Asset Management in Switzerland: Key Features and Advantages of This Kind of Companies
By Space Coast Daily // August 25, 2021
While the stock market is low, asset management companies are expanding their business and looking for new sources of investment to stay afloat. Asset management is the professional management of securities, other tangible and intangible assets. Its main goal is for investors (companies, pension funds, insurance companies, corporations, etc.) to receive profit.
To do this, they transfer assets to the management of legal entities – asset management companies. They are licensed participants in the securities market, one of the tasks of which is the management of investment funds.
If you are looking for a ready and profitable business for sale, an asset management firm is one of the best options for starting your own business. Asset management firms have a direct impact on the formation of the country’s investment instruments market. Today, such companies are not limited to investments only in securities. For a long time, many companies have been managing several funds at once with different asset structures.
Professional traits of asset management firms
Transfer of own assets under the control of intermediaries is popular and gaining momentum. More and more people want to receive high incomes, but at the same time not spend their personal time on them.
You transfer your assets to a competent specialist who will carry out all operations for you in accordance with the terms of the contract. The services are paid according to the results of the transaction and make up a few percent of the income received.
Asset management companies differ in both the aggressiveness of the investment strategy and the recommended investment period and, unlike financial pyramids, their investment schemes are quite transparent.
Choice of jurisdiction – Switzerland and the advantages it offers internationally
The share of independent asset management companies in the Swiss asset management market is difficult to measure. The institution of asset managers in Switzerland is not subject to separate legislation, apart from anti-money laundering laws.
The Swiss jurisdiction is one of the best ones to open an asset management company, and there are many reasons for that. Switzerland has detailed civil legislation, which in turn provides a solid and reliable legal framework.
Establishing a company in Switzerland is an even more viable option because the political and economic structure is stable, unlike neighboring countries, where elections and new rules introduced change-working conditions regularly and sometimes profoundly.
In addition, opening a company in Switzerland has many advantages, the actual costs of the company are deducted in full, in addition to the normal operating costs (social security costs, property costs, electricity costs and administrative costs), and you can also deduct all costs associated with vehicles, leasing and advertising.
Switzerland has a limited tax burden for asset management companies in particular. In fact, the calculated taxes amount to about 20% of the profits and vary depending on the type of commercial activity, so setting up a company in Switzerland is extremely convenient compared to setting up a company in another jurisdiction. Thus, the all benefits of opening a company in Switzerland are the following:
■ Swiss image and Swiss quality;
■ legislative opportunities, e.g. special regulation for ICOs and crypto/blockchain companies;
■ local customers require presence;
■ reasonable taxes, especially in the canton of Zug, and a large number of double taxation treaties;
■ stable political environment, friendly and predictable state administration;
■ confidentiality of information (for example, the AG share register is kept at the place of residence, it is not transferred to the commercial register).
Thus, we see that the advantages of the Swiss jurisdiction are obvious and do not need additional clarification. Switzerland is an ideal option for both a beginner and an experienced entrepreneur who wants to either expand the boundaries of an existing business with a new company or change the field of activity.