Beware of dishonest intermediaries

Recently a client applied to us for purchase a villa with the lake view in Geneva. While trying to explain him the way to proceed (set up a company, obtain a Swiss work & residence permit, and then – to acquire a real property), his reply was: first – help me to buy a villa, while a company – anyone can help me to register it.

Let’s talk about this.
Nowadays, there are many websites, which claim they can register a Swiss company for you at a low price, and even online. While the others promise you to open a private account in Swiss bank, without visiting Switzerland in person.
Some mediators are ready to assist you with acquisition of real property in Switzerland, before you obtain a Swiss residence permit.

How is it possible? These websites are mostly run by companies or individuals, who are not even located in Switzerland. Sometimes these companies or individuals have post boxes in Switzerland, but nothing else. Please be aware that this kind of companies can do nothing for you, rather than to lay hold on your money.

So, how do you know if you are dealing with a real Swiss company, proficient in company formation and able to assist you? Please follow a few simple steps.

1. The company must be registered in Switzerland in the official Central Business Names Index of Commercial Register. If you can't find the name of the company in this index, it simply means that you are not dealing with a real Swiss company. No exception.

2. The company running a Swiss website must have a valid address in Switzerland. PO Box numbers should not be considered as a valid address. All companies in Switzerland must have at least a street address. No exception.

3. Then, you should ask yourself "Who is the owner of this website?" There are many online sources, which provide this kind of information called WHOIS. If you can't see, who the owner of a website is because of a so-called "private registration", then you should ask yourself, why the owner of the website do not want you to see, who he is and where he is located.

To incorporate a company in Switzerland, one has to go through a certain procedure, which involves various third parties: Lawyers, Swiss bank, Notary Public, Cantonal Commercial Registry Office, Federal Commercial Registry Office, etc. Hence it is physically impossible to form a company in 3-5 days. No exception.

To purchase commercial property in Switzerland, one has to set up a legal entity before investing; while for purchasing residential real estate, one has to obtain a Swiss residence permit, prior to making advance payments.
Do not be in hurry! Please be aware that acquisition or real property by foreigners is prohibited in Switzerland. No exception.

As to the issue of costs involved, be afraid of hidden cost. When comparing different offers, keep in mind that our incorporation fees include payment to third parties: Notary and Commercial Registry Office, while other offers – not always.
In addition, our company incorporation fees include payment for opening an account in reputable Swiss bank, while other offers – not always.

Please visit www.mb-group.ch for more detail.