The article concerns the question – Why Businesses Thrive In Switzerland. Switzerland is one of the most important centers for international business today. Several factors can be attributed to the success of the country as a favorable business destination. The country is located at the heart of the European Union and is geographically in a key position with easy access.
Moreover, the Swiss economy is based on the principle of free enterprise, with freedom of trade and commerce guaranteed by the Swiss constitution since 1847. The country also enjoys political stability which is essential for a thriving economy. An excellent social climate also exists between employers and employees, making it a convenient place to conduct business.
Swiss industry is known for the production of high quality products and services even though it relies heavily on imports in certain areas. The tourism, telecommunication, and finance sectors are second to none. Switzerland is one the leading financial centers in the world with a great emphasis on banking, insurance, asset management, foreign exchange, and precious metal trading, among others. Being a leading financial base has made a great impact on foreign investments in business in Switzerland.
The Swiss government attracts foreign direct investments with various tax incentives and world-class infrastructure combined with a well-trained labor force. In addition, the country is one of the most advanced technology locations in the world. Many multinationals in the fields of bio-technology, IT, pharmaceuticals, and telecommunication have chosen Switzerland as a base for their research and development activities.
One of the main advantages of setting up a business in Switzerland is the labor market that is backed by a sold education system. Research programs conducted in the country are recognized all over the world. Moreover, the country is a prime location for management centers, making it one of the best places to conduct business.
Swiss corporate law is a part of the Swiss Code of Obligations which makes it mandatory to form a legal entity such as a sole proprietor, ordinary partnership, general partnership, limited partnership, limited liability company, or corporation.
A business by a sole proprietor must be registered in the commercial register of the cantonal government and produce at least 100,000 Swiss francs as gross income per year. The proprietor is subject to taxation and is personally liable for his business without any limitation. Partnerships can be formed by two or more partners where each partner is subject to taxation.
Limited liability companies and stock corporations are the most common forms of legal entities. A minimum capital of 20,000 Swiss francs is required to set up a limited liability company. It is mandatory for one of the officers to be resident in Switzerland.
A corporation is the most common form of business entity in Switzerland since it offers a great deal of flexibility. Shares can be transferred easily, which is why many choose this form as a legal business enterprise. The minimum capital required for the establishment of a corporation is 100,000 Swiss francs. A favorable investment environment, combined with tax incentives and a stable economy makes Switzerland one of the best places you could ever set up a business that is likely to thrive.