There are many different reasons why a company may want to operate in Switzerland. Becoming an incorporated business that is administered and managed by a Swiss holding company in Switzerland has a number of different advantages. These holding companies can do more than simply create your company. Below are a few different services a holding company is able to do.
Setting Up Your Company
The first thing a Swiss holding company will do for you is file all of the required paperwork to create your company, but that’s only the first step to having an official business operating in Switzerland. The company will also file everything necessary for your business’s commercial registration. This provides you with the license that allows you to trade commercially in the country.
The holding firm will then go on to create your Accounting Mandate and paperwork that is required by Swiss law, prepare a budget for your first year, create templates for your letterhead, invoices, and other paperwork, and set up your bank account.
Act as a Nominee Shareholder
In many cases, such as when a business incorporates, shareholders need to be present at a notary meeting. That can be very difficult if the shareholders live outside of Switzerland, which is why holding firms often act as a nominee shareholder. This also protects the identities of the shareholders since they are only recorded in certain registries. Many of the services for offshore companies Switzerland holding firms offer are done to protect the confidentiality of the investors.
Serve as a Resident Director
Under Swiss law, the company must have at least one director residing in the country. An executive in the holding company can fill this role. In most cases, this resident director is simply a title and has little to no actual control in the business.
Provide Administrative Services
The holding company you partner with can act as an administrator of your business, providing data keeping services, sending out invoices, managing your Swiss bank account, and more. You and the firm can work out exactly what services you will need them to perform and how often they should perform them.
One administrative service that is often particularly useful for your partner to handle is preparing and filing the various tax returns that are due in the country. As someone who does not and perhaps has never lived in Switzerland, you are most likely not familiar with how Swiss tax laws work. While they may in some ways be similar to what you file yearly, there may be some small details you would miss. It’s better off leaving something this important to a firm that is intimately familiar with the tax code.
Finally, holding firms can act as virtual employees, handling the logistics for imports and exports, warehousing, making purchase orders, coordinating with suppliers, and liaising with customers. They can also provide order processing, technical support, customer service, and even provide office space and meeting areas when necessary.