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Ensuring the Profitability and Stability of Your Company

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Growing companies have every legal right to explore ways of minimising their tax burden in the context of improving profits for their shareholders and developing as a company. The problem is that many jurisdictions impose harsh penalties and unfair taxes on companies as they strive to grow. This has some rather negative effects, including:

  • Stifling research and innovation due to extra taxes and legal impositions
  • Making it tough to compete with other companies in other countries where taxes are lower
  • Making redundancies inevitable as the company tries to compete on a global level

Tackling Globalisation

We live in a globalised business world and while this provides a myriad of opportunities for the forward-thinking company, it also means that there is a lot more competition. Where once national businesses were protected through tariffs and extra taxes on imported goods, the global marketplace now strongly encourages free trade agreements that do away with this sort of economic protectionism.

In this environment, it is inevitable that growing companies will seek out methods of navigating harsh penalties and unfair taxes so that they can continue to operate profitably and compete with rivals in other jurisdictions. One way for a company to ensure their stability in a globalised business environment is to look at a Swiss company formation.

The Advantages of Incorporating a Swiss Company

Switzerland has long been known as having a very stable political and economic environment. In fact, Swiss banks boast some of the most stable operations in the world. It is possible for a foreign company to become a Swiss-incorporated entity. This provides the following benefits:

  • Taxes: Switzerland is a low tax country. In fact, it has one of the lowest business tax rates in the world. This means many things for incorporated Swiss companies including lower taxes, higher profitability, more scope to invest in research and development, and more capacity to compete.
  • Business-Friendly: Apart from attractive tax rates for businesses, Switzerland also features a number of legal supports for companies including a more liberal attitude to business dealings, better cross-border dealings, minimal business reporting requirements, and greater levels of confidentiality and client-attorney privilege.
  • Banking: Swiss banks are very stable and setting up an incorporated entity there also means that banking can be done at a single large domestic bank. This means ease of business dealings and greater levels of economic stability.

It is clear that the cost of doing business in the modern global environment is generally very high. Taxes, legal issues, and reporting requirements all conspire to place company development at risk. The good news is that incorporating as a Swiss company can very neatly sidestep many of these national issues and ensure that a growing company remains profitable and stable into the future.

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