Every business owner faces challenges, but if you own an international business, your business will have to be structured a little differently. It’s common for international businesses to need different sorts of accounts and to have provisions set in place so they are easy to run. One way that many business owners improve their international business and make sure it is operating to the best of its ability is by using a foreign holding company. There are a number of benefits that businesses and their owners enjoy when they go this route.
It’s More Tax Efficient
All businesses are subject to taxes, and it’s important that you understand how to operate in a way that will decrease or limit the amount you have to pay. When you have a Swiss holding company, you will be able to take advantage of some of the taxes advantages available in this country. The cantonal tax exemption and the concessions in regards to federal taxes will both increase tax exemptions and ensure that certain income is exempt from cantonal income tax.
This means that profits, dividends, and even the income from interest can all be exempted from taxes. As long as your company meets the regulations for the cantonal tax exemption, your business can save a lot of money in unnecessary taxes.
It’s Stable
While you can open a holding company in a number of different countries, Switzerland has a number of benefits, making it a popular location for many companies. This country is characterised by political and economic stability, which ensures that business owners don’t have to worry about problems in the government negatively affecting their business. In addition, the workforce there is multi-lingual, which is important if you want your company to be truly international. Being able to communicate not only with customers, but with other businesses all around the world as well is important and can set you apart.
It’s Centrally Located
Europe is a huge business hub, and Switzerland is able to communicate with all of the European countries in real-time and also able to communicate with Asia and the United States in the same business day. This ensures that your trades and conversations happen real-time and keeps you from worrying about if you can communicate with important people in other countries.
While there are a number of conditions your holding company will have to meet to be able to operate in Switzerland and to take advantage of all of the benefits, it’s worth it to look into how to make this happen for your company. Make sure you verify the tax rate your company will fall under to ensure you will benefit from the cantonal tax exemption, and then you are on your way to running a successful global company.
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