Oct. 8, 2009 (The Korea Times) -- Switzerland is not only a country of tourism and the image of the "Jungfraujoch" so popular for Koreans, but hides many other opportunities.
Switzerland as a business location is surely one of these.
Multinationals such as Google (NASDAQ:GOOG) , Bayer, Tetra Laval and P&G (NYSE:PG) have already chosen Switzerland as their European headquarters.
LG Hausys, a polyvinyl chloride window extrusion producer, is one of the Korean multinationals which has taken advantage of this opportunity. A closer look at what Switzerland has to offer as a business location might convince others to join in.
In today's highly competitive business environment, a good location strategy has become essential for multinationals.
It is not one but a multitude of factors that helped these companies choose Switzerland for their European headquarters.
Ideally located in the heart of Europe, with cosmopolitan cities like Geneva and Zurich it has a very international character.
Its political and financial stability added to one of the world's best infrastructure play a definite role just as does its highly educated work forces coming out of world famous institutions like ETH Zurich. Not to forget an advanced banking system essential to the Swiss competitiveness.
Talking about the infrastructure, Switzerland has an extremely efficient public transportation system for internationals as well as regional travellers and has earned its reputation for punctuality with its reliable train service.
Business travellers have a choice of three major airports ¡ª Zurich, Geneva and Basle ¡ª for direct continental and transcontinental flights.
The commercial real estate market has an ample supply of land and buildings for economic activities and the restrictions on property ownership by foreign nationals have been considerably relaxed in recent years.
Innovation is another important characteristic of Switzerland.
Innovative companies can count with the strength of Swiss universities and technical institutes to help them develop new products.
Swiss outstanding academic institutions and their experience in technical industries provide the basis for a sophisticated scientific environment, with leading-edge competence in medical devices and precision instruments.
In Switzerland, the two Federal Institutes of Technology (ETH) in Zurich (ETHZ) and Lausanne (EPFL) have taken on the lead in interactions with the industries.
Close to 564 professors were active at the two universities and their associated research institutes in 2004, underpinning the worldwide reputation of Switzerland's entire ETH sector.
Nearly 19,000 students at the ETH represent an almost inexhaustible source of personnel for research and development establishments such as the IBM (NYSE:IBM) research laboratory near Zurich.
The Swiss technology companies of world renown such as ABB (NYSE:ABB) and Unaxis likewise benefit from this ready-made pool of highly qualified people.
Switzerland is also famous for its multilingual labor force.
Switzerland has four official languages, German, French, Italian and Romansh with English well accepted as a business language.
These days, the tax environment is a key factor in deciding on a company's location.
Switzerland offers companies a very favorable tax environment with moderate overall taxation.
Swiss federal corporate income tax is levied at a flat rate of 8.5 percent.
When cantonal and communal income taxes are also considered, the average tax burden can range from 12 percent to 25 percent.
According to Ernst Young 2007, the average tax rate for the neighboring countries of Switzerland varied from 24 percent to 37 percent.
Furthermore, Switzerland does not levy withholding tax on interest or royalty payments to foreign companies.
As an additional incentive, full or partial income and capital tax relief may be granted on federal, cantonal and municipal levels for up to 10 years, depending on the number of jobs created in Switzerland through the investment project.
For more details about investing in Switzerland, contact the Commercial Department of Swiss Embassy in Seoul or refer to http://www.osec.ch/internet/osec/en/home/invest.html
