A domiciled company (a.k.a. an offshore or letterbox company) is a company which is incorporated in Switzerland but has no real offices there. Such companies get a permanent tax exemption and pay only 8% of net profit in taxes, provided they have been incorporated somewhere in one Swiss canton and have no business activity within Switzerland.

The typical Swiss domiciled company is an SA or (limited share corporation) incorporated in Zug or Fribourg cantons where taxes are very low. There, holding and domiciled companies are granted permanent tax exemptions from all state and local taxes, and are required to pay only about 8% of their profit (working out the exact amount involves complicated calculations). To be eligible for such a tax holiday, a company must have its main commercial activity outside Switzerland.

Also, if your company is large enough to warrant the setting up costs, you can use a Dutch sandwich to avoid having to pay withholding tax on dividends paid by the Swiss domiciled company.

Many famous companies are incorporated in some specific Swiss cantons, notably because of their low taxes and business-friendly atmosphere. Of course these big companies do employ people, pay taxes and contribute to the local economy, and this is profitable for both the company and the country.

We can create a new company for you in just a few days and provide you with all the accounting, fiscal, real estate and recruiting assistance you need. Contact us to check whether such a company would be a good option for you.