If you are looking to enter the banking sector, opt for the Swiss branch

This type of entity known as Branch of a foreign company is not considered separate from its headquarters abroad, and the parent company is legally responsible for all losses incurred by its Swiss branch.

Actually for the Branch there is no minimum capital requirement for its registration. As a foreign company, you must have a local representative residing in Switzerland. The rest of the requirements are very similar to those of a subsidiary.

The Swiss Branch is ideal for setting up a bank office based in another country, as well as when the industry is subject to high capital requirements and a demanding regulatory framework.

To enter the Swiss market a representative office. Swiss laws do not differentiate between representative offices and branches. Consequently, the distinction is made by the foreign company, which will not allow its local office to conduct business.

This type of entity is recommended to take the first steps to the local Swiss market and if income from productive or commercial activities is not expected, since they are not empowered.

The Swiss holding company (formerly ancillary and joint ventures). This Swiss holding company is an excellent entity for obtaining business financing in Switzerland and for holding all types of assets, including subsidiaries and intellectual property.

These entities deserve special attention because depending on the type of canton chosen, the challenge of the tax code will be presented. Swiss companies can benefit from full exemption from cantonal company income tax provided that i) the capital investments of the parent company represent more than 66% of its total assets ii) the income generated by such investment represents more than 66% of the company's annual income.

Dividends received from subsidiaries may also be exempt from federal income tax if the holding company's investment represents i) more than 1 million Swiss francs (US $ 1 million) or ii) more than 10% of the total capital. of the distribution subsidiary.

Companies not eligible as holding companies can apply for i) domiciled status if they do not carry out commercial and productive operations in Switzerland or ii) auxiliary / mixed status if less than 20% of their sales come from Switzerland.

Important notice: in February 2017, Swiss voters rejected a federal reform that sought to harmonize the different holding company regimes currently in place in Switzerland (holding company, joint venture and subsidiary company regimes). The Swiss government is likely to pass a new law in the coming months to meet the requirements of the European Union and the OECD. However, the content of this law is unknown.

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