Company Formation and Management
Dixcart Switzerland advises international groups and business owners on the establishment and ongoing management of Swiss companies. Our work is practical, precise and grounded in a clear understanding of the Swiss regulatory and corporate environment.
How we can help
Switzerland is widely used as a location for holding, trading and operational companies. We assist clients at the outset, helping them choose the appropriate structure and guiding them through the incorporation process.
Our support includes:
- Advice on legal form and corporate structure
- Company incorporation and registration
- Assistance with initial compliance requirements
- Coordination with tax advisers and other professionals where required
Once established, Swiss companies require consistent and reliable management. We provide day-to-day corporate administration to ensure that statutory, governance and regulatory obligations are met.
Our services include:
- Company secretarial and administration services
- Registered office and local representation
- Maintenance of statutory records
- Support for board and shareholder meetings
- Ongoing compliance and reporting
We also provide or coordinate accounting, payroll and tax compliance services for Swiss companies. This integrated approach allows clients to deal with a single team that understands both the corporate structure and its operational requirements.
Our role is to ensure that routine matters are handled efficiently and correctly, allowing clients to focus on their business activities.
For companies that form part of an international group, we work closely with colleagues across the Dixcart network and with external advisers. This ensures that Swiss entities operate in a way that is consistent with group requirements and cross-border obligations.
Why Switzerland?
Switzerland is an attractive jurisdiction to start and operate a business, as a location for individuals and for family protection and safety. Advantages include:
- Located in the centre of Europe.
- Economic and political stability.
- High regard for personal privacy and confidentiality.
- Most ‘innovative’ and “competitive” country in the world with various strong industries.
- A well respected jurisdiction with an excellent reputation.
- A high quality and multilingual local workforce.
- Low rates of corporate tax for Swiss companies.
- Premier destination for international investment and asset protection.
- Major commodity trading centre in the world.
- Hub for HNWIs, international families and a wide variety of professionals including: lawyers, family offices, bankers, accountants, insurance companies.
A Swiss holding company primarily exists to own and manage long-term shareholdings in other companies, either within Switzerland or abroad. They can offer a rare combination of tax advantages, political and economic stability, strategic location, and access to world-class financial services. These factors make them a preferred choice for businesses and individuals seeking a reliable and efficient structure for international investments management.
Key benefits include:
- Tax Efficiency
- Participation Exemption: Swiss holding companies benefit from a participation exemption, which reduces or eliminates corporate income tax on qualifying dividends and capital gains. To qualify, the company must hold at least 10% of the subsidiary’s equity or a participation with a market value exceeding CHF 1 million, for at least one year.
- Interest Payments: Interest paid on loans from foreign shareholders may not be subject to Swiss withholding tax, subject to structuring.
- Extensive Double Tax Treaty Network: Switzerland has an extensive network of taxation treaties with over 100 countries, preventing double taxation and reducing withholding taxes on cross-border dividends, interest, and royalties. Under the EU-Switzerland Savings Tax Agreement, dividend distributions to EU parent companies may be exempt from Swiss withholding tax, provided the parent company holds at least 25% of the subsidiary for a minimum of two years.
- Asset Protection and Wealth Management – Swiss holding companies play an important role in safeguarding assets and facilitating efficient transfer of wealth. They also benefit from access to Switzerland’s world-class private banking and investment services.
- Flexible Corporate Structures – Swiss law allows for flexible corporate structures, accommodating various business needs. Holding companies can be established with minimal administrative requirements, and foreign investors can fully own Swiss companies, making it an accessible option for international clients.
Swiss companies have a zero-tax regime for capital gains and dividend income.
Trading companies have always attracted a local canton (region) tax rate.
- Federal tax on net profit is at an effective rate of 7.83%.
- There are no capital taxes at the federal level. Capital tax varies between 0% and 0.2% depending on the Swiss canton that the company is registered in. In Geneva, the capital, the tax rate is 0.0012%. However, in circumstances where there are ‘substantial’ profits, no capital tax will be due.
- In addition to federal taxes, cantons operate their own tax systems. The effective cantonal and federal corporate income tax rates (CIT) are between 12% and 14%.
- Swiss Holding Companies benefit from a participation exemption and do not pay income tax on profits or capital gains arising from qualifying participations. This means that a pure Holding Company is exempt from Swiss tax.
Swiss Withholding Tax (WHT)
There is no WHT on dividend distributions to shareholders based in Switzerland and/or in the EU (EU Parent/Subsidiary Directive).
If shareholders are domiciled outside Switzerland and outside the EU, and a double tax treaty applies, the final taxation on distributions will generally be between 5% and 15%.
Double Tax Treaties
Switzerland has an extensive double tax treaty network, with access to tax treaties with 100 countries.
