The Swiss tax system, legal regulations, financial and economic systems have long been the reference for the whole world, which is why the company incorporation service in Switzerland is very popular among non-residents. The process of establishing a business in this country does not take long, but there are some legal complexities.
The experts of Law&Trust International provide professional assistance in completing the forms and preparing the foundation documents for company registration in Switzerland.
The purpose of opening a company in Switzerland is determined by the founder, the selection of legal form should be made with the help of specialists in this matter. The form of ownership determines a number of requirements for both the incorporation of an offshore company in Switzerland and its further activities.
Switzerland consists of 26 cantons, each of which has its own legislation regarding the establishment of new companies. The taxation of companies in Switzerland is at the municipal, cantonal and federal levels and the final interest rate can be very high, which means that non-residents and local citizens should focus on incorporating offshore companies in Switzerland.
The cantons of Zurich and Zug are the most advantageous for this procedure.

Limited Liability Company (GmbH)
The Board of Directors may consist of several members, of whom at least one member must be a resident of the country. There are no requirements for the nationality of shareholders or investors. The charter capital of a company may not be less than 20 thousand in local currency. When incorporating a company in Switzerland, a transfer of capital must be made before the date of filing the incorporation documents.
An independent audit of limited liability companies is not required, but the company must submit an annual report form completed in accordance with all cantonal regulations.
Joint Stock Company (AG)
All directors, shareholders and participants of the management level are appointed by the founder. It is mandatory that at least one resident of Switzerland be employed as a director. The Swiss citizen must be an individual, but has the right to finance or act as a shareholder in other companies.
The incorporation of a company in Switzerland in the form of an AG requires a charter capital of between 100,000 and half a million Swiss francs. This amount is due to be paid immediately after the establishment of the business. The competent authorities must receive a report on the accounting, turnover and profits of the company every year. An independent audit is appointed individually, the more staff members and the higher the turnover level, the more likely the audit appointment is.
Branch of a foreign firm
Registering companies in Switzerland under this form is advisable to expand existing business. The founder here is the head office of the company; no capital requirements are imposed. The mandatory requirement is that at least one member of the management team must have a permanent place of residence in Switzerland.
Reporting is required, but an audit is only required for branches engaged in certain activities. All details of company incorporation in Switzerland can be obtained from Law&Trust.
Among the advantages of founding a branch office regarding the establishment of a new company:
A faster foundation process that requires less documentation.
There are no state duties, the level of tax rate is much lower than that of a new company.
The income of a company received abroad and in Switzerland will not be taxed if the founder's head office is registered in a country with which Switzerland has a double taxation treaty.

A national of any country can register a company in Switzerland. If the founder establishes a company but does not live in Switzerland, he or she will need constant legal support. Having a representative with a physical address is mandatory; this address can be used to send company correspondence or personal information to the founder from local partners.
A non-resident's company is also registered at a certain legal address, which is indicated in all accompanying documentation.
Law&Trust lawyers offer clients all services necessary for successful registration of the company in Switzerland. During the preparatory phase, we provide free consultation and analysis of the applicant's company's current status and help with filling out the forms. Collection of documentation and its transfer to the registrar is carried out by a client's attorney among the lawyers of our company.
After the successful start of business, we offer legal and accounting support. All details are available on the site or in a personal conversation with an expert.

Switzerland, officially named Swiss Confederation, is a state in Western Europe and Central. It borders with Germany in the north, with Italy in the south, with France in the west and with Austria and Liechtenstein in the east.
Switzerland has an area of 41,284 square kilometers and a population of 7,996,026 (2013). In terms of ethnic composition, 65% are Germans, 18% are French; 10% are Italians; 7% are others.
The capital of Switzerland is Bern.
The official languages are German, French, Italian and Romansh.
The national currency is Swiss franc (CHF). 1 USD is equivalent to 0.91 CHF.
The climate of Switzerland is temperate; cold, cloudy, snowy winters; warm humid summers with rare heavy rains; the average temperature in July - August is from + 18°C to +27°C, in January - February from 1°C to 5°C.
The time zone is UTC+01:00.
The literacy rate is 99%.
Telephone code - +41.

The Swiss Confederation was founded in 1291 as a defense alliance between three cantons. In the following years, other populated territories joined the three original cantons. The Swiss Confederation ensured its independence from the Holy Roman Empire in 1499. In 1848, the Constitution (significantly amended in 1874) was adopted, which established a centralized federal government that replaced the confederative model of government. Switzerland is famous for its neutrality; it did not participate in either of the two World Wars. In recent years, Switzerland has strengthened ties with many of its neighbors. Despite its active participation in integration processes, Switzerland was not a member of the UN until 2002. Switzerland currently participates in many European organizations, but remains neutral.

Switzerland is a federal republic consisting of 20 cantons and 6 half cantons. There are 2 enclaves on the territory of Switzerland: Busingen belongs to Germany and Campione di Italia - to Italy.
The head of state is the Federal Council, which also presides over the government.
The executive power belongs to the Federal Council (Bundesrat), which consists of the Federal President (Bundespräsident), the Vice-President and 5 federal advisers (bundesrat), each of which heads one of the departments (ministries). The members of the Federal Council are elected at a joint meeting of the two Houses of Parliament for 4 years. All members of the Federal Council hold the positions of president and vice president alternately. All laws passed by Parliament may be approved or rejected by a popular referendum (direct democracy).
The legislative power is represented by a bicameral Federal Assembly consisting of the National Council and the Council of Cantons, both chambers being equal in the legislative process. The National Council (200 deputies) is elected for 4 years by the population through a proportional representation system. There are 46 members of the Council of Cantons, elected by the population.
The judiciary is represented by the Federal Supreme Court, whose judges are elected for a 6-year term by the Federal Assembly. The main function of the Federal Supreme Court is to hold hearings in cantonal courts or orders on administrative offences by the federal administration.

Switzerland is characterized by a stable, prosperous and high-tech economy. In 2011, the country was ranked the richest country in the world (per capita). Switzerland ranks 4th in the world by GDP per capita. It has the highest level of economic freedom in Europe (2010), while providing a wide range of public services.
Switzerland's most important economic sector is manufacturing, namely chemicals, pharmaceuticals, scientific and precision measuring instruments and musical instruments. The main export products are chemicals (34% of exports), equipment/electronics (20.9%) and precision instruments/watches (16.9%). The service sector, special banking and insurance, tourism and international organizations are another important sector in Switzerland.
The Swiss economy is characterized by the predominance of the private sector and low taxation by Western standards. It is relatively easy to do business in Switzerland - the country ranks 28th out of 178 countries on the ease of doing business index.

The Swiss legal system is part of the Romano-Germanic legal system.
The main source of law is the 1874 Constitution.
The private limited liability companies are regulated by the Swiss Code of Obligations of 1912, last amended in 2011.

The Swiss law provides for the following legal forms:
Individual Entrepreneur (Einzelfirma);
Partnership (Kollektivgesellschaf);
Limited Liability Partnership (Kommanditgesellschaft);
Private Limited Liability Company (Gmbh);
Public Limited Liability Company (AG);
Simple Partnership (Kommanditaktiengesellschaft);
Cooperative (Genossenschaft);
Branch Office (Kommanditaktiengesellschaft).
The most popular and common form is the private limited liability company (GmbH).

To check the company name, you can go to the official website of Zefix (www.zefix.admin.ch) - a centralized index of companies in Switzerland, which belongs to the Register of Companies.
Companies in Switzerland are given the freedom of choice of name - it can be a personal name or an industry name.
The company name must necessarily contain an indication of the legal form; in the case of a limited liability company it is GmbH (or its equivalent in French or Italian). It is also allowed to register the name with the suffix "Ltd", but in this case the name must be registered in two variants (e.g. RealEstate33 GmbH [RealEstate33 Ltd]) to avoid misunderstandings.
Some words are prohibited for free use and may increase the minimum capital requirement. Among such words are: Switzerland, International, European, Insurance, Reinsurance, Fund Management, Bank, Collective Investment Schemes.

To register a GmbH in Switzerland, you must go through the following steps:
Select, register and approve the company name - 1 day;
Draw up the memorandum of association in the presence of a notary who certifies personal and corporate signatures on the application and certifies the memorandum of association and the act of incorporation of the company - 7 days;
Place the capital on an escrow account in a bank - 1 day;
Submit the certificate of incorporation to the local register of companies to obtain a certificate of registration - 7 days;
Pay the stamp duty at a post office or at a bank after receiving by mail the amount of taxation - 1 day (1% of the capital, with the first million francs exempt);
Register for VAT - 1 day, within 30 days after VAT is imposed;
Register employees with the social security system (federal and cantonal authorities) - 1 day.
Setting up a new GmbH company usually takes 2 to 4 weeks after submitting the necessary documents. These periods can be shorter in simpler cases depending on the canton.
In general, the registration of a GmbH does not require the approval of any special authority, chamber of commerce or professional association. However, doing business in a specific or professional field may require a special license or diploma. All business sectors are open to foreign investment and there are no requirements for a certain percentage of Swiss residents.
Since April 15, 2010, the Secretariat of State for Economic Affairs has created an online company registration system in the form of "StartBiz". The entire incorporation process can now be carried out online.

The commercial register contains information on all companies operating in Switzerland. This information affects the degree of responsibility and authorized representatives of the company. The main purpose of the register is to make information about companies publicly available.
Reports on the registration and removal of companies from the register are published in the Swiss Official Gazette of Commerce (SOGC).

Each Swiss company must have a registered office in Switzerland, at which address it can be found. The address of the office must contain the following information:
Street number
Index
City or district
It is important to understand that an address is understood to be your own or rented office, where most of the administrative business is conducted and where the correspondence arrives, so the mailbox is not the address of the registered office.
The registered office should keep the registers of shareholders and directors, minutes of meetings of shareholders, and reports.

There are no mandatory requirements for the presence of a company seal.

The redomiciliation of companies to or from Switzerland is permitted.

The minimum number of directors of a Swiss GmbH is one, and at least one director must be a resident of Switzerland. If there is more than one director, the majority of board members must be Swiss residents. There are no other restrictions on the nationality or residency of the directors.
Only individuals may be directors.
Since no board of directors is required, there are no requirements for board meetings.
The data on directors is recorded in a public register.

A company registered in Switzerland is not required to appoint a company secretary.

A Swiss GmbH company may have one or more shareholders, which may be natural or legal persons, Swiss residents or non-residents.
In connection with the policy to increase transparency, from July 1, 2015, subject to certain conditions, the data on shareholders will be entered in the state register, but this information is not publicly available.
General shareholders' meetings must be held annually within 6 months of the end of the fiscal year. Notification of the meeting must be sent 20 days in advance, unless all participants are represented directly or by proxy. Meetings may be held in Switzerland and abroad.

The information about the beneficial owner of the Swiss company is communicated to the local agent, but is not publicly available. The beneficial owner information is also required to be disclosed when opening a bank account.

The minimum capital amount for a Swiss GmbH is CHF 20,000 and the maximum is CHF 2,000,000. The nominal capital must be paid in full at the time of registration.
The share capital can be denominated in any currency. It must be deposited in any Swiss bank (frozen account for founding companies).
The participation of shareholders is expressed in the ownership of one or more shares with a par value of at least CHF 100.

In accordance with the Swiss Constitution, all cantons have the right to establish their own tax systems in addition to the system introduced by the federal government. Switzerland therefore has two levels of taxation: federal and cantonal/communal.
At the federal level, the taxation is based on the Federal Tax Code. The Swiss Confederation has adopted the so-called Tax Harmonization Act, which applies directly at the cantonal level; in addition, each canton has its own cantonal tax code.

All resident individuals are required to pay income tax on their worldwide income, except for profits from foreign businesses, foreign affiliates and foreign real estate. The taxation is at the federal and cantonal/communal levels.
Non-residents pay taxes on income from employment, business and profits from Swiss real estate.
Individual income tax is levied at a progressive rate with a maximum rate of 11.5% at the federal level. The cantons can fix their rates. The tax year corresponds to the calendar year. The deadlines vary from canton to canton and apply to both federal and cantonal taxes. Fines are applicable for late filing or failure to file a tax return.

All companies registered in Switzerland are subject to income tax. The tax base includes worldwide income with the exception of profits from foreign affiliates and foreign immovable property, which are exempt from taxation. Income from permanent establishments, branches and immovable property located in Switzerland is taxable for non-resident companies.
The company's net income is taxed, which consists of income from business/trading, passive income and capital gains. Income from foreign sources is taxable income, but dividends are in some cases tax exempt. Deductions for business expenses are possible in the calculation of taxable income. Unrealized gains and losses from converting financial statements to Swiss Francs for tax purposes are not taken into account.
The income tax is levied at the federal and cantonal/communal levels. The federal net income tax rate is 8.5%. As income and capital taxes can be deducted when calculating taxable income, the real rate is 7.8%. With cantonal rates, the combined rate varies between 12-24% for companies with standard taxation.

Capital gains are included in the income tax base.

The losses can be postponed by 7 tax years and can be used against any capital and income gains. The losses cannot be carried back.

Dividends are usually taxed for the beneficiary company, while dividends received from qualifying participation in a resident or non-resident company are exempt from tax. A participation is subject to the conditions if the company owns at least 10% of the capital of the company paying the dividend or if the participation has a value of at least CHF 1 million.

Revenues received abroad are included in the taxable income base, but it is possible to exempt dividends from the relevant participation conditions. Foreign income is taxed net after payment of foreign taxes; no preferential taxation is provided.

Unlike the federal taxation, the taxation in all Swiss cantons offers various tax benefits, which can be obtained under certain conditions.
Holding company: The benefits under the holding company regime are granted to companies whose initial statutory purpose is to hold a participation (i.e. when at least 2/3 of the total assets consist of investments in subsidiaries or at least 2/3 of the income consists of dividends) and which are not engaged in trade or business in Switzerland. The benefits consist of full exemption from cantonal and communal income taxation. The federal income tax rate (not dividends) is 7.8%.
Mixed company: The benefits under the mixed company regime are granted to companies with prevailing foreign operations. It is assumed that the business is mainly conducted outside of Switzerland if at least 80% of total gross income is derived from foreign sources and at least 80% of expenses are incurred abroad. The foreign income of a mixed company is taxed at a mixed rate of between 9 and 11% (including the federal tax). The income received in Switzerland is taxed at standard rates.

The tax year corresponds to the reporting period of the company. In other words, if the company's balance sheet ends on December 31, the tax year of the company is the period from January 1 to December 31; or if the company's balance sheet ends on March 31, the tax year is the period from April 1 to March 31.

Although Switzerland is not part of the EU, its VAT system was established under the 6th EU VAT Directive ("Sixth Council Directive on the harmonization of the laws of the Member States relating to turnover taxes"). As a result, the VAT in Switzerland is only paid when selling goods and services in Switzerland and when importing goods and services into Switzerland at the federal level. The export of goods and services is subject to a 0% tax rate.
Since January 2011, the standard VAT rate has been 8%. Some goods and services are subject to the VAT at a reduced rate of 2.5% (e.g. water, food) and some goods and services (e.g. most banking services) are exempt from VAT. A special rate of 3.8% applies to the hotel industry.

Companies whose annual turnover exceeds CHF 100,000 are required to register for VAT. If the taxpayer's turnover is less than this amount (or less than CHF 150,000 for sports clubs and non-profit organizations), then the company is exempt from VAT. However, any such company may refuse the exemption.
When registering with the Federal Tax Administration, the taxpayer receives a VAT number which is based on his company number.

VAT declarations must be submitted quarterly and paid to the Federal Tax Inspectorate.

The Federal Tax Administration provides small companies with annual turnover below CHF 5.02 million (including VAT) and tax liabilities in the amount of CHF 109,000 or less with a right to submit simplified VAT reporting. Such companies can file a tax return based on a balanced tax rate that is lower than the standard tax rate (8%) if, in return, they opt out of the standard filing procedure that would reduce the tax amount. The duration of this simplified tax regime should be at least one year. In this case, a VAT return should be submitted only twice a year, unlike the standard regime, under which a declaration should be submitted quarterly.

In Switzerland, the withholding tax is mainly levied on dividends. Under Swiss law, dividends are taxed at a rate of 35%. Most tax agreements reduce the rate to 15% for portfolio investors and 0%, 5% and 10% for company owners. Under the EU tax treaty, the withholding tax rate on dividend payments between companies in the EU and Switzerland is 0% if the participation reaches 25% or more and other conditions are met.
As a rule, no withholding tax is levied on interest. Exceptions apply to interest earned on deposits with Swiss banks, bonds, loan-like bonds - these are subject to a rate of 35% at the federal level. The rate is usually reduced under tax treaties to 0-10%.
Royalties and payments are not subject to withholding tax.

The Stamp duty is charged on transactions including the issuance of shares or the sale of securities. The stamp duty rate for the issuance or increase of shares in a Swiss company is 1% of the fair market price of the amount paid, with the first million francs of the capital paid being exempt.
The Stamp duty on the sale of bonds and other debt instruments is charged at a rate of 0.06% or 0.12% on the par value of such instruments for each year or part thereof until the debt is repaid.
Reorganizations such as mergers, separation of assets or the redomiciliation of a company into Switzerland are exempt from stamp duty.

There is no annual fee for companies in Switzerland.

Transfer pricing: according to the Swiss tax law, transactions between corporations must be made on a parity basis. However, there is no separate transfer pricing legislation in Switzerland and no such legislation is planned to be introduced in the near future. The Swiss competent authorities follow the OECD transfer pricing principles. Under the Swiss tax code, taxpayers are required to submit proof of transfer prices within the stipulated time limits at the request of the tax office.
Thin capitalization: In Switzerland, the rules for thin capitalization are not defined by law. However, the Federal Tax Administration's circular stipulated the rules against evasion that apply to debts of the parties. In order to determine the adequacy of the company's financing, an asset valuation is carried out. The rules require that each type of asset is backed up by a certain amount of ownership.
Controlled foreign companies: Switzerland does not have a controlled foreign companies' regime.
Disclosure requirements: none.

Switzerland is party to various international mechanisms related to taxation:
106 DTS: Albania, Algeria, Australia, Austria, Azerbaijan, Anguilla, Antigua and Barbuda, Argentina, Armenia, Bangladesh, Barbados, Belarus, Belgium, Belize, Bulgaria, British Virgin Islands, UK, Gambia, Germany, Ghana, Guernsey, Hungary, Hong Kong, Germany, Venezuela, Vietnam, Canada, China, Côte d'Ivoire, Colombia, Cyprus, Denmark, Dominica, Egypt, Georgia, Greece, Grenada, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Spain, Zambia, Malta, Mexico, Moldova, Mongolia, Morocco, Montserrat, Netherlands, New Zealand, Norway, Oman, Pakistan, Peru, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, San Marino, Serbia, Singapore, UAE, Slovakia, Slovenia, Tajikistan, Thailand, Taipei, Trinidad and Tobago, Philippines, Tunisia, Turkey, Turkmenistan, Ukraine, Uruguay, Uzbekistan, Faroe Islands, Chile, Croatia, Czech Republic, Ecuador, Estonia, Finland, France, Jamaica, Japan, Montenegro, Sri Lanka, South Africa, Sweden, Tajikistan, Thailand, Taipei, Sri Lanka and the United States.
10 TIEA: Andorra, Belize, Brazil, Isle of Man, Guernsey, Grenada, Jersey, San Marino, Seychelles.

There is no currency control in Switzerland.

According to the Swiss Constitution, all cantons have the right to establish their own tax systems in addition to the system introduced by the federal government. Switzerland therefore has two levels of taxation: federal and cantonal/communal.
At the federal level, the taxation is based on the Federal Tax Code. The Swiss Confederation has adopted the so-called Tax Harmonization Act, which applies directly at the cantonal level; in addition, each canton has its own cantonal tax code.

In accordance with the Swiss Constitution, all cantons have the right to establish their own tax systems in addition to the system introduced by the federal government. Switzerland therefore has two levels of taxation: federal and cantonal/communal.
At the federal level, the taxation is based on the Federal Tax Code. The Swiss Confederation has adopted the so-called Tax Harmonization Act, which applies directly at the cantonal level; in addition, each canton has its own cantonal tax code.

All resident individuals are required to pay income tax on their worldwide income, except for profits from foreign businesses, foreign affiliates and foreign real estate. The taxation is at the federal and cantonal/communal levels.
Non-residents pay taxes on income from employment, business and profits from Swiss real estate.
Individual income tax is levied at a progressive rate with a maximum rate of 11.5% at the federal level. The cantons can fix their rates. The tax year corresponds to the calendar year. The deadlines vary from canton to canton and apply to both federal and cantonal taxes. Fines are applicable for late filing or failure to file a tax return.

All resident individuals are required to pay income tax on their worldwide income, except for profits from foreign businesses, foreign affiliates and foreign real estate. The taxation is at the federal and cantonal/communal levels.
Non-residents pay taxes on income from employment, business and profits from Swiss real estate.
Individual income tax is levied at a progressive rate with a maximum rate of 11.5% at the federal level. The cantons can fix their rates. The tax year corresponds to the calendar year. The deadlines vary from canton to canton and apply to both federal and cantonal taxes. Fines are applicable for late filing or failure to file a tax return.

The losses can be postponed by 7 tax years and can be used against any capital and income gains. The losses cannot be carried back.

Dividends are usually taxed for the beneficiary company, while dividends received from qualifying participation in a resident or non-resident company are exempt from tax. A participation is subject to the conditions if the company owns at least 10% of the capital of the company paying the dividend or if the participation has a value of at least CHF 1 million.

Revenues received abroad are included in the taxable income base, but it is possible to exempt dividends from the relevant participation conditions. Foreign income is taxed net after payment of foreign taxes; no preferential taxation is provided.

Unlike the federal taxation, the taxation in all Swiss cantons offers various tax benefits, which can be obtained under certain conditions.
Holding company: The benefits under the holding company regime are granted to companies whose initial statutory purpose is to hold a participation (i.e. when at least 2/3 of the total assets consist of investments in subsidiaries or at least 2/3 of the income consists of dividends) and which are not engaged in trade or business in Switzerland. The benefits consist of full exemption from cantonal and communal income taxation. The federal income tax rate (not dividends) is 7.8%.
Mixed company: The benefits under the mixed company regime are granted to companies with prevailing foreign operations. It is assumed that the business is mainly conducted outside of Switzerland if at least 80% of total gross income is derived from foreign sources and at least 80% of expenses are incurred abroad. The foreign income of a mixed company is taxed at a mixed rate of between 9 and 11% (including the federal tax). The income received in Switzerland is taxed at standard rates.

The tax year corresponds to the reporting period of the company. In other words, if the company's balance sheet ends on December 31, the tax year of the company is the period from January 1 to December 31; or if the company's balance sheet ends on March 31, the tax year is the period from April 1 to March 31.

Although Switzerland is not part of the EU, its VAT system was established under the 6th EU VAT Directive ("Sixth Council Directive on the harmonization of the laws of the Member States relating to turnover taxes"). As a result, the VAT in Switzerland is only paid when selling goods and services in Switzerland and when importing goods and services into Switzerland at the federal level. The export of goods and services is subject to a 0% tax rate.
Since January 2011, the standard VAT rate has been 8%. Some goods and services are subject to the VAT at a reduced rate of 2.5% (e.g. water, food) and some goods and services (e.g. most banking services) are exempt from VAT. A special rate of 3.8% applies to the hotel industry.

Companies whose annual turnover exceeds CHF 100,000 are required to register for VAT. If the taxpayer's turnover is less than this amount (or less than CHF 150,000 for sports clubs and non-profit organizations), then the company is exempt from VAT. However, any such company may refuse the exemption.
When registering with the Federal Tax Administration, the taxpayer receives a VAT number which is based on his company number.

VAT declarations must be submitted quarterly and paid to the Federal Tax Inspectorate.

The Federal Tax Administration provides small companies with annual turnover below CHF 5.02 million (including VAT) and tax liabilities in the amount of CHF 109,000 or less with a right to submit simplified VAT reporting. Such companies can file a tax return based on a balanced tax rate that is lower than the standard tax rate (8%) if, in return, they opt out of the standard filing procedure that would reduce the tax amount. The duration of this simplified tax regime should be at least one year. In this case, a VAT return should be submitted only twice a year, unlike the standard regime, under which a declaration should be submitted quarterly.

In Switzerland, the withholding tax is mainly levied on dividends. Under Swiss law, dividends are taxed at a rate of 35%. Most tax agreements reduce the rate to 15% for portfolio investors and 0%, 5% and 10% for company owners. Under the EU tax treaty, the withholding tax rate on dividend payments between companies in the EU and Switzerland is 0% if the participation reaches 25% or more and other conditions are met.
As a rule, no withholding tax is levied on interest. Exceptions apply to interest earned on deposits with Swiss banks, bonds, loan-like bonds - these are subject to a rate of 35% at the federal level. The rate is usually reduced under tax treaties to 0-10%.
Royalties and payments are not subject to withholding tax.

The Stamp duty is charged on transactions including the issuance of shares or the sale of securities. The stamp duty rate for the issuance or increase of shares in a Swiss company is 1% of the fair market price of the amount paid, with the first million francs of the capital paid being exempt.
The Stamp duty on the sale of bonds and other debt instruments is charged at a rate of 0.06% or 0.12% on the par value of such instruments for each year or part thereof until the debt is repaid.
Reorganizations such as mergers, separation of assets or the redomiciliation of a company into Switzerland are exempt from stamp duty.

There is no annual fee for companies in Switzerland.

Transfer pricing: according to the Swiss tax law, transactions between corporations must be made on a parity basis. However, there is no separate transfer pricing legislation in Switzerland and no such legislation is planned to be introduced in the near future. The Swiss competent authorities follow the OECD transfer pricing principles. Under the Swiss tax code, taxpayers are required to submit proof of transfer prices within the stipulated time limits at the request of the tax office.
Thin capitalization: In Switzerland, the rules for thin capitalization are not defined by law. However, the Federal Tax Administration's circular stipulated the rules against evasion that apply to debts of the parties. In order to determine the adequacy of the company's financing, an asset valuation is carried out. The rules require that each type of asset is backed up by a certain amount of ownership.
Controlled foreign companies: Switzerland does not have a controlled foreign companies' regime.
Disclosure requirements: none.

Switzerland is party to various international mechanisms related to taxation:
106 DTS: Albania, Algeria, Australia, Austria, Azerbaijan, Anguilla, Antigua and Barbuda, Argentina, Armenia, Bangladesh, Barbados, Belarus, Belgium, Belize, Bulgaria, British Virgin Islands, UK, Gambia, Germany, Ghana, Guernsey, Hungary, Hong Kong, Germany, Venezuela, Vietnam, Canada, China, Côte d'Ivoire, Colombia, Cyprus, Denmark, Dominica, Egypt, Georgia, Greece, Grenada, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Spain, Zambia, Malta, Mexico, Moldova, Mongolia, Morocco, Montserrat, Netherlands, New Zealand, Norway, Oman, Pakistan, Peru, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, San Marino, Serbia, Singapore, UAE, Slovakia, Slovenia, Tajikistan, Thailand, Taipei, Trinidad and Tobago, Philippines, Tunisia, Turkey, Turkmenistan, Ukraine, Uruguay, Uzbekistan, Faroe Islands, Chile, Croatia, Czech Republic, Ecuador, Estonia, Finland, France, Jamaica, Japan, Montenegro, Sri Lanka, South Africa, Sweden, Tajikistan, Thailand, Taipei, Sri Lanka and the United States.
10 TIEA: Andorra, Belize, Brazil, Isle of Man, Guernsey, Grenada, Jersey, San Marino, Seychelles.

There is no currency control in Switzerland.

All Swiss companies must keep accounting records and store them in the registered office. Accounting records must be kept in Swiss francs.

A Swiss GmbH is obliged to prepare and submit annual financial statements to the company register. The financial statements must include profit and loss statements and a balance sheet. The financial statements must be prepared in accordance with international standards (US-GAAP, IFRS, Swiss GAAP or FER). Documents must be complete, clear and unambiguous.
Financial statements are not open to the public.

Согласно швейцарскому законодательству компании с ограниченной ответственностью должны проводить аудит финансовой отчетности. Требования к аудиту зависят от размеров компании. Стандартный аудит требуется от компаний, которые должны готовить сводную финансовую отчетность, компаний, зарегистрированных на фондовой бирже, или если компания в течение двух финансовых лет подряд отвечает двум из трех условий:
Общие активы – 10 млн. CHF;
Ежегодный оборот – 20 млн. CHF;
Среднее число сотрудников – 50 или более.
Если компания не отвечает этим условиям, достаточно неполного аудита (опрос менеджмента, детальная проверка, аналитические аудиторские процедуры и т.д.). Компания может быть полностью освобождена от аудита при наличии согласия акционеров и при условии, что в компании работает не более 10 сотрудников на полной ставке.

Since there is no such thing in many law systems, we believe it is important to clarify this concept. The Annual Return is a brief overview of the current structure of the company, which is prepared annually by the company secretary. It generally includes:
setting data (date of incorporation, legal address);
information about directors and their resignations;
information about the secretaries and their resignations;
information on the share capital, nominal value of shares, number of shares issued;
information on shareholders and transfer of shares.
There are no requirements for the submission of annual returns in Switzerland.

All Swiss companies must file an annual tax return. The tax return is filed within 6 months after the end of the company's tax year. An annual assessment of the tax base is made by the cantonal tax office. The deadlines depend on the canton in which the company is registered. The tax returns are a mixed tax return for federal and cantonal taxation. Normally, Swiss companies pay contributions during the fiscal year.
Fines are applicable in the event of late filing or failure to file.

There is no Anglo-Saxon trust law in the Swiss law. There is no law on trusts in Switzerland and therefore no concept of a Swiss trust. Therefore, a trust can only be created under foreign law, under which the founder can choose the governing jurisdiction.
As one of the largest trust administration centers, Switzerland ratified the Hague Convention on Trust Law in 2007. This means that the trust institute has been recognized in Switzerland.
Since 2007, it is allowed to keep Swiss property in a trust. In this case, the trust as the owner of the property must be registered in the land register. While EU citizens living in Switzerland can acquire real estate without prior permission, citizens of other countries must apply for it. That is, if the trusts or beneficiaries are foreigners, the transfer of real estate requires a permit.
According to the Circular 30, the taxes on trust assets and income are collected from the trust establisher or the beneficiaries. Thus, no taxes are imposed on trusts. A trust is considered the formal owner, but not the beneficial owner of the trust assets.
The Swiss law makes a distinction between a revocable trust, an irrevocable fixed trust and an irrevocable discretionary trust.
Revocable trust
A revocable trust is a trust the establishment of which does not entail any changes from the financial point of view. The founder is a taxpayer and the distribution of profits to beneficiaries is considered as gifts from the founder.
If the founder dies, the trust becomes an irrevocable trust (for tax purposes). Some tax authorities believe that with the death of the founder, the founder made a donation to the trust or the trustee, and thus the inheritance takes place. The taxation varies from canton to canton. Some cantons apply the highest inheritance tax rate, others first take into account the relationship between the founder and the beneficiaries and then determine the tax rate. In most cantons, the tax rate is 0% if the heirs are direct descendants of the founder. Other cantons do not follow the inheritance rules, but instead pay attention to the degree of influence of the beneficiaries on the trust assets. In this case, the taxes on trust assets and trust income are paid by the beneficiaries.
Irrevocable fixed trust
According to the Circular No. 30, the establishment of a fixed trust is considered a donation from the founder to the beneficiaries. The tax rate depends on the degree of kinship. The taxation of the donation of assets of the trust may violate the principle of volume of production, if the beneficiary is entitled only to a part of the amount of the trust income. The tax should therefore be limited to the amount of income capitalized.
If a Swiss resident beneficiary is entitled to the distribution of capital and income, he must pay wealth tax on the capitalized part. Any amount distributed to the beneficiary is subject to the income tax, unless the income is derived from exempt capital gains or capital.
Irrevocable discretionary trust
The founder irrevocably transferred the trust assets of the trust and gave up any economic interests in the trust funds. The trust does not pay taxes as it is not the beneficiary of the trust assets.
The beneficiaries of an irrevocable discretionary trust are not entitled to claim distributions from the trust. They only have an expectation of receiving profits from the trust. According to the Swiss law, no taxes are imposed on expectations. However, according to the Circular No. 30, the beneficiary resident of an irrevocable discretionary trust can be taxed if he or she is found to be the beneficial owner of the trust assets.
If the beneficiary is not the beneficial owner of the assets, then taxes on funds and income of the trust are charged to the resident founder. In this case, the trust funds and income are attributed to the founder, and distributions to the beneficiaries are considered as gifts.
There is an exception to this principle: if the founder was a resident of another country at the time the trust was established, neither funds nor income can be attributed to the founder, the resident and the beneficiaries. Only the distribution of profits received by the beneficiary is taxable under the income line. In practice, some tax authorities may not grant this benefit if the founder has established the trust shortly before immigration to Switzerland.
The distribution of capital gains is not exempt from the tax because the trust assets are not attributed to the beneficiaries for tax purposes. The distributed capital gains are treated as income.
Withholding tax
Since a trust is not a legal entity, it cannot apply for reduction according to the Swiss withholding tax rules. The withholding tax paid on income from trust assets (mainly interest and dividends) is only reimbursed to Swiss residents to whom the assets are attributed (founder or beneficiary).
Swiss Association of Trust Companies (SATC)
In Switzerland, a professional trust is not required to register with a special supervisory authority. Within the private industry, however, the Swiss Association of Trust Companies (SATC) has been established in order to develop trust activities in Switzerland and to promote certain professional and ethical standards. SATC has issued a minimum professional requirements and code of ethics. In 2012, SATC published a White Paper with various proposals for the regulation of trusts in Switzerland, including the requirement to obtain a license to operate a trust in Switzerland.
Federal Anti-Money Laundering Law
The Swiss Federal Anti-Money Laundering Act (AMLA) affects estates that act as financial intermediaries. According to the practice of the Swiss Financial Market Authority 20 trustees are considered to be financial intermediaries because they own trust assets separately from their personal assets. This means that, among other duties, trusts must verify the identity of the contractual party, the identity of the beneficial owner, the economic background and the purpose of unusual transactions. The law also requires the trust to report suspicious transactions. The regulation of protectors by this law depends on their power within the trust.

Under the Swiss law, a fund is a legally self-administered fund or a special fund. Depending on the purpose of the foundation, a distinction is made between a regular fund and 3 special forms, namely a family fund, a religious fund and a welfare fund.
Family funds
Family funds are funds where property is available to family members to pay for education, infrastructure, support for family members or other similar purposes. A family fund differs from a regular fund in that it is the intention of the founder to limit the circle of beneficiaries to a narrow family circle.
According to the judicial practice of the Swiss Federal Supreme Court, the list of family fund purposes is limited. These purposes are similar in that the family members who are among the beneficiaries need to be supported under certain circumstances.
Family funds do not need to be registered in the commercial register to obtain legal personality. They are not subject to any regulator. Family funds are also exempt from the appointment of an auditor.
Religious funds
Religious funds are mentioned several times in the Swiss Civil Code, but the law does not define a religious fund.
According to legal principles and the practice of law, a fund can only be religious under two conditions: on the one hand, a religious purpose is required and on the other hand, there must be an organizational connection with the religious community. Only funds that preach faith in God can be religious.
Welfare funds
A welfare fund is often chosen as a tool for pension funds as an extension of an existing lifestyle after retirement.
Business funds
The idea of a business fund is not established by the Swiss law. However, the business funds have appeared in fact. This type of fund is characterized by economic activity and the adherence to a specific investment policy. It differs from traditional funds in its organizational structure.
Business funds can have many purposes. One of the most important ones is the real estate planning.
Entrepreneurial funds have two main forms. Either it is a fund that is engaged in commercial, manufacturing or other activities for economic or non-economic purposes and which is directly responsible to the authorities of the enterprise, or it is a fund acting as the main shareholder of an enterprise.
Charity funds
Switzerland is widely known for the representation of a large number of international governmental and non-governmental organizations. In such circumstances, it is only natural that a form of charity fund is often used in Switzerland. The combination of a good tax regime and environment has many advantages. The Regulatory law is comprised of the circulars of December 1990 and July 1999. Together, all this makes a Swiss charity fund an effective real estate planning tool that is suitable for charitable, international and philanthropic activities.
Establishing a fund
The act of establishment of a fund must be concluded by a notary, and to obtain legal personality the fund must be registered with the Commercial Register. As a rule, the minimum initial capital must be CHF 50,000.
A fund is usually established through an act of notary public or a bequest (last will and testament or inheritance agreement). The fund is registered in the Commercial Register on the basis of its statutes and the members of the fund's board are indicated.
Organization of a fund
The Statutes of the Fund shall contain information on the management bodies of the Fund and the form of management. In most cases, the fund may decide on its own form of management. The organizational form can be described in more or less detail, depending on the needs of the fund. However, it is important that the organization promotes the efficient use of the fund's resources.
The supreme body of the fund is the fund's council, which is responsible for overseeing the fund's business. The fund's council prescribes all areas of authority that are not delegated to another bodies, in the fund's constitution or pertinent regulations. The Fund's Council shall perform the following essential tasks:
Regulate the authorities to represent the foundation or sign on its behalf;
Elect the Fund's Council and auditors;
Approve annual financial statements.
In general, the Fund's Council is composed of at least three individuals or entities.
Supervision and reporting
Funds are supervised by the community (federal, cantonal and municipal) to which they are attached to. International funds are usually supervised by the federal authorities. In order to carry out the supervision required by law, funds must submit annual reports on their activities, annual financial statements consisting of a balance sheet, a profit and loss statement plus annexes, an auditor's report, approval of the report by the fund's council, and an updated list of the fund's council members.
Taxation of the fund
When a fund exists solely for the public interest, it may be exempt from taxation (federal and cantonal) and gifts made and/or received by the fund are also exempt. The existence for the public interest means that the fund operates in the charitable, humanitarian, educational, cultural, health or scientific fields, among other things. In addition, it may not be involved in profitable business and the number of beneficiaries may not be limited. The distribution of the means is irrevocable.
Liquidation of the fund
The competent federal or cantonal authorities may dissolve the fund on application or on their own initiative if the purpose of the trust has become unachievable and the fund cannot be maintained by amendment of the foundation act or if the purpose has become illegal or immoral. Any interested person has the right to apply for the dissolution of the fund.
<>Prohibition of retrocession
The Swiss Funds Act prohibits retrocession, which would allow the founders, after a certain period of time, to refund the entire amount or part of it contributed to the fund.
Comments from the practice
Establishing a fund in Switzerland is much more complicated than in Liechtenstein. Another alternative is to establish an association with the same purpose as a fund.