{"id":991,"date":"2020-08-24T10:45:00","date_gmt":"2020-08-24T09:45:00","guid":{"rendered":"https:\/\/ajooda.ch\/en\/?p=991"},"modified":"2023-06-21T13:04:00","modified_gmt":"2023-06-21T12:04:00","slug":"branch-office-in-switzerland","status":"publish","type":"post","link":"https:\/\/ajooda.ch\/en\/branch-office-in-switzerland\/","title":{"rendered":"Branch office in Switzerland \u2013 Why it might be a smart choice"},"content":{"rendered":"\n

When setting up a company in Switzerland<\/a>, foreign companies can choose between establishing a subsidiary or opening a branch office in Switzerland.<\/p>\n\n\n\n

The most\ncommonly used corporate form to date has been the subsidiary. However, the\nbranch office in Switzerland is beginning to gain in popularity.<\/p>\n\n\n\n

However,\nwhen deciding on the type of structure that the company wants to establish in\nSwitzerland, the purpose of doing business in Switzerland and the independence\nof the new branch must also be taken into account.<\/p>\n\n\n\n

Both\nstructures are regulated by Swiss commercial law. However, there are some differences\nbetween these two types of companies. Therefore, the most important differences\nare briefly explained here. <\/p>\n\n\n\n

What is a branch office in\nSwitzerland?<\/h2>\n\n\n\n

A branch\noffice in Switzerland is a satellite of the foreign parent company without a\nlegal and independent identity. The parent company is liable for the\nliabilities such as debts and activities of the branch.<\/p>\n\n\n\n

The Swiss\nbranch may carry out any activity that represents the parent company and is\nwithin the scope of the parent company’s business purposes.<\/p>\n\n\n\n

Swiss\nbranches are also treated like any other company for income tax purposes, but\nunder certain conditions no tax is levied on profits transferred to the parent\ncompany. <\/p>\n\n\n\n

The Swiss branch must be registered in the Swiss Commercial Register<\/a> and requires at least one director resident in Switzerland. It must also have a registered office. <\/p>\n\n\n\n

It is\nimportant to note that the Swiss branch can be established under various\nbusiness forms, such as the limited liability company (GmbH), the general\npartnership or the limited partnership. <\/p>\n\n\n\n

Our team\ncan assist in the opening of any type of company, establish subsidiaries and\ntake care of the whole process of opening a Swiss bank account.<\/p>\n\n\n\n

Subsidiary vs. branch\noffice in Switzerland<\/h2>\n\n\n\n

A branch office is not a subsidiary.<\/strong><\/p>\n\n\n\n

Unlike a\nbranch office, a Swiss subsidiary is a company with its own legal personality.\nBasically, the absence of legal personality is the main difference to a\nsubsidiary.<\/p>\n\n\n\n

This is\nbecause the subsidiary is established in\naccordance with Swiss law and is considered an independent entity<\/strong>. Thus,\nthe company’s liabilities are limited to its own assets.<\/p>\n\n\n\n

The Swiss\nsubsidiary can be considered as an independent entity with a majority of\nshareholders and management in the parent company.<\/p>\n\n\n\n

A\nsubsidiary is normally registered as a Swiss limited liability company.\nFurthermore, the opening of a subsidiary in Switzerland does not require a\nbusiness license, but only an entry in the commercial register.<\/p>\n\n\n\n

A branch\noffice in Switzerland can be established by a domestic or foreign company.<\/p>\n\n\n\n

Advantages of a branch\noffice in Switzerland<\/h2>\n\n\n\n

When\ndeciding between a subsidiary or branch office in Switzerland, entrepreneurs\nshould know the following: <\/p>\n\n\n\n