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This article will describe some main points that may require your attention while creating your company in Switzerland. Such issues as business banking, taxation, and insurance are points of major importance. In the end, we will review the peculiarities of personnel employment in Switzerland and corporate social responsibility.
Business Banking
Company formation in Switzerland consists of several steps. A separate business bank account meant for your financial management is demanded to be opened up in case when you decide to establish a limited enterprise, foundation, or association in the country. However, some partnerships and sole entrepreneurships may avoid this requirement though it is strongly advised to have such an account in order to make it simpler to monitor all finances.
In the process of creating your business account, you will be required to introduce your enterprise name, all data with regard to registration, and those persons who will have the right of account signatory. In addition, you will be granted an opportunity to take advantage of some bank offers including but not limited to lending to your business, investment products, and insurance.
As an alternative, you may find some online banks that may suggest their banking services. Such banks are notable for their assistance in international transactions with their electronic applications introduced in many languages.
Business Taxation
In Switzerland, any company income tax is paid by every enterprise (limited company) that operates as a legal entity. At the same time, no partnerships and sole entrepreneurships are supposed to pay corporate tax. These structures must pay income tax, which is calculated from their individual share in the profit. Worldwide income taxation is another point for all enterprises established in Switzerland. All parent companies beyond the country that have their subsidiaries and branches in Switzerland are subject to income taxation under the stipulation that such income was made within Switzerland and bringing about double taxation by this. Despite that, there are many countries that have a special treaty with Switzerland that allows evading of that.
Company income taxes are imposed on businesses at cantonal and federal levels. However, there is a number of exempts with a reduced amount of taxation that differs in correspondence with the local canton rules and regulations.
Registration for VAT is required for those companies that produce a turnover higher than 100 thousand Swiss francs. The last VAT rate in the country was 7.7%. The reduction of it was applied to certain commodities such as books and food. Those enterprises that have a turnover less than the above mentioned don’t have to register for VAT though still may do it on a voluntary basis. In addition, there are certain companies, which are subject to withholding taxation or state duty.
Business Insurance
There is a big number of various business insurances in the country. Some of the insurances are indispensable and many of them if so desired. We may distinguish the most popular types of them:
- Employee insurance. This sort of insurance is compulsory for every enterprise. Sole proprietorships and partnerships for themselves must at least perform registration at Swiss pension, OASI, and casualty insurance. All companies that have employees together with incorporated enterprises that employ their owners to the position of directors must insure all their workers for cases of unemployment and accident.
- Insurance of civil liability. It is mandatory for almost any business. When a third party undergoes an accident or an injury, and suffers the consequences of your services or your business activities this type of insurance will cover it.
- Property and casualty insurance. Such coverage is applicable to damages and losses of business property. Such insurance is indispensable for the building sector.
- Business interruption insurance. Sometimes known under the name “loss of profits insurance”. This type of insurance is done on a voluntary basis and is supposed to cover the expenses in the event that you are forced to suspend trading caused by force majeure circumstances.
- Cyber-insurance. This type is designed for covering any possible data losses and cyber strikes. It is not mandatory.
- Professional indemnity insurance. Another not compulsory type. It covers all financial losses to third parties incurred by your enterprise activities.
General points about staff employment in Switzerland
The best law firm in Switzerland confirms that you are supposed to adhere to certain procedures, rules, and regulations in Switzerland when you establish your company and employ new workers for your enterprise. In the beginning, you will need to check all your future personnel, if every person has the legal right to work in the country carefully examining their permits and visas.
Swiss labor laws oblige you to adhere to the health and safety manual that include the matters of employee working hours and payment. Except for some cantons with their own salary laws, there is no minimum appointed wage in the country.
All employees must be registered for social insurance. It makes up about 12% of the salary for pension, casualty, and unemployment insurance with regard to salaries that are lower than 148 thousand Swiss francs. If some of the workers have an annual salary higher than CHF 21 thousand then it requires them to be registered for a occupational pension fund.
All prospective personnel can be hired via advertising or by means of recruitment consultancy. There is a vast number of various job websites with different CVs and resumes.
Corporate citizenship in Switzerland
Switzerland with its progressive and liberal style of the economy has a small number of state regulations on any type of business. Switzerland has fewer statutory demands than many European countries as far as corporate social responsibility is concerned. In most cases, it is completely up to enterprises how to run their corporate citizenship interactions and activities.
Federal website contains information concerning corporate social responsibility issues with hints on how to comply with worldwide standards in human rights, ecological sustainability, transparency of business running, corruption control, gender equality, and customer interests. Moreover, recommendations contain means for corporate social responsibility implementation and relevant support suitable for some specific sectors of business.
