An Overview of a Swiss Corporation
What is a Swiss Corporation? What does a Swiss Corporation do?
A typical corporation in America or Canada is incorporated. A Swiss corporation is not. Thus, when one speaks of a Swiss Corporation, it implies that a foreign entity is operating a business, which in turn, must be licensed to do so by the government of Switzerland.
In order to qualify for the license, it must have a minimum number of voting board members and be subject to a minimum number of disclosures of its management transactions. Every country has rules regarding how much information an entity can provide, but the general rule is to make them as transparent as possible.
Basically, this means the two types of standards are nearly identical. Unlike non-Swiss domestic organizations, a Swiss Corporation has a very limited scope of activities that may be undertaken outside of Switzerland. Therefore, all transactions should be cleared through a formal governing structure.
A good example of a limited purpose is that of a management business. These businesses may still engage in international commerce or may even be integrated with the public sector in the areas of public utility services, medical care and social services.
The officers https://swissfirma.com/company-formation-switzerland/ of the corporation will include the president and secretary. All other officers may include the directors, officers and employees of the management company. Furthermore, every company must have a board of directors consisting of at least four individuals.
On the board of directors, you can find some of the most well known names in business, including bankers, accountants, attorneys, consultants, auditors, corporate attorneys, government officials, doctors, stockbrokers, retired lawyers, engineers, and even politicians. However, the board does not represent the interests of the company, rather it represents the interests of the shareholders.
The annual general meeting is held every four years and occurs on the same day as the annual general meeting of the company. Generally, the chairman is chosen by the shareholders and every director must approve of the appointment.
The chairman must be someone who holds a minimum of a general accountancy qualification and must be someone with an expertise in financial matters. In addition, he or she must be a director or an officer of a publicly traded company.
You should note that the chairman can be a nominee, but must not be a board member. Of course, the sole purpose of the board is to run the affairs of the company and in order to keep things running smoothly, it must be made up of people who know the best how to run a business and to prevent problems from arising. Moreover, the board should be composed of people who have knowledge about international business.
Unfortunately, some companies choose to outsource some of their operations to management companies and these firms often charge exorbitant fees. Due to the nature of the international business in certain parts of the world, it is often very expensive to employ management companies in areas where the company has little presence.
Additionally, one must remember that even though the company might be incorporated, it is still based in the general office of the company. Therefore, it is not surprising that it might appear, as in many situations, that the Swiss Corporation is making millions.