Europe always sounds like the best place to start a business. The continent is generally viewed as stable, progressive, and business-friendly. This is why you will see a lot of foreigners setting up shops in key countries and emerging economies. And one of your best bets is, of course, Switzerland.
But before you pack up your bags or call an emergency electrician to fix your home’s wiring before you sell it, there are some things that you need to keep in mind. You need to identify first the benefits and drawbacks of doing business in that country. After all, you are eyeing your venture to have a long-term run, aren’t you? Here are some things to keep in mind:
Let’s start with the pros
First off, Switzerland has a very robust economy. With that in mind, you have a guarantee that it has a stable currency, which is good for business. It’s also worth noting that Switzerland is one of the world’s financial centers, as attested by Swiss banks. Banks in Switzerland are considered one of the most reliable financial institutions, as they offer the utmost level of privacy and discretion.
The country is also one of the places in Europe that have the lowest tax rate. However, you need to remember it will still depend on which canton you’re starting your business; Lucerne may have a different tax scheme or rate from Zug or Obwalden. Nevertheless, tax rates are generally low.
And if you’re planning to build a start-up, you’re in for a treat, as the start-up scene in the country is flourishing. This means that you may get plenty of help out there from investors and partners. One bonus is that the Swiss’ corporate and start-up world can warmly welcome ex-pats.
The government is also supportive of the business. And this is proven by the simple set-up requirements. You have to do some paperwork and provide pertinent documents, such as visas, but generally, the requirements are not complicated. However, keep it in mind that it may depend on the nature of your business.
How about the cons?
It’s also worth noting that English will not be difficult in Switzerland, as most people can communicate using the language. But note that the country has four official languages, such as German, French, Italian, and Romansh. And it may prove tricky when it comes to the product packaging and store signage.
You may also need to prep some budget, as costs can be quite high. For one, postage charges can be expensive. And hiring Swiss talent for your operations can also be costly, knowing that the country has one of the highest average salaries for European employees.
Indeed, operating a business in Switzerland is a great idea. But before you take the plunge, make sure that you have carried out a thorough analysis. More than the budget, you must also make a plan for how you’re going to recover, knowing that setting up a business abroad can potentially drain someone’s pocket.