Cryptocurrency activity in Switzerland in 2021
Opening a cryptocurrency company in Switzerland is relevant, as this country offers attractive conditions for business registration. The state has a high standard of living and holds a high position in the ranking of the happiest countries.
Features of starting a business
Registration of the cryptocurrency business in Switzerland in 2020 is relevant. This country is located in the center of Europe and is characterized by political neutrality. Switzerland offers tax benefits and there is the possibility of obtaining a loan up to 2/3 of the project cost. It is possible to rent an office on favorable terms and receive subsidies for employee payments.
Taxation is low. The income tax (federal) is 8.5%. Cantonal income tax may have a rate of 12% to 18% depending on the place of registration. VAT is 8%.
Business related to financial technologies is a priority. In the country there are more than 200 fintech startups. This jurisdiction is the most optimal for cryptocurrency business. There are a lot of banks in Switzerland, that may be interested in Blockchain technology. Most often such business is opened in the canton of Zug.
Regulation of cryptocurrency
Before starting a company in Switzerland in 2021, you should familiarize yourself with the peculiarities of e-currency regulation. The Swiss government presented a report on the legal framework for blockades. It reviews the legal regime for cryptocurrency and blockchain, DLT, and financial technologies under the current legal framework.
Attention was paid to civil law, banks, and conditions to money laundering. Cryptocurrency is classified as a virtual currency that is an asset. Electronic currency can be levied on wealth, income, and capital gains if it is recognized as an asset. No VAT is levied when trading in cryptocurrency.
How to start a company
If you need to start a business in Switzerland, please contact our specialists at IT-OFFSHORE. We will help you to select the legal form for your organization and collect the necessary documents.
At the stage of negotiations with interested cantons it will be necessary to draw up a business plan, which will show the development of the company for the next 3 years. It is necessary to prepare a strategy for the company's entry into the European market, analyze competitors, and create a financial model.
It is important to choose the right canton. For the development of the cryptocurrency business, Zug is the most optimal option. Cantons such as Lucerne, Zurich and Geneva can be considered for the business.
It is possible to get access to grants and investments only if a legal entity is established. Usually foreign companies are registered as GmbH or AG. To work properly, you must obtain a license. It takes on average about a month to establish a company. In the future, you will need to open an account with a Swiss bank.