↳ SWITZERLAND

Alpine stability. Global credibility. Low taxes.

Establishment of a (GMBH or AG) in Switzerland

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Switzerland is one of the world’s most prestigious and stable business jurisdictions, offering a highly developed economy, strong legal system, and attractive corporate tax framework.

As a leading global financial center, Switzerland provides geopolitical stability, legal certainty, and access to international markets, making it ideal for corporate structuring, holding activities, and wealth planning.

Corporate income tax is levied at federal, cantonal, and municipal levels, with effective combined rates typically ranging between ~12% and 21%, depending on the canton.

Dividend taxation may benefit from participation exemption regimes, reducing effective tax on qualifying shareholdings.

1. Advantages

• Competitive Effective Corporate Tax Rates (~12%–21%)
• Participation Exemption on Dividends & Capital Gains
• No Withholding Tax on Dividends to Swiss Companies (domestic participation)
• Stable Political & Economic Environment
• 100+ Double Tax Treaties
• Strong Banking & Financial Infrastructure

2. Utilization

• Holding Companies
• Headquarters / Regional HQ
• Trading Companies
• Intellectual Property Structures
• Family Office Structures

3. Why Switzerland?

Switzerland offers a competitive and flexible tax environment, particularly through cantonal tax competition. Participation exemption allows significant reductions in taxation on qualifying dividends and capital gains.

Its reputation as a global financial hub, combined with strong legal protection and neutrality, makes it highly attractive for international investors and multinational groups.

4. Corporate Requirements

Common legal entities:

• GmbH (Limited Liability Company)
• AG (Corporation / Société Anonyme)

Key Features:

• GmbH minimum capital: CHF 20,000
• AG minimum capital: CHF 100,000 (CHF 50,000 paid-up minimum)
• Minimum one director (Swiss resident director generally required)
• Registered office in Switzerland required

Annual financial statements must be prepared in accordance with Swiss accounting standards.

5. Other Requirements

VAT:

• Standard VAT rate: 8.1%
• Reduced rates apply to certain goods/services

VAT registration threshold: CHF 100,000 annual turnover.

6. Compliance & Filing

• Annual financial statements
• Corporate income tax returns (federal and cantonal)
• VAT returns (if registered)
• Social security obligations (if employees)

Tax filings and deadlines vary by canton.

7. Double Tax Treaty Network

Switzerland maintains 100+ Double Tax Treaties, including with:

• EU Member States
• United States
• United Kingdom
• China
• UAE
• Singapore

This extensive treaty network supports efficient international structuring.

8. Type of Legal System

Civil Law system.

9. General

Highly reputable jurisdiction combining tax competitiveness, financial sophistication, and strong legal infrastructure.

10. The Choice of Switzerland is a Choice of Geopolitical Stability & Global Prestige

Switzerland provides a predictable tax framework, strong asset protection, and international credibility for corporate and investment structures.

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