Re: Creating an SARL in Geneva
Post 11
MIMI - As Pawel points out above and from a tax point of view, a R.I is indeed advantageous since it avoids double taxtation, whereas a Sarl does not.
However and that said..........Please and in this context note that, as a part-"remedy" for this unfortunate fact and to encourage small and medium-sized entrepreneurship run in company-form, Switzerland passed a law in 2009; La loi fédérale (2009) sur la réforme de l’imposition des entreprises II, in accordance with which distribution of profit to an owner holding at least 10% of a Swiss company (so called "qualified holding") triggers a 40-50% withholding tax reduction of the distributions paid.
Please and also note that a further tax advantage of running your business in company (rather than in direct R.I ) form is that in Switzerland - as opposed to what is the case in most other countries - payment of annual corporate taxes are for accounting purposes considered as a cost/expense in the company, and is as such deductible before tax payment, e.g. your net coporate taxes are reduced (normally from "standard" approx. 32% to approx. 24,5 %). This is not the case for an R.I , where both federal and cantonal income taxes are progressive (11,5% + 0-31% depending on cantonal "barème"), just like for traditional work-related income.
Both of the above need and should always and also be taken into consideratioalso and form part of your decision "base" as regards choice of business form.
Best - Eva