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Handbook for Investors HANDBOOK FOR INVESTORS THE PERFECT SETTING TOINN VEST Cover image: Nestlé/Samuel B., Adobe © SWITZERLAND GLOBAL ENTERPRISE May 2021 All rights reserved Editorial Welcome to the canton of Vaud! The canton of Vaud, located in French-speaking Switzerland, provides exceptional opportunities for companies to innovate and thrive in the heart of Europe. Our region offers an array of innovation support programs, backed by a policy of economic diversification, giving businesses in all industries a solid footing for growth and international expansion. Vaud now sits at the top of the global league tables for innovation and technology, and is one of Switzerland’s fastest-growing cantons. All that makes Vaud the ideal setting for firms of any size or industry looking to expand on the European continent. Whether you choose to set up a headquarters, R&D center, manufacturing plant or research lab, in Vaud, you’ll benefit from our region’s large, multicultural pool of skilled workers and active, closely-knit innovation ecosystem. A base in Vaud will let you leverage synergies with other high-tech firms and team up with local research institutes and engineering schools – like EPFL – to develop cutting-edge products and services for customers worldwide. In addition, your company’s image will be underpinned by Switzerland’s quality reputation and economic and political stability, and your employees will enjoy the unparalleled quality of life here. At Innovaud, our job is to help companies set up in Vaud and take advantage of the many benefits our region has to offer. And because we are the canton’s official innovation and economic-promotion agency, our services are available free of charge. In this guide we provide useful, detailed information on setting up and running a business in Vaud and in Switzerland more generally. Be sure Patrick Barbey to let us know if you have any questions or would like more information. Director, Innovaud Happy reading, and we hope to see you soon. Patrick Barbey Innovaud HANDBOOK FOR INVESTORS | INNOVAUD | INNOVAUD.CH | [email protected] 3 Innovaud: Vaud’s innovation and economic promotion agency Innovaud is a non-profit agency funded by its members and the canton of Vaud. We give foreign companies a one-stop shop for help with the various steps involved in setting up a business here. Our services include referring you to the right government agencies, sharing the lessons learned from similar businesses, helping you find the right site and premises, guiding you through the work-permit process, and putting you in touch with potential partner businesses and R&D centers. All our services are provided free of charge and are intended to streamline dialogue and exchange with local businesses and authorities, allowing you to benefit from their experience, knowledge, and understanding of the local economy and innovation ecosystem. As part of our promotion efforts, we work with Greater Geneva Bern area (GGBa) – the economic development agency for western Switzerland, spanning the cantons of Vaud, Bern, Fribourg, Neuchâtel, Geneva, and Valais. Image SwissTech Convention Center, swiss-image.ch Table of Contents VAUD – YOUR BUSINESS LOCATION 8 2.3.5 Blockchain ......................................................................... 37 2.3.6 Life Sciences ..................................................................... 37 INNOVATION AND TECHNOLOGY 10 2.3.7 Engineering ....................................................................... 38 Research and Development Hub .................................................. 11 2.3.8 Information and Communication Technology (ICT) ..... 38 Dynamic Poles of Excellence ......................................................... 12 2.3.9 Finance .............................................................................. 39 An Efficient Educational System.................................................... 13 2.3.10 Headquarters in Switzerland............................................ 39 SECURITY AND TRUST 14 3 ECONOMIC FRAMEWORK 40 Stable Political System .................................................................. 15 3.1 Economic Freedom .......................................................... 41 Liberal Business Environment....................................................... 16 3.2 International Exchange of Goods and Services ............... 42 “Swiss Made”: Universally Acclaimed Expertise .......................... 17 3.2.1 Free Trade Agreements, WTO, and Elimination Attractive Tax Regime ..................................................................... 18 of Trade Barriers ............................................................... 42 Authorities Readily Available to Assist Businesses ...................... 19 3.2.2 Customs and Excise .......................................................... 42 3.2.3 Rules of Origin ................................................................... 43 ENVIRONMENT AND LIFE 20 3.3 Protection of Free Competition ........................................ 43 A Unique Quality of Life ................................................................. 21 3.4 Protection of Intellectual Property ................................... 43 An International Environment ..................................................... 22 3.4.1 Patents ............................................................................... 43 Cutting-Edge Infrastructure........................................................... 23 3.4.2 Trademarks ....................................................................... 44 3.4.3 Design................................................................................ 45 1 SWITZERLAND – FACTS AND FIGURES 24 3.4.4 Copyright ........................................................................... 45 1.1 Geography ......................................................................... 25 3.5 Product Regulations and Product Liability ....................... 45 1.2 Climate .............................................................................. 25 3.5.1 Foodstuffs .......................................................................... 46 1.3 Political System ................................................................. 26 3.5.2 Pharmaceutical Products ................................................. 46 1.3.1 Federal Structure .............................................................. 26 3.5.3 Medical Devices ................................................................ 46 1.3.2 Separation of Powers at Federal Level ............................. 26 3.6 Land Use Planning and Environmental Protection ........ 47 1.3.3 Direct Democracy and the Concordance System ........... 27 3.6.1 Building and Zoning ......................................................... 47 1.3.4 Political Stability and Social Harmony ............................ 27 3.6.2 Environment ..................................................................... 47 1.4 Public Finance .................................................................. 28 1.5 Neutrality........................................................................... 28 4 SWITZERLAND AND EUROPE 48 1.6 Population ......................................................................... 28 4.1 Trade and Direct Investment ........................................... 49 1.7 Cosmopolitanism and International Outlook ................. 29 4.2 Political and Economic Cooperation ............................... 49 1.7.1 Languages and Origins ..................................................... 29 4.2.1 Free Movement of Persons ............................................... 50 1.7.2 International Organizations ............................................. 29 4.2.2 Schengen Agreement ........................................................ 50 4.2.3 Elimination of Technical Barriers to Trade ...................... 50 2 ECONOMIC STRUCTURE 30 4.2.4 Research ............................................................................ 50 2.1 Gross Domestic Product and Industry Structure ............ 31 4.2.5 Rail, Road, and Air Transport ........................................... 50 2.2 International Integration .................................................. 34 4.2.6 Public Procurement in Switzerland ................................. 51 2.2.1 Goods and Services Trade ................................................ 34 4.2.7 Trade in Agricultural Products ......................................... 51 2.2.2 Direct Investment ............................................................. 35 4.2.8 Taxation of Savings Income .............................................. 51 2.3 Important Technologies and Industries .......................... 36 4.3 The Euro ............................................................................ 51 2.3.1 Artificial Intelligence ........................................................ 36 2.3.2 Robotics ............................................................................. 36 5 ESTABLISHING AND MANAGING A COMPANY 52 2.3.3 Advanced Manufacturing ................................................. 36 5.1 Corporate Structures ........................................................ 53 2.3.4 Personalized Health .......................................................... 37 5.1.1 Stock Corporation (AG) .................................................... 54 HANDBOOK FOR INVESTORS | INNOVAUD | INNOVAUD.CH | [email protected] 5 5.1.2 Limited Liability Company (GmbH) ................................ 54 8.4.1 Normal Working Hours, Maximum
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