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Switzerland As a Business Location Handbook for Investors SWITZERLAND AS A BUSINESS LOCATION OFFICIAL PROGRAM Cover image: Swatch Headquarters, Biel © SWITZERLAND GLOBAL ENTERPRISE July 2020 All rights reserved Welcome Dear reader, Switzerland is one of the world’s leading locations; regular top positions in international rankings testify to this. Its innovative and competitive companies, excellent universities, first-class experts and excellent infrastructure form a strong foundation. But we do not want to rest on our laurels with these achievements. As Director of the Swiss Federal Department of Economic Affairs, Education and Research (EAER), I am committed to maintaining and further consolidating these excellent conditions. We are thus cultivating and strengthening Switzerland to be a location that is attractive both now and in the future. We want it to enable local and international companies as well as research institutes from all sectors to keep performing at their best. These companies must remain consistently on the right path so they can assert themselves in global competition. If these conditions are met, our country can continue to score points with its perfor- mance, quality and innovation in the future. The Swiss economy has mastered the international challenges of recent years very well, thanks not least to the good conditions, but above all thanks to the productivity and innovativeness of local companies. We want your company to become part of this success story. An initial guide for the choice of location can be found in this manual. To help you learn more about the specific advantages and the circumstances of individual location factors, the settlement specialists from Switzerland Global Enterprise and the cantons here in Switzerland, and also those in the Swiss Business Hubs abroad, are on hand to advise you. They are very familiar with the concerns and needs of international companies as well as Switzerland’s economic fabric and can Guy Parmelin actively support you. Swiss Federal Council Director, Swiss Federal Department of Economic We look forward to seeing you! Affairs, Education, and Research (EAER) Guy Parmelin Swiss Federal Council HANDBOOK FOR INVESTORS | SWITZERLAND GLOBAL ENTERPRISE | S-GE.COM/INVEST | [email protected] 3 Investment Promotion As part of its remit from the Swiss Confederation (State Secretariat for Economic Affairs SECO) and the cantons, 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 in- clude assessing the potential of their projects before they are presented to the cantons. S-GE assists the cantons by presenting Switzerland as a business location abroad and by coordinating the activities of all the bodies involved. Image Executive Campus HSG, St. Gallen Table of Contents SWITZERLAND – 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 Leading Industries and Technologies ........................................... 12 2.3.9 Finance .............................................................................. 39 Strong Education System ............................................................... 13 2.3.10 Headquarters in Switzerland............................................ 39 SECURITY AND TRUST 14 3 ECONOMIC FRAMEWORK 40 Reliable Governance ..................................................................... 15 3.1 Economic Freedom .......................................................... 41 Liberal Labor Market...................................................................... 16 3.2 International Exchange of Goods and Services ............... 42 Sound Financial and Capital Market ............................................ 17 3.2.1 Free Trade Agreements, WTO, and Elimination Attractive Taxes .............................................................................. 18 of Trade Barriers ............................................................... 42 Easy Start-Up Process .................................................................... 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 Unique Quality of Life .................................................................... 21 3.4 Protection of Intellectual Property ................................... 43 International Environment ............................................................ 22 3.4.1 Patents ............................................................................... 43 Reliable 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 Investments .......................................... 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 Investments ............................................................ 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 | SWITZERLAND GLOBAL ENTERPRISE | S-GE.COM/INVEST | [email protected] 5 5.1.2 Limited Liability Company (GmbH) ................................ 54 8.4.1 Normal Working Hours, Maximum Working Hours, 5.1.3 Branch Office .................................................................... 57 and Working Time Models ............................................... 81 5.1.4 Limited Partnership for Collective Investment
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