Switzerland Capital Bern Currency Swiss Franc (CHF) Language French, German, Italian Population 7.52 million EU status Non-member GDP 2006 $386.8 billion Employment 96.7 % Exports $166.3 billion f.o.b. (2006 est.) Imports $162.3 billion f.o.b. (2006 est.)

setting up business Number of days to start business 20 Cost (% of income per capita) 2.2% Nonwage labor cost (% of salary) 14.4% Total tax rate (% profits) 24.9%

Switzerland

Switzerland has a federal structure based on 20 cantons (states)

Switzerland – the land of mountains, watches and chocolate. And also the land with the largest implantation of multinational companies. Is there a correlation or is it pure coincidence?

Sister Republics

Switzerland and the US are known as socalled “Sister Republics”. Considering the difference in size and geo-political importance between the two countries, the notion of “Sister Republics” in reality refers to the similar values and political principles they have historically shared and thereby mutually inspired each other in structuring their political systems and in drafting their respective constitutions.

These common political principles have resulted in similar economic policies and business climates. In both countries, economic policy makers are strongly convinced of liberal values and the benefits of open markets and competition. Both countries offer high-quality protection of intellectual property rights, high production standards and reliable service quality. This is the reason why the Swiss feel so comfortable dealing with American partners, as over time we have grown together and established a foundation of mutual trust and understanding.

Closely associated With the EU

Switzerland is not a member of the European Union. It is an island in the midst of Europe, entirely surrounded by EU member countries. However, Switzerland’s economy is deeply interlinked with the economies of its EU neighbors: the EU absorbs 60% of Switzerland’s exports, and provides 80% of Switzerland’s imports. The picture is much the same when it comes to foreign direct investments. And when looking at the number of foreign nationals living in Switzerland (1.9 million people, 20.3% of the whole population of 7.4 million), close to 60% of them are EU citizens (840,000). In addition, the Swiss mountain passes are important transit gates making Switzerland a central host for much of the Union’s north-south transport flow. In a way, Switzerland is even better integrated with the EU than many member states.

key business partners

The United States of America and Switzerland are key business partners. In trade of goods and services, the US ranks as the second-largest recipient country for Swiss exports with its market totalling more than 10% of Swiss exports, while US exports to Switzerland exceed those to India and Russia combined. Switzerland is the eighth-largest buyer of US private sector services. The US is the most important destination for Swiss direct investments abroad, making Switzerland the sixth-largest foreign direct investor in the US. Conversely, Switzerland is the fourth most important destination for US direct investments making the US the most important foreign investor in Switzerland. Switzerland is one of the most important locations of European headquarters for US companies.

A CENTER FOR multinationals

Many leading US companies such as DuPont de Nemours, Medtronic, Silicon Graphics, General Motors, Dow Chemical, Hewlett Packard, Philip Morris, Procter & Gamble, Caterpillar, Colgate Palmolive, Johnson & Johnson, Sun Microsystems, General Mills, and many more have chosen Switzerland as the management center for their international activities, primarily with regards to Europe, Middle East and Africa. This is partially due to historical implantation going back 50 years or more. Not only have all these companies reevaluated their location and, after extensive analyses, decided to stay, but also many new companies have joined the club of companies with international headquarters in Switzerland.

While implantation of international headquarters works because there are some real and measurable benefits for all stakeholders (primarily taxes), there are also some less measurable, which remain just as important. The companies will find a highly competitive country with a solid infrastructure, stable and helpful governments, a comprehensive set of bilateral and multilateral agreements and a reasonable tax regime. Furthermore, they will encounter a very productive, flexible and well-educated workforce, a co-operative union interaction and a strong work ethic. And finally, they will discover that Switzerland is a great place to manage the many strong European businesses from a neutral position, that is from a position that is not linked to a specific country or a specific production center.

No less important, Switzerland is a great place for individuals – managers and specialists with an expatriate status – who will find a very strong system of international schools, great ease to adapt to Swiss life, unsurpassed personal security, favorable personal tax rates and an unbeatable quality of life. It is the land of mountains and chocolate after all!

 

Contact Information

Swiss-American Chamber of Commerce
Talacker 41
Zurich 8001
Switzerland
Tel: +41 43 443 7200
E-mail: info@amcham.ch
Website: www.amcham.ch

 

Useful websites

bern.usembassy.gov	US Embassy in Switzerland
www.locationswitzerland.ch	Federal Investment Agency – wide range of technical and legal info on set up
www.geneva.ch	Geneva as a business location
www.creativeswitzerland.com	R&D in Switzerland
www.statistik.admin.ch	National Institute of Statistics
www.about.ch	General information on all aspects of Switzerland
www.myswitzerland.com	Tourist and travel information

 

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