure, business-friendly laws and policies, political stability, ease of incorporation for foreigners, and low inflation rate.
How Do I Register a Company in Switzerland as a Foreigner?
The Swiss business registration process is open to foreigners. Yes, is the reply. As long as you are able to submit the necessary documentation, the Swiss government grants everyone permission to establish a business there.
When a Swiss lawyer is retained, the procedure for forming a corporation in Switzerland. Additionally, they may assist you in opening a bank account in Switzerland. The incorporation of your business in Switzerland’s neighboring nations, like Germany, France, Italy, and Austria, can also be assisted by certain local attorneys.
What Are the Types of Companies Available in Switzerland?
The major types of companies you can set up in Switzerland are listed below:
- Sole trader
- General partnership
- Limited partnership
- Subsidiary
- Branch office
