Branch: General Information

A branch is a structural part of a company which carries on its activity at the territory of a foreign country. Legally it is the one business entity with the same business activity. A branch represents the head office of the company abroad or in other region within the same country. It has the same name as the parent company. A branch and a parent company may be not connected by the same business field and a branch is obliged to function within the same business sphere as its head office does.

Advantages of a Branch in Switzerland

• Branch establishment is simplified in comparison with the complete company formation and requires much less set-up costs
• To have its own branch in Switzerland is prestige and trustworthy for any business
• No own starting up capital for a branch is required
• Tax fees are lower than for the companies registered as AG and LLC or other complete companies

Conditions

Any foreign company is allowed to establish its own branch in Switzerland. A branch should be registered at the Commercial Register. A branch which is a small business must not be listed at the Commercial Register, but it is highly recommended as most people and companies prefer not to deal with the non-registered firms. It is required to have at least one manager who has a permanent residence in Switzerland.
A branch in Switzerland is obliged to have enough independence from its head office, having its own business premises, management, employees and accounting. It should have a permission to sign any documents and contracts without the participation of the head office.
A Swiss branch as a structural part of the parent company cannot function if the head office is being liquidated.

Liability

Despite some functional and financial independence of a branch, the liability of its activities lies completely on the head office.

Prices

Initial Setup Fee: CHF 890 once
Domicile Address: CHF 100 per month
Minimum Contract: 6 months