When starting a business, you may begin hearing more about holding companies and how they could benefit you. Holding companies are simple companies that maintain participation in other companies, such as management and financial investments. There are holding companies in Switzerland that can offer many benefits you may not be aware of. Here are a few basic pieces of information that can help get you started:
What Do They Do?
The purpose of a Swiss holding company is to maintain management participation and investment in other companies. To be fully classified as a Swiss holding company by the law of Switzerland, these companies must not operate any other businesses in the country. There are a handful of rules that must be met for a holding company to maintain its status, but there are benefits to this as well.
It can be very helpful to integrate with a Swiss company holding from Co-Handelszentrum. Efficient Swiss company formations and administrations like this can provide a great benefit in ensuring that everything goes accordingly. They help to facilitate the process and make sure that everything is properly handled. You may lack the information needed to help integrate with or establish a Swiss Company, so it is imperative that you find a company like this to answer all of your questions. They know exactly what is needed to take the proper steps and reach your final goals. There is a somewhat lengthy process to Swiss Holding companies, as well as regulations that must be met. They will help you with everything from opening bank accounts to understanding and recording all of the proper documentation.
Tax Benefits
Canton Zug is one of the most popular locations for establishing a holding company in Switzerland. The popularity for this location is likely because of its low tax regime, stability, and openly friendly surroundings. As long as the Swiss holding company meets a certain set of standards, they become exempt from cantonal tax in Zug, as well as other tax benefits on other levels. This provides a holding company with a great benefit when it comes to the exemption of taxes.
The list of requirements to be classified as a proper Swiss Holding Company include:
- The investments held in other companies must include two-thirds of the total assets of that company.
- There must be at least one involvement or investment that exceeds 10%.
- The minimum holding period must be more than one year.
Under the law, a Swiss holding company cannot own any other businesses in Switzerland. There are certain business involvements that they can participate in, but owning a business in Switzerland disqualifies a company from registering as a Swiss holding company under local tax laws.
Financial Stability
A large drawing of Switzerland is not only the tax exemptions for a holding company, but also the financial stability. With trust and reliability, it provides a safer and more understood environment for investments and businesses.
There are many benefits of a Swiss Holding company, and understanding the process fully is extremely important for anyone running a business.
