Swiss auxiliary company
Creating a Swiss company: the Swiss auxiliary company
A Swiss auxiliary company is adapted to the needs of companies based abroad who want to set up an international commerce company in Switzerland (mainly trading activities).
Auxiliary companies based in Switzerland enjoy a very low tax rate between 8 and 12% on the income earned outside of Switzerland. The income is taxed at a capital tax rate of 0.005% and 0.3%. The income earned in Switzerland is taxed at a normal tax rate. There is also the possibility of benefitting from reduced tax rates and tax exemptions on the dividends and capital gains, depending on the canton.
It must be added that companies who move their management operations to Switzerland can request the privileged tax regime of an auxiliary company.
Swiss auxiliary companies can perform their business activities abroad and can have some income from Switzerland. Nevertheless, its suppliers and clients must not be Swiss.
The structural and operational requirements for creating an auxiliary company in Switzerland include:
- At least 80% income and 80% expenditures must be outside of Switzerland;
- Commercial activities are authorized to be carried out in Switzerland if they do not exceed 20% of the income and expenditures of the company.
Auxiliary companies created in Switzerland can have offices (physical offices or an office which is represented by another company) and have Swiss employees.
The vast majority of Swiss auxiliary companies are PLC (SA) and fewer are LTD (SARL) companies.
The administrative tasks and business activities of a Swiss auxiliary company allow the company to have a base in the European market outside of the Europe Union while also being completely under Swiss law.