We recently had an interesting discussion with an international entrepreneurial family looking for the right jurisdiction to establish their main trading company.
Several jurisdictions were considered, but Switzerland quickly emerged as a particularly attractive option.
🇨🇭 Switzerland has been a major international commodity trading hub for decades, with leading players such as Vitol, Trafigura, Mercuria, Glencore and Gunvor maintaining significant operations in the country, particularly around Geneva and Zug.
But what makes Switzerland particularly interesting is not just its reputation or competitive taxation.
It is the entire ecosystem.
🔄 The international trading model, whereby a Swiss company purchases goods in one country and sells them in another without the goods ever physically entering Switzerland, is well established and widely understood by the local business and financial community.
This activity, commonly known as merchanting, benefits from an experienced ecosystem of:
🏦 Banks and trade finance specialists
🚢 Logistics providers
🛡️ Insurers
⚖️ Lawyers and corporate service providers
Combined with Switzerland’s political and economic stability, strong legal framework and competitive corporate income tax rates ranging from approximately 12% to 21%, depending on the canton, it makes Switzerland a compelling location for international trading businesses.
Of course, selecting the right jurisdiction is about more than taxation. Banking relationships, operational substance, corporate governance and regulatory compliance are equally important.
🤝 At TrustQore, we assist international entrepreneurs and families with the establishment and ongoing administration of Swiss companies, including corporate governance and Swiss-resident directorship services.
🇨🇭 Switzerland is not only a place to preserve wealth. It is also a place to build and grow international businesses.