The branch office

Establishing a branch office is simple and does not require a minimum investment.

The branch office is a commercially established business that is legally part of a main company and is dependent on it.

The branch carries out a similar activity to the main company in its own business premises and enjoys a certain degree of economic independence.

No specific minimum capital is required to establish a branch in Switzerland. However, the parent company must provide sufficient capital to finance the activities of the branch.

As the branch does not have its own legal personality, its financial resources are directly dependent on the parent company.

This allows for flexible capitalization that can be adapted to the needs and objectives of the branch.

The purpose of a branch office can be diverse and ranges from sales and marketing activities to customer support and research and development. However, the branch may only carry out activities that are in line with the business purpose of the parent company.

The exact business purpose is entered in the commercial register and must comply with Swiss legal requirements. This enables foreign companies to place their services and products efficiently on the Swiss market.

At least one representative resident in Switzerland must be appointed for the establishment and operation of a branch office in Switzerland. This representative acts as managing director and is responsible for the operational activities of the branch.

In addition, the branch office may employ further staff to support its business activities.

The number of employees depends on the specific needs and scope of the branch's business activities.

The establishment of a branch office offers many advantages for both foreign and domestic companies.

One of the most important advantages is the ability to increase presence and influence in the Swiss market without having to establish a separate legal entity.

This saves time and costs, as the administrative requirements are lower than when setting up an independent subsidiary.

In addition, the branch office can benefit from the established structures and resources of the parent company, which lowers the barriers to market entry.

It also enables companies to respond directly to the needs of local customers and deepen their knowledge of the market.

One of the disadvantages of a branch office is its legal and financial dependence on the parent company. The branch cannot make any independent legal decisions and is dependent on the support and approval of the parent company in many areas.

In addition, the parent company and its shareholders have unlimited liability for the liabilities of the branch, which can represent an increased risk. Another disadvantage can be the administrative effort involved in complying with local regulations and double taxation agreements.

Finally, the branch may be limited in its strategic flexibility, as it must be guided by the overriding objectives and guidelines of the parent company.

In summary, establishing a branch in Switzerland offers foreign companies a flexible and cost-effective way to expand their market presence and take advantage of local business opportunities. However, the advantages of direct market access and the use of existing structures must be weighed against the legal and operational restrictions.