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THE CANTON of VAUD AS a BUSINESS LOCATION Handbook for Investors

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THE CANTON of VAUD AS a BUSINESS LOCATION Handbook for Investors THE CANTON OF VAUD AS A BUSINESS LOCATION Handbook for Investors IN COLLABORATION WITH Cover image: A. Herzog, EPFL, Lausanne © SWITZERLAND GLOBAL ENTERPRISE April 2018 All rights reserved Editorial Welcome to the canton of Vaud! The canton of Vaud is among those leading the way in terms of growth in Switzerland. An economic development strategy implemented over 15 years ago has borne fruit, with the canton now among the areas in Europe which saw their gross domestic product (GDP) increase by 40% in real terms between 2000 and 2015. A policy of diversification of the economic fabric combined with measures to support innovation mean that Vaud can now look to the future with serenity. The canton is in excellent financial health and has corporate tax policies that enable business leaders to plan for the long term, making it a very attractive place for foreign investors. With its unparalleled scientific ecosystem, our canton welcomes both small and medium-sized businesses looking to extend their commercial activities abroad (to Europe, the Middle East, and Africa, for example) as well as multinationals seeking a location for their headquarters whilst benefiting from direct access to leading research and development competencies, and multicultural talents. The presence of a number of university institutes, including the EPFL (Swiss Federal Institute of Technology of Lausanne), provides a unique framework for fundamental and applied research to work in collaboration with industry. The Economic Development Canton of Vaud (DEV) is an official partner of the Department of the Economy, Innovation and Sport of the canton of Vaud, and is available to provide tailored guidance to investors and companies from abroad for all of the steps required to set up business in the canton. This guide will provide you with useful and detailed information on the framework conditions provided by Switzerland in general, as well as the Jean-Frédéric Berthoud specific advantages of the canton of Vaud. Director, Economic Development Canton of Vaud (DEV) Whatever your project, we will be delighted to welcome you to our offices to discuss matters and answer any questions you may have – and of course to convince you to establish your business in the canton of Vaud. Jean-Frédéric Berthoud Economic Development Canton of Vaud (DEV) HANDBOOK FOR INVESTORS 2018 3 Vaud Investment Promotion Agency The DEV, formally known as the Economic Development Canton of Vaud, is a private association funded by the canton of Vaud and its members. Its mission is to facilitate and encourage foreign companies to register in the canton. As a one-stop shop, the DEV supports and accompanies foreign firms throughout all the stages of their implementation, including referrals to government agencies, the sharing of experiences among similar projects, support for acquiring land and premises, assistance in filing applications for work permits, and contacts with potential local partners. Its wide-ranging services all aim to guide businesses by facilitating exchanges with the administration and enabling them to benefit from its experience, knowledge, understanding of the terrain, and economic expertise. In its promotion of foreign investments, the DEV is the canton of Vaud’s antenna for the Greater Geneva Berne area (GGBa), a network for the acquisition of companies in western Switzerland (the cantons of Berne, Fribourg, Vaud, Geneva, Neuchâtel, and Valais). Image EPFL, Lausanne Table of Contents VAUD – 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 Dynamic Poles of Excellence ......................................................... 12 An Efficient 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 Stable Political System .................................................................. 15 of Trade Restrictions ......................................................... 44 Liberal Business Environment....................................................... 16 3.1.2 Customs and Excise .......................................................... 44 “Swiss Made”: Universally Acclaimed Expertise........................... 17 3.1.3 Rules of Origin ................................................................... 45 Attractive Tax Regime ..................................................................... 18 3.2 Protection of Free Competition ........................................ 45 Authorities Readily Available to Assist Businesses ....................... 19 3.3 Protection of Intellectual Property ................................... 46 3.3.1 Patents ............................................................................... 46 ENVIRONMENT AND LIFE 20 3.3.2 Trademarks ....................................................................... 48 A Unique Quality of Life ................................................................. 21 3.3.3 Design................................................................................ 48 An International Environment ...................................................... 22 3.3.4 Copyright ........................................................................... 48 Cutting-Edge Infrastructures ......................................................... 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 in Switzerland ................................. 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 Branch Office .................................................................... 60 2.3.2 Machinery, Electrical Engineering, and Metals Industry 39 5.1.4 Limited
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