Expanding Your Business to Switzerland? What you need to know Switzerland has almost been forced to build its wealth on foreign trade as it has really has no resources, but only has a limited surface area. The Swiss economic policy is based on the principle of free trade and industry guaranteed by the Federal Constitution, with low import duties and only a few import quotas. Most Swiss manufacturers are dependant on foreign markets to make investments in research and development worthwhile.
Is it viable to expand to Switzerland? Switzerland has a sophisticated and amenable business culture and wealthy, discerning populace. There are many business opportunities here for companies that are interested in doing business overseas. Switzerland has a high export rate when compared to other countries, in terms of the percentage of GDP. As it has a small domestic market, there is a large dependence on foreign markets. Economic Overview Switzerland has the second highest European rating after Ireland in the Index of Economic Freedom (2008). The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the second most competitive in the world. It has private sector economy and low tax rates by Western standards, and when compared to the other developed economies, the overall taxation here is the lowest. The main business opportunities and important cities here Switzerland is one of the worldâ€™s largest per capita food importers, with sectors growing in convenience foods, ethnic foods and organic foods. It also maintains a leading position in medical and pharmaceutical products. Switzerland is home to many highly skilled 2nd, 3rd and 4th tier suppliers, mainly to the German but also to other multinational automotive companies or manufacturers, and importance in going green coming from many states and governments now, eco friendly and organic chemicals are a growing industry here. Zurich, Bern, Geneva, Basle, Lausanne are some of the main cities worth considering when expanding here. The challenges a foreign investor may face With regard to the institutional framework and economic environment, Switzerland still faces some challenges. There could also be challenges in the other forms like trade barriers in certain sectors, lack of mutual recognition of foreign standards, a half-heartedly liberalized domestic goods market, and still far too many difficulties in hiring qualified foreign labor, etc. It could also include bureaucracy in the public sector too.
Taking adequate measures to overcome the challenges Before expanding you business to Switzerland, it is necessary to research your chosen location, your target audience and potential growth of your chosen market. Business etiquette in Switzerland is the key to building the right kind of relationships. And this can be achieved by taking the help of a reliable business partner. You can find global expertise on all areas of business, be it HR, legal, finance, international financial accounting or regulatory filings. With large investments involved, you want to opt for best when choosing expert who can guide you in your international expansion. Your business can be made a success. Read More on - sas compliance , Financial reporting international
Published on Aug 11, 2011
Published on Aug 11, 2011
Switzerland has almost been forced to build its wealth on foreign trade as it has really has no resources, but only has a limited surface ar...