Business Environment in Switzerland and Trade Links with Turkey
Switzerland offers an attractive business environment for foreign investors thanks to its strong financial system, stable economic structure, and proximity to international trade centers. High legal certainty, a developed banking infrastructure, and hosting global companies make Switzerland a strategic center in terms of regional organization.
For Turkey-based companies, Switzerland ranks among the countries evaluated in terms of holding structures, trade activities, technology investments, and financial organizations.
Country Overview
Official Name: Swiss Confederation
- Capital: Bern
- Population: Approximately 9 million
- Official Language: German, French, Italian, and Romansh
- Religion: Various religious structures; predominantly Christianity
- Climate: Temperate continental and mountain climate
- Time Zone: UTC+01:00
- Country Code: +41
- Currency: Swiss Franc (CHF)
How to Set Up a Company in Switzerland?
Main Types of Companies
- Limited Liability Company (GmbH / Sàrl)
- Public Limited Company (AG / SA)
- Branch
- Representative Office
These models, which have similar characteristics to limited and public limited companies in Turkey, are often preferred by foreign investors.
Establishment Process
- Determining the company name
- Preparing the articles of association
- Appointing managers and partners
- Notary procedures
- Trade Register registration
- Obtaining a tax number
- Opening a bank account
The establishment process in Switzerland can proceed on a canton-by-canton basis, and bank compliance processes can be decisive in time planning.
Documents Required for Company Formation
For natural person partners:
- Passport copies
- Address verification documents
- Company formation documents
- Manager appointment information
For corporate partners:
- Company formation document
- Trade registry registration example
- Articles of association
- Board of directors decision
- Apostilled company documents
Documents and compliance processes may affect the time planning for structures in which Turkey-based companies are partners.
Is a Local Partner or Local Manager Required?
Foreign investors in Switzerland can own all of the company’s shares. A local partner is not required. However, for some types of companies, it may be necessary to have a signatory authorized to reside in Switzerland in the company’s management.
Swiss Tax System and Tax Comparison with Turkey
Corporate Tax
- Switzerland: Varies by canton, ranging from 12% to 21% on average
- Turkey: Different rates may apply depending on current legislation.
Value Added Tax
- Standard rate: 8.1
- Turkey: The standard VAT rate is applied at different levels.
Withholding Taxes
- Dividend payments: Withholding tax of up to 35% may apply (may vary depending on agreements)
Tax advantages may be available for certain payments under the Turkey-Switzerland Double Taxation Agreement. Financial structuring and transfer pricing planning should be evaluated during the establishment phase for Turkey-based companies.
Accounting System and Operational Compliance with Turkey
The accounting system in Switzerland is structured in accordance with international financial reporting standards. Financial reporting and annual account closings are carried out regularly, and digital tax systems may vary by canton.
Legal Compliance Processes
- Annual financial reports
- Corporate tax returns
- VAT reporting (if applicable)
- Payroll reports
System adaptation is possible for investors accustomed to accounting processes in Turkey; however, local practices may vary by canton.
Bank Account Opening and Turkey-Related Companies
Turkey-based groups should pay attention to the following issues when opening a bank account in Switzerland:
- Transparency of the ultimate beneficial ownership structure
- Clarity of the business plan
- Banking compliance processes
Swiss banks may conduct detailed reviews of international structures.
Swiss Tax Residency Assessment
If the actual management of a company established in Switzerland is conducted from Turkey, this may require a tax residency assessment. Therefore:
- Where management decisions are made
- The actual place of business of the manager
- Intra-group contracts
should be planned during the establishment phase.
Checklist for Starting a Company in Switzerland
- Determining the legal address
- Completing the appointment of managers
- Tax registration
- Activating the bank account
- Establishing the accounting system
- Payroll and social security records
- Access to the digital tax portal
- Planning financial flows with Turkey
Social Security and Labor Legislation
In Switzerland, employers are required to register their employees with the social security system. Employer and employee contribution rates are calculated based on salary, and the system may vary by canton.
Company Formation Timeframe in Switzerland and Planning Perspective with Turkey
Average Durations
- Documentation preparation: 3–7 business days
- Company registration: 7–14 business days
- Bank compliance process: 10–25 business days
- Operational activation: 3–5 business days
Average total process: 3–6 weeks
Common Timing Mistakes Made by Investors
- Thinking that company formation alone is sufficient for operations
- Underestimating banking processes
- Not considering economic asset requirements
- Evaluating tax planning after incorporation
As the OzbekCPA team, we provide support in company formation, tax compliance, accounting organization, and corporate governance processes for investments to be structured between Turkey and Switzerland. Contact us.
