Running a business can be hard; there are so many things to worry about and there doesn’t seem to be enough time in the day to dedicate to each of those things. In the end, you’re left with forgotten details and a messy business, which isn’t any good. The finances of running a business are especially easy to lose track of. Taxes can add up quickly and end up taking a lot of your profit, leaving you with a lot less than you had hoped to take home. Of course, there are some (legal!) ways to get around some things and increase the financial stability of your business.
What Is a Swiss Holding Company?
Swiss holding companies are companies whose purposes are to manage any participation of the company in other businesses. To be a Swiss holding company, the company must not perform any other unauthorised activities inside Switzerland. Authorised activities include “judicious and effective” tasks of management such as converting currencies, working with foreign currencies, asset management, and management of the company’s intellectual property. Unauthorised activities include things such as trading, manufacturing, and any other business activities.
For a company to become a holding company in Switzerland, they must first meet a few criteria. What will be held in Switzerland must represent more than two-thirds of the company’s total assets and the relevant yield must be more than two-thirds of the company’s total revenue. Federal law requires that at least one of those two criteria must be met to be classified as a Swiss holding company.
Benefits of Having a Swiss Holding Company
The biggest and most recognised benefit of having a Swiss holding company is that your taxes will be much less than they were before. Switzerland has many different tax laws that allow businesses to enjoy a significant reduction of their tax obligations when classified as a Swiss holding company. On top of that, if the business meets certain requirements, no cantonal taxes would be enforced. Overall, the benefits of being classified as a Swiss holding company have everything to do with lower taxes and higher profits because of it.
Becoming a Swiss Holding Company
The process of becoming classified as a Swiss holding company can be very difficult and great care should be taken in managing and organising information during this process. Because of what’s at stake, it is essential that you speak with a professional to help you with your case. Working with a professional who specialises in holding companies in Switzerland means that you’re guaranteed that it will be done correctly and legally. The right company will offer many different services relevant to the task at hand and should also be able to help you with your taxes when it comes time.