Business Administration in Switzerland

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Private Limited Company.
 
 
Minimum CHF 20,000. Maximum CHF 2 million.
Minimum 2 partners.
 
 
Liability is limited up to the registered capital and not to the amount contributed.
Statutes authentication and act of constitution by a public notary: 0.1% of the capital. Certification Act of commercial building statutes to obtain a legal entity: CHF 600 + 0.02% of the capital. Stamp fees: 1% of the capital (the first CHF 1,000,000 is exempt).
Public Limited Company.
 
 
Minimum 100,000 CHF.
Minimum 3 partners.
 
 
Liability is limited to the amount contributed.
Statutes authentication and act of constitution by a public notary: 0.1% of the capital. Certification Act of commercial building statutes to obtain a legal entity: CHF 600 + 0.02% of the capital. Stamp fees: 1% of the capital (the first CHF 1,000,000 is exempt).
General partnership.
 
 
No minimum capital.
Minimum 2 partners.
 
 
Liability is unlimited.
Statutes authentication and act of constitution by a public notary: 0.1% of the capital. Certification Act of commercial building statutes to obtain a legal entity: CHF 600 + 0.02% of the capital. Stamp fees: 1% of the capital (the first CHF 1,000,000 is exempt).
Limited partnership.
 
 
No minimum capital.
Two types of partners: active partners and sleeping partners.
 
 
Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.
Statutes authentication and act of constitution by a public notary: 0.1% of the capital. Certification Act of commercial building statutes to obtain a legal entity: CHF 600 + 0.02% of the capital. Stamp fees: 1% of the capital (the first CHF 1,000,000 is exempt).
 
Business Setup Procedures
After finding a location for establishing office, the company needs to be registered with the Office of Companies Register, if the annual turnover amounts to at least SF 100,000 (USD 1 = 1.20 Swiss francs). If annual turnover is under that amount, the company is not required to register.

Registration documents contain the company name, amount of share capital, business purpose, names of directors and managers, and names of those who have signatory powers. Documents must be notarized and legalized by an "apostille" (legalization of the notary's signature) and, if required by the particular canton, translated by a recognized translator into one of the official language used in the concerned canton.

Registration made in due form, is passed on the following day to the federal Office of the Companies Registrar which, upon approval, publishes it in the Swiss Official Business Sheet (FOSC).

The Competent Organization
The Chamber of Notaries (in French).
Search a Company or a Financial Report
Zefix

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Working Conditions

Legal Weekly Duration
45 hours for technicians and white collar employees.

50 hours for other employees (e.g. building industry and agriculture).

Retirement Age
65 years
Working Contracts
Legal clauses regulate employment contracts and to a lesser degree collective agreements and individual negotiations.Under Swiss law, foreign citizens need a residence permit and a work permit to get employed in the country.

The terms of employment contracts are rigid. Permission from the competent authority is therefore needed for the appointment of a foreign employee. The requirements relating to the nationality of employees depend on the type of the company. In case of a stock company, the majority of the members of the board of directors must have Swiss or EU/EFTA country citizenship and must be domiciled in Switzerland, whereas for any other type of company there are no similar restrictions.

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Cost of Labor

Minimum Wage
No minimum wages act in Switzerland. However safeguards are in place to prevent ‘wage dumping’ – the practice whereby the salaries paid to the workers from the EU countries are less than the local wages.
Average Wage
Approximately USD 3,000 per month for un-skilled workers, and USD 4,500 per month for skilled employees.
Social contributions
Social Security Contributions Paid By Employers: 5.05 %.
Social Security Contributions Paid By Employees: 5.05 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
Switzerland does not have strong trade unions. Labor/management relations are good, mostly characterized by a willingness on both sides to settle disputes by negotiations rather than by strikes.
Unions
SGB / USS SCHWEIZERISCHE GEWERKSCHAFTBUND UNION (Trade union centre)
Unionization Rate
25% of the country’s full-time workers are unionized.
Labor Regulation Bodies
Switzerland Labour Law Profile
Swiss Managers Union
Central Union of the Managers

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