Setting Up A Holding Company In Switzerland

15 Jul 2016 in Business

Switzerland is widely regarded as the home of banking and commerce in Europe. Almost all of the world’s biggest banks are headquartered in Switzerland, and many of the world’s biggest companies also have their headquarters in this beautiful country. Switzerland is the perfect destination for people who wish to start their own companies. The local laws are extremely encouraging for new business owners, making it easy for them to set up and start their own companies.

However, while the laws are quite encouraging for new businesses, they are also very well-defined and strict. If your company fails to meet the regulations and requirements as set by the Ordinance, the government is likely to slap a huge fine on your company. If you wish to set up a holding company in Switzerland, it’s important for you to first read the definition of a holding company in the Company Law Ordinance, and then hire a professional administration firm to help you out.

What Is a Holding Company?

In Switzerland, a holding company is defined as a company whose primary aim is to hold and manage its investments in other companies. According to the definition given by the Company Law Ordinance, any company that wishes to be classified as a holding company must not conduct any other business activities within the country.

It’s important to note that Switzerland is divided into different administrative divisions, known as cantons. The tax rates tend to vary among different cantons, so you must do your research. For example, Canton Zug is the most popular option for those who wish to set up a holding company. According to a recent study, one in every four holding companies in Switzerland is headquartered in Canton Zug.


Unless you have expert knowledge of the different regulations and laws pertaining to holding companies, it’s best to hire an administration firm to set up the holding company. For instance, there are certain requirements that must be met in order for your company to be classified as a holding company. One of the basic requirements is that the minimum holding period of any investment should be at least a year.

Not only will the administration firm guide you about the different regulations that you must meet, but it will also help you in incorporating the company. There are a number of things that need to be done, such as drawing up the memorandum of association and the articles of association.

All the relevant details must be highlighted and mentioned within the forms before being submitted to the registrar. Obviously, you won’t be able to begin trading unless you receive a certificate of commencement of business. When you hire an administration firm for the job, it will handle everything for you and get your company incorporated within a few weeks. Not only does this save a lot of time, but it also allows you to start trading in Switzerland very quickly. The firm will charge a fixed commission for its services.