Switzerland

The Swiss Confederation was founded in 1291 as a defensive alliance among three cantons. In succeeding years, other localities joined the original three. The Swiss Confederation secured its independence from the Holy Roman Empire in 1499. Switzerland's sovereignty and neutrality have long been honored by the major European powers, and the country was not involved in either of the two World Wars. The political and economic integration of Europe over the past half century, as well as Switzerland's role in many UN and international organizations, has strengthened Switzerland's ties with its neighbors. However, the country did not officially become a UN member until 2002. Switzerland remains active in many UN and international organizations, but retains a strong commitment to neutrality.

Switzerland has one of the most sophisticated and discreet financial infrastructures in the world. Accordingly, one-third of all internationally invested private wealth is deposited in Swiss institutions. The two largest banks are Credit Suisse and UBS, both of which maintain an extensive network of branches worldwide. Switzerland has approximately 400 other banks ranging in size from multinational institutions to banks serving the needs of a few select clients. Private banking services including portfolio management are typically available to account holders with a USD 500,000 minimum deposit.

In addition to its world-class financial institutions, Switzerland is an ideal jurisdiction for incorporation and management of multinational entities. This is due to efficient government administration, highly educated and multilingual workforce, sensible tax system, and high quality of life. Many well known multinational companies have selected Switzerland as their global or regional headquarters including Alcoa, Gillette, Procter & Gamble, eBay Europe, DuPont, Schering-Plough, Cemex, Estee Lauder, and Medtronic International.

There are two entities available in Switzerland: Corporation (SA or AG) and LLC (GmbH). A corporation can provide bearer shares and hold reasonable retained earnings. The owners of the LLC are publicly listed/disclosed and profits are passed through to the owner(s) (no retained earnings).The Corporation requires paid in capital of approximately $84,000 (100,000 CHF). Once formation is complete, you can expense paid in capital by paying invoices, etc. You are not required to keep paid in capital in your bank account…though, most Swiss directors will require you to indemnify the company for any losses up to 100,000 CHF.