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IBay Pro Shopping Mall E-Shop :: Companies Formation :: Switzerland

Switzerland is comprised of 26 cantons. Until 1848, they operated as sovereign states, each with their own borders, army and currency. Any function not under the express jurisdiction of the Confederation is the responsibility of the cantons.
There are no geographical restrictions in incorporation procedures. But, because of Swizterland's three-tiered tax system - federal, cantonal, and municipal - the right canton is key when choosing a location in which to incorporate.
Of all the cantons, the residents and businesses of Zug and Obwalden enjoy the lowest rates; as low as 1.84 percent and 2.35 percent respectively. In certain circumstances, withholding taxes can be further reduced or eliminated through double taxation treaties.
Under FBC law, new businesses and branch businesses wishing to establish a presence in Switzerland should look to incorporate in one of two ways. Each type of incorporation has two names - one in German, one in French - to accomodate the primary language spoken in the canton of incorporation:
• AG (German, Aktiengesellschaft); SA (French, Société Anonyme)
• GmbH (German, Gesellschaft mit beschränkter Haftung ); Sarl (French, Société à responsabilité limitée)

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