Establishing and maintaining a regional HQ in Switzerland

Switzerland as a location for a regional headquarters:

A stable business environment, efficient capital markets, favourable corporate tax regime, world-class infrastructure and excellent quality of life – these are just a few of the many reasons why Switzerland is an increasingly popular choice for the location of global and regional HQs.

The relocation of your HQ is a major undertaking that requires careful consideration, planning and execution with a multi-disciplinary team. Key issues include:

• Selection of an appropriate HQ structure to align with the goals of the organization.
• Alignment of the tax & legal structure with the future business model.
• Alignment of critical value drivers such as accounting, finance, IT, treasury, supply chain, strategic pricing and HR with the future business model.
• Communication, transition and change management planning both internally and externally.
• Organisational design, recruitment and selection of top-class employees.

How PwC can help you:

We understand the challenges which your organisation will face when you are establishing a headquarters structure in Switzerland. We have assisted many international companies, including some of the world's biggest brands, with their relocation to Switzerland, and we have the expertise, tools and methodology to assist you.

Our integrated service approach links the core aspects of your HQ migration and development, helping you to avoid the common pitfalls and achieve an optimal solution.

What's your question?

• How can we ensure that the principal structure is appropriately tax optimized within the tolerance of the organization, is effectively aligned with the intended business model and has the appropriate defence documentation?
• How can we best manage the complexity of international indirect taxes (VAT and Customs)?
• How can we ensure that firm control exists within the principal structure in respect to local tax filing requirements?
• How can we use a Swiss HQ as part of a broader effort to reduce our organisational cost base (e.g. through implementation of shared services)?
• How should we structure our supply chain to support our business strategy and achieve business objectives whilst minimising tax?
• How can we attract and retain top-class employees, create a best in class HR function and ensure effective management of cross-border staff transfers?
• How can we ensure that our move to Switzerland goes smoothly, remains within budget and achieves the stated goals?
• How should we define our real estate needs, identify suitable premises and structure the acquisition?
• How should we structure our finance and accounting functions and control and reporting processes?
• What treasury processes and systems will best support our proposed business model?
• What IT infrastructure and management approach is required to support our business model?
• What governance, compliance and reporting structure do we need to effectively manage the HQ?

Why PwC?

Our integrated service approach links the core aspects of your HQ migration and development, helping you to avoid the common pitfalls and achieve an optimal solution.

We understand the key principles of integrated global structuring – aligning your global business model and tax planning. We have worked with a range of companies as they relocated to Switzerland or upgraded their existing HQ arrangements. Recent clients include:

Full-scope design and implementation of tax-optimised principal structures for clients with no pre-existing Swiss HQ arrangements:

• Large US listed engineering company.
• Large family-owned household and domestic products manufacturer.
• Medium-sized US listed specialty chemicals manufacturer

Conversion of existing strategic HQ arrangements to a centrally-led operationally-engaged business model (not fully tax-driven but assuring tax efficiency):

• Large global motor industry supplier.
• Medium-sized specialist engineering company.

Conversion of existing HQ arrangements to a tax-optimised structure:

• Global consumer goods company.
• Global machinery producer.

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