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Establishing a Branch simply explained – New Law Video

You want to expand your business and build more offices or sales outlets in Switzerland? Then the branch is the perfect form. In our new video STARTUPS.CH simply explains the establishment process. 

Simply explained

The term “branch” (“Zweigniederlassung”)

It is a commercial operation which, from a legal perspective, is a dependent part of a principal place of business. The branch permanently performs – on its own premises – the same type of activities as the principal place of business and, in doing so, has a certain amount of economic and commercial independence.

It is a guided form of commercial operation, which is legally dependent on a principal place of business. It carries its own premises in a similar activity. The trust company Findea is headquartered in Winterthur. Our branches are for example located in Zurich, St. Gallen, Berne, Lucerne, Basel, Lugano and Geneva.

Advantages 

A business location in Switzerland offers several different advantages: a liberal economic system, political stability, low levels of taxation, flexible labour laws and high availability of qualified employees are just a few of these advantages. Establishing a branch needs no additional capital such as in the establishment of a corporation. Swiss companies may establish branches at home and abroad, and thereby obtain a further professional appearance to attract new customers.

A foreign company may establish a branch office in Switzerland to offer its own products or services. For this purpose at least one representative must be ordered with Swiss domicile and be registered in the commercial register. The branch must bear the same company as the lead company, but additives are permitted.

Disadvantages

The liability of the branch is not limited. Thus, the principal place of business is liable for all debts, which accumulates the branch.

The branch is legally closely linked to the main office. If the principal place of business goes bankrupt, the branches d0n’t exist anymore because they are not legally independent.

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