Opening a Branch vs. a Subsidiary in Switzerland

A presentation brought to you by LawyersSwitzerland.com

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The Swiss Business Environment >>

• When setting up a business in Switzerland a foreign company can decide upon opening a branch office or a subsidiary.

• The most common type of company used so far has been the subsidiary, but the branch office is starting to gain popularity as well.

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>> The Swiss Business Environment

• When deciding upon the type of structure of the new company in Switzerland the investor must consider its purpose and the independency he wants to grant to the new office.

• Both types of structures are submitted to the Swiss commercial laws the same way.

• If you want to open a branch office or subsidiary, you can contact our lawyers in Switzerland.

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What Is a Branch Office in Switzerland?

• The branch office in Switzerland is a satellite of the foreign parent company with no legal and separate identity. 

• The parent company will be accounted liable for the branch office’s liabilities and activities. 

• If you are interested in expanding your business in Switzerland, our local lawyers can help you set up a branch office in this country.

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What Are the Characteristics of a Branch Office in Switzerland?

• The Swiss branch office is allowed to conduct any operation that would represent the parent company and within the parent company’s business purposes. 

• Swiss branch offices are treated as any other company when it comes to income taxes, but no tax is applied to gains transferred to the parent company.

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What Is a Subsidiary in Switzerland?

• Unlike the branch office, a Swiss subsidiary is a company with an independent and legal identity.

• The subsidiary will be created respecting the Swiss legislation and is a separate entity which makes the liabilities of its undertakings limited to its assets.

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What Are the Characteristics of a Subsidiary in Switzerland?

• The Swiss subsidiary can be regarded as an independent company with a majority of shareholders and management board in the parent company. 

• A subsidiary is usually registered as a Swiss limited liability company.

• Opening a subsidiary in Switzerland does not require any business permits, only registration with the Commercial Register.

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Branch Offices vs. Subsidiaries in Switzerland >>

• The branch office is easier and more inexpensive to set up than the subsidiary.

• When it comes to liability,  the Swiss subsidiary will not be affected by changes in the parent company, considering its autonomy.

• Our Swiss lawyers can help you choose the right form of business according to your objectives.

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>> Branch Offices vs. Subsidiaries in Switzerland

• The branch office can engage in any type of activity such as concluding contracts and transactions.

• However, when it  comes to liability, anything that happens to the parent company will extend to the branch office as well.

• When it comes to transferring earnings from a branch office to its headquarters, there are no withholding taxes.

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Taxation of Branches and Subsidiaries in Switzerland

• From the taxation point of view, both types of companies are subject to the corporate tax on their income in Switzerland.

• However in some case the branch office may offer more advantages from the taxation point of view for the parent company.

• If you need more details about the Swiss taxation system, please contact our local lawyers.

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Legal Assistance in Switzerland

• Our Swiss law firm can provide you with information about the incorporation process for any type of company.

• Please contact our attorneys in Switzerland for more details on this matter.

Thank you for yourattention!

• For more information please contact us at:

  (+44)203-287 0408

office @lawyersswitzerland.com

http://www.lawyersswitzerland.com

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