In the Western world, taxes are often a burden that can dampen your profit margins. Governments from the United States to the United Kingdom to Australia are constantly demanding more and more money from businesses; they take these taxes to pay for things such as roads and bridges, but they can also use them on frivolous things. Your job as a company owner or manager is to maximise your profits for yourself, your employees, and your shareholders. You can do this in one of two ways: you can reduce spending and/or increase revenue. You don’t have much control over your revenue, but you should take some steps to increase it, of course. The most reliable way to maximise profits is to cut your spending. You should think of your taxes as spending. How can you reduce the amount you spend on your taxes?
You’ve probably heard a lot about offshore accounts, shell companies, and holding companies. They’re often considered tax havens or ways that people avoid paying taxes; however, you should think of them as ways to pay a different set of taxes. You aren’t avoiding anything. If you move your company to Switzerland, you will obviously have to pay Swiss taxes. Moving to a jurisdiction that has a more favorable tax structure is in your company’s best interest; it is your responsibility to act in your company’s best interests. For your business, Switzerland company formation might be the best way to maximise your profits.
There are a couple of options when it comes to companies. You can form a holding company, which is a company that is actually considered the flagship of your enterprise. It is the company that you incorporate in Switzerland. Then, you will buy your original company with your holding company. Technically, your business will be owned by a business in Switzerland. That will make you beholden to Swiss taxes.
Swiss taxes are nothing like the taxes of the United States or the United Kingdom. Despite common stereotypes, Switzerland is not completely tax-free. Depending on which province in Switzerland you work in, you could be subject to local taxes. The major issue is that you are not going to be beholden to the federal government for taxes. The Swiss Confederation typically only levys federal withholding taxes on companies that are resident in Switzerland. You’ll still have to pay canton and local taxes, but they will be much lower than you would be paying in some other Western country.
The stability of the Swiss franc and the stability of the Swiss government make the country ideal for sheltering your corporation. You don’t have to worry about economic downturns and recessions that can cut into your profit margins. Nothing is worse for your business than instability. Avoiding instability is the best way to make sure that you are able to create a successful business.
Switzerland is an incredible place to create a company because it is stable, taxes are low, and it has a generally pro-business climate. You should definitely look into forming a company in Switzerland.happy wheels