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Flux RSS :Switzerland Investment Climate: Openness to Investments.
Transparency of Regulatory System Regulations affecting both local and foreign investors are generally transparent and applied in a...Transparency of Regulatory System Regulations affecting both local and foreign investors are generally transparent and applied in a nondiscriminatory manner. In the past, cartels were endemic to the Swiss economy. Companies in a number of industrial and service branches organized themselves, through trade and industry associations, into horizontal and vertical cartels. Such arrangements existed in [...
Switzerland Investment Climate: Openness to Foreign Investment.
Public Procurement Switzerland is a signatory to the WTO Agreement on Government Procurement (GPA). On the cantonal and local levels, a...Public Procurement Switzerland is a signatory to the WTO Agreement on Government Procurement (GPA). On the cantonal and local levels, a 1995 law provides for nondiscriminatory access to government procurement. According to the July 2002 revised ordinance on public procurement, all private or state-owned companies such as utilities, transportation, communications, defense, and construction that submit [...
Switzerland Investment Climate: Openness to Foreign Investment.
Openness to Foreign Investment The Swiss Federal Government adopts a relaxed attitude of benevolent noninterference towards foreign...Openness to Foreign Investment The Swiss Federal Government adopts a relaxed attitude of benevolent noninterference towards foreign investment, allowing the 26 cantons to set major policy, and confining itself to creating and maintaining general conditions favorable to both Swiss and foreign investors. Such factors include economic and political stability, a transparent legal system, reliable and [...
Uses of Swiss Financial CompaniesPrivate Swiss Financial Companies may be used in a variety of ways to safeguard foreign source income or to preserve confidentiality and protect the assets. Such uses may include the following: 1. Securitization Private Swiss Financial Companies are commonly used to securitize loans. For example, a bank may wish to issue a bond whose payments come from a big variety of loans. However, in that case to ensure that the holders of the bonds have the firs priority right to receive payments on the loans, these loans need to be legally separated from the other obligations of the bank. This is done by creating a Swiss Financial Companies, and then transferring the loans from the bank to the Swiss Financial Companies. 2. Holding Company Private Swiss Financial Companies are often used to hold investments in foreign subsidiary and associated companies as well as in foreign real estate, equities or bonds quoted on international stock exchanges, and foreign joint projects. 3. Risk sharing Corporates may Private Swiss Financial Company to legally isolate a high-risk project/asset from the parent company and to allow other investors to take a share of the risk. 4. Finance Multi-tiered Private Swiss Financial Companies allow multiple tiers of investment and debt. 5. Asset transfer Many official structures required to operate certain assets (such as power plants) are either non-transferable or difficult to transfer. By having a Private Swiss Financial Company own the asset and all of the permits, the Private Swiss Financial Company can be sold as a self-contained package, rather than attempting to assign over numerous permits. 6. For competitive reasons For example, when Intel and Hewlett-Packard started developing IA-64 (Itanium) processor architecture, they created a special purpose entity which owned the intellectual technology behind the processor. This was done to prevent competitors like AMD accessing the technology through re-existing licensing deals. |
7. Financial engineering Swiss Trust/Financial Companies are often used in financial engineering schemes which have, as their main goal, the avoidance of tax or the manipulation of financial statements. 8. Regulatory reasons A special purpose entity can sometimes be set up within an orphan structure to circumvent regulatory restrictions, such as regulations relating to nationality of ownership of specific assets. 9. Property investing Some countries have different tax rates for capital gains and gains from property sales. For tax reasons, letting each property be owned by a separate company can be a good thing. These companies can then be sold and bought instead of the actual properties, effectively converting property sale gains into capital gains for tax purposes. 10. Special Purpose Entity/Vehicle (“SPE/SPV”) SPE/SPV may be owned by one or more other entities and certain jurisdictions may require ownership by certain parties in specific percentages. 11. Controlling and Finance Some countries have different tax rates for capital gains and gains from property sales. For tax reasons, letting each property be owned by a separate company can be a good thing. These companies can then be sold and bought instead of the actual properties, effectively converting property sale gains into capital gains for tax purposes. For more information, please do not hesitate contact us : +41225668244 or use our online form. Our financial advisors will be happy to assist you. |
