Benefits of a Swiss Holding Company

If you want to open a holding company in Switzerland, you can register it with the help of our local specialists. Discover below our services related to this type of enterprise.

Quick Facts
Legal entities used	Private limited liability company Joint stock corporation (JSC)
Incorporation method	Registration with the Trade Register in Switzerland
Incorporation time	Approx. 12 weeks
Advantages	Quick incorporation process, low corporate tax rates, access to double tax treaties
Precautions	The company must have a legal address in Switzerland, cantonal regulations must be respected.
Shareholding structure	At least one shareholder
Minimum Capital	20,000 CHF for LLC, 100,000 CHF for JSC
Taxation	Corporate tax rate ranges between 12 and 21%, cantonal tax regulations must also be respected.
Control	Full foreign control is possible
Accounting and Reporting	Tax returns to be filed annually
Number of double taxation treaties	Over 100
Applicable legislation	Swiss Commercial Law.
Availability of various types of holding companies (YES/NO)	Yes, there are several types of holding that can be set up in Switzerland.
Types of holding companies	– Operational, – financial, – organizational.
Documents required for registration	– Statutory documents, – details of the shareholders, – details of the director(s), – proof of local address, – bank statement indicating the issuance of the share capital.
Local director required (YES/NO)	Yes, at least one.
Management status (natural person/corporate director)	Natural person.
Uses	– Share ownership, – acquisition of various assets, – intellectual property ownership, – control over other companies
Requirement to hire local employees (YES/NO)	No.
Possibility to operate in other countries (YES/NO)	Yes, a Swiss holding company can also operate in other countries.
Requirement to travel to open a holding company (YES/NO)	For some of the procedures, such as opening the bank account, a visit may be required.
Holding company registration services (YES/NO)	Yes, our agents can help you set up a Swiss holding company.

What are the main characteristics of a Swiss holding company?

The holding company is created with the purpose of owning and/or controlling other entities known as subsidiaries. A holding company can have Swiss-based or foreign subsidiaries.

What types of holding companies can I set up in Switzerland?

There are several types of holdings that can be created in Switzerland, among which pure and financial companies, each with its own advantage.

The pure holding company has as its objective the long-term management of assets in its subsidiary or subsidiaries. In order to qualify as such, it formerly had to own at least 2/3 of total assets or income (cantonal holding status abolished on 1 January 2020) from its subsidiaries.

What legal form can a holding company take in Switzerland?

It can be registered as a private limited liability company or a joint stock corporation in Switzerland. We can help you set up a holding company for the price of CHF 2,000.

NOTE: In Switzerland, the stock corporation is a preferred choice among investors for a holding company.

What are the steps to open a holding company in Switzerland?

Setting up a holding enterprise follows the same procedure as for any other type of business in Switzerland, as briefly presented by our local specialists below:

trading name reservation;
document drafting (Articles of Association, information about the shareholders and director, proof of local address);
bank account opening for the deposit of the share capital;
documents filing with the Companies Register;
tax registration.

What are the management requirements when setting up a holding company in Switzerland?

It must have at least one resident director. For this purpose, we offer nominee services.

How much time does it take to set up a Swiss holding company?

Around one month.

What are some specific features of Swiss holding companies?

The holding company is often created for tax minimization reasons. In Switzerland, specifically, it can benefit from a participation relief at federal, cantonal, and municipal levels. This means it will benefit from a proportional reduction of profit tax on qualifying dividends and capital gains (not an exemption from withholding tax).

Also, holding companies can recover the VAT incurred from the acquisition, sale, and management of various participations.

What is the best canton to create a holding company in Switzerland?

Zug and Zurich are two of the best cantons to open a company in Switzerland, including a holding.

How are holding companies taxed in Switzerland?

It is important to mention that until 2019 qualifying holding companies did not pay profit tax at cantonal level (status abolished by the 2020 tax reform), but only in the situation in which the company qualifies under certain conditions.

Holding companies can benefit from the reduction of the corporate tax rate at the federal level, as long as the respective company owns at least 10% of the share capital of another legal entity or a participation worth at least CHF 1 million.

At the same time, the Swiss holding company can qualify for a lower corporate tax rate if the shareholding rights are held in a Swiss company with a market value of at least CHF 1,000,000.

Here is also a video on the Swiss holding company:

Do Swiss holding companies benefit from double taxation agreements?

Yes, holding companies are the direct beneficiaries of the double taxation treaties signed by the Swiss authorities, which can result in other tax advantages.

Through the provisions of the double taxation agreement, the standard tax rate can be reduced from a rate of 35% to a much lower value, ranging between 5% and 15%. Moreover, the Switzerland-EU agreement on automatic exchange of information (Art. 9)can provide tax exemptions for the dividends received by subsidiaries of holding companies, thus eliminating the tax burden related to the withholding tax.

Businessmen are invited to contact our consultants in company formation in Switzerland for more details on other benefits that holding structures are entitled to receive.