Switzerland is a truly unique place in Europe and, indeed, on the world financial stage. From the grandeur of Geneva to its lovely snowy slopes, Switzerland is a beautiful country with a rich and proud history, which is just one of the reasons millions of people visit there every year.
Another reason?Swiss holding companies.
Two of the most notable and, indeed, definitive aspects of Swiss political and economic identity are the nation’s long-standing policy of neutrality and its dedication to the global marketplace. Switzerland has a long history of remaining neutral regardless of the conflicts which have raged around it and rocked the world stage, thereby making Geneva one of the stable, ever-dependable rocks upon which the global marketplace is built. Companies looking to have holdings overseas have long favoured Swiss firms as subsidiaries, given this commitment to trade regardless of the current socio-political climate.
So, how can you benefit from a Swiss holding company?
What Is a Holding Company?
A holding company exists to facilitate transactions among different companies by acting as an impartial (read: neutral) third party that both sides trust. Between that description and Switzerland’s aforementioned history as a crucial economic hub, it should come as no surprise that some of the wealthiest and most well-respected holding companies in the world are based in Switzerland. Companies looking to conduct massive international transactions often look to these companies to act as intermediaries. In a typical transaction, escrow generally functions to ensure that both parties can trust a third party to hold the money and oversee matters in an equitable fashion. While there are definite differences between the kind of escrow you and a realtor might enter into when you buy a home and the multi-million dollar deals holding companies routinely oversee, the same basic principles apply.
The Benefits of a Swiss Holding Company
If you are looking to manage a massive deal, especially one that takes place with a partner or another company or firm which is based overseas, you’ll want to look into a holding company to oversee the process. Whether you’re looking for a Swiss company holding from Co-Handelszentrum or a similar firm, holding companies are essential in allowing all parties to feel secure with the proceedings, thereby facilitating trade and helping business to run more smoothly on all sides.
Another reason Swiss holding companies are so popular? Tax status. While it varies wildly according to city, state, and federal law, and from country to country at that, Swiss holding companies are often exempt from certain laws which would otherwise bind companies in their native countries. A notable example of this is tax status. Not all tax law applies equally across the world, and so some companies are able to avoid taxation penalties by conducting business via these firms. Thus, Swiss holding companies represent a vital and trusted part of the international trading community.
