Switzerland - Next global destination for your business

Switzerland’s multilingual and multicultural population can present business strategy, these elements make Switzerland a good potential test market to determine the viability of products for export and make Switzerland a hub for international business activities.

Switzerland Economy

Switzerland’s economic freedom score is 83.8, making its economy the 2nd freest in the 2023 Index. Its score is about the same as last year. Switzerland is ranked 1st out of 44 countries in the Europe region, and its overall score is higher than the world and regional averages.

Foreign Direct Investments

Foreign direct investment, net inflows (% of GDP) in Switzerland was reported at 3.4304% in 2022, according to the World Bank. Switzerland Foreign Direct Investment (FDI) increased by USD 13.9 billion in Mar 2023, compared to the previous quarter.

Opportunity Mapping

Switzerland serves as a test market for new high-tech and consumer products and is strategically placed as a gateway to EU markets. It is one of the world’s top countries for R&D, with further potential for partnerships in areas like medtech, nanotech, cleantech, and renewable energy.

India in Switzerland

India is one of Switzerland's principal partners in Asia. Regular high-level meetings and visits have strengthened relations between the two countries. Switzerland and India have signed numerous bilateral agreements covering a range of areas (trade, development cooperation, education and vocational training, visas, migration, air traffic, investment, finance, taxation and scientific and technological cooperation).

Indian companies having base in Switzerland are TCS, Infosys, Wipro & Mahindra Satyam.

Corporate Structure

Switzerland is a global leader in innovation and home to some of the largest multi-national companies in the world. It is also ranked one of the best places to live. 

Limited Partnership

The limited partnership is a partnership which contracts at least one natural person as an indefinitely liable partner (general partner) and at least one natural person, legal entity or commercial company as a partner with limited liability (limited partner) and does not require minimum capital.

Swiss Corporation (AG)

The AG must be formed by at least three shareholders. The liability of the company is limited to its assets. The minimum amount for the share capital must be CHF 100,000, of which at least CHF 50,000 or 20% (for larger capital) must be fully paid in.

Limited Liability Company (GmbH)

GmbH is an independent legal entity that requires a minimum share capital of CHF 20,000. At least 1 of the managing directors must be a Swiss resident and the company must have at least 2 shareholders, which don’t have to be Swiss citizens. The founders have the right to perform the duties of the governing bodies.

Foreign Entities in Switzerland

Foreign businesses are also allowed to have branch offices in Switzerland, offices that have to be registered with the Commercial Registry of the canton in which they are located and they need to have an appointed Swiss-resident representative. To open a bank account in Switzerland, a non-resident company would need to get in touch with a Swiss bank and request an application form, which is the same as going into a bank and asking to open an account for a resident one. 

Taxation System

According to the Global Competitiveness Index, investors’ property rights are strongly protected and investment incentives are barely distorted by taxation.

Corporate Tax

Switzerland levies a direct federal CIT at a flat rate of 8.5% on profit after tax. CIT is deductible for tax purposes and reduces the applicable tax base (i.e. taxable income) to 7.83%. As a general rule, companies in Switzerland pay a total corporate tax rate of somewhere between 11.9% and 21.0%.

Dividend Tax

A 35% withholding tax is levied on dividends paid by a Swiss corporation. Resident individuals, and legal entities, can get full refunds. Foreign shareholders that receive dividend from a Swiss company may be able to get a partial refund if their home country is part of tax treaty network.

VAT

The Swiss VAT system is in accordance with some EU VAT rules, despite Switzerland not being an EU member state. VAT is usually 7.7% on most commercial exchanges of goods and services. There’s a lower VAT rate of 3.7% applied to the hotel and lodging industry.

Taxation of Non Resident entities

Non-resident companies may be subject to Swiss CIT if they (alternatively) have a PE in Switzerland, own real estate property in Switzerland, are partners of a Swiss business, have loan receivables secured by a mortgage on Swiss real estate property, or deal with or act as a broker of Swiss real estate property. Non-resident companies are taxed on their income generated in Switzerland. Several double taxation agreements (DTA) ensure that individuals and legal entities who earn income in two countries are not taxed twice. At present, over 100 such DTAs are in force.

Foreign Entity Options

Switzerland is the best location for innovation. It offers stable political, economic and financial framework conditions combined with the highest standard of life. 

Branch Office

The branch office is a satellite of the foreign parent company with no legal and separate identity. The parent company will be accounted liable for the branch office’s liabilities. The Swiss branch office must be registered with the Swiss Commercial Register and requires at least 1 Swiss resident in the management board, it must also have a registered office. 

Subsidiary Company

The Swiss subsidiary can be regarded as an independent company with a majority of shareholders and management board in the parent company. A subsidiary is usually registered as a Swiss limited liability company. Opening a subsidiary in Switzerland does not require any business permits, only registration with the Commercial Register.

Joint Venture

Swiss law does not distinguish between foreign and domestic JV parties as such, and therefore offers a liberal framework for structuring a JV. A foreign investor is in principle free to set up a cross-border JV with a Swiss partner. The liability of each JV party is limited to its amount of subscribed share capital in the JV company.

Switzerland Business

Switzerland is the most competitive business center in the world. There are numerous good reasons to locate a business in Switzerland: innovation and technology, a liberal economic system, political stability, close links with foreign markets, excellent education and healthcare systems, an outstanding infrastructure, a high standard of living, and a competitive tax system. It is a highly industrialized technology location with leading research facilities and access to highly qualified specialists.

France -Next Global destination for your business 

France is a business-friendly country, with one of the largest markets in Europe, and access to the European single market. Its capital, Paris, is an important financial center in the region and the European leader in venture capital.

France Economy

The economy of France is a highly developed social market economy with notable state participation in strategic sectors. It is the world's seventh-largest economy by nominal GDP and the tenth-largest economy by PPP. constituting around 4% of world GDP.

Foreign Direct Investments

France attracts bulk FDI amongst its European counterparts, being 13th largest recipient of FDI in the world as per UNCTAD. Luxembourg, Switzerland, Netherlands and the United Kingdom are the main investors in France and represent more than 50% of the stock of FDI.

Opportunity Mapping

France is an economically refined nation with a large, diverse, and sophisticated consumer base. There are opportunities for exporters with innovative products in various sectors, including aerospace, consulting business, food products, pharmaceuticals, renewable energy technologies.

India in France

The economic ties between India and France have flourished, paving the way for enhanced cooperation and mutual prosperity. Trade relations have witnessed steady growth, with bilateral trade reaching an impressive $13.4 Bn in 2022-23, marking a significant 7.72% increase from the previous year.

Indian companies having base in France are Infosys, Wipro, Bharat Forge, Muragappa, United Phosphorus, Crompton Greaves (Avantha Group), Titagarh, Air Works, Biological E, Transasia and Axis Aerospace.

Corporate Structure

Entrepreneurs must be aware of the laws, rules, and regulations of France in order to successfully incorporate and operate a business there. It also give investors the option to choose the corporate structure that best suits their needs.

Limited Liability Company (EURL)

This can be considered as a special category of limited liability company as the EURL has only one shareholder. Its operating rules are very similar to those of the SARL. At the time of the company's constitution, at least 20% of cash contributions must be made available. 

Private Limited Company (SARL)

SARL is the most common form of company in France. This type of business can only be incorporated by at least two shareholders, and they can be natural or legal persons. This structure is usually recommended for small and medium-sized companies which are set up in France.

Public Limited Company (SA)

The SA is composed of at least two shareholders (and 7 if it is listed on the stock exchange) with a minimum share capital of 37 000 €. It is headed by a President and a Chief Executive Officer (who may be one and the same person) and by a Board of Directors composed of at least three people.

Foreign Entities in France

Certain formalities are imposed on different companies depending upon the type of business entity such as in the case of joint stock companies, at least 50% of the share capital must be deposited upon formation, the private company can have one or two directors, however, the minimum number is one and the public company must have a board of directors comprised of 3 to 18 members. French companies are also required to appoint auditors who will verify their accounts.

Taxation System

French investors benefit from a wide network of tax treaties with 122 nations, which helps them manage their businesses successfully and prevents double taxation on their income.

Corporate Tax

Large enterprises (annual turnover of EUR 250 million or more) are assessed to corporate tax at the unified standard rate of 25%. SMEs (turnover below EUR 10 million) are subject to a reduced corporate tax rate of 15% on profits up to EUR 42,500 and at standard rate on the excess over EUR 42,500.

Dividend Tax

Dividends paid to Investor are taxed at the rate of 21% on the gross amount of dividend received by Investors. The 12.8% withholding tax rate applies to foreign individuals in France, while the 28% tax rate applies to legal entities and private recipients.

VAT

The standard VAT rate in France is 20%. It applies to most goods and services. The two reduced VAT rates are 10% and 5.5%. The super-reduced rate is 2.1%. France also has some zero-rated goods, the sale of which must still be reported on your VAT return, even though no VAT is charged.

Taxation of Non Resident entities

Non-residents in France are only taxed on their French-sourced income. Non-resident taxes are typically collected by withholding at the source. These withholding taxes are applied at progressive rates of 0%, 12%, and 20%, depending on the total amount of taxable income. A non-resident company is subject to CIT in France on income attributable to French business activity or to a French PE, as well as on income from real estate located in France. Non-resident companies are not taxable in France regarding capital gains derived from the disposal of French assets unless these are part of a PE.

Foreign entity Options

The French economy remains diversified and relatively resilient. Entrepreneurship is made possible by institutional characteristics including robust property rights protection and a generally effective regulatory environment. 

Branch Office

A branch is an office through which a foreign company engages in business in France. The branch has no independent legal personality although for tax and foreign financial relations purposes it is treated Independent. Foreign company is directly and fully responsible for all liabilities and undertakings of its French branch office.

Subsidiary Company

The subsidiary company is a separate legal entity created under and governed by French law. It is an independent entity from the foreign parent company shareholder and, in principle, shareholders have no liability for the debts or undertakings of the subsidiary, the recourse of the subsidiary's creditors or co-contracting parties being limited to the assets of the subsidiary.

Joint Venture

There are 2 types of JV's, First is Corporate JV which can take the legal form of a group or of a commercial company with or without limitation of liability. Second is Contractual JV, this must comply with the general rules of contract law. It has no separate corporate personality from the parties to it.

France Business

France is the second largest EU economy. Three sectors dominate its employment: health & social care, wholesale & retail trade and manufacturing. Some leading global companies have their headquarters in France. France has a stable business climate that attracts investors from around the world. The French government devotes significant resources to attracting foreign investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms. 

The G20 summit held under the Presidency of India has given the message of remembering that the 21st century is a time that has the potential to give a new direction to the entire world. It's a time when years old challenges demand new solutions from us. Our Honorable Prime Minister Narendra Modi has stated his belief in One Earth-One Family-One Future.

StartanIdea has a vision of connecting cities, countries and destinations as one big business platform. This can only be achieved when the three life cycles of a business are taken care of at one place, working as one big family of global and local professionals. This vision will thrust the business growth by combining local benefits and incentives into a global masterpiece.

The recently concluded G20 summit under the Presidency of India has adopted a New Delhi Leaders' Declaration and the motto of this Presidency was "One Earth One Family One Future". StartanIdea has conceptualize and aligned its vision and mission in line with long term goals of G20 and has adopted its own motto of "Global Presence Global Solution Global Business".

• We support the G20 mantra of “One Earth” and envision to create a product that instils trust and confidence amongst businesses to expand their “Global Presence” to every nooks & corners of World.
• We adhere to the idea of "One Family" and promise to create true “Global Solution” a Single Entity - Master service provider for all compliance, governance, operations and exit advisory requirements on Global scale . 
• We promise "One Future" by bridging the dreams of "Global Businesses" and advising them on availing the best wealth creation and expansion opportunities by aligning international policies and incentives available around the World . 

Kenya- Economy and Opportunity

Kenya Showcase

Next global destination for your business

Kenya has a market-based economy and is generally considered the economic, commercial, financial and logistics hub of East Africa. Kenya has aboilshed price & exchange controls alongwith government initiatives for macro economic sustainability.

Kenya Economy

Kenya’s economic performance softened in 2022 though country’s long-term growth rate has increased over the time. Real GDP expanded by 4.8 percent in 2022, The GDP of Kenya stood at 113.42 billion USD in 2022 and is expected to reach 119.66 billion USD by the end of 2023.

Foreign Direct Investments

Kenya’s total stock of FDI stood at $10.4bn, with major investors including the UK, Mauritius, the US, South Africa and France. FDI stock is predominantly concentrated in finance and insurance (around 33%), information and communication (16.1%), wholesale and retail (15.4%) and manufacturing activities (14.8%).

Opportunity Mapping

Kenya has witnessed growth in entrepreneurship and innovation which has resulted in the rise of small businesses in the country. The government is encouraging and supporting the growth of small and medium-sized enterprises (SMEs) with key sectors being agriculture, manufacturing, real estate, services & energy sector.

India in Kenya

India and Kenya are maritime neighbours with robust and multi-faceted partnership, marked by regular high-level visits, increasing trade and investment and extensive people to people contacts. In 2021, India export accounted $2.55B to Kenya. The main products that India exported to Kenya are Refined Petroleum ($504M), Packaged Medicaments ($253M), and Semi-Finished Iron ($149M). Indian companies have a significant presence in Kenya like the Tata Group, Essar, Reliance Industries and Bharti Airtel.

Kenya is one of Africa's top investment destinations and, as a centre for commerce, finance, and logistics, it provides a variety of corporate structures to potential investors.

Limited Liability Partnership

Partners within a LLP are classified into 2 classes. One is general partners who engage in full management and control of the business and accept full personal responsibility for the liabilities and other is limited partners who have no personal liability beyond their investment.

Private Limited Company

They are separate and distinct entities from their owners and are registered for tax as a separate entity. It has its own rights, obligations and a life separate from its owners. It requires a minimum of at least one director and a maximum of 50 members.

Public Limited Company

The public can buy and sell shares in the company. The company shares can be traded at the Over The Counter (OTC) market and the Nairobi Securities Stock Exchange. It requires a minimum of 7 shareholders and 2 directors and has no maximum limit.

Foreign Entities in Kenya

A Kenya private limited company requires minimum of 1 director & 1 shareholder of any nationality who can be
living outside of Kenya. However, foreigners wishing to relocate to Kenya by obtaining an entrepreneur visa are
required to show that they have (or will) invest at least US$100,000 in the company. After business setup in Kenya, all companies are required to first register for tax with the Kenya Revenue Authority and then prepare financial statements, which must always be audited.

The Kenya Revenue Authority (KRA) is the agency in charge of the collection and receipt of all revenue on behalf of the Kenyan government making the process straightforward and adaptable for its users.

Corporate Tax

Resident companies are taxable in Kenya on income accrued or derived from Kenya. They are also charged for business activities outside Kenya. The rate of CIT for resident companies, including subsidiary companies of foreign parent companies, is 30%.

Dividend Tax

Dividends received by a resident company from a company where it holds directly or indirectly more than 12.5% of the shares is exempt from tax. This means that dividend received by a resident company from its local or foreign subsidiary is tax exempt. The tax rate for dividends paid to Kenya residents is 5%.

VAT

The value added tax is a tax that is applicable to the sale or import of taxable goods and services, and is administered by the Kenya Revenue Authority. If the taxable supplies worth 5,000,000 KES or more within a year, then one have to register for VAT. The rate vary from 0% to 16%.

Taxation of Non Resident entities

Non-resident companies are subject to Kenya Corporate Income Tax (CIT) only on the trading profits attributable to a Kenyan PE. Where a non-resident person carries on business in Kenya through a permanent establishment, the income attributable to the PE will be considered income accrued in or derived from Kenya and it will be subject to tax at the non-resident CIT rate of 37.5%. Lower rates may apply to non-residents where there is a DTT in force which can vary from 5% to 20%.

The government has initiated various reforms to hasten, streamline and simplify procedures which directly affect businesses with reference to the Doing Business Indicators by the World Bank.

Branch Office

Branch Registration is a requirement for all companies incorporated outside Kenya that intend to operate in Kenya. Branches must have a local representative resident in Kenya, who may be a citizen or a non- citizen. It is taxed at 37.5%.

Subsidiary Company

A subsidiary is considered a local company with compliance requirements similar to those of local companies. It is taxed as resident entity, at the rate of 30% with the local tax benefit available to it.

Joint Venture

For JV in Kenya, the partners must first register the venture with the Registrar of Companies. The registration process involves submitting the company’s memorandum and articles of association, details of the partners.

Kenya Business

Kenya posted tremendous growth in the services sector, contributed mainly by tourism, real estate and financial
sectors, and which now contributes more than 50% of GDP. India is one of the largest exporters of goods to Kenya, especially in sectors like refined petroleum and pharmaceuticals. The Foreign Investment Protection Act (FIPA) of Kenya guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits including uncapitalized retained profits.