Work on your Business not in your business 1

Before we start a question first

The question is... The answer is …. What is the percentage of start up’s worldwide that are still active after 3 years? The answer is ….

SURPRISED….? Only 7 %

So that you do not end up like this

“COMPLIANCE” Unavoidable First thing to think of before setting up your business, ask your self the question “Am I or will I be always in…. “COMPLIANCE”

Setting up and SA in Switzerland You need 4 things to set up and SA in Switzerland 1) Bank 2) Accountant 3) Lawyer 4) Money min CHF 100k

Banks As you are not incorporated you cannot open an account in your new company name so you will have to set up first a so called transit account. What bank suits best to my business ? If your choice of a bank that is not up to date with your business, look for another. So make sure the bank understands your business.

Banks Do not expect to get a red carpet treatment especially in Switzerland; people here still feel that setting up your own business is a bad career choice/move. Have a detailed business plan ready and be prepared for all the questions the bank may ask you. Such as capitalization, how much required working capital you will need, shareholder structure, who is who, experience.

Banks Remember bank relationship managers are very busy and they have today difficult bosses especially their risk department who’s decision will be vital to the outcome if they will accept you as a new client or not. So today if banks are not comfortable with your business plan, they will politely but also firmly tell you that they will not be able to open the transit account for you.

Banks «As a part of our commitment to small business, we are willing to lend you your bus fare home»

Banks Once the bank has accepted you they will open the transit account to which you can transfer your money to set up the company. Once the money is paid in you will get a certificate with which your lawyer can work and start the incorporation procedures with the commercial register of your canton.

Lawyer Your lawyer is probably the most easiest person to work with in setting up your company. Your lawyer will write up the memorandum of association and the articles of association. To incorporate your company your lawyer will also ask you who you will appoint as auditor.

Auditor The choice of your auditor will all depend on the size of your business and if you will need to borrow (large) funds from your bank. If you have a large business in mind and will be in need of funds from the bank to run your business, the bank probably will insist that you will take one of the large auditing firms and not a local accounting firm. If you need one of the large accounting firms you will have to go to the same inquisition as you had with your bank.

The incorporation Once you have the 3 elements in place the incorporation of your new company can go ahead and is a very quick procedure of 10 to 14 days. Once you are incorporated you can rent your office space, hire staff, get your VAT number and start your business.

Have a good controller/accounting practice in place

Compliance Looking into a dictionary, the word “ compliance ” means that an individual or a group conforms with or obeys a set of rules or regulations determined by the law or any governing body. Your are probably too small to employ a CCO Chief Compliance Officer, so you or some one in your new company will have to do this on a part time basis. Origin of the money to set up your business, and doing business. From whom do we buy and to whom do we sell. How transparent will be the payment terms Management of staff and salaries (including social charges)

Hint’s: Start working early on the accounting system that you will put in place in your new venture and have it working from day one. Have from day one a D & O insurance in place. Switzerland is an expensive country so make a proper cash flow projection, not that you run out of money. Statistical: starts up are general more successful when there is a partner or have a mentor. (Two people know more as one.)

Remember

Thank you for your attention