Investment Guide Schaffhausen 2016 | Schaffhausen your strategic location EN

Investment Guide Schaffhausen – the strategic location for your business with exceptional quality of life

2

INVESTMENT GUIDE

Publisher © Economic Promotion Canton of Schaffhausen English translation: Philip Lucas, Preston UK 15th Edition, December 2016 (first published in 2000) Printed in Schaffhausen The Investment Guide is available online as a pdf file at: www.invest-in-schaffhausen.com/publications

Welcome to Schaffhausen Dear Reader, Schaffhausen is part of the economic powerhouse known as the Greater Zurich Area and combines attractive business benefits with unrivalled quality of life and a strategic location right at the heart of Europe. Imagine working in an environment which others only get to enjoy on holiday – just 35 minutes from Zurich international airport and only 5 minutes from Europe’s largest waterfall.

Imagine all of that and add to the mix high levels of business output and a very favorable tax regime.

In short – Schaffhausen is the ideal strategic location for your business with exceptional quality of life for your family.

Our Investment Guide will outline the key characteristics of the flourishing economic region which Schaffhausen has become. Alongside information on our multi-lingual and multi-cultural labor market, our first-class national and international transport connections, our schools and exceptional quality of life, you will find details on how to set up business operations here and how to acquire premises.

Our team is available to assist you at all stages of your investment here, as many international companies have already experienced. We are fully focused on tailoring our services to your individual requirements and ensuring you get the best solution for your business.

Welcome to Schaffhausen!

Economic Promotion Canton of Schaffhausen Marcus Cajacob

PREFACE 3

4 CONTENTS

Contents The advantages of Canton Schaffhausen

6

Schaffhausen at a glance

8

Our location and our people

10

Location 10 Language 11 Population 11

Political Structure Representatives in the national parliament Cantonal Council and City Council (Legislative) The Governing Council (Executive)

Infrastructure

12 12 12 12

13

Transport 13 Rail Road Airports

Transport and Logistics Utilities and Services

Gas Water Fiber optics Electricity Mobile phones and broadband

Doing business here Economic structure

Materials Technology Transportation and Automotive Life Sciences Mechatronics Medical Technology Packaging Technology Plastics and Mold-Making Sustainable Energy

13 13 14

15 15 15 15 15 15 15

16 16 18 20 22 24 26 28 30 32

Tax 34 Dialogue with the tax authorities

Labor market

Wages and salaries Recruitment of staff Social insurance costs Residence and Work Permits – for nationals of EU/EFTA states Residence and Work Permits – nationals of non-EU/EFTA states

Living in Schaffhausen Cost of living

Residential accommodation Renting property Buying property Health insurance

34

34 34 35 35 36 37

39 39 39 39 39 40

5

Setting up a business Business services Corporate structures

Stock corporation Limited liability company General partnership Sole proprietorship

41 43 43 43 43 43 44

Property 45 Rent Purchase of land / commercial property Buying commercial property Database

45 45 46 46

Education and Research

47

School and vocational education

47

Universities, research and development

48

School system State schools in Canton Schaffhausen Universities Research and Development

Economic Promotion Team

47 47 48 48

49

Advice 49 Brokerage of contacts 49 Brokerage of premises and land 49 Technology transfer 49

6

THE ADVANTAGES OF CANTON SCHAFFHAUSEN

Attractive business environment – Moderate tax rates by international standards – Pro-business, responsive and efficient local government – Simple processes for setting up a business

Flexible labor market and high productivity – Highly skilled and motivated employees – Low unemployment – Widespread foreign language skills and aboveaverage levels of international experience – Liberal labor laws

First class infrastructure – Excellent road, rail and bus connections – Just 35 minutes from Zurich international airport – Secure and reliable energy, water and communications services

Exceptional quality of life – Unspoiled nature – Safe towns and villages – Outstanding medical services

7

Professional support during your relocation – Expert advice – Help in contacting key partners e.g. local government and property specialists – Tax advantages and financial support available – Help to integrate your business fully into our flourishing regional economy

Excellent education – Education system focusing on a core of life-skills – Excellent state schools – International School (IBO), places available without a waiting list

Rhe

in

Strategic geographic location – Positioned right on the border to Germany – Part of the Greater Zurich Area – Expertise and experience in dealing with business in the EU

The advantages of Canton Schaffhausen

8

SCHAFFHAUSEN AT A GLANCE

Schaffhausen at a glance Key data Population

80,100

Jobs

44,900

Geographic position

Switzerland’s most northerly canton; located right on the border to Germany

Main business sectors

Packaging technology, plant and machinery engineering, mold-making, automotive components, electronic switches and safety technologies, medicinal technology and healthcare products, development and production of pharmaceuticals, food production, software development, consultancy services

Key characteristics Technology

Strong industrial base, many high-tech businesses in key sectors, such as: life sciences, mechatronics, packaging technology, new materials, plastics and food technologies ; ground-breaking approach to technology transfer

Border position

Many business services with expertise in Swiss, EU and cross-border trade (consultants, accountants, banks, insurance); German labor market accessible for businesses in Canton Schaffhausen (no restrictions on cross-border workers)

Transport and Logistics

Connected to the German autobahn network; very strong transport and logistics sector with expertise in customs processing

Proximity to Zurich

Just 35 minutes to Zurich airport, Zurich city center is 38 minutes by train, services every half hour; easy access to the universities and world-class Federal Institute of Technology (ETH - Eidgenössische Technische Hochschule) in Zurich

Short distances

Singen (25 mins by car/18 by train); Zurich airport (35/40); Zurich city center (45/37); Basel (90/61); Stuttgart (100/145); Geneva (210/210)

Exceptional quality of life right by your office door

Beautiful landscape along the River Rhine; the Rhine Falls, the largest waterfall in Europe; the largest winegrowing area within German-speaking Switzerland; a fabulous natural environment for recreation; Schaffhausen and Stein am Rhein – both with charming old town quarters of national fame; nearby Lake Constance offers a range of water sports options; a vibrant and diverse cultural scene; five golf clubs nearby; huge range of leisure activities

Low cost of living

The cost of many items of household expenditure is much lower than the Swiss average

Mentality and society

We are a region with a strong sense of identity and a positive outlook for Schaffhausen; we value society and participate actively in it; we are pro-business; our law-making is liberal and respects independence

Being small is a strength

Easy access to officials and the government; quick decision-making; flexible local government; individual service; highly responsive support during and after relocation; fiscal sovereignty

Taxation in Canton Schaffhausen Corporate tax

Below the Swiss average overall and options including special company structures with low taxation (management companies)

Holding

Very attractive tax regime

Inheritance and gift tax

This was abolished for direct descendants and spouses following a local referendum

Fiscal incentives

Significant incentives available where jobs are created, investment is in innovation or diversification or new expertise is introduced to the area; tax reduction may last up to ten years (granted via cantonal legislation)

Taxation of individuals

In line with the Swiss average; reductions may be agreed on an individual basis in the case of foreign entrepreneurs, senior managers and specialist staff relocating to Schaffhausen

Bespoke taxation agreements

The fiscal authorities in Schaffhausen are able to conclude binding tax agreements quickly, in advance of relocation. Detailed information on the taxation of individuals and corporations is set out in our Tax Guide, which is downloadable at www.invest-in-schaffhausen.com/publications

9

Employing staff Average annual working time

1,898 hours in Schaffhausen (1,680 hours in Germany)

Days lost through strikes (per 1,000 employees)

0 (zero) days in Schaffhausen (5 days in Germany)

Labor market

Readily available pool of highly skilled and qualified staff; recruitment area includes Zurich and Southern Germany; EU specialist staff can be employed whether resident in Switzerland or as a cross-border worker

Training subsidy

Up to 40 percent of an employee’s wages may be paid for up to six months if an unemployed person is recruited and training is required to address skills gaps.

Property Build or rent a property

Both building and renting property is simple

Industrial sites, office buildings and other commercial properties

Sites are available; searches tailored to your criteria; on request, the Economic Promotion Team will evaluate and shortlist a selection of suitable properties

Apartments and houses

Wide range of high-quality residential accommodation available; on request, bespoke support available during your search

Approvals process

Concluded in a few weeks

10 OUR LOCATION AND OUR PEOPLE

Our location and our people “Switzerland’s central location in Europe and its proximity to the most important markets in Western and Eastern Europe were the decisive factors in our decision to establish our business in Schaffhausen.”

Min Kao, CEO Garmin

Location Canton Schaffhausen, part of the Greater Zurich Area, occupies a prime location at the heart of Europe. Situated conveniently near key business centers such as London, Paris, Frankfurt, Brussels, Milan and Rome, our location is ideal as a business base.

Just minutes from Zurich International Airport, Schaffhausen serves as the perfect hub for international business travel.

As Switzerland’s most northerly canton, Schaffhausen is largely surrounded by Germany, with 82 percent of the Canton’s border being shared with the German state of Baden-Württemberg. The Canton covers 298 km² and represents 1 percent of the total area of Switzerland Sharing a border with Germany means Canton Schaffhausen is on the doorstep to the most important market in the European Union (EU). Familiarity with the business and legal systems on both sides of the border, along with the benefit of operating under the more attractive Swiss tax regime whilst trading with the EU are key factors which underscore the attractiveness of Canton Schaffhausen as a strategic business location.

Located in Switzerland’s central plateau, Schaffhausen enjoys a very diverse landscape, shaped by the River Rhine with its beautiful scenery, the woodlands and foothills of the distant Jura mountain range, agricultural fields and meadows and lovingly tended vineyards.

Switzerland at the heart of Europe Source: Economic Promotion Canton Schaffhausen

11

Language The principal language in Canton Schaffhausen and its neighboring areas is German, with a local dialect prevalent in everyday speech and High German used in the media, at cultural events and in school. Foreign languages are a mandatory element of the school curriculum and thanks to the number of foreign nationals and tourists, English, French and Italian are all widely understood. Many international businesses use English in their workplace.

Population Canton Schaffhausen is home to around 80,000 people of whom approximately 45 percent live in the city of Schaffhausen. There is a very strong international mix to the population.

Germany

Canton Schaffhausen Rhe

in

Switzerland Switzerland

Canton Schaffhausen Source: Economic Promotion Canton Schaffhausen

12 POLITICAL STRUCTURE

Political Structure “We undertook an extensive evaluation of the options available and decided in favor of Schaffhausen. The compelling advantages were excellent logistics, the easily accessible services available and the pool of highly skilled and educated staff.”

Nick Cross, President EMEA and Advance Technologies at Cabot International

Switzerland has three administrative levels: national/federal, cantonal and municipal.

Canton Schaffhausen is made up of 25 municipalities. The largest of these is the city of Schaffhausen itself, with its population of around 36,100, whilst the smallest is Bargen which has approximately 260 inhabitants.

The small scale of the Canton is a significant benefit for businesses moving here. The local government and authorities are also small in scale, meaning access to decisionmakers is quick and unbureaucratic.

Schaffhausen’s citizens enjoy a high degree of democratic accountability and are able to vote on issues regularly. Voting is mandatory and thus turn out in Canton Schaffhausen is always high. Representatives at municipal and at national level, as well as those in the Council of the Canton, are elected every four years.

Representatives in the national parliament The Swiss Parliament, or the Federal Assembly to give it its proper title, is the highest legislative authority at federal level. Since 1848, the Federal Assembly has consisted of two chambers that have equal powers: the National Council and the Council of States.

Canton Schaffhausen has two representatives in each of the two chambers.

Cantonal Council and City Council (Legislative) The law-making body in the Canton is the Council of the Canton (Kantonsrat) comprising 60 members and representing the various localities and eight political parties.

In the city of Schaffhausen, in Neuhausen am Rheinfall, Stein am Rhein, Beringen and Thayngen this function is performed by the City Council, whilst in smaller municipalities it is undertaken by a municipal assembly.

The Governing Council (Executive) The government of the Canton comprises five elected representatives, each of whom leads a department and acts as President for a one year term on a rotating basis.

Mirroring the role at national level, the President is primus inter pares (first among equals) and has no additional powers. In the city of Schaffhausen, the executive body is the Stadtrat. In many municipalities, the implementation of laws rests in the hands of elected representatives who frequently perform the role on a part-time basis.

Governing Council of Canton Schaffhausen Chancellery

Internal Affairs Department

Education Department

Building Department

Administrative structure of Canton Schaffhausen Source: Canton Schaffhausen

Web page of Canton Schaffhausen: www.sh.ch

Dep. of Business and the Economy

Finance Department

INFRASTRUCTURE 13

Infrastructure Transport Schaffhausen benefits from excellent transport links whether you are travelling by rail, bus or car and whether your journey is local or taking you outside the region. We have direct access to the network of European major road and rail arteries and outstanding roads and public transport within the locality – that makes travelling easy, quick and reliable. On top of that, the international airport Zurich is just 35 minutes away by car or 45 minutes by train, with regular rail services.

Rail

Switzerland is well-known for its extensive and reliable railway network. Schaffhausen has direct rail links to Zurich, Bern, Basel, Winterthur, Zurich airport, Stuttgart and Ulm. Trains operate between Schaffhausen and Zurich at half-hourly intervals and it takes just 37 minutes to get to downtown Zurich.

Road

Our network of roads is also first-class, meaning traffic jams are relatively rare in Schaffhausen. The A4 highway connects Schaffhausen with Winterthur, Zurich and Germany, with the city protected from traffic by careful routing and a tunnel. From Schaffhausen city center, you can get onto the German autobahn network in just 10 minutes and have excellent links to major German cities such as Stuttgart, Frankfurt, Munich, Berlin and to northern Europe.

Journey times from Schaffhausen city center

By car

By train

Within Switzerland Zurich airport 35 mins Zurich main railway station 45 mins Basel 1 1/2 hrs Bern 2 hrs Geneva 3 1/2 hrs The German border 10 mins

46 mins 37 mins 1 hrs 1 3/4 hrs 3 1/2 hrs 10 mins

In Germany Singen Stuttgart Munich Berlin Frankfurt

By car

By train

25 mins 1 3/4 hrs 3 1/2 hrs 7 3/4 Std. 3 3/4 Std.

18 mins 2 1/2 hrs 3 3/4 hrs 7 3/4 hrs 4 1/4hrs

Rail connections to Schaffhausen Source: Economic Promotion Canton Schaffhausen

14 INFRASTRUCTURE

Airports

Zurich International Airport It takes just 35 minutes by car or 45 minutes by train to get from Schaffhausen to Switzerland’s biggest and busiest airport. Catch the S16 train service which goes direct from Schaffhausen to Zurich airport. The railway station there is integrated into the terminal building and right by the check-in desks. There are daily, direct flights to almost all major international business destinations. Zurich airport has all the facilities you expect of an international airport – speedy booking and check-in, sufficient parking, duty free shopping and direct connection to public rail and bus routes.

If you’re travelling to any Swiss airport by train, you can check in your baggage at Schaffhausen railway station (just show your boarding card) and relax.

Basel International Airport Schaffhausen is about 90 minutes by car or train from EuroAirport Basel-MulhouseFreiburg which primarily serves European destinations with direct and daily flights.

The EuroAirport is located in the triangle where Switzerland, Germany and France meet and has excellent road and rail links.

Stuttgart and Friedrichshafen The airports at Stuttgart and Friedrichshafen in southern Germany are easy to get to by car or train from Schaffhausen.

Intercontinental destinations from Zurich airport Source: Economic Promotion Canton Schaffhausen

15

Transport and Logistics Schaffhausen has been a trade and transportation center for centuries. Thanks to its high-performing and export-oriented industries, Schaffhausen has developed into a dynamic, modern supply-base serving a range of international marketplaces.

Schaffhausen has a well-developed and diverse range of logistics providers e.g. transport and haulage companies, warehouse facilities, specialists in customs processing.

Customs Clearance Companies exporting goods into EU countries can take advantage of a special service to help speed up customs processing and which offers simpler, faster and cheaper processing. In Switzerland and Germany as well as in the wider EU there are simplified processes for transporting goods across borders. Customs formalities can be dealt with directly from the exporting company’s office.

Utilities and Services Gas

Natural gas is supplied to residential and commercial clients in Schaffhausen and Neuhausen am Rheinfall by the municipal gas works.

Water

The groundwater stream of the River Rhine is the source of the plentiful and highquality water supply (of drinking water quality) for the region.

Fiber optics

Local cable company Sasag AG as well as national operators Swisscom, Orange and Sunrise provide the area with state-of-the-art data communications infrastructure.

Data is transmitted via high-speed fiber optic cable which guarantees fast connections.

Electricity

Canton Schaffhausen generates its own electricity via a hydro-electric plant but also imports electricity from other Swiss and European power stations. The price per unit depends on the voltage required, season and peak vs. off-peak usage.

Mobile phones and broadband

In spite of the topographic challenges in certain locations, mobile phone reception is very good throughout Switzerland. The largest provider covers 99 percent of the population. Users have reliable access to a signal, irrespective of their provider, however. 3G mobile broadband is available to over 98 percent of the population.

In 2013, the network will be upgraded to the new 4G/LTE (Long Term Evolution) standard, providing mobile broadband speeds of up to 150Mbit/s.

16 DOING BUSINESS HERE

Doing business here “Our decision to locate in Schaffhausen was based on the strong technological environment and very clear pro-business culture we encountered here.”

James McNab, Vice President International Marketing at Sourcefire

Over recent years, Canton Schaffhausen has become the location of choice for very many international businesses. Among the long list of companies which have established a headquarters, a shared service center or a production facility here, you will find: AGCO, Ashland, Citrix, ConvaTec, DSM, Garmin, John Deere, Kennametal, OBI, Tektronix, TE Connectivity, Tyco International, Unilever or Xylem.

Schaffhausen’s new arrivals value the exceptional quality of life, proximity to the airport, the expertise of service providers used to dealing with the EU and the moderate cost of living and of running a business by comparison with the overall Zurich area. Combined with very reasonable tax rates and innovative tax planning options, these benefits represent a compelling case and underline Schaffhausen’s attractiveness as a strategic business location. Moreover, when your business needs to expand its recruitment pipeline, the short distances to southern Germany and other parts of the Zurich area mean you have ready access to additional capacity.

Economic structure The most important sectors in Schaffhausen’s economy are plant and machinery engineering, automation, process control equipment, plastics and mold-making, packaging technology, pharmaceutical products, medicinal technology and instruments, food and drink production, electronics, research & development, chemicals, watches and jewelry, specialist printing machines, business consultancy and consulting engineers, software development and IT services.

Around 13 percent of all employees work in businesses with over 250 staff, with the remaining 87 percent working in small and medium size companies.

Examples of international companies which have opted for Schaffhausen: ADAMA Agriculture Agrochemical Products, HQ Europe

Aliancys AG Speciality chemicals, HQ Europe

Tektronix Measuring Equipment, Shared Service Center

AGCO International Agricultural Equipment, HQ Europe

Garmin GPS Products, Headquarters

Terex Global Construction Equipment, HQ Europe

Albany International Supplier to the paper industry, HQ Europe

Groupon Social Commerce, HQ Europe

TE Connectivity Electronic Products

Ashland Speciality chemicals, HQ Europe

John Deere Agricultural Machinery, Shared Service Center

Cabot International Chemical products, HQ Europe

Kennametal Europe Hard Metal Tooling, HQ Europe

Unilever Supply Chain Company Consumer Goods, Supply Chain Center

Citrix System International Software, HQ EMEA

Medtronic Pharmaceutical/Medical Technology

Werner Ladders, HQ Europe

ConvaTec Int. Services Medicinal Technologies, HQ Europe

Pentair Flow Control Technology Products, HQ Europe

Xylem Europe Water Technology, HQ Europe

Tyco Fire & Security GmbH Fire, Security

17

List of the leading businesses in the region (extract) Business

Activities/Specialisms

Plant and machinery, metal processing, plastics Bosch Packaging Systems AG

Packaging machinery

Georg Fischer AG

Piping systems, automotive components, plant design and engineering

Kebo AG, Fostag AG, SMC Mould Innovation AG, Gebrüder Renggli AG, Stamm AG

Precision injection molds for plastics

Phoenix Mecano Komponenten AG

Enclosures and electronic components

SIG Combibloc Group AG

Packaging technology

Suisse Technology Partners AG

Research into metallic materials, packaging technology

Electrical and Electronics, Measurement and Testing Equipment ABB Schweiz AG, CMC Low Voltage Products

Low voltage safety products and switches

Bircher Reglomat AG

Switch and safety systems, process controls, manufacturing

Brütsch Elektronik AG

Electronic devices, development and manufacturing

Marquardt GmbH

Switches

Murrelectronic AG

Electronic components and systems for industrial applications

Walter + Bai AG

Testing machines

Medicinal equipment and instruments Alcon Grieshaber AG

Ocular surgery instruments

Metoxit AG

Ceramic products

Storz Endoskop Produktions GmbH

Endoscopes

Chemical products, medicines, hospital supplies, specialist ceramics Cilag AG (Janssen, Johnson & Johnson Gruppe)

Pharmaceutical products

IVF Hartmann AG

Wound care products, dressings, feminine hygiene

Merck & Cie

Pharmaceutical products, research and production

ConvaTec International Services

Medicinal Technologies

Food and drink Brauerei Falken AG

Brewery, manufacture and sale of drinks

Rimuss- und Weinkellerei Rahm AG

Wine producer, drinks manufacturer

Unilever Schweiz GmbH

Foodstuffs, convenience foods

Watches, jewellery, silverware Furrer-Jacot AG

Manufacture of jewelry

IWC International Watch Company Co. AG

Luxury watches

Jezler & Cie. AG

Manufacture of silverware

Moser Schaffhausen AG

Luxury watches

IT, Software Citrix System International GmbH

Software systems for servers

Parallels International GmbH

Software

Trapeze Switzerland GmbH

Traffic management systems

Business services AXA-Winterthur-, Zürich-Versicherung, Swiss Life usw.

Insurance

UBS, Credit Suisse, Kantonalbank und weitere

Banking

International Headquarters / Shared Services Centers AGCO International GmbH

Agricultural machines

John Deere International GmbH

Agricultural machines

Tyco Fire & Security GmbH / Johnson Controls

Fire protection and electronics

TE Connectivity AG

Electronic products

Xylem Europe GmbH

Water Technology

18 DOING BUSINESS HERE

Schaffhausen – Cluster: MATERIALS TECHNOLOGY 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Materials Related Patent Applications (Per Million Capita)

Switzerland

403

Netherlands

402

Austria

286

Germany

216

Belgium

140

USA

94

France

88

Great Britain

45

Ireland

43

Italy

27 0

50

100

150

200

250

300

350

400

450

Research & Development Hub «RhyTech Materials World» is a technology park located in Schaffhausen which comprises and is surrounded by many materials technology intensive companies.

Furthermore there are 31 materials related faculties and institutes in 17 universities within a 2 hours radius.

International Business Environment More than 1,200 companies with expertise in materials science are located in the region and many of them are internationally active.

Specific Labor Pool More than 13,000 people are employed by a company with knowledge in Materials Science.

Well Educated Workforce More than 3,900 students are enrolled in a materials related course of studies and there are more than 950 graduates each year.

«As experts in materials science and technology, we benefit from the area’s investment in nurturing a culture of innovation and from the close links between business and the scientific community in Canton Schaffhausen. „RhyTech Materials World“ is an outstanding platform for the transfer of international technological and research expertise between the business and science communities.»

Günter Bergmann, CEO of Suisse Technology Partners AG, Neuhausen am Rheinfall – RhyTech area

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

20 DOING BUSINESS HERE

Schaffhausen – Cluster: TRANSPORTATION AND AUTOMOTIVE 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Automotive and Transport Related Patent Applications (Per Million Capita)

Germany

320

Austria

233

Switzerland

197

France

134

Netherlands

113

USA

61

Great Britain

40

Belgium

30

Italy

29

Ireland

24 0

50

100

150

200

250

300

350

Research & Development Hub There are more than 12 automotive related faculties and institutes in 8 universities within a 2 hours radius.

International Business Environment More than 140 companies with expertise in automotive or transportation are located in the region and most of them are internationally active.

Specific Labor Pool More than 22,500 people are employed by automotive or transport related companies.

Well Educated Workforce More than 3,000 students are enrolled in an automotive or transport related course of studies and there are more than 750 graduates each year.

«For us, a real positive about being in Schaffhausen is the quality of staff.

They’re highly skilled, motivated and hard-working. And for their part, our staff love the exceptional quality of life they can enjoy in this area.»

Peter Schneck, CEO of Trapeze Switzerland GmbH, Neuhausen am Rheinfall

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

22 DOING BUSINESS HERE

Schaffhausen – Cluster: LIFE SCIENCES 2 hours

c ar

driv e

Germany our car drive 1h

France Austria

Italy

University

Life Sciences Related Patent Applications (Per Million Capita)

Switzerland

704

Netherlands

331

Belgium

161

Austria

138

USA

114

Ireland

113

Germany

110

France

87

Great Britain

64

Italy

28 0

100

200

300

400

500

600

700

800

Research & Development Hub There are more than 40 life sciences related faculties and institutes in 14 universities within a 2 hours radius.

ETH Innovation und Entrepreneurship Lab (ieLab) Wyss Translational Center Zurich

International Business Environment More than 350 companies with expertise in life sciences are located in the region and most of them are internationally active.

Specific Labor Pool More than 22,000 people are employed by life sciences related companies.

Well Educated Workforce More than 7,900 students are enrolled in a life sciences related course of studies and there are more than 1,950 graduates each year.

ÂŤBeing based in Schaffhausen brings real advantages and means we can benefit from our proximity to a number of universities and the knowledge transfer which results.Âť Claudio Cescato, Managing Director of Cilag AG, Schaffhausen

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

24 DOING BUSINESS HERE

Schaffhausen – Cluster: MECHATRONICS 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Mechatronics Related Patent Applications (Per Million Capita)

Switzerland

1114

Austria

872

Netherlands

805

Germany

756

France

227

USA

214

Belgium

152

Ireland

108

Italy

105

Great Britain

105 0

200

400

600

800

1000

1200

Research & Development Hub There are more than 33 mechatronics related faculties and institutes in 13 universities within a 2 hours radius.

International Business Environment More than 1,700 companies with expertise in mechatronics are located in the region and most of them are internationally active.

Specific Labor Pool More than 64,000 people are employed by mechatronics related companies.

Well Educated Workforce More than 9,100 students are enrolled in a mechatronics related course of studies and there are more than 2,250 graduates each year.

ÂŤThe success enjoyed by the Swiss mechatronics industry is rooted in the high levels of innovation invested both in products and in processes.

The connections between the innovative businesses represent a distinct competitive advantage for the economy of Schaffhausen.Âť Kathrin Hopkins, Head of the Swiss Mechatronics Association

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

26 DOING BUSINESS HERE

Schaffhausen – Cluster: MEDICAL TECHNOLOGY 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Medical Technology Related Patent Applications (Per Million Capita)

Netherlands

345

Switzerland

327

Germany

107

Austria

100

USA

95

Ireland

83

France

33

Great Britain

31

Belgium

30

Italy

17 0

50

100

150

200

250

300

350

400

Research & Development Hub There are more than 15 Medtech related faculties and institutes in 10 universities within a 2 hours radius.

International Business Environment More than 500 companies with expertise in medtech are located in the region and many of them are internationally active.

Specific Labor Pool More than 20,000 people are employed by medical technology related companies.

Well Educated Workforce More than 2,700 students are enrolled in a medical technology related course of studies and there are more than 650 graduates each year.

«When we need to recruit staff, we profit considerably from the availability of staff with skills and expertise in the med-tech sector here in the Schaffhausen area.»

Jürg Werner, Managing Director of STRATEC Biomedical Switzerland AG

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

28 DOING BUSINESS HERE

Schaffhausen – Cluster: PACKAGING TECHNOLOGY 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Packaging Related Patent Applications (Per Million Capita)

Austria

387

Germany

336

Switzerland

331

Netherlands

305

France

95

USA

92

Belgium

69

Ireland

50

Italy

47

Great Britain

41 0

50

100

150

200

250

300

350

400

450

Research & Development Hub The IPI International Packaging Institute, located in Schaffhausen, is the leading Competence Centre for packaging and was established by international corporations in the packaging industry. The objectives of IPI are training of the highest quality for managers in the international packaging industry and to be a technological hub between the packaging industry and the related scientific and technological institutions.

There are more than 11 packaging related faculties and institutes in 9 universities within a 2 h radius.

International Business Environment More than 350 companies with expertise in packaging are located in the region and most of them are internationally active.

Specific Labor Pool More than 14,000 people are employed by packaging related companies.

Well Educated Workforce More than 2,000 students are enrolled in a packaging related course of studies and there are more than 500 graduates each year.

«The IPI International Packaging Institute in Schaffhausen is an integral part of the portfolio of professional development opportunities available to the employees of the Bosch Packaging sites.»

Friedbert Klefenz, President of Bosch Packaging Technology, Waiblingen

Zürcher Hochschule für Angewandte Wissenschaften Winterthur Life Sciences and Facility Management Wädenswil

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

30 DOING BUSINESS HERE

Schaffhausen – Cluster: PLASTICS AND MOLD-MAKING 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Plastics and Mold Related Patent Applications (Per Million Capita)

Netherlands

253

Switzerland

222

Austria

136

Germany

118

Belgium

70

USA

49

France

37

Great Britain

21

Ireland

18

Italy

12 0

50

100

150

200

250

300

Research & Development Hub There are more than 16 plastics and mold manufacturing related faculties and institutes in 11 universities within a 2 hours radius.

International Business Environment More than 250 companies with expertise in plastics and mold manufacturing are located in the region and many of them are internationally active.

Specific Labor Pool More than 8,000 people are employed by plastics and mold related companies.

Well Educated Workforce More than 600 students are enrolled in a plastics and mold related course of studies and there are more than 150 graduates each year.

ÂŤIn general, finding the right staff to work in such a specialist sector as ours is always a challenge.

However, in this region there is a strong base of advanced manufacturing companies and the training infrastructure to deliver a supply of precision engineers and toolmakers. That means we can access a talent pool of suitably qualified staff with the right skills.Âť Jarno Burkhardt, General Manager of Trelleborg Sealing Solutions, Stein am Rhein

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

32 DOING BUSINESS HERE

Schaffhausen – Cluster: SUSTAINABLE ENERGY 2 hours

c ar

driv e

Germany 1 ho

ur c

ar

dr iv e

France Austria

Italy

University

Sustainable Energy Related Patent Applications (Per Million Capita)

Switzerland

544

Netherlands

451

Austria

433

Germany

399

France

133

USA

108

Belgium

83

Ireland

63

Great Britain

58

Italy

42 0

100

200

300

400

500

600

Research & Development Hub There are more than 27 energy technology related faculties and institutes in 14 universities within a 2 hours radius.

International Business Environment More than 8,300 companies with expertise in energy technology are located in the region and many of them are internationally active.

Specific Labor Pool More than 64,000 people are employed by energy technology related companies.

Well Educated Workforce More than 34,000 students are enrolled in an energy technology related course of studies and there are more than 850 graduates each year.

«We construct buildings out of wood – that means we’re putting our commitment and resources into sustainable development. Here in Schaffhausen we can access everything we need to fulfil our vision: highly skilled personnel, raw materials on our doorstep and a business environment which cultivates innovation.»

Michael Hübscher, Managing Director of HÜBSCHER HOLZBAU AG Beringen

Sources: Universities, Trade Associations and the Federal Statistical Office (BFS)

34 DOING BUSINESS HERE

Tax Schaffhausen has attractive tax rates. Recent years have seen a continual reduction in the levels of tax imposed on businesses. A number of multinational corporations have chosen Canton Schaffhausen as the location for their European Headquarters, their central trading operation, a finance or management company or for a regional or even their global holding company. In addition to the moderate tax levels, by comparison with the rest of Europe and even with the Swiss average, as well as the other strengths the region has to offer, an important consideration has often been the strongly pro-business and pragmatic stance of the authorities here.

CHF 100’000 80’000 60’000

Dialogue with the tax authorities

40’000

Lausanne

Zurich

Aarau

Schaffhausen

0

Zug

20’000

Business Tax 2014 in the capital city of each canton Cantonal and Municipal tax (excl. Federal tax) based on capital of CHF 2m and net profit of CHF 600,000 Source: Federal Tax Authorities

The tax legislation passed by the Canton contains a number of opportunities to recognize the investment of companies which create new jobs or bring new expertise to the region. This willingness to accommodate investors’ commitment to the region can result in tax benefits. Each case is judged on its own merits and with due regard to all relevant tax considerations. Subject to certain conditions being met, Canton Schaffhausen can grant tax benefits to companies for a period of up to ten years.

You will find full details of our tax regime in our Tax Guide, available in English at: www.invest-in-schaffhausen.com/publications

Labor market Schaffhausen has a strong pool of highly qualified and skilled staff. Around a third have completed tertiary education. The language skills and above average levels of international experience are significant strengths of our region. Commitment and loyalty to an employer tend to be very high.

Businesses are free to recruit staff from Switzerland and from the EU-25/EFTA states without having to seek approval. Nationals from other countries can be employed as long as they have a residence and work permit. The employer applies to the Cantonal Labor Office for these permits.

Businesses in the Schaffhausen area also benefit from the large number of crossborder workers. Thanks to its location right on the border to Germany, Schaffhausen’s economy can draw on a pool of potential recruits across the border as well as in neighboring cantons. The practice of employing cross-border workers is well-established in the area and involves few formalities. Cross-border workers must return home at least once a week, however.

Wages and salaries

The pay range for a number of job roles is set out in the table which follows.

The website www.salarium.ch allows you to calculate the pay rate for an individual based on a number of factors. The interactive tool provides information for a specific role (sector, region etc.) and type of candidate (age, qualifications etc.): –– gross monthly salary (middle or median value) –– salary range (interquartile range) –– factors influencing the salary (table of salary variations by region, level of education etc.)

–– comparison with personal salary data (total salary based on the same salary components as the median salary)

35

Average pay in Canton Schaffhausen Sector, Role, Experience

in CHF per annum

Industry Unqualified staff, with on-the-job training Qualified mechanic (technician), experienced Qualified electronics technician, experienced

48,000 – 64,000 58,000 – 78,000 58,000 – 78,000

Administration Secretary, 2 languages, experienced Experienced, qualified secretary, 3 languages Qualified bookkeeper, experienced/undertaken further training Financial Controller, experienced

58,000 – 78,000 70,000 – 100,000 85,000 – 120,000 90,000 – 145,000

Technical Specialisms Engineer, no experience Engineer, experienced 2 languages

78,000 – 98,000 95,000 – 125,000

Management First line Middle management Senior management

76,000 – 100,000 96,000 – 140,000 130,000 and more

Source: ProPers AG, Personal Beratung und Dienstleistungen, 8212 Neuhausen am Rheinfall, www.propers.biz – December 2016

Recruitment of staff

There are a number of specialist recruitment agencies in Canton Schaffhausen.

The Economic Promotion Team will help you make contact with them.

Social insurance costs

The Swiss system for providing social security against ill-health and in old age comprises state, employer and employee contributions and ensures a balance across these three pillars of provision for old-age. Details of the social insurance system are set out in the Investor’s Handbook, available at www.invest-in-switzerland.com.

Overview of social costs in Canton Schaffhausen Payable by

Employer (%)

AHV/IV/EO ALV up to CHF 126,000 from CHF 126,001 Pension plan approx.

Social Fund Canton Schaffhausen up to CHF 126,000 Child benefit / child allowance payments Payment during illness approx.

UVG depends on prior claims NBU depends on risk group Total

5.125 1.10 0.50 6.50 0.12 1.30 women 1.20 men 1.00 0.10 – 4.50 0.00 14.645 – 19.845

AHV = Old age / pension insurance IV = Invalidity insurance EO = Premium for payment to employer for staff on military service ALV = Unemployment insurance UVG = Accident insurance NBU = Non-work related accident insurance Source: ProPers AG, Personal Beratung und Dienstleistungen, 8212 Neuhausen am Rheinfall, www.propers.biz – December 2016

Employee (%) 5.125 1.10 0.50 6.50 0.06 0.00 women 1.20 men 1.00 0.000 0.80 – 3.00 13.98 – 16.985

36 DOING BUSINESS HERE

Residence and Work Permits – for nationals of EU/EFTA states Employees and the self-employed from most EU states are entitled to enter and stay in Switzerland and to receive a work permit, under the terms of the agreement on the free movement of persons signed by Switzerland and the EU. Following a transitional period, the Agreement on the Free Movement of Persons provides EU and Swiss nationals with the same living, employment and working conditions, both in Switzerland and in the EU. In specific terms, EU nationals in Switzerland are entitled to: –– geographic and job mobility (i.e. they may change their place of residence or work or their job within Switzerland at anytime) –– the same working conditions as Swiss citizens –– coordinated social insurance protection –– the same social benefits (reduced fares for public transport, subsidized rent, etc.) as Swiss citizens –– the same tax obligations and benefits as Swiss citizens –– be self-employed –– mutual recognition of diplomas/qualifications with regard to admission to a regulated occupation –– family reunification –– employment of family members Agreement on the Free Movement of Persons between Switzerland and the EU envisages long-term residence permits (for five years) and short-term permits (up to one year). The permit is renewed if the applicant is still gainfully employed. Holders of short-term permits are no longer required to leave the country when their contract of employment expires.

The Agreement on the Free Movement of Persons and its additional protocol is directed to all citizens of the 25 EU member states (who hold an EU passport) and of EFTA States1. The Agreement does not apply to third-country nationals. Exceptions are made in case of family reunification and for employees from third-countries who are integrated into the labor market in the EU and temporarily provide services in Switzerland on behalf of a business based within the EU (posted employees). In the case of Rumanian and Bulgarian nationals, a transitional period of seven years has been agreed after which they will have free access to the Swiss labor market. The agreement took effect on 1st June 2009.

People without employment such as pensioners and students also have the right to enter Switzerland and reside here, providing they have health insurance and sufficient financial resources to ensure they do not become a burden on the Swiss social security system (e.g. having to draw cantonal supplementary benefits as a pensioner).

The following types of permit apply to employees from EU/EFTA states: Residence Permit — B Valid for five years; issued on presentation of an employment contract running a year or more (or unlimited); can also be issued instead of a short-term residence permit (L) valid for longer than twelve months.

Short-term residence permit — L Issued on presentation of an employment contract running less than a year; the validity of the permit is the same as the length of the contract. The permit can be extended or renewed without the holder having to leave Switzerland. It grants occupational and geographical mobility.

Cross-border commuter permit — G Issued for the length of the employment contract if this runs for less than twelve months. On presentation of an employment contract lasting twelve months or more (or of indefinite duration) the cross-border commuter permit will be valid for five years. The cross-border commuter must return home at least once a week.

1 The European Free Trade Area (EFTA) comprises Norway, Iceland, Liechtenstein and Switzerland. An application for a residence permit can be made online to the Migration Department of the respective canton prior to arriving in Switzerland.

37

Settlement permit — C A settlement permit is usually granted to nationals of the EU-15 and EU-10/BG/RO member states after a regular and continuous stay in Switzerland of five or ten years respectively. The right to reside in Switzerland is of unlimited duration and is not subject to any restrictions. The Free Movement of Persons Agreement does not contain provisions for the settlement of foreign nationals in Switzerland. Nationals from the EU/EFTA member states are eligible however for a settlement permit under the provisions of the Swiss Foreign Nationals Act and various settlement agreements.

Conditions Those in paid employment must have an employment contract for at least twelve hours a week. If the contract is for less than one year, a short-term residence permit L will be issued. If the employment contract extends beyond one year, a residence permit B will be issued. The self-employed must be able to demonstrate sustained activity which will lead to a regular and adequate income as a means of supporting themselves.

Application process Work and residence permits are issued by the Migration Department in each canton.

Foreign nationals must register with the local authority (the Einwohnerkontrolle department) in their municipality within three months of entering the country and before they commence employment. The application form can be downloaded from www.sh.ch/formulare. The application must present evidence that the conditions for a permit are met.

Residence and Work Permits – nationals of non-EU/EFTA states The Federal Government has determined that, to a limited extent, nationals of third countries, i.e. states which are not part of the EU or EFTA, will be granted permits where there is a pressing need and their specialist skills and expertise are required.

The following permits can be sought by nationals of non-EU/EFTA states: Residence permit — B This permit is issued to applicants with an unlimited contract of employment and who are highly qualified or in senior positions within their organization. If insufficient quota places are available, a short-term residence permit may be issued.

Short-term residence permit — L This is issued where the applicant has a contract of employment for less than two years. The term of the permit corresponds to the term of the contract of employment and cannot exceed two years. The permit can be extended or renewed without the holder having to leave the country, however. There is no quota in place for short-term permits of up to four months’ duration.

Conditions A number of conditions must be met at the time the application is made in order for a residence permit to be granted to a citizen of a third country. Permits will be issued where this is in the interest of the Swiss economy, for example when jobs are created for Swiss employees, orders are directly generated for Swiss businesses, significant investment takes place or greater diversification of the business base results. Permits can be issued to management postholders, specialists and other qualified staff.

Third-country nationals may only be admitted if a person cannot be recruited from the labor market of Switzerland or another EU/EFTA member state, who have priority. The third-country national must be offered the same pay and working conditions as locally recruited staff would be. Third-country nationals will only be allowed to work if the requirements of the person specification are met. Depending on the sector or specialism, the requirements may relate to a particular type or level of qualification, past experience overall or in a specific job role as preparation for the post they will be taking up.

38 DOING BUSINESS HERE

Procedure: Work permits (non EU/EFTA) Applicant

The employer

submits the application to the cantonal department for labor market affairs. Employees who require a visa are required to submit an application for entry to the country to the Swiss representation (embassy etc) in their country of residence.

Review I

The cantonal department for labor market affairs

reviews the application in the light of legislation relating to foreign nationals and reaches a preliminary decision. Applications approved in principle by the cantonal authority have to be passed to the Federal Office for Migration for final approval.

Review II

Federal Office for Migration

bases its decision on national considerations. The decision is communicated to the applicant, the employee and to the cantonal authorities.

The employer is charged a fee for the service. Approval does not mean permission to enter the country, however.

Visa

The cantonal department for migration

sends approval for a visa to the Swiss representation abroad (e.g. embassy), having received the decision of the Federal Office for Migration.

The visa can then be collected.

Registration with local authority

The employee

registers with the registration department (Einwohnerkontrolle) of their local authority within 14 days of arrival. The resident may only start work after they have completed registration.

LIVING IN SCHAFFHAUSEN 39

Living in Schaffhausen “Arguments for Schaffhausen are its position within the Greater Zurich Area (GZA), the availability of highly qualified staff with an international background, the geographical location in the heart of Europe and the exceptional quality of life.”

Antonino DeSapio, Group Controller at Groupon

Schaffhausen offers great quality of life and is the opposite of a hectic mega-city.

Add to that the excellent range of high-quality residential property which guarantees something for everyone: from a modern apartment in the city-center to an old farmhouse in the surrounding countryside.

Canton Schaffhausen is a tantalizing mix of the traditional and the modern. Towns and villages have vestiges of the Middle Ages but the vibe is young and exciting. You will find lots of shops and a busy calendar of cultural and sporting events.

Cost of living The cost of living in Canton Schaffhausen is generally below the Swiss average and much lower than the average you will find in major cities such as Zurich, Geneva and Basel. The affordability of property in the Schaffhausen area is a real and very tangible benefit.

Residential accommodation

Overall, Switzerland’s small size and the land available for building impacts on property prices and rental values. The average Swiss household spends around 20 percent of its total expenditure on accommodation. The price of land in the Schaffhausen area is relatively low and that means more affordable property and lower rents. You will always find attractive property to buy or to rent in Canton Schaffhausen and at affordable rates.

Renting property

Around 65 percent of the Swiss population lives in rented accommodation, a result of the relatively high cost of land and of building in many parts of the country. The rental agreement covers all aspects of the tenancy including rental charge, utilities and service costs, notice period etc. The utilities and services charges include heating, water usage, electricity and, for example, a concierge.

Buying property

There are some restrictions on the purchase of property (house or apartment) by foreign nationals but this does not apply to property bought for one’s own use.

Building is only permitted in zones designated for residential accommodation and planning regulations including, for example, the height of the building and number of stories permitted should be observed.

You will find a database of property and land available for building at: www.invest-in-schaffhausen.com/dream-home

40 LIVING IN SCHAFFHAUSEN

Tax

Private individuals who are permanently or primarily resident in Switzerland, are required to pay tax at three levels: federal/national level, cantonal and municipal level.

Income tax is calculated on worldwide earnings; income from foreign property and immovable assets is only used to determine the applicable tax-rate. Wealth tax is treated in the same way. An individual is required to pay tax in Switzerland if it is their registered domicile or if they stay and work in Switzerland for at least 30 days or if they stay for 90 days or more but are not working. The tax period begins on the day of arrival. Where tax is paid is determined by the place of residence on 31. December of the respective year.

In the case of private individuals, direct tax is calculated and payable for a set period – the calendar year. Tax for the current year is paid during the year on a provisional basis and the final tax liability is reconciled in the following year.

Income tax and wealth tax at the three levels – federal/national, cantonal and municipal – are administered and collected by the cantonal tax authority.

Further details regarding the taxation of individuals is available in our Tax Guide at www.invest-in-schaffhausen.com/publications

Health insurance

Health insurance (basic coverage) is obligatory for anyone who is resident in Switzerland. There are options to extend the cover to services not included in the basic package and there are a number of providers of basic and enhanced health insurance.

The premium is not linked to income level but is influenced by place of residence and type of cover.

SETTING UP A BUSINESS 41

Setting up a business “The key arguments for Schaffhausen are its central geographic location within Europe, the international school, relatively modest corporation tax and the very unbureaucratic approach taken by the authorities.”

Hans Fritz, Managing Director at Nuron Biotech

Setting up a business in Canton Schaffhausen is quick and simple. There are a number of accountancy companies available to help you select the most appropriate legal structure and to guide you through the process.

The fundamental right to engage in commerce or to pursue a trade extends to everyone, foreign nationals included, and allows them to set up their own business or take a shareholding in one. There is a limited number of fields in which licensing by the authorities is required (examples include activities relating to medicines, building services, schools, transporting people). There is no requirement to belong to a Chamber of Commerce or to join a trade or professional association and no requirement for annual submission of business records. Foreign nationals must have a residence and work permit in order to run a business, however.

The following options are available to start a business: –– setting up a partnership or corporation –– establishing a branch –– acquisition of an existing company in Canton Schaffhausen (partnership or corporation) –– setting up a joint venture (partnership or corporation) The options typically chosen by foreign companies establishing a business in Canton Schaffhausen are: –– European headquarters of a corporation operating globally –– subsidiary of an international corporation –– branch of an international corporation The following considerations are key to the choice of legal form for the business: –– capital: set-up costs, capital requirement and rules on minimum capital –– risk/liability: the greater the business risk or capital investment, the stronger the case for choosing a type of business entity which limits liability –– flexibility: certain legal structures restrict what can be done –– tax: the income and assets of the business and the owner may be treated separately or as one item, depending on which type of legal entity the business is –– social security: certain types of social insurance may be mandatory, voluntary or non-existent depending on the legal structure chosen for the business –– requirement for links with service providers in the region, especially audit and financing Time required to set up a business in Canton Schaffhausen: two to five weeks for a publicly traded corporation (designated AG in German); a few days for a limited liability company (designated GmbH in German) The costs of setting up a public limited company (AG): ca. CHF 4,000 – 10,000 (depending on the complexity of the business structure and preliminary searches) The costs of setting up a private limited company (GmbH): ca. CHF 4,000 – 6,000 (depending on the complexity of the business structure and preliminary searches)

42 SETTING UP A BUSINESS

Checklist for setting up a business Legals

Name of the business Anyone operating as a sole proprietor has to include their surname, with or without first name, in the company name.

Choosing the legal structure Evaluating the pros and cons of the different legal forms (risk, liability, taxation, succession planning) Setting up the business – draft articles – acceptance by statutory auditors – share capital deposited – inaugural meeting at Commercial Registry – register of assets (Handelsregisteramt) Completion of entry in Commercial Register “Handelsregister” Contracts – rental agreement – contract of sale/purchase of premises (registration – contract of sale/purchase of business as owner of the property) – contract of sale/purchase of equipment, plant etc.

Marketing

Branding and promotion – company logo – press releases – secure internet domains (website addresses) and e-mails

– promotion of business launch – consider membership of business/trade associations – advertising, inform clients and suppliers

Personnel

Staff recruitment – review personal contacts, advertise, identify recruitment agencies – are work permits required?

– contracts of employment signed – register staff with insurance schemes (e.g. social insurance etc)

Permits

License to operate Check whether a license to operate is required (shifts?)

Socal insurance

Old-age pension “Alters- und Hinterlassenenversicherung” (AHV) – register the company or yourself if self-employed – check entitlement to child allowance/child benefit Accident insurance/Suva – Businesses in the construction, industrial or craft-trade – consider requirement for enhanced levels of sectors have to take out accident insurance with Suva accident insurance cover (Swiss national accident insurance agency) Employer’s Pension Scheme “Berufliche Vorsorge” (BVG) – Staff over the age of 18 have to be insured if their salary – consider voluntary inclusion of business owner is above a threshold Payment of daily allowance during periods of illness – check terms of any general / framework employment – include business owner and spouse in insurance contract applied in a particular sector or occupation cover (collective tariff)

Business insurance

Business and product liability insurance Assess risk and identify suitable level of cover Corporate insurances Assess risk of damage by fire, water, theft and business interruption and identify suitable level of cover

Financials

Budget and financial requirements – generate budget forecasts for the first three to five years – identify sources of finance (equity/loans) – identify investment requirement for the first three to five years Business Plan – summary – details of key individuals / legal structure – strategy and objectives – analysis of market and capability of the business

Taxation

– purpose of the business and marketing concept – premises requirements – narrative/explanation of forecasts for coming years – financing

Sales Tax / Value Added Tax – check requirement to register for sales tax / value added tax! – choose settlement based on invoice value or on – choose settlement based on flat-rate or effective rate receipt of payment – comply with regulations on invoicing

43

Timetable for setting up a business in Canton Schaffhausen Actions

Weeks1) 1

2

3

4

5

6

Checking and registering company name Prepare documents for incorporation Deposit capital Incorporation and drafting of formation document Details published in the canton’s Commercial Bulletin / Gazette Key individuals/authorized representatives of the business are recorded in appropriate registers Business is registered for tax purposes 1) In exceptional cases, the process can be reduced to one to two weeks.

Business services Schaffhausen has a wide range of business service providers to assist you such as: –– accountants to advise on tax, setting up a business, financial record-keeping and audit –– recruitment and HR services able to cover all aspects from recruitment to work permits and HR administration –– banks (regional and international) for loans and payment processing –– insurance specialists –– lawyers –– IT specialists to help with the planning, installation and maintenance of IT equipment –– office design and furnishing specialists –– caterers –– interim management agencies The Economic Promotion Team will be delighted to provide information and recommend appropriate support services.

Corporate structures There are four types of business entity in Switzerland: capital-based incorporated companies such as a stock corporation (Aktiengesellschaft - AG) or limited liability company (Gesellschaft mit beschränkter Haftung - GmbH) on the one hand and partnership-type unincorporated companies such as limited or collective partnerships or sole proprietorships on the other. The choice of corporate structure depends on a number of factors including the capital requirement, desire for anonymity, the level of risk, separation of personal and corporate liability and whether the business activity is self-employment.

Stock corporation

A stock corporation (Aktiengesellschaft - AG) stands as an independent legal entity separate from its shareholders and directors and liable for its debts and obligations.

This structure is suitable for all for-profit organizations.

Limited liability company

A limited liability company (Gesellschaft mit beschränkter Haftung - GmbH) is a separate legal entity from its owner or owners. Shareholders’ liability is limited to the value of their stock holding. This structure is suitable for small and medium size businesses.

General partnership

A general partnership is founded by two or more individuals as a joint undertaking and primarily chosen for small businesses focusing on the skills of specific individuals (painter and decorator, small IT companies etc.).

44 SETTING UP A BUSINESS

Sole proprietorship

Sole proprietorships do not have a separate legal “personality” from their owner. Many people setting up a small business as a one-person company choose this legal structure (hairdressers, artists etc.)

Overview Sole proprietorship

Limited liability company (GmbH)

Stock corporation (AG)

Purpose

Small businesses, activities carried out by single individuals (e.g. tradespeople)

Generally used for small businesses

Suitable for almost all types of for-profit organization

Legal status

Sole property of the business owner

Legal entity, corporation

Legal entity, corporation

Company name

Last name of the owner, with or without first name

No restrictions (may include names, activity or be an invented name)

No restrictions (may include names, activity or be an invented name)

Formation

Commencement of self-employment

Public act of signing when company is established, articles of incorporation/association approved, appointment of management board, representatives and auditors

Public act of signing when company is established, articles of incorporation/association approved, election of Board of Directors and auditors

Entry in the Commercial Register “Handelsregister”

Mandatory if engaged in commercial activity with annual turnover above CHF 100,000

Becomes a legal entity only when recorded in Commercial Register

Becomes a legal entity only when recorded in Commercial Register

Number of owners or shareholders

1 individual is the sole proprietor

At least 1 shareholder

At least 1 shareholder

This can be an individual or a legal entity

This can be an individual or a legal entity

Mandatory, share capital and number of shares is recorded in company articles, minimum nominal value of CHF 100

Mandatory, share capital and number of shares is recorded in company articles, minimum nominal value of 1 Rappen (CHF 0.01)

Minimum CHF 20,000, each shareholding fully paid up

Minimum CHF 100,000, of which CHF 50,000 must be paid up

- Shareholder meeting - Management (at least 1 person)

- Shareholder meeting - Board of Directors with at least 1 person

Capital requirement

Corporate governance

None

None Auditor can be engaged if required

- appointment of auditors is optional if the business has fewer than 10 staff Liability

Unlimited liability of the owner with their personal assets

- appointment of auditors is optional if the business has fewer than 10 staff

Limited to the company’s assets

Limited to the corporation’s assets

optional limited liability to make further contributions according to articles

each shareholder is obliged to pay in his/her share of the share capital in full

liability for further contributions must be recorded in the articles and may not exceed double the nominal value of the equity liability only for further contributions linked to own share in equity Investors and third-party capital

Not suitable for third-party investment

Increase in authorized share capital requires change to articles

Various options to increase share capital via change to articles

Taxation

Proprietor taxed on personal and business income and assets

The company is taxed on profit and on capital

The corporation is taxed on profit and on capital

Owners taxed on shares as wealth and on dividends as income

Shareholders taxed on shares as wealth and on dividends as income

45

Management

Sole proprietorship

Limited liability company (GmbH)

Stock corporation (AG)

By the sole proprietor or by an appointed party

Owners manage jointly unless articles stipulate alternative arrangement

Management jointly by Board of Directors unless, responsibility is assigned to individual Directors or third party

Each joint owner may represent the company Articles may permit alternative arrangement but at least one owner must be authorized to represent the company

Each Director may represent the company unless this is assigned to individual Directors or third party At least one Director must be authorized to represent the company

Nationality and domicile requirements

The owner must have a domicile in Switzerland (no residence obligation)

The company must be represented by at least 1 person resident in Switzerland

The corporation must be represented by at least 1 person resident in Switzerland

Advantages

Permits simple business activity; few regulations

No personal liability for debts of the company. The company may be jointly owned by more than one person.

No personal liability for debts of the corporation.

Company shares are easily transferable (without publication of details) Low capital requirement (CHF 20,000)

The corporation may have more than one shareholder Shares are easily transferable (without publication of details) Viewed positively by clients, suppliers and potential funders Shareholders remain anonymous

Disadvantages

Personal liability

Viewed less positively by clients, suppliers and potential funders

Costs

Often poor credit rating due to lack of audit

No anonymity for owners

Requirement to comply with corporation statutes and articles (audit etc.)

Shareholding by partners not permitted

Requirement to comply with company statutes and articles (audit etc.)

taxation incurred by the corporation (AG) and by the shareholder(s)

No unemployment payments

taxation incurred by the company (GmbH) and by the owner(s)

Property The three common forms of property usage are: rent; freehold and leasehold.

The following sections set out details.

Rent

There are no restrictions on the rent of office accommodation or commercial or industrial premises by foreign nationals. A wide range of commercial property is available in Schaffhausen at attractive rates and the process of renting premises is simple. Prices vary depending on location, specification and the contract duration but in general are between 20 and 80 percent lower than in ZĂźrich.

Purchase of land / commercial property

No approval process is required for legal entities domiciled abroad seeking to buy land or property for commercial purposes. The purchase of land or buildings for use as residential accommodation is not possible, however.

Land prices vary depending on their location, zone, whether they are connected to utilities and services and whether low or high density developments. The following guidelines generally apply in Canton Schaffhausen:

46 SETTING UP A BUSINESS

Overview of rental prices in Canton Schaffhausen Type of building

Price/m2 and year in CHF

unfitted Offices City 130 – 250 Periphery 130 – 240 Rural areas 80 – 160 Commercial premises Ground floor Upper floors

80 – 120 70 – 100

Industrial premises Small sites Large sites

70 – 100 50 – 70

fully fitted 150 – 320 150 – 300 120 – 200 100 – 140 90 – 120 80 – 120 70 – 100

Source: Economic Promotion Canton Schaffhausen

Buying commercial property

The price of commercial property is heavily dependent on location and condition.

The following figures are intended as a general guide:

Overview of commercial property prices in Canton Schaffhausen Land1) for:

Price/m2 in CHF

Offices Commercial premises Industrial premises

100 – 600 90 – 300 90 – 400

1) Land connected to electricity, water and sewage services, not built on

Database

The Economic Promotion Team of Canton Schaffhausen maintains a continually refreshed database of industrial and commercial developments with key information such as location, size, price per m2, whether connected to services and agent. We can provide this information by telephone or in print so that you can readily recognize what premises are available which would meet your requirements.

Property database Details of available land and buildings for commercial and industrial use in the Schaffhausen area are constantly being updated. The Economic Promotion Team would be delighted to compile a list of suitable properties and to introduce you, at no cost, to the owner or their agent.

EDUCATION AND RESEARCH 47

Education and Research School and vocational education School system

Switzerland has an international reputation for the quality of its education system, its research excellence and its track record in science and technology. It is a global leader in innovation. Mirroring the Switzerland’s federal structure, three layers – national government, cantonal and municipal authorities – work together to ensure high-quality education.

University level study

Advanced vocational training Occupation specific college

Occupation specific university college

University / Inst. of Technology

Tertiary

Advanced vocational training

Adult matura schools BMS

3-4 years

2 years

Middle school leading to vocational qualification 4 years

Middle school with broad specialisms

Grammar school 4 years

4 years

Secondary Level II

Vocational training

Vocational qualification

Vocational preparation

Internship

Secondary Level I

Gap years Year 9 Year 8 Year 7 Years 1-6 (primary school)

Overview of the state-funded school system Source: Education Department Canton Schaffhausen, www.sh.ch

State schools in Canton Schaffhausen

From first entering kindergarten to their completing compulsory education, pupils can attend schools locally, within the Canton. In fact, you will find a kindergarten, primary and secondary school in most municipalities within the Canton so there are no great distances to get to school and excellent tuition on your doorstep. Schaffhausen also has an English-speaking school – the International School of Schaffhausen (ISSH) which offers high-quality education from primary through to secondary and Diploma level (International Baccalaureate).

Although there are private schools like ISSH or Rudolf-Steiner-Schule pupils in Schaffhausen usually attend a state school which provide an excellent education and start in life free of charge for parents resident in Canton Schaffhausen.

48 EDUCATION AND RESEARCH

48

Kindergarten Every child has the option of 2 years of pre-school in a kindergarten. Year 1 is optional whilst the second year is obligatory.

Primary and Secondary I Primary education spans six years and provides a thorough basis for later development. Pupils then move into Secondary Level I. Vocational Education (Secondary II) Vocational education is highly esteemed in Switzerland and the quality of education provided is recognized as among the best of its type in the world. There are vocational education routes to almost 300 occupations, with training taking 2, 3 or 4 years.

Middle School (Secondary II) Completion of this secondary education route provides entry to university-level study.

Pupils attend the Kantonsschule Schaffhausen and leave with one of three types of qualification, including the Matur (similar to the German Abitur).

Universities, research and development Selectet universities:

Universities

Universität Basel Universität Bern Universität Freiburg Universität Konstanz (D) Universität Lausanne Universität Luzern Universität Neuenburg Universität St. Gallen Università della Svizzera italiana, Lugano/Mendrisio Universität Zürich Eidg. Technische Hochschule Zürich ETH (Federal Institute of Technology) Eidg. Technische Hochschule Lausanne EPFL (Federal Institute of Technology)

Research and Development

An overview of university-level specialist colleges is available at: www.switch.ch/edu/fh.html Information on entry to Swiss universities can be found at: www.crus.ch

Schaffhausen lies within easy reach of a number of universities including: Zurich, St. Gallen, Basel, Konstanz (in Germany) and Winterthur, all of which are less than an hour’s drive away. There are also lots of courses available within the Canton, too: IT, language programmes, management training and craft skills courses are all available locally. IPI International Packaging Institute is a sector-specific universitylevel institute and there is also a teacher training college. At university level, there are also seminars and courses in Corporate Innovation Management run locally in Schaffhausen by the Fachhochschule St. Gallen.

ITS Industrie- und Technozentrum Schaffhausen is a key local resource in maintaining technological leadership among businesses in the area. Its services aim to nurture innovation and technological capability among small and medium size companies and to initiate tightly-focused practical and innovative projects with industry partners in the Schaffhausen region. ITS is a broker and enabler of innovative forms of collaboration between companies and is stimulating new developments in the locality. A further part of its remit is technology transfer and cluster formation in the Schaffhausen area.

Working jointly with industry and with public bodies, ITS has initiated and supported cluster-based activities such as the IPI International Packaging Institute and RhyTech Technology Park, which specializes in materials science applications. ITS is funded by both industry in the region and the public purse and works closely with industry organizations, sector associations, the scientific community and politicians.

Research and development, whether conducted within companies for their own purposes or provided for third parties is a significant strength of the local economy.

The IPI International Packaging Institute, set up in 2004 and dedicated to the packaging technology sector, is testament to that. It provides a range of seminars and a Masters program for sector specialists and managers and plays a pivotal role in bringing together businesses, in linking with universities and in providing specialist services.

ECONOMIC PROMOTION TEAM 49

Economic Promotion Team As a single point of contact for business, local government and politicians the Economic Promotion Team provides services including advice, the brokerage of information and contacts and project management in the following areas: –– assisting businesses wishing to establish a base in Schaffhausen –– support for the existing business base –– promotion of Schaffhausen to potential new residents –– technology transfer –– support for the new generation of entrepreneurs The Economic Promotion Team markets the Schaffhausen region at both national and international levels, presents the Canton’s compelling proposition via a range of marketing activity and targets key markets for the Canton.

Economic Promotion Canton of Schaffhausen Herrenacker 15 CH-8200 Schaffhausen Switzerland Phone: +41 52 674 03 03 Fax: +41 52 674 06 09 economic.promotion@generis.ch www.invest-in-schaffhausen.com

Advice Flourishing businesses are the backbone of any economy. The Economic Promotion Team of Canton Schaffhausen is tasked with providing a comprehensive range of advice and services to newly established and long-standing companies and to businesses which have settled here or are keen to do so. If you are interested in setting up a business or locating in Canton Schaffhausen, implementing an innovative project or planning how to best manage your export activity, simply get in touch. We are here to help.

Brokerage of contacts The Economic Promotion Team is able to put you in touch with the right people in government - whether that’s at national, cantonal or municipal level – and can connect you with financial services partners, advisors, lawyers, sectoral groupings and clusters, education and training organizations and business networks.

Brokerage of premises and land The Economic Promotion Team can help you to identify land, offices or commercial and industrial buildings, storage and production sites. We have a database of all available properties of each type and, on request, can suggest properties which match your requirements. We accompany foreign businesses on tours of sites and properties and assist with subsequent negotiations.

Technology transfer The Economic Promotion Team works hand-in-hand with local technology specialists ITS Industrie- und Technozentrum Schaffhausen and with the RhyTech Materials Science Technology Park in nearby Neuhausen am Rheinfall. Helping you make contact with these institutions is also part of our remit.

50 Investment Guide

Notes

General Information 51

Economic Promotion Canton of Schaffhausen Herrenacker 15 CH-8200 Schaffhausen Switzerland Phone: +41 52 674 03 03 Fax: +41 52 674 06 09 economic.promotion@generis.ch www.invest-in-schaffhausen.com