If you want to open a holding company in Switzerland, you must follow the same rules as for any other business; however, there are also specific aspects to consider. Our lawyers can advise and assist with the creation of such an enterprise.
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What is a Swiss holding company?
A holding company is an entity created with the purpose of investment and management of other businesses, called subsidiaries. It is important to note that in Switzerland, the holding is a status a company can obtain.
What are the conditions for a Swiss company to be considered a holding?
The following:
- its core activities are owning various types of assets and their management;
- at least 2/3 of its assets or income is derived from investments;
- the Articles of Association must clearly stipulate that the object of activity of the company is investment and/or asset management.
What are the steps to open a holding company in Switzerland?
The following:
- business form selection;
- trading name reservation;
- documents drafting – Memorandum and Articles of Association;
- bank account opening for depositing the share capital;
- documents filing with the Companies Register;
- tax registration.
We can guide you through the entire registration procedure. Our lawyers can also put you in contact with their Dutch partners in case you are thinking of starting a company in the Netherlands. Furthermore, if you intend to open a company in Denmark, we can put you in contact with our Danish partners.
What are the legal forms a holding company can take in Switzerland?
- Private limited liability company, which requires a minimum capital of CHF 20,000;
- Joint stock corporation, which requires a minimum capital of CHF 100,000.
NOTE: Our lawyers in Switzerland can advise on choosing the suitable structure based on the size of the company.
What types of holding companies can I set up in Switzerland?
- the pure holding company: created to own shares in other subsidiaries without carrying out other operational activities;
- the management holding: created to own shares, manage and coordinate the operations of the subsidiaries without day-to-day interventions;
- the operating holding: created to be actively involved in the management and operations of its subsidiaries;
- the financial holding: created to invest in financial assets.
What are the tax benefits of a holding company in Switzerland?
In order to benefit from the vast network of double tax treaties signed by Switzerland over the years is necessary to keep at least 10% of the shares with the voting rights attached to it from a company.
The qualified income, such as dividends, capital gains and liquidation dividends, can remain exempt from the corporate income tax if certain conditions are met, such as receiving dividends from a subsidiary where the holding company keeps at least 10% of the nominal share capital or the value of the participation has a market value of at least CHF 1 million.
The exemption is also granted on the capital gains which come from the concession of at least 10% of the subsidiary’s nominal share capital, but in this case the shares must have been held for at least 12 months.
Because of all the above, a holding company is considered an advantageous investment vehicle by local and foreign investors. Please contact our Swiss law firm if you want to set up a holding company in Switzerland.