Management of the corporation
The business and trading freedom of the Swiss Federal Constitution usually makes it possible for everyone, including foreigners, to carry on a trade in Switzerland, to form enterprises or to participate in such a company. No permit from the authorities or from chambers or professional organisations is in principle required. However, foreigners require a work and residence permit to be able to conduct personal and permanent business
MANAGEMENT
The management of a corporation is usually handled by the Board of Directors (AG) or the Management (GmbH) itself and the third parties appointed by the Board (directors).
At least one member of the Board/ Management, with the right to represent the company, or director must be resident in Switzerland.
Die Zeichnungsberechtigungen müssen im Handelsregister eingetragen sein.
The management must prepare an annual report which provides information with regard to the progress of the business, the economic and financial situation and any increases in capital which may have taken place.
At least once a year, an Annual General Meeting must be held. This is called by the Board of Directors or the Management.
ACCOUNTING
The balance sheet and the profit and loss account are to be prepared in accordance with proper accounting principles.
The formation of hidden reserves is permissible.
Holding companies which, by means of majority voting rights or in some other way, exercise control over one or more other companies and which, in addition, meet two of the following criteria – total assets of more than CHF 10 million, turnover of more than CHF 20 million or more than 200 employees – are obliged to prepare consolidated financial statements each year.
There are no particular consolidation or valuation rules foreseen by law apart from the general principles of orderly presentation of accounts. In order to meet international requirements, it is, however, permissible and, in fact, very common, for companies to use other standards, such as “International Accounting Standards (IAS)”, the “U.S. Generally Accepted Accounting Principles (U.S. GAAP)” or comparable guidelines laid down within the European Union.
ANNUAL OPERATING COSTS
In the case of the annual operating costs, it is necessary to consider:
Staff costs (incl. social security contributions)/administrative board fees (where external administrative boards are used)
see LCG Services
Rent of business premises/domiciliation fees (where only domiciliary company)
see LCG Services
Other costs: insurance, car, telephone, water, electricity, outlays, expenses
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