The economic stability of Switzerland is one of the most known facts about the country. Due to its taxation system, geographic and political position, low inflation, low unemployment rate as well as its competitive business environment, Switzerland has become a preferred destination for investors.
But in order to ensure the best development of a foreign capital company, quality accounting and bookkeeping services are required.
Accounting service in Switzerland
In Swiss, the Accounting Law specifies that Companies generating revenue of less than CHF 500’000 in the last financial year are required to maintain simplified accounting with the presentation of a statement of receipts/income and payments/expenses. Sole proprietorships and partnerships generating revenue of at least CHF 500’000 in the last financial year are required to keep accounts and present annual financial reports.
Since the Accounting Law is permanently changing, the best option for an investor to have its bookkeeping and benefit from the double taxation is to have its accountability done by an expert in the Swiss law. Our firm offers bookkeeping services and financial consulting for a large category of small and medium – sized companies from various industries.
Accounting standard
Switzerland is not a member of the European Union and, therefore the EU IAS Regulation or Accounting Directives do not apply, but rather IFRSs or US GAAP. Swiss GAAP is permitted mainly for Swiss companies listed on the main board that are not multinational.
IFRS (International Financial Reporting Standards) is an accounting standard that has gained international recognition. Its main target is to give a true and fair view of the financial positions of the company and therefore prohibits the recognition of unjustified provisions. It is an accounting standard recognized in Switzerland, in addition to Swiss GAAP FER and US GAAP. IFRS is to be distinguish by their large volume of disclosures, the preparation of a cash flow statement as well as differences in the valuation of a certain number of items.
Swiss GAAP FER is an accounting framework that is much lighter when compared to IFRS. As such, it significantly reduces the cost for the business. Therefore, Swiss GAAP FER are much easier to deploy in an SME than IFRS.
Audit services in Switzerland
Audit is used to identify potential problems in time that will lead to improved decision-making process and reduction of costs. They also serve to provide credible information about a specific corporation or company to potential business investors, business partners, banks or government agencies. All audit firms operating in Switzerland need to be registered with the Federal Supervisory Authority of Audit Firms in Bern.
Starting 2008, the Audit Law requires that all legal entities except for sole traders and Swiss partnerships must have their accounts audited. The new Swiss Audit Law establishes different audit requirements depending on the type of company.
For Swiss companies listed on the Stock Exchange, companies with a minimum annual turnover of 20 million CHF, companies or with a balance sheet of at least 10 million CHF or with 50 full-time employees on an annual basis, the regular audit applies. Limited audits apply to all types of Swiss companies that are not subject to regular audits. Companies with less than 10 full-time employees may opt for not having their accounts audited if the Swiss shareholders decide so. For other types of legal entities, such as cooperatives, associations and foundations, the main audit requirements are as set out in the Swiss Commercial Code.
Our team of authorized audit experts provides audit services such as limited audits, ordinary audits or revisions, revisions in order for capital increases or reductions and business start-ups, compliance for money laundering law.
Tax consultancy in Switzerland
To understand the Swiss tax system, it is important to understand there are different tax levels. Swiss taxes are levied by the confederation, the 26 cantons and approximately 2,300 municipalities.
Any company with a registered office or administration in Switzerland is liable for unlimited Swiss tax, while foreign companies abroad are liable for limited taxation, only if they hold real estate or a permanent establishment in Switzerland.
Increased corporate tax and regulatory reporting requirements can be a drain on management time. This is why having all the accountability done by a team of experts, like ours is the best option.
Company Management in Switzerland
All the accounting processes involved in the corporate administration field ensure the efficiency and the productivity of any type of company and can vary for each company depending on the type of industry. Our team of accountants is constantly updating to our clients’ needs, as we have the experience of serving a wide range of legal entities, including statutory duties associated with all business processes.
Payroll services assistance in Switzerland
Processing payrolls for Swiss employees, completion of statutory forms, including yearend returns, monitoring of staff costs are activities that can be done by our team of professionals.
Our team of professionals is ready to assist entrepreneurs and businesses alike to focus on expansion and growth while we handle the legal, accounting and back-office hassles when expanding to a country in which we’re present.
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