Switzerland - Market Entry and Legal Services

Lawyer & Law Firm in Switzerland

Switzerland has a thriving, contemporary, and liberal economy that boasts of low unemployment rate, a highly skilled workforce, advanced infrastructure and one of the highest per capita GDP in the world. Swiss economy is steered by a highly developed service sectors focusing on financial services, an automated and efficient manufacturing sector and well-established pharmaceutical and chemical industry. Over the past few years, Switzerland has aligned its economic practices with those of the EU to grow its competitiveness in international markets.

India and Switzerland enjoy a stable and robust trade relationship with India being Switzerland's 7th largest trading partner and Switzerland being the 12th largest investor in India. Bilateral trade between the two countries was approximately US$25 billion during FY 2021-22, primarily in bullion. Services trade amounted to about US$2 billion.

COMMERCIAL RELATIONS BETWEEN INDIA-SWITZERLAND

• The Indo-Swiss Treaty of Friendship in 1948 laid the groundwork for a robust economic partnership, securing "most favoured foreign nation treatment" for Switzerland. This treaty paved the way for subsequent agreements, including the Double Taxation Treaty in November 1994, followed by an Amendment protocol in 2010, and the Promotion and Protection of Investment Treaty in July 1997.
• Around 100 Indian companies in Switzerland generate a cumulative turnover of CHF 3-3.25 billion, employing approximately 4000 people, with most companies in IT services & consultancy, pharmaceuticals, and equipment & machinery sectors.
• Key Indian exports to Switzerland include organic chemicals, pearls, precious stones, textiles, electrical machinery, leather products, and plastics. Swiss exports to India consist of chemicals, pharmaceuticals, machinery, transport equipment, precision engineering products, and watches.
• The Embassy of India in Berne launched the Momentum of India: Swiss SMEs Programme (MISSP) to facilitate entry for Swiss SMEs into the Indian market.

BUSINESS ADVANTAGE FOR INDIAN COMPANIES IN SWITZERLAND

Switzerland offers a range of advantages for Indian companies seeking to expand their operations. With its political and economic stability, transparent legal framework, and low corporate tax rates, Switzerland provides a conducive environment for business growth. Its efficient regulatory procedures and supportive government policies contribute to a business-friendly atmosphere, facilitating ease of operations and investment. Additionally, Switzerland's central location in Europe grants Indian companies access to the vast European Union market, supported by excellent infrastructure and transportation networks. The country's highly skilled workforce further enhances its attractiveness as a business destination, offering access to top talent and expertise. Overall, Switzerland presents Indian companies with a strategic gateway to European markets and opportunities for sustained growth and success.

INCENTIVES AND SUPPORT PROGRAMS BY SWITZERLAND FOR INDIAN COMPANIES

Switzerland offers various incentives and support programs for Indian companies looking to establish a presence or expand their operations in the country. Here are some key initiatives:

• Investment Promotion Agencies: Switzerland Global Enterprise (S-GE), official agency for promoting trade, investment, and location development in Switzerland, provides comprehensive support to foreign companies, including Indian firms, through services such as market analyses, site selection assistance, and guidance on legal and regulatory matters.
• R&D and Innovation Support: Indian companies can benefit from Switzerland's supportive environment for R&D activities, including access to state-of-the-art research facilities, collaboration opportunities with leading universities and research institutions, and financial incentives for innovation projects.
• Tax Incentives: Switzerland offers competitive tax regimes at both the federal and cantonal levels. Certain cantons provide preferential tax rates and incentives for foreign companies, including tax holidays, reduced corporate tax rates, and tax exemptions for certain types of income.
• Access to Skilled Talent: Indian companies can tap into Switzerland's talent pool by recruiting skilled professionals and leveraging the country's strong vocational education system.
• Free Trade Agreements: Switzerland Free Trade Agreement (FTAs) with India that facilitate trade by reducing tariffs, eliminating trade barriers, and providing preferential treatment for certain goods and services.
• Start-up Support: Indian start-ups can access various support programs, incubators, accelerators, and funding opportunities to grow their businesses in Switzerland and beyond.

HOW TO SET UP BUSINESS IN SWITZERLAND

In Switzerland, entrepreneurs have several options when it comes to choosing the legal structure for their companies. The three most common structures are:  Sole Proprietorship, Partnership and Limited Company (SA). For individuals from non-European countries like India, setting up a business in Switzerland entails meeting specific requirements under the Federal Act on Foreign Nationals (FNA), Decree on Admittance, Residence and Employment (VZAE), as well as the provisions of the AuG and the VZAE. Non-EU/EFTA citizens do not have automatic rights to establish businesses in Switzerland unless they hold special authorization or permanent Swiss residency status.

Applicants must fulfil several criteria, including presenting a comprehensive business plan, demonstrating sufficient start-up capital, and proving the positive impact of the business on the Swiss labour market.

VISA AND IMMIGRATION

Switzerland provides different types of Visas to foreign nationals depending upon the purpose and duration of their visit. Here are the common types of visas required to work or conduct business in Switzerland:

• Short-Term Visa (Type C Visa)
• Long-Term Visa (Type D Visa)
• Business Visa (Type B Permit)
• Investor Visa (Type B Permit)
• Work Permit (Type L Permit)
• Self-Employment Permit (Type C Permit)

In conclusion, with its stable economy, advanced infrastructure, and high living standards, Switzerland is an appealing market for foreign investors. However, it is very important to carry out an in-depth study of the market and gain insight into country’s cultural, regulatory, and business landscape prior to entering in the market. A thorough market analysis along with comprehensive business plan and tailored market strategy will enable Indian business to successfully flourish in the Swiss market.

To read more about the Switzerland market and various business opportunities – CLICK HERE

HOW DO WE HELP?

We at India Law Offices (ILO) are committed to providing exceptional legal services to our clients in India and overseas. For past two decades, we have worked extensively in expanding our global presence by forming strategic partnerships, both formal and informal, with reputed law firms in major commercial centres around the world. These partnerships have enabled us in providing effective and seamless representation to our clients in any jurisdiction. Furthermore, it has helped us in adhering to varied requirements of our clients, ensuring that they get best legal support across borders.

Having wide-ranging global partnerships with top tier law firms and being part of international legal and business networks has helped our firm in making business possible for our clients across the globe. We provide comprehensive legal support to Swiss companies that are interested to enter the Indian market and assist them in setting up a subsidiary or a branch office in India, negotiating commercial contracts, and directing through the complex regulatory framework. On the other hand, we provide tailored legal and corporate support to Indian businesses that are willing to expand their business in Swiss market. In collaboration with our partners in Switzerland, we provide advise on all types of cross-border transactions including Mergers and Acquisitions (M&A), Joint Ventures, and other related alliances. ILO in alliance with our Swiss counterparts is dedicated in supporting our clients in successfully navigating the complexities involved in Indo-Swiss business collaborations. Following are some of the key areas where our firm offers legal assistance:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

OUR PARTNER IN SWITZERLAND

India Law Offices and Küng & Müller Rechtsanwälte GmbH, a reputed law firm in Switzerland, have formed a collaborative partnership offering comprehensive legal services to clients on cross-border matters related to India and Switzerland. This partnership is built on their mutual membership in Warwick Legal Network (WLN), an international network that comprises of independent business and commercial law firms from across the globe. Küng & Müller Rechtsanwälte GmbH, located in Zurich Switzerland, specializes in the areas of Corporate and Commercial Law, Intellectual Property and Competition Law, International Private Law, Construction and Planning Law, Real Estate and Tenancy Law, Constitutional and Administrative Law, Taxation and Criminal Law.  

If you are a Swiss company or individual seeking assistance in India or an Indian entrepreneur planning to enter the Switzerland market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated and committed in providing best guidance and support based on your specific requirements.