There Is A Good Reason Why Many Businesses Create Swiss Holding Companies

January 11th, 2016 | by Alice Aires
There Is A Good Reason Why Many Businesses Create Swiss Holding Companies

There are millions of successful businesses throughout the world and every year many of them choose to register their company in the country of Switzerland. Switzerland is known to be a very safe and low-tax business environment, which is why tens of thousands of businesses incorporate here every year. One of the most common financial arrangements is the creation of a holding company and the most popular Swiss city for holding companies is Canton Zug.

What Is A Holding Company?

Holding companies have, as their main purpose, the function of holding and managing participation in other companies. In Switzerland, you are not allowed to participate in any other business once your business is classified as a holding company. In Switzerland, one-fourth of all holding companies are set up in the city of Canton Zug, thanks in part to its very business-friendly environment and its established location.

In order to be classified as a holding company, a business must meet certain requirements. In addition, there are certain exemptions to the requirement that the company cannot do any other business in the country. These include:

  • Asset management that includes management of foreign intellectual property and surplus cash.
  • Non-Swiss activities that include intellectual property realisation.
  • Group management functions that are mainly cost plus method for the purposes of transfer pricing.

Essentially, there are numerous rules and regulations concerning the creation of holding companies in Switzerland, so it is highly recommended that you seek out the advice of a professional company to help you establish the holding company. Professionals know exactly what is required to create this type of company and will help you every step of the way to make sure that everything is done correctly. After all, if you do it yourself and inadvertently miss a step, this may mean the process will take much, much longer. Hiring a company that will help you create your holding company takes a lot of stress off of the business owner and other executives and will help ensure that you are doing everything you need to do in order for the company to succeed.

Where To Find Professional Assistance

Companies that help you create your own holding company have the expertise needed to provide top-notch advice every step of the way. They usually have a large staff on hand that includes commercial, legal and financial professionals, as well as IT professionals, so their capacities encompass a wide range of professional advice and assistance. When you hire one of these professional companies, you will not be alone during any step of the process. In short, they will help you accomplish your goals by providing a practical, hands-on approach to your needs. Companies like these also usually have extensive, professional websites that inform and educate you on the steps necessary to create your holding company. They will give you details on all of their services, as well as information on their employees and a simple way to contact them. Many even offer a free quote, which is extremely useful when making a decision on which company will help you create your holding company.