Switzerland vs Luxembourg
Switzerland is £2,303 cheaper in year 1 and £2,003 a year cheaper after that.
| SwitzerlandGmbH / Sàrl | LuxembourgSARL holding company (Soparfi) | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £2,095 | £4,398 |
| Minimum, per year after | £1,365 | £3,368 |
| Typical year 1 | £10,588 | £9,356 |
| Government fee | £380CHF 420 commercial register | £170€124 RCS registration + €75 registration duty |
| Indirect setup | £350–4,075 | £860–5,170 |
| Running per year | £1,365–14,625 | £3,368–8,973 |
| Share capital | CHF 20,000Fully paid in | €12,000Can be paid within 12 months |
| Rules | ||
| Directors | Local director neededAt least one Swiss resident must be able to sign for the company. | No local director |
| Remote setup | Through a providerNeeds a notary deed. A fiduciary usually provides the resident director. | Through a providerNeeds a notarial deed. You can sign by power of attorney. |
| Audit | Companies with up to 10 full-time staff can opt out of audit | No audit below size thresholds |
| Time to form | 2 to 6 weeks | 1 to 3 weeks |
| Ease for foreign owners | 1/5 | 2/5 |
| Tax and banking | ||
| Corporation tax | 14%About 11.7% to 20.5% by canton, lowest in Lucerne and Zug. | 21.7% / 23.9%23.87% in Luxembourg City, about 21.7% on profit under €175k. |
| Dividend withholding | 35% dividend withholding, cut to 15% or 0% for the UK by treaty. | 15% dividend withholding, 0% to EU and UK parent companies. |
| VAT / GST | 8.1% | 17% |
| Banking | 2/5You need a capital deposit account. Checks are strict. | 2/5Checks are strict and slow. |
| All company setup fees in Switzerland | All company setup fees in Luxembourg | |
Questions
Is Switzerland cheaper than Luxembourg for company setup?
Yes. Switzerland costs at least £2,095 in year 1, against £4,398 for Luxembourg.
Which is cheaper to run each year?
Switzerland, at least £1,365 a year against £3,368 for Luxembourg.
Which needs a local director?
Switzerland. At least one Swiss resident must be able to sign for the company. Luxembourg does not need one.
Which is faster to set up?
Luxembourg, in 1 to 3 weeks. Switzerland takes 2 to 6 weeks.
How does corporation tax compare?
Switzerland: About 11.7% to 20.5% by canton, lowest in Lucerne and Zug. Luxembourg: 23.87% in Luxembourg City, about 21.7% on profit under €175k.
Sources: Canton of Zurich · ESTV · PwC · Pfeffersack · Magicheidi · LBR · Guichet · Luxtoday · Mercator