Switzerland is one of the most beautiful places in the world – with crystal clear streams, emerald green mountains and an impenetrable – impeccable economy. The land of dreams offers a vast array of opportunities for rambunctiously charged entrepreneurs. The Swiss economy is powered by a bulk of skillful labor, supporting technology driven ideas and businesses, and fortified with geo-political stability, impeccably transparent legal system and reasonable corporate tax rates.
Favorable Eco-Political environment makes Switzerland one of the most suitable countries for Businesses and Entrepreneurship. If you’re interested in starting a business in Switzerland , then you should keep a couple of things in mind. That said, let’s get into some of the details on how to successfully set a business in Switzerland.
Business Research and Plan:
It is essential to not only draft a plan but also ensure the execution, through a carefully designed and seamless process. Like any other business you first have to carry out some research regarding your business plan and feasibility subjected specifically to Switzerland. You should consider developing a set of ideas and a feasibility report. Your study should be backed up by competitive market research, a meticulous analysis of demographic data and product/service analysis.
You should collect data and analyze information on the following set of research, targeted specifically within Switzerland–
- Draft a business plan
- Construct a feasibility report
- Conduct market research
- Competitor research
- Skill report – what skills do you need to set up your desired business in Switzerland
- Labor report – you need to build a report related to the kind of labor you would require to streamline your business and how will you be able to acquire them.
- Financial report- you need to draft a financial report in order to figure out if you can carry out a business in Switzerland. This is essential and we will discuss this further in the following sections.
- You also need to carry out some research on grants and financial aid available within Switzerland in order to help fund your business plans.
Once you have carried out enough research you need to figure out what kind of business you want to set. You need to make an educated decision considering the kind of business legal structure you are interested in before setting up a company in Switzerland. Some of them include-
Before setting up a business you need to first choose from the commerce legal structures available under the Swiss jurisdiction. Thin includes Sole Proprietorship and Limited Liability Company. Let’s get into the details.
Usually most of the entrepreneurs establishing a business within the Swiss jurisdiction prefer signing up for Sole Proprietorship. Since, this is a significantly less complex and affordable procedure for new businesses. The Swiss Social insurance registry also referred to as SVA works tirelessly in order to ensure fairly secure lines of businesses. You will have to fill in a complex yet highly detailed form, providing some essential details.
The SVA also assumes that you have started your business and are earning a minimum of 2,300 CHF annually. Once your business starts earning a minimum of 25,000 CHF you will be liable to pay taxes and funds back to the SVA.
You will also have to prove the details of at least a minimum of 3 consumers/costumers buying from your business. The SVA asks for this documentation in order to ensure the safety and security protocol of the Swiss Jurisdiction. You will have to submit some of the following documents related to your business as well.
- Business plan
- Financial report and documentation
- Rental agreements and contracts
- Marketing research
- Site Proof and social proof
- Customer Contracts
- Supplier and manufacturer contracts.
- Residential details
LLC – Limited Liability Company:
Other than Sole Proprietorship a lot of entrepreneurs side with a Limited Liability Company. There is a different process if you want to set up under this category of Legal legislation in Switzerland.
You will have to provide a minimum of 20,000 CHF in a temporarily blocked Swiss account in order to ensure the Security business protocol under the Swiss jurisdiction. A lot of the times entrepreneurs choose LLC in order to select a name independent of their parent name and avoid any documentation with the Swiss Social Insurance registry.
You can select a name from the Online Swiss company registry in order to ensure a unique and a copyright free name for your company. You will have to collect and draft a set of documentation that should include the following documents and papers.
- Business plan and Financial proof – this isn’t legally required to submit under this legal jurisdiction (LLC) but it’s always nice to submit it alongside the rest of the documents, since this builds a better trust with the authorities.
- You will also have to get all of your documents approved and stamped from a notary.
- Once you submit documents to the notary they will also ask for a document proof of the 20,000 CHF that you have to deposit in a Swiss bank account. Other than this one of your business partners should be available physically, live or have a work permit to stay within the Swiss geographic jurisdiction.
- Bank receipts
Before setting up a business in Switzerland it is important that you carry out extensive market research, fortify an impeccable business plan and get in touch with a lawyer in order to seamlessly execute your plan. It is essential that you scrutinize the Swiss market for business gaps that you can target with your product or service.
According to the Swiss jurisdiction and laws you have to be either a permanent resident of Switzerland or have a work permit to set up a business. You can also set up a business if one of your business partners is within the geographical jurisdictions of Switzerland.
Carry out extensive research, consult lawyers and prepare an immaculate business plan in order to exponentially increase the chances of success. Charge yourself and your plan with immense energy and go get what you desire!.