A Domiciliary Company in Switzerland is a legal entity that is registered in the country but conducts its business activities primarily outside of Switzerland. These companies usually maintain only a registered office or minimal administrative presence within Switzerland, without engaging in commercial operations locally.
The main purpose of a domiciliary company is to manage international business, hold assets, oversee investments, or act as a parent company for foreign subsidiaries. Since its income is generally derived from activities outside Switzerland, the company may benefit from favorable tax treatment depending on the canton where it is incorporated.
Domiciliary companies are popular among multinational businesses and high-net-worth individuals who want to take advantage of Switzerland’s stable legal framework, strong financial sector, and attractive tax environment. However, they must still comply with Swiss corporate regulations, such as proper bookkeeping, reporting, and appointing a Swiss resident director.
In short, a Swiss domiciliary company serves as an international business vehicle, offering a prestigious address, legal security, and potential tax advantages while limiting direct involvement in the local Swiss market.
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