Switzerland Offers Start-Ups Favourable Environment
by Ulrika Lomas, Tax-News.com, Brussels
19 December 2003

Whilst Switzerland generally offers a favourable environment to the entrepreneur setting up a business in the country, a recent World Bank survey found that some of the costs associated with business start-ups can be high.

According to the ‘Doing Business in 2004’ survey, Switzerland was relatively red tape-free when it comes to forming a new business and achieved a favourable rating for its labour market flexibility and strong law of contracts. However, in contrast, the winding-down procedures in Switzerland are more complex and lengthy, with the average bankruptcy proceeding lasting 4.6 years. This compares with a regional average of 1.8 years.

At $3,230, it is also more expensive to register a new firm in Switzerland than in many European states. For instance across the border in Germany the registration cost is $1,340, whilst in Sweden it is lower still at $190. In Denmark meanwhile, there is no registration charge. Nevertheless, start-up costs in Switzerland remain below many other countries.

“For someone who wants to start or operate a business, it’s fairly easy and there’s not too much of a burden on the entrepreneur,” the World Bank’s Giles Garcia told Swissinfo. “But I think getting credit and closing a business are two areas where improvements can be made,” he added.

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