Expanding Your Business to Switzerland? What you need to know

Switzerland has almost been forced to build its wealth on foreign trade as it has really has no resources, but only has a limited surface area. The Swiss economic policy is based on the principle of free trade and industry guaranteed by the Federal Constitution, with low import duties and only a few import quotas. Most Swiss manufacturers are dependant on foreign markets to make investments in research and development worthwhile.

Is it viable to expand to Switzerland?
Switzerland has a sophisticated and amenable business culture and wealthy, discerning populace. There are many business opportunities here for companies that are interested in expanding business overseas. Switzerland has a high export rate when compared to other countries, in terms of the percentage of GDP. As it has a small domestic market, there is a large dependence on foreign markets.

Economic Overview
Switzerland has the second highest European rating after Ireland in the Index of Economic Freedom (2008). The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the second most competitive in the world. It has private sector economy and low tax rates by Western standards, and when compared to the other developed economies, the overall taxation here is the lowest.

The main business opportunities and important cities here
Switzerland is one of the world’s largest per capita food importers, with sectors growing in convenience foods, ethnic foods and organic foods. It also maintains a leading position in medical and pharmaceutical products. Switzerland is home to many highly skilled 2nd, 3rd and 4th tier suppliers, mainly to the German but also to other multinational automotive companies or manufacturers, and importance in going green coming from many states and governments now, eco friendly and organic chemicals are a growing industry here. Zurich, Bern, Geneva, Basle, Lausanne are some of the main cities worth considering when expanding here.

The challenges a foreign investor may face
With regard to the institutional framework and economic environment, Switzerland still faces some challenges. There could also be challenges in the other forms like trade barriers in certain sectors, lack of mutual recognition of foreign standards, a half-heartedly liberalized domestic goods market, and still far too many difficulties in hiring qualified foreign labor, etc. It could also include bureaucracy in the public sector too.


Taking adequate measures to overcome the challenges
Before expanding you business to Switzerland, it is necessary to research your chosen location, your target audience and potential growth of your chosen market. Business etiquette in Switzerland is the key to building the right kind of relationships. And this can be achieved by taking the help of a reliable business partner. You can find global expertise on all areas of business, be it HR, legal, finance, international financial accounting or regulatory filings. With large investments involved, you want to opt for best when choosing expert who can guide you in your international expansion. Your business can be made a success.

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Key Elements to Consider Before Expanding to Luxemburg

Being one of the richest cities in the world, Luxembourg is home to the European Investment Bank and is and is an attractive place to consider for a business expansion. What attracts entrepreneurs who are interested expanding here are its high-income, stable economy and low unemployment and inflation. Luxemburg is also a founding member of EU, NATO and UN, and has a highly developed economy with one of the highest GDP per capita in the world. Although the majority of the country’s output is accounted by the banking and financial services, there is a tremendous reliance on international trade, mainly due to the size of the country.

The main areas and cities for Business
The main areas for growth in business opportunities are finance, consumer goods, technologies, media technologies, etc. A well planned and researched business plan can help a business to obtain credit from a bank in Luxemburg. There is also a participation fund for small to medium sized enterprises (SME) and the self employed who are interested in getting finance for their business. Due to the size of the country, Luxemburg does not have too many cities, although there are a few like just a few Luxembourg, Esch-Alzette, Differdange, Dudelange, Echternach, which are good locations to conduct your business.

Taxation in Luxemburg
Taxation in Luxemburg can be quite high. Companies are subject to the Communities Income Tax (IRC). There is also a surcharge of 4 percent that is payable to the unemployment fund. At an average of 7.5 percent, there is a municipal tax that is also levied. Additionally there is a municipal commercial tax (ICC) that is applicable to commercial, industrial, mining, and craft entities established in Luxembourg at a rate of 3 percent. The VAT is the least in the EU, which is at 15 percent.

Challenges Foreign Companies Face
When expanding business overseas it is important to plan ahead and beware of the potential pitfalls. Before expanding your business, it is vital to do a thorough research of the market place. It is not always possible to be prepared gain a complete understanding of the laws of another country and therefore make sure you have a smooth transition. To get advice on the overall operational, administrational and executive aspects of your business, it is best to take the help of a professional. A business expert can give you all the essential help to follow the legal norms and fulfill all regulations in your business expansion right from international financial accounting to regulatory filings to taxation.

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