Companies establishement and administration in Switzerland

Co.Re.Co. - Ceruti Law Firm is specialized for all the aspects concerned Swiss company law and for the establishment and incorporation of companies in Canton Ticino (Switzerland).

The significant advantages of the establishment, transfer or relocation of company and firms in the Canton Ticino (Switzerland) can be summarized in:

• restricted tax burden (about 20% on profit);
• recognition of all the justified business costs (for example the cost of the company car is fully deductible over 5 years, as rate for the lease of the car are fully deductible; concerning the company car, we specify that it can also be used by the non-residents in Switzerland, as long as they are employees of the company, or the directors or managers of the company, and provided that appropriate authorization has been required, in both cases specified above, to the competent Custom Agency);
• labor costs (defined as the social contributions and deductions for employees) definitely much lower than most European countries; for example a net salary of 1.230 Euro (for a single person, with no children and subject to withholding tax) will result in a total cost to the company and the employee of about 215 Euro, and a net salary of 2.370 Euro (for a single person, with no children and subject to withholding tax) will result in a total cost to the company and the employee of about 990 Euro;
• simply and easy bureaucratic and administrative organization (both of the companies that the public offices you compare with).

Moreover, for joint-stock companies (SA), there is the opportunity to issue shares for whom the shareholder/owner will be guaranteed complete anonymity (for third parties, not for tax authorities); the joint-stock companies can be sold or acquired simply by delivering share certificates, without the intervention of a Notary.

Establishment costs for a joint-stock company (SA) in the Canton Ticino, including notary’s honorarium and registration fees to the Registry of Commerce) amount to about 3.000 CHF, while the costs of setting up a limited liability company (Sagl) are about 2.000 CHF. Management costs of a joint-stock company (SA) and a limited liability company (Sagl) are commensurate by Co.Re.Co. according to the activity arising from the management (number of employees, number of issued invoices).

It is possible, as well, to carry out work activity in Switzerland as a sole trader or an independent professional; in this regard, for UE citizens (UE/25), it is possible to carry out an independent job in the Canton Ticino, for a period less than 90 days per calendar year, by announcing themselves to the competent authorities. For job activities lasting longer than 90 days, it is necessary to require and obtain a job permit. It should be noted that for the purpose to assessing the independence of a worker in Switzerland, the Labor Inspectorate Office and the Social Insurance Institute consider as relevant the following requirements:

• Business and economic risk charged to the worker;
• Existence of multiple mandates or assignments;
• Freedom of management of time and work plans;
• Using of commercial premises for rent or own;
• Using of own materials.

Shown below, in schematic way, main companies’ organizations in Switzerland, with their primary characteristics:

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