What is a domiciliary company?

A domicile company is a legally and economically independent legal entity that carries out administrative tasks in Switzerland, but no business activities. The status of a domicile company can be obtained by corporations, cooperatives, and foundations, and thereafter enjoy tax privileges.

Administrative Activity and Business Activity

Domicile companies are allowed to engage in administrative activities in Switzerland, but are prohibited from conducting business activities. Administrative activity primarily refers to the management of one's own assets. Also included are invoicing and debt collection. Support activities, known as auxiliary activities, are permitted to aid administrative functions. These include, for example, the exploitation of intangible rights and the mediation of know-how. Pure domicile companies are not allowed to employ their own staff or maintain their own infrastructure in Switzerland. Business activity is considered any active value creation such as manufacturing, trading, providing services, exercising fiduciary functions, advertising, etc.

Tax Privileges of Domicile Companies

Domicile companies enjoy tax privileges in Switzerland. At the federal level, the regular profit tax of 8.5% is due. At the cantonal level, revenues from domestic sources and capital are taxed at the respective rates of the individual cantons, although the capital taxes for domicile companies are lower. Revenues from foreign sources are even completely tax-free.

To avoid uncertainties regarding permitted activities which could lead to a loss of status, we are happy to advise you. In addition to the potential for tax optimization, a domicile can also offer a representative address for meeting with clients and investors. Furthermore, foreign company founders who establish a company in Switzerland and do not have residency in Switzerland, mandatorily require a domicile for their company. We offer domiciles at ten different locations in Switzerland. All of our offices are located in representative areas of the respective cities.