Switzerland As a Business Location
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A Handbook for Investors SWITZERLAND AS A BUSINESS LOCATION SWITZERLAND AS A BUSINESS LOCATION A BUSINESS SWITZERLAND AS Cover image: Rolex Learning Center, Ecole polytechnique fédérale de Lausanne (EPFL), Lausanne © SWITZERLAND GLOBAL ENTERPRISE March 2015 All rights reserved Welcome Dear Reader, Can there be a more important decision in a globalized world than choosing where to locate your business? I have spent over 20 years as a founder and executive of various companies in different countries, and during this time I have seen that this decision is of the utmost importance. A country’s capacity for innovation fuels the performance of your own busi- ness. A business-friendly climate and well developed infrastructure are essen- tial considerations. Political stability lends certainty to your planning. A high standard of living makes it easier to recruit and inspire talented indivi- duals. Switzerland, as a unique business location, offers all this and more. In this handbook we have put together a detailed, carefully researched collec- tion of information and data. After all, before you make a crucial decision you must have all the necessary information at your fingertips. So whether you are an investor or a consultant, this book provides all the information you need, organized under the categories of Innovation and Technology, Security and Trust, and Environment and Life. Switzerland Global Enterprise is represented around the globe by Swiss Busi- ness Hubs and provides support and advice for your business projects. We will be happy to discuss your ideas and answer your questions, in complete confidentiality; you’ll find the necessary contact details in this book. We work closely with our partners in cantonal and regional business development agencies as well as numerous associations, organizations, and service provid- ers, whose contact details are also listed. Working with these partners and our client, the State Secretariat for Economic Daniel Küng Affairs (SECO), we have been marketing Switzerland as a business location and CEO, Switzerland Global Enterprise a vibrant place to live for many years. We feel proud that our country boasts a culture that welcomes and rewards entrepreneurial spirit and talent like yours. Whether you are an entrepreneur or a direct investor, your ideas, plans, and aspirations will find a warm welcome in Switzerland! Daniel Küng HANDBOOK FOR INVESTORS 2014 3 Investment Promotion As part of its remit from the State Secretariat for Economic Affairs SECO and the cantons, Switzerland Global Enterprise (S-GE) provides potential foreign investors with information about the particular strengths and operating conditions of Switzerland as a business location. Its services for foreign companies include assessing the potential of their projects before they are presented to the cantons. S-GE assists the cantons with the relocation of foreign companies, pro- viding market and trend analyses and coordinating the activities of all the bodies involved in the promotion of Switzerland as a business location. Image Executive Campus HSG, St. Gallen Table of Contents SWITZERLAND – YOUR BUSINESS LOCATION 8 2.3.4 Cleantech ......................................................................... 40 2.3.5 Company Headquarters .................................................. 40 INNOVATION AND TECHNOLOGY 10 2.3.6 Financial Services ............................................................ 41 Research and Development Hub ................................................. 11 2.3.7 Trading and Resources .................................................... 41 Leading Industry Clusters ............................................................. 12 Strong Education System .............................................................. 13 3 ECONOMIC FRAMEWORK 42 3.1 International Exchange of Goods and Services .............. 44 SECURITY AND TRUST 14 3.1.1 Free Trade Agreements, WTO, and Elimination Reliable Governance ..................................................................... 15 of Trade Restrictions ........................................................ 44 Liberal Labor Market ..................................................................... 16 3.1.2 Customs and Excise ......................................................... 44 Sound Financial and Capital Market ............................................ 17 3.1.3 Rules of Origin .................................................................. 45 Attractive Taxes .............................................................................. 18 3.2 Protection of Free Competition ....................................... 45 Easy Start-Up Process .................................................................... 19 3.3 Protection of Intellectual Property .................................. 46 3.3.1 Patents .............................................................................. 46 ENVIRONMENT AND LIFE 20 3.3.2 Trademarks ...................................................................... 48 Unique Quality of Life ................................................................... 21 3.3.3 Design ............................................................................... 48 International Environment ........................................................... 22 3.3.4 Copyright .......................................................................... 48 Reliable Infrastructure .................................................................. 23 3.4 Product Regulations and Product Liability ..................... 49 3.4.1 Foodstuffs ......................................................................... 49 1 SWITZERLAND – FACTS AND FIGURES 24 3.4.2 Pharmaceutical Products ................................................ 50 1.1 Geography ........................................................................ 25 3.4.3 Medical Devices ............................................................... 50 1.2 Climate ............................................................................. 25 3.5 Land Use Planning and Environmental Protection ........ 51 1.3 Political System ................................................................ 26 3.5.1 Building and Zoning ........................................................ 51 1.3.1 Federal Structure .............................................................. 26 3.5.2 Environment .................................................................... 51 1.3.2 Separation of Powers at Federal Level ............................ 26 1.3.3 Direct Democracy and the Concordance System ........... 27 4 SWITZERLAND AND EUROPE 52 1.3.4 Political Stability and Social Harmony ............................ 27 4.1 Trade and Direct Investments ......................................... 53 1.4 Public Finance .................................................................. 28 4.2 Political and Economic Cooperation .............................. 53 1.5 Neutrality .......................................................................... 28 4.2.1 Free Movement of Persons .............................................. 54 1.6 Population ........................................................................ 28 4.2.2 Schengen Agreement ....................................................... 55 1.7 Cosmopolitanism and International Outlook ................ 29 4.2.3 Elimination of Technical Barriers to trade ...................... 55 1.7.1 Languages and Origins .................................................... 29 4.2.4 Research ........................................................................... 55 1.7.2 International Organizations ............................................ 29 4.2.5 Rail, Road, and Air Transport .......................................... 55 1.8 Switzerland in Figures ..................................................... 31 4.2.6 Public Procurement ......................................................... 56 4.2.7 Trade in Agricultural Products ........................................ 56 2 ECONOMIC STRUCTURE 32 4.2.8 Taxation of Savings Income ............................................. 57 2.1 Gross Domestic Product and Industry Structure ........... 33 4.3 The Euro ........................................................................... 57 2.2 International Integration ................................................. 36 2.2.1 Goods and Services Trade ............................................... 36 5 ESTABLISHING AND MANAGING A COMPANY 58 2.2.2 Direct Investments ........................................................... 37 5.1 Corporate Structures ........................................................ 59 2.3 Key Industry Clusters ....................................................... 38 5.1.1 Stock Corporation (AG) .................................................... 60 2.3.1 Life Sciences: Chemicals / Pharmaceuticals, 5.1.2 Limited Liability Company (GmbH) ................................ 60 Biotech, Medtech ............................................................. 38 5.1.3 Setting Up a Branch Office ............................................... 60 2.3.2 Machinery, Electrical Engineering and Metals Industry .. 39 5.1.4 Limited Partnership for Collective Investment ............... 60 2.3.3 Information and Communications Technology ............. 39 5.1.5 Sole Proprietorship .......................................................... 63 A HANDBOOK FOR INVESTORS 2014 5 5.1.6 General Partnership ......................................................... 63 8.4.3 Daytime