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-   -   tax for non-functional director of company (https://www.englishforum.ch/finance-banking-taxation/303637-tax-non-functional-director-company.html)

MoiToi 13.04.2021 23:55

tax for non-functional director of company
 
Hi
I wrote an email to Service de contributions reagrding my company partner; i own srl but will leave CH to open branch & settle in Germany, but i would like the company to continue its operations in CH. For this reason, i am advised to have one Swiss resident as director of the company, non-functional, non-salaried person. My question is: i have found one friend for this purpose, but he is afraid that he might face additional taxes or might be deprived of any social benefits in future in case, as he would be blamed to be a director of a company. Is it true?

Thank you for your help on this topic.

Jim2007 14.04.2021 09:59

Re: tax for non-functional director of company
 
Quote:

Originally Posted by MoiToi (Post 3296174)
Hi
I wrote an email to Service de contributions reagrding my company partner; i own srl but will leave CH to open branch & settle in Germany, but i would like the company to continue its operations in CH. For this reason, i am advised to have one Swiss resident as director of the company, non-functional, non-salaried person. My question is: i have found one friend for this purpose, but he is afraid that he might face additional taxes or might be deprived of any social benefits in future in case, as he would be blamed to be a director of a company. Is it true?

Thank you for your help on this topic.

Of course he could be held responsible for any fails of the company to fulfill its legal obligations in Switzerland, that is the whole point of requiring that there be someone resident in the jurisdiction in the first place.

If your friend does not have complete managerial control over the affairs of the company, then he would be well advised to keep well clear of it.

curley 14.04.2021 10:04

Re: tax for non-functional director of company
 
Quote:

Originally Posted by Jim2007 (Post 3296236)
Of course he could be held responsible for any fails of the company to fulfill its legal obligations in Switzerland, that is the whole point of requiring that there be someone resident in the jurisdiction in the first place.

If your friend does not have complete managerial control over the affairs of the company, then he would be well advised to keep well clear of it.

Absolutely!

That's the worst deal I've ever heard of, I'm surprised the friend even ponders it. :eek:

Sinking 14.04.2021 10:36

Re: tax for non-functional director of company
 
Quote:

Originally Posted by curley (Post 3296238)
Absolutely!

That's the worst deal I've ever heard of, I'm surprised the friend even ponders it. :eek:

Yes! And for free!!!

minimimi 14.04.2021 13:16

Re: tax for non-functional director of company
 
There are companies who hire professional CEOs, usually 1 guy CEO of 10-20 companies.

One of the such places was Rosetrust I think, but they should be dealing with UHNWIs.

Anyways, I think 10-20k is reasonable.

Caryl 14.04.2021 13:42

Re: tax for non-functional director of company
 
Quote:

Originally Posted by minimimi (Post 3296324)
There are companies who hire professional CEOs, usually 1 guy CEO of 10-20 companies.

One of the such places was Rosetrust I think, but they should be dealing with UHNWIs.

Anyways, I think 10-20k is reasonable.


I started reading this https://newco.ch/fr/blog/comment-creer-une-sa--9 until I got bored.


We have an English close company (used to have a Quebec charter until 2019). In both cases all we needed was an address for service of process. We hire a firm in the City for 100 a year. In Delaware Corporation Trust Company (and its other branches in Nevada and similar firms everywhere) have thousands of brass plates next to their door.


Demanding that a local representative take responsibility for the debts or even fraudulent acts not involving that person in kind of in conflict with the purpose of a company. I was formerly a bankruptcy lawyer and I understand the point of layering and straw companies and intermediaries and partnerships and Caribbean and Panamanian entities. They worked find until the Panama Papers, the Paradise Papers and the UBS disclosure. And still work fine where the aim is to discourage litigation and not to cheat on taxes.


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