Legal Considerations: Switzerland has strong laws to protect intellectual property, like trademarks and patents. This helps protect Swiss watch brands from being copied or counterfeited, making it safer for watch companies to do business.

(S.M.E., 2023)

• All documents must be in the same language

• The language used depends on the canton where the company wants to be established

• Each Canton has its own taxation rules

Requirements:

• Minimum founding capital of CHF 20,000

• At least one shareholder required

• Mandatory registration in the Swiss Commercial Register

• Limited liability protection for members

Governance:

• Board of managers

• A general meeting of members

(S.M.E., 2024)

• Minimum founding capital of CHF 100,000, with at least CHF 50,000 paid in initially.

• At least one shareholder.

• Registration in the Swiss Commercial Register.

Shares and Capital:

• Shares can be publicly traded.

• Shared capital.

Taxation:

• Corporate income tax.

(TaxFoundation, 2023)

(TaxFoundation, 2023)

• Switzerland: 9.0

• Germany: 8.8

• Malaysia: 6.0

2023

• Switzerland: 9.1

• Germany: 8.8

• Malaysia: 7.3

(Economist Intelligence Unit, 2024)

(GlobaLex, 2024)

• Patent Box Regime

• R&D Tax Deductions

• General Corporate Tax Rates

(USA Government ITA, 2022)

• Control of Corruption

• Rule of Law

• Regulatory Quality

• Government Effectiveness

• Political Stability and Absence of Violence

• Voice and Accountability

Switzerland consistently ranks higher across all indicators compared to Malaysia, reflecting stronger governance scores.

The Fragile States Index is a tool to assess and monitor a country's vulnerability to crises, providing a snapshot of where interventions may be needed to enhance stability and resilience.

In this chart:

• Switzerland has a low FSI score of 20, indicating high stability.

• Malaysia has a moderate FSI score of 70, reflecting relatively higher fragility compared to Switzerland.

A lower score on the FSI indicates greater stability, while a higher score suggests more challenges related to state stability and resilience.

The graph shows the revenue of the Swiss luxury watch industry worldwide from 2019 to 2029. It depicts a steady growth trend over this period, with revenue increasing year over year. The growth rate seems to be relatively consistent, suggesting a strong and stable demand for Swiss luxury watches in the global market.

(Benjamin Manz, 2021)

(TradingEconomics, 2024)

(OECD, Education GPS, 2024)

(TheGlobalEconomy, 2024)

(GlobalFinance, 2024)

(Swisslinx, 2020-2023)

• The latest value from 2023 is 67.59 points

  • The world average is 33.17 points

• The average for Switzerland from 2011 to 2023 is 66.55 points

  • The minimum value, 63.8 points, was reached in 2011 while the maximum of 68.4 points was recorded in 2018

(TheGlobalEconomy, 2023)

• The most recent value is 50.3 percent as of Q2 2024

• Historically, the average for Switzerland from Q1 1980 to Q2 2024 is 55.11 percent

• The minimum of 49.37 percent was recorded in Q2 2021, while the maximum of 60.2 percent was reached in Q1 1983

(TheGlobalEconomy, 2024)

• The most recent value is 24.85 percent as of Q2 2024

• Historically, the average for Switzerland from Q1 1980 to Q2 2024 is 27.79 percent

• The minimum of 24.04 percent was recorded in Q1 1997, while the maximum of 34.99 percent was reached in Q2 1989

(TheGlobalEconomy, 2024)

• The latest value from 2023 is 11.38 percent

  • The world average is 16.14 percent

• Historically, the average for Switzerland from 1970 to 2023 is 10.68 percent

• The minimum value, 7.77 percent, was reached in 1970 while the maximum of 12.13 percent was recorded in 2020

(TheGlobalEconomy, 2023)(TheWorldBank, 2023)

(TheGlobalEconomy, 2023)(TheWorldBank, 2023)

The exports of Switzerland are calculated by the total amount of goods and services produced at home and sold abroad.

• If exports are about 15 percent or less of GDP the economy is considered relatively closed to international trade

• Many small European countries export over 40 percent of their production

• The latest value from 2023 is 75.33 percent

  • The world average is 45.76 percent

• Historically, the average for Switzerland from 1970 to 2023 is 51.61 percent

• The minimum value, 38.64 percent, was reached in 1972 while the maximum of 76.94 percent was recorded in 2022

(TheGlobalEconomy, 2023)(TheWorldBank, 2023)

(TheGlobalEconomy, 2023)(TheWorldBank, 2023)

• Proof Of Concept (130,000 CHF).

• Discovery (850,000 - 2,550,000 CHF).

Swiss National Science Foundation

• NRPs (300,000 – 2,000,000 CHF).

• IICT (No maximum budget).

• SPIRIT (500,000 CHF).

• Sinergia (50,000 - 3,200,000 CHF).

Swiss Innovation Power (450,000 CHF).

(Catalyze Group, 2024)

• Against the USD: The CHF has remained relatively strong, often trading in the range of 0.90 to 1.10 per USD (IMF, 2023).

• Against the Euro (EUR): The CHF has shown consistent strength, trading around 1.05 to 1.20 per EUR for much of the last decade. Notably, the CHF reached parity (1:1) with the Euro in recent years (European Central Bank, 2023).

• Hydropower: A significant source of renewable energy for industrial and residential use (Swiss Federal Office of Energy, 2023).

• Forests: Used for wood products and some traditional industries (Swiss Forest Agency, 2023).

• Water Resources: Switzerland’s pristine water bodies are vital for hydropower and tourism.

• Scenery/Climate: While not a "resource" in the traditional sense, the Alpine environment supports the tourism industry, a cornerstone of Switzerland's economy (World Tourism Organization, 2023).

• High Living Costs: Switzerland is one of the most expensive countries globally.

• Housing:

  • Average rent for a 3-room apartment: CHF 1,500–2,500/month (Federal Housing Office, 2023).

  • Average house price: CHF 1.2 million.

  • Supply shortages in urban areas drive up prices.

• Other Expenses:

  • Healthcare premiums: CHF 300–500/month per person.

  • Public transportation: CHF 75–120/month for city passes.

  • Food and dining: Average monthly groceries CHF 400–600.

     •           0–14 years: 15.23%

     •           15–64 years: 66.43%

     •           65 years and over: 18.34%

Gender Distribution:

     •           Males: Approximately 4.43 million (49.68%)

     •           Females: Approximately 4.49 million (50.32%)

Switzerland’s demographic profile is characterized by an aging population, with a significant proportion over 65 and most of the population between the ages of 40 and 60.

(Federal Statistical Office, 2023)

• Men: Approximately 73% are employed

• Women: Approximately 62.6% are employed

Unemployment Rates by Gender:

• Men: 2.1% unemployment rate

• Women: 1.9% unemployment rate

(Statista, 2024)

-German

-French

-Italian

-Romansh

• Dialets

• Large Foreign Population (English/Portuguese)

(AboutSwitzerland, 2022) 

• Healthcare System

• Quality of Life

• Lifestyle and Diet 

• Environmental Factors 

(Federal Statistical Office, 2024)

• For Spain: Blend structured leadership with collaboration, promoting work-life balance and relationships.

• For Switzerland: Empower employees with a decentralized, participatory style that values results and independence.

(Country comparison tool, 2020)

(Meyer, E., 2017)

• Reputation and Branding

  • Being associated with “Swiss Made” enhances the perceived quality and value of your watches, leveraging Switzerland’s global prestige in the luxury watch market

• Innovation and R&D Support

  • Generous tax incentives for innovation and access to skilled labor

• Access to Global Markets

  • Free trade agreements and Switzerland’s role as a trade hub simplify exports to key markets

• Stable Business Environment

  • Low corruption, strong governance, and a robust legal framework ensure a secure and predictable environment for investment

In summary, Switzerland’s unparalleled reputation in the watch industry, combined with its business-friendly environment and innovation incentives, makes it an excellent choice for establishing a watch company.

• Low-Income Brackets: Both federal and cantonal tax rates for low-income individuals are relatively modest, often below 10%

• High-Income Brackets: High-income earners can pay a combined effective tax rate of 25% in low-tax cantons (e.g., Zug) or up to 40% in high-tax cantons (e.g., Geneva)

• Effective Tax Rates: The actual percentage of income paid in taxes is often lower than the marginal tax rate due to deductions for dependents, insurance premiums, and professional expenses

(PWC, 2024)

• Share of Employment: ~3.0% of the workforce

Secondary Sector (Industry and Construction)

• Share of Employment: ~20-22% of the workforce

• Men dominate employment in this sector (~75-80% of workers)

Tertiary Sector (Services)

• Share of Employment: ~75% of the workforce

• Women make up a significant share (~60-65% of workers in this sector)

(Federal Statistical Office, 2024)

From January 1, Switzerland has officially banned burqas, hijabs or any other face coverings in public.  

The Lower House of Parliament in September 2023 cemented the ban into federal law and set a fine of up to 1,000 francs for violators. 

(News18, January 2nd 2025)

Swiss citizens have full access to the job market without restrictions.

Often preferred for public sector roles and jobs requiring native language proficiency.

Non-Nationals:

Approximately 25% of the Swiss population are foreign nationals (Swiss Federal Statistical Office, 2023).

Many work in healthcare, construction, hospitality, and IT sectors.

Companies such as Rolex, Patek Philippe, Audemars Piguet, Omega, and TAG Heuer dominate the luxury market, while Swatch Group, with brands like Swatch and Tissot, dominate the mid-range and affordable segments.

(Crown Watch Blog, 2024)

(About Switzerland, 2023)

(Federal Statistical Office, 2024)

• Movement Engineers

• Craftspeople

• Designers

• Sales and Marketing Specialists

• Supply Chain Managers