Language: Switzerland is a multilingual country with four official languages. German is spoken by 74.4% of the population; French is spoken by 20.2%; Italian by 4.1%; and Romansh by one third of the population of the canton of Graubünden. However, English is widely spoken in the professional and commercial sectors.

Population: The population is approximately 7 million.

Political System: The cantons execute all powers of government not delegated to the federal government, but the federal government has considerable authority. It has the power to resolve treaties and alliances, control foreign trade, and impose taxes.

The Swiss national government consists of the Federal Council, which is the executive body; the Federal Assembly, which has the legislative powers; and the Federal Tribunal, which is the federal court.

Legal System: The Federal Tribunal, which is the highest court does not have the authority to declare federal laws unconstitutional, as the U.S. Supreme Court does. Certain laws also must be approved by the people before enacted by the Federal Assembly.

Taxation: Each canton determines its own taxation, and some have advantageous tax levels. Municipal taxes vary depending on the municipality.

Switzerland has double-taxation treaties with following countries:

• Australia
• Austria
• Belgium
• Brazil
• Canada
• Denmark
• Egypt
• Finland
• France
• Germany
• Great Britain
• Greece
• Hungary
• Iceland
• Indonesia
• Ireland
• Italy
• Japan
• Malaysia
• The Netherlands
• New Zealand
• Norway
• Pakistan
• Portugal
• Singapore
• South Africa
• South Korea
• Spain
• Sri Lanka
• Sweden
• Trinidad
• Tobago
• U.S.A.

Private Limited Company by Shares (AG): Requirements for incorporation are:

• A minimum of three shareholders is required; nominees are allowed.
• A minimum of one director is obligatory who should be a Swiss citizen living in Switzerland. If there is more than one director, a majority must be Swiss citizens.
• Directors and shareholders meetings should take place in Switzerland.
• An annual independent audit is required by law as well as retaining financial accounts.
• The minimum authorized share capital, issued and fully paid up, is CHF 100,000 and minimum par value is CHF 100 per share. A capital duty of 3% must be paid on incorporation.
• On distribution of dividends, there is a withholding tax of 35%, which can be regained if a double-taxation agreement is pertinent.

• Because this type of company does not have shares, the owners' capital participation is registered in the Commercial Register. If anonymity is necessary, nominees are permitted.
• A minimum of one director is required who should be a Swiss citizen residing in Switzerland. If there is more than one director, a majority must be Swiss citizens.
• An authorized capital of CHF 20,000 is required, which must be fully paid up.

Summary: Following are some of the advantages of selecting Switzerland as a financial center:

• Non-disclosure of beneficial owners and bank accounts (unless criminal procedures are awaiting)
• Exemption from exchange controls
• Excellent domestic and international banking systems
• Highly developed communications as well as economic and commercial infrastructure
• Low taxation levels in some cantons
• Switzerland is an important European center for international banking, trade and transport