Economy Profile of Switzerland

Ease of Doing Business in Switzerland

Rankings on Doing Business topics – Switzerland

Topic Scores

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally start and formally operate a company (number)

Preregistration (for example, name verification or reservation, notarization)
Registration in the economy’s largest business city
Postregistration (for example, social security registration, company seal)
Obtaining approval from spouse to start a business or to leave the home to register the company
Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day (2 procedures cannot start on the same day)
Procedures fully completed online are recorded as ½ day
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business – Switzerland

Figure – Starting a Business in Switzerland – Score

Figure – Starting a Business in Switzerland and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Switzerland – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Switzerland – Procedure, Time and Cost

1 Place the paid-in capital in an escrow account with a bank

Agency : Bank

The capital is released by the bank upon completing the registration procedure at the Commercial Registry. Bank fees range from CHF 200 to CHF 2,000. A minimum bank fee of CHF 200 is charged for transferring capital from the escrow account to the company account after the company registration. For an incorporation with a cash contribution, the capital must be put in escrow at an institution subject to the Swiss Federal Law on Banks and Savings Banks.

2 Draft the articles of association and authenticate documents in the presence of a notary public

Agency : Public Notary

In case of cash contribution of the share capital, the notarization requires a capital contribution confirmation from the bank. The Public Notary notarizes the personal and corporate signatures on the application form and authenticate the articles of association and the public deed of incorporation. All signatures on the company registration application form have to be legalized (CHF 20 per personal or corporate signature). The Stampa Declaration Form (a negative declaration on investments in kind or chattels or founders’ privileges, which is compulsory as documentary evidence) and the Lex Friedrich Declaration Form (a permit for foreigners to acquire real estate) must be signed and handed to the Register of Commerce.

3 File the deed certifying the articles of association to the local commercial register to obtain a legal entity

Agency : Commercial Registry

By express mail, registration takes 3 to 5 days; by regular mail, about 7 days. The fee ranges from CHF 600 (for capital of CHF 20,000) to a maximum of CHF 10,000. The costs of the commercial register will be increased depending on the number of signatories and shareholders of the company (CHF 20 for each person and CHF 30 for each signatory power) according to the Ordinance on Commercial Register Fees.

3 days

CHF 600 + 0.02% of

capital exceeding CHF 200,000 up to a maximum of CHF 10,000

In 5 to 9 days, the Registry publishes the date of the statutes and all names of shareholders in the Swiss Commercial Gazette; the announcement fee is included in the registration fee. Entry in the

Commercial Register protects the company’s trade name and makes it a legal entity.

The filing of both declaration forms is obligatory for all company incorporation applicants. The name check is not mandatory but is recommended. The fee is CHF 40. Required for incorporation and available on the Internet are the public deed, the application form, the Stampa Declaration Form, and the Lex Friedrich Declaration Form.

4 Pay stamp tax at post office or bank after receiving an assessment by mail

Agency : Bank or post office

In case the stamp duty threshold has been reached, every company has the duty to fill out a form, file it with the Federal Tax Administration, and pay the relevant amount due within 30 days upon registration in the commercial register. No assessment is sent out from the Federal Tax Administration beforehand.

1 day no charge

5 Register for VAT

Agency : Federal Tax Administration

Within 30 days of being subject to VAT, an application for VAT registration can be filed with the Federal Tax Administration only after incorporating the company with the Commercial Registry. According to Art. 10 Paragraph 2 Lit. A of the "Bundesgesetz über die Mehrwertsteuer," the turnover threshold for mandatory VAT registration is CHF 100,000. Because not every company is subject to VAT, a procedure exists to determine whether the company is subject to this tax.

1 day no charge

6 Enroll employees in the social insurance system (federal and cantonal authorities)

Agency : Social Insurance System (federal and cantonal authorities)

After the company has registered with the Commercial Registry, the Cantonal Social Security Office (Ausgleichskasse) will send the application for registering employees in the social security system to each newly incorporated and registered company. This includes includes retirement and survivors’ insurance benefits (AHV), disability insurance (IV), occupational accident insurance (UVG), and retirement pension (BVG).

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates
Submitting all required notifications and receiving all necessary inspections
Obtaining utility connections for water and sewerage
Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes

Building quality control index (0-15)

Quality of building regulations (0-2)
Quality control before construction (0-1)
Quality control during construction (0-3)
Quality control after construction (0-3)
Liability and insurance regimes (0-2)
Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.
Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

Will be used for general storage activities, such as storage of books or stationery.
Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.
Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.
Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.
Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Switzerland

Figure – Dealing with Construction Permits in Switzerland – Score

Figure – Dealing with Construction Permits in Switzerland and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Switzerland – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Dealing with Construction Permits in Switzerland and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Switzerland – Procedure, Time and Cost

1 Obtain fire department approval

Agency : Fire Department

Before obtaining the construction permit, BuildCo needs to obtain an approval from the Fire Department.

10 days CHF 1,000

2 Obtain construction permit

Agency : Municipal Building Authority

The construction permit is issued by the Municipal Building Authority. The company must submit the situation plan, plans of the building and several forms to the Building Authorities.

The construction permit fee includes subsequent inspection fees involved in the construction process.

120 days CHF 20,000

3 Receive inspection for scaffolding works

Agency : Municipal Building Authority

The Construction Control & building inspection carries out three mandatory inspections during construction: (1) Scaffolding; (2) Excavation; (3) Frame.

1 day no charge

4 Receive inspection for excavation works

Agency : Municipal Building Authority

The Construction Control & building inspection carries out three mandatory inspections during construction: (1) Scaffolding; (2) Excavation; (3) Frame.

1 day no charge

5 Receive inspection for frame works

Agency : Municipal Building Authority

The Construction Control & building inspection carries out three mandatory inspections during construction: (1) Scaffolding; (2) Excavation; (3) Frame.

1 day no charge

6 Obtain approval from the department for waste and recycling

Agency : Department for waste and recycling

The waste and recycling department must clear the project stating that the project will not affect utilities infrastructure.

5 days CHF 300

7 Obtain approval from the department of electric power supply

Agency : Department of electric power supply

The Electricity power supply department must clear the project stating that the project will not affect utilities infrastructure.

8 Obtain approval from the water department

Agency : Water Department

The water department must clear the project stating that the project will not affect utilities infrastructure.

4 days no charge

3 days no charge

9 Obtain sewage connection from the department for waste and recycling

Agency : Department for waste and recycling

After obtaining the approval from the Department for waste and recycling, the Department of electric power supply and the Department of Water, BuildCo receives sanitary inspection and connection to water and sewerage from the Department for waste and recycling.

10 days CHF 5,000

10 Obtain water connection from the water department

10 Agency : Water Department

11 Receive sanitary inspection from the department for waste and recycling

Agency : Department for waste and recycling

5 days CHF 2,000

12 Receive final inspection from the municipal building authority

Agency : Municipal Building Authority

The Municipal Building Authority conducts a final inspection to verify if the building was built according to the approved design conditions.

1 day

no charge

13 Obtain occupancy permit from the municipal building authority

Agency : Municipal Building Authority

BuildCo applies for the occupancy permit at the Municipality by submitting the final records of the construction project.

7 days no charge

Details – Dealing with Construction Permits in Switzerland – Measure of Quality

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

Submitting all relevant documents and obtaining all necessary clearances and permits
Completing all required notifications and receiving all necessary inspections
Obtaining external installation works and possibly purchasing material for these works
Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

Is at least 1 calendar day
Each procedure starts on a separate day
Does not include time spent gathering information
Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

Duration and frequency of power outages (0–3)
Tools to monitor power outages (0–1)
Tools to restore power supply (0–1)
Regulatory monitoring of utilities’ performance (0–1)
Financial deterrents limiting outages (0–1)
Transparency and accessibility of tariffs (0–1)

To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
  
  The electricity connection:
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.
  
  The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
Price of electricity (cents per kilowatt-hour)*
Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Switzerland

Figure – Getting Electricity in Switzerland – Score

Figure – Getting Electricity in Switzerland and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Switzerland – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

reflected here, see the summary below.

Figure – Getting Electricity in Switzerland and comparator economies – Measure of Quality

Details – Getting Electricity in Switzerland – Procedure, Time and Cost

1 Submit application to EKZ and await estimate

Agency : Elektrizitaetswerke des Kantons Zuerich (EKZ)

An application can be submitted online and by mail. Documents to be attached are the cadastre plan (“Kadasterplan” 1:500) and plans of the building. The documents do not need to be notarized.

14 calendar days CHF 0

2 Pay estimate and obtain external works from EKZ

Agency : Elektrizitaetswerke des Kantons Zuerich (EKZ)

The estimate is paid at a bank and the customer has to show a proof of payment. The customer has to pay 80% of the quotation to EKZ.

Once the estimate is paid the external works can commence. The utility provides the material (cable, cable isolation, meter, other smaller material, etc). EKZ does the design and the physical works of the connection.

24 calendar days CHF 46,520

3 Receive meter installation, internal inspection and electricity flow

Agency : Private electrician/Elektrizitaetswerke des Kantons Zuerich (EKZ)

The meter is installed by the utility. There is an internal inspection done by EKZ or another accredited agency ("akkreditierte Inspektionsstelle des Eidgenössischen Starkstrominspektorates") . Electricity is flowing immediately if a supply contract is concluded. For a supply contract the customer in practice usually concludes a use of network and supply contract.

/span>Takes place simultaneously with previous procedure.

1 calendar day CHF 0

Details – Getting Electricity in Switzerland – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)
Registration procedures in the economy's largest business city.
Postregistration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of property value)

Official costs only (such as administrative fees, duties and taxes).
Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)
Transparency of information index (0–6)
Geographic coverage index (0–8)
Land dispute resolution index (0–8)
Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

Are limited liability companies (or the legal equivalent).
Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Are 100% domestically and privately owned.
Perform general commercial activities.

The property (fully owned by the seller):

Has a value of 50 times income per capita, which equals the sale price.
Is fully owned by the seller.
Has no mortgages attached and has been under the same ownership for the past 10 years.
Is registered in the land registry or cadastre, or both, and is free of title disputes.
Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.
Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.
Will not be subject to renovations or additional construction following the purchase.
Has no trees, natural water sources, natural reserves or historical monuments of any kind.
Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.
Has no occupants, and no other party holds a legal interest in it.

Registering Property – Switzerland

Indicator	Switzerland	OECD high income	Best Regulatory Performance
Procedures (number)	4	4.7	1 (5 Economies)
Time (days)	16	23.6	1 (2 Economies)
Cost (% of property value)	0.3	4.2	0.0 (Saudi Arabia)
Quality of the land administration index (0-30)	23.5	23.2	None in 2018/19

Figure – Registering Property in Switzerland – Score

Figure – Registering Property in Switzerland and comparator economies – Ranking and Score

DB 2020 Registering Property Score

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Switzerland – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Registering Property in Switzerland and comparator economies – Measure of Quality

Details – Registering Property in Switzerland – Procedure, Time and Cost

1 Notify the Registry of Deeds about the sale contract

Agency : Registry of Deeds

The parties (usually the seller) must give notification to the competent notary office (Notariatsamt) regarding a sales contract. In the case of the Canton of Zurich, this is a public office, which is in charge of the public notary function as well as the land register. In Swiss legislation, a real estate transfer contract cannot be established between private persons. The contract does not legally exist until it is authenticated with the help of a notary or the corresponding officer. From a legal point of view, even if buyer and seller agree on the conditions of the future contract, there is no contract. With the result of their negotiations, they will go to the notary office to explain what they have agreed upon. The notary then will verify that these agreements are valid (conditions are legal, possible, seller and buyer are able from a civil point of view), and when necessary, the notary must help the parties to complete the contract to insure its validity.

2 A notary public prepares the sale contract

Agency : Notary

Preparation of the sale contract by a notary is mandatory in the canton Zurich, due to the cantonal law concerning land registration. For e.g. in the canton Basel-Stadt the parties can do it themselves. The sales contract must include the price of the land, the land parcel number, the information on both parties, and the extract from land register concerning this land parcel, as well as all costs which emerge by this contract. In the case of the Canton of Zurich, the "Notariatsamt" (notary) is also the "Grundbuchamt" (land registry). Therefore the extract is obtained at the same time. Otherwise an extract in the Canton of Zurich is obtained in 7-14 days and costs approximately CHF 150 (for an excerpt from the Registry of Deeds about a specific property where all information can be taken out such as the measures of the property, the owner, the mortgages, etc.).

11 days CHF 150; (CHF 150

(Excerpt from the Registry of Deeds))

3 The contract is signed before the public notary

Agency : Notary

If the contract is in order for both parties, it will be signed before the public notary, who will inform the parties about duties and rights concerning this contract. After the parties have examined the contract, it is returned to the public notary who then arranges a meeting between the parties and himself. The stamp duty is included in the notary fees.

1 day CHF 4,066.61; (0.1% of

property value (Includes the preparation in Procedure 2))

4 The title is registered at the Registry of Deeds

Agency : Registry of Deeds

If the contract has been signed and the money transferred the transfer of ownership title will be entered in writing in the register of the deeds by the registrar. In such contracts, before transfer of ownership title can take place, the money will be transferred to a blocked bank account and will only be released after registration. The registration fee (0.15% of property value) is paid at the moment of registration.

The voters approved a reduction of the fee for the registration at the Registry of Deeds on 28th February 2016 which will be amended in the Notaries Act of the Canton of Zurich. It will be effective as of 1st January 2017.

2 days CHF 6,099.92; (0.15% of

property value)

Details – Registering Property in Switzerland – Measure of Quality

Quality of the land administration index (0-30)		23.5
Reliability of infrastructure index (0-8)		7.0
Type of land registration system in the economy:	Deed Registration System
What is the institution in charge of immovable property registration?	Grundbuchamt (land registry)
In what format are past and newly issued land records kept at the immovable property registry of the largest business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?	Computer/Scanned	1.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)?	Yes	1.0
Institution in charge of the plans showing legal boundaries in the largest business city:	Stadt Zürich, Geomatik
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business city of the economy—in a paper format or in a computerized format (scanned or fully digital)?	Computer/Fully digital	2.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)?	Yes	1.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases?	Different databases but linked	1.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties?	Yes	1.0
Transparency of information index (0–6)		2.5
Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city?	Only intermediaries and interested parties	0.0
Is the list of documents that are required to complete any type of property transaction made publicly available– and if so, how?	Yes, online	0.5
Link for online access:	http://www.notariate.z
	h.ch/ind_dow.php? fil=gru_kau_for#act
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how?	Yes, online	0.5
Link for online access:	http://www.grundbuch amt.zh.ch/gru_hyp_g eb.php
Does the agency in charge of immovable property registration agency formally commit to deliver a legally binding document that proves property ownership within a specific timeframe –and if so, how does it communicate the service standard?	No	0.0
Link for online access:
Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration?	No	0.0
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency?	Yes	0.5
Number of property transfers in the largest business city in 2018:	14441.0
Who is able to consult maps of land plots in the largest business city?	Freely accessible by anyone	0.5
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?	No cost	0.5

Link for online access:	Getting access to
	maps is usually free
	of charge. Some
	Cantons may
	however charge fees
	to get access to
	maps.
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and if so, how does it communicate the service standard?	No	0.0
Link for online access:
Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency?	No	0.0
Contact information:
Geographic coverage index (0–8)		8.0
Are all privately held land plots in the largest business city formally registered at the immovable property registry?	Yes	2.0
Are all privately held land plots in the economy formally registered at the immovable property registry?	Yes	2.0
Are all privately held land plots in the largest business city mapped?	Yes	2.0
Are all privately held land plots in the economy mapped?	Yes	2.0
Land dispute resolution index (0–8)		6.0
Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties?	Yes	1.5
Legal basis:	Art. 656 Swiss Civil Code
Is the system of immovable property registration subject to a state or private guarantee?	Yes	0.5
Type of guarantee:	State guarantee
Legal basis:	Art. 955 Swiss Civil Code.
Is there a is a speciﬁc, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry?	No	0.0
Legal basis:	Art. 971 and Art. 973 Swiss Civil Code
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)?	Yes	0.5
If yes, who is responsible for checking the legality of the documents?	Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property transaction?	Yes	0.5
If yes, who is responsible for verifying the identity of the parties?	Registrar; Notary;
Is there a national database to verify the accuracy of government issued identity documents?	No	0.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located in the largest business city?	Bezirksgericht Zürich
How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)?	Less than a year	3.0
Are there publicly available statistics on the number of land disputes at the economy level in the ﬁrst instance court?	No	0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)		0.0
Do unmarried men and unmarried women have equal ownership rights to property?	Yes
Do married men and married women have equal ownership rights to property?	Yes	0.0

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Strength of legal rights index (0–12)

Rights of borrowers and lenders through collateral laws (0-10)
Protection of secured creditors’ rights through bankruptcy laws (0-2)

Depth of credit information index (0–8)

Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

Credit bureau coverage (% of adults)

Number of individuals and firms listed in largest credit bureau as a percentage of adult population

Credit registry coverage (% of adults)

Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

ABC is a domestic limited liability company (or its legal equivalent).
ABC has up to 50 employees.
ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Getting Credit – Switzerland

Indicator	Switzerland	OECD high income	Best Regulatory Performance
Strength of legal rights index (0-12)	6	6.1	12 (5 Economies)
Depth of credit information index (0-8)	7	6.8	8 (53 Economies)
Credit registry coverage (% of adults)	0.0	24.4	100.0 (2 Economies)
Credit bureau coverage (% of adults)	28.8	66.7	100.0 (14 Economies)

Figure – Getting Credit in Switzerland – Score

Figure – Getting Credit in Switzerland and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Switzerland and comparator economies

Details – Legal Rights in Switzerland

Figure – Credit Information in Switzerland and comparator economies

Details – Credit Information in Switzerland

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Extent of disclosure index (0–10): Disclosure, review, and approval requirements for related-party transactions
Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal

remedies (damages, disgorgement of profits, disqualification from managerial position(s) for one year or more, rescission of the transaction)
Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses
Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices
Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions
Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment
Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects
Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices
Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

Is a publicly traded corporation listed on the economy’s most important stock exchange.
Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speciﬁcally required by law.
Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.
Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.
Is a manufacturing company with its own distribution network.

The transaction involves the following details:

Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s ﬁve-member board.
Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.
Mr. James proposes that Buyer purchase Seller’s unused ﬂeet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.
The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.
Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.
The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

Protecting Minority Investors – Switzerland

Figure – Protecting Minority in Switzerland – Score

Figure – Protecting Minority Investors in Switzerland and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conﬂict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Switzerland and comparator economies – Measure of Quality

Details – Protecting Minority Investors in Switzerland – Measure of Quality

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)
Method and frequency of filing and payment

Time required to comply with 3 major taxes (hours per year)

Collecting information, computing tax payable
Preparing separate tax accounting books, if required
Completing tax return, filing with agencies
Arranging payment or withholding

Total tax and contribution rate (% of commercial profits)

Profit or corporate income tax
Social contributions, labor taxes paid by employer
Property and property transfer taxes
Dividend, capital gains, financial transactions taxes
Waste collection, vehicle, road and other taxes

Postfiling Index

Time to comply with VAT refund (hours)
Time to obtain VAT refund (weeks)
Time to comply with a corporate income tax correction (hours)
Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

The VAT refund process:

In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

The corporate income tax audit process:

An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

Paying Taxes – Switzerland

Figure – Paying Taxes in Switzerland and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Switzerland and comparator economies – Measure of Quality

Details – Paying Taxes in Switzerland

Details – Paying Taxes in Switzerland – Tax by Type

Taxes by type	Answer
Profit tax (% of profit)	9.3
Labor tax and contributions (% of profit)	17.7
Other taxes (% of profit)	1.8

Details – Paying Taxes in Switzerland – Measure of Quality

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Documentary compliance

Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy
Obtaining, preparing and submitting documents required by destination economy and any transit economies
Covers all documents required by law and in practice, including electronic submissions of information

Border compliance

Customs clearance and inspections
Inspections by other agencies (if applied to more than 20% of shipments)
Handling and inspections that take place at the economy’s port or border

Domestic transport

Loading or unloading of the shipment at the warehouse or port/border
Transport between warehouse and port/border
Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

Assumptions of the case study:

For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.
It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.
The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.
All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.
A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.
Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Trading across Borders – Switzerland

Indicator	Switzerland	OECD high income	Best Regulatory Performance
Time to export: Border compliance (hours)	1	12.7	1 (19 Economies)
Cost to export: Border compliance (USD)	115	136.8	0 (19 Economies)
Time to export: Documentary compliance (hours)	2	2.3	1 (26 Economies)
Cost to export: Documentary compliance (USD)	27	33.4	0 (20 Economies)
Time to import: Border compliance (hours)	1	8.5	1 (25 Economies)
Cost to import: Border compliance (USD)	115	98.1	0 (28 Economies)
Time to import: Documentary compliance (hours)	2	3.4	1 (30 Economies)
Cost to import: Documentary compliance (USD)	27	23.5	0 (30 Economies)

Figure – Trading across Borders in Switzerland – Score

Figure – Trading across Borders in Switzerland and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Switzerland – Time and Cost

Details – Trading across Borders in Switzerland

Details – Trading across Borders in Switzerland – Components of Border Compliance

	Time to Complete (hours)	Associated Costs (USD)
Export: Clearance and inspections required by customs authorities	1.0	115.0
Export: Clearance and inspections required by agencies other than customs	0.0	0.0
Export: Port or border handling	0.6	0.0
Import: Clearance and inspections required by customs authorities	1.0	115.0
Import: Clearance and inspections required by agencies other than customs	0.0	0.0
Import: Port or border handling	0.6	0.0

Details – Trading across Borders in Switzerland – Trade Documents

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to enforce a contract through the courts (calendar days)

Time to file and serve the case
Time for trial and to obtain the judgment
Time to enforce the judgment

Cost required to enforce a contract through the courts (% of claim value)

Average attorney fees
Court costs
Enforcement costs

Quality of judicial processes index (0-18)

Court structure and proceedings (-1-5)
Case management (0-6)
Court automation (0-4)
Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.
The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.
The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.
The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.
The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.
The judge decides in favor of the seller; there is no appeal.
The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Enforcing Contracts – Switzerland

Indicator	Switzerland	OECD high income	Best Regulatory Performance
Time (days)	598	589.6	120 (Singapore)
Cost (% of claim value)	24.0	21.5	0.1 (Bhutan)
Quality of judicial processes index (0-18)	10.5	11.7	None in 2018/19

Figure – Enforcing Contracts in Switzerland – Score

Figure – Enforcing Contracts in Switzerland and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Switzerland – Time and Cost

Figure – Enforcing Contracts in Switzerland and comparator economies – Measure of Quality

Details – Enforcing Contracts in Switzerland

Details – Enforcing Contracts in Switzerland – Measure of Quality

	Answer	Score
Quality of judicial processes index (0-18)		10.5
Court structure and proceedings (-1-5)		4.5
1. Is there a court or division of a court dedicated solely to hearing commercial cases?	Yes	1.5
2. Small claims court		1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?	Yes
2.b. If yes, is self-representation allowed?	Yes
3. Is pretrial attachment available?	Yes	1.0
4. Are new cases assigned randomly to judges?	Yes, but manual	0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's?	Yes	0.0
Case management (0-6)		1.0
1. Time standards		0.0
1.a. Are there laws setting overall time standards for key court events in a civil case?	No
1.b. If yes, are the time standards set for at least three court events?	n.a.
1.c. Are these time standards respected in more than 50% of cases?	n.a.
2. Adjournments		0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted?	No
2.b. Are adjournments limited to unforeseen and exceptional circumstances?	No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?	n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?	Yes	1.0
4. Is a pretrial conference among the case management techniques used before the competent court?	No	0.0
5. Are there any electronic case management tools in place within the competent court for use by judges?	No	0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?	No	0.0
Court automation (0-4)		2.5
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?	Yes	1.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?	No	0.0
3. Can court fees be paid electronically within the competent court?	Yes	1.0
4. Publication of judgments		0.5
4.a Are judgments rendered in commercial cases at all levels made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?	No
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?	Yes
Alternative dispute resolution (0-3)		2.5
1. Arbitration		1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects?	Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— that cannot be submitted to arbitration?	No
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?	Yes

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to recover debt (years)

Measured in calendar years
Appeals and requests for extension are included

Cost required to recover debt (% of debtor’s estate)

Measured as percentage of estate value
Court fees
Fees of insolvency administrators
Lawyers’ fees
Assessors’ and auctioneers’ fees
Other related fees

To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.
The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.
The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

Outcome

Whether business continues operating as a going concern or business assets are sold piecemeal

Recovery rate for creditors

Measures the cents on the dollar recovered by secured creditors
Outcome for the business (survival or not) determines the maximum value that can be recovered
Official costs of the insolvency proceedings are deducted
Depreciation of furniture is taken into account
Present value of debt recovered

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:
Commencement of proceedings index (0-3)
Management of debtor’s assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)

Resolving Insolvency – Switzerland

Figure – Resolving Insolvency in Switzerland – Score

Figure – Resolving Insolvency in Switzerland and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Switzerland – Time and Cost

Figure – Resolving Insolvency in Switzerland and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Switzerland and comparator economies – Recovery Rate

Details – Resolving Insolvency in Switzerland

Mirage management will likely commence reorganization proceedings, because they are interested in keeping the hotel operating. However, given that the hotel is projected to have negative income in the current and upcoming year while its debt will continue to increase, the court is not likely to approve reorganization, so the proceedings will be converted into liquidation.

It takes approximately three years to complete insolvency proceedings in Switzerland. The main procedural steps in the Mirage case include (subject to potential appeals by the debtor or creditors): (i) initiating a reorganization procedure, (ii) provisional composition moratorium granted by the court, (iii) court decision to convert the procedure into a liquidation procedure, (iv) inventory of Mirage's assets, (v) notification to the creditors, (vi) first creditors' meeting, (vi) appointment of the insolvency representative, (vii) drawing up of the schedule of claims, (viii) second creditors' meeting, (viii) sale of Mirage's assets, (ix) drawing up of the distribution plan and the final account, (x)

distribution of the proceeds, respectively of certificates of unpaid debts ("acte de défaut de biens").

Outcome piecemeal sale When a company enters liquidation proceedings, it stops operating. As a result, hotel's assets will be sold piecemeal.

Recovery rate

(cents on the dollar)

46.7

Cost (% of estate) 4.5 Major expenses include attorneys' fees (1-3%) and fees of the insolvency representative (1-5%), court fees (around 0.3%) and fees of accountants and auctioneers (around 1%).

Details – Resolving Insolvency in Switzerland – Measure of Quality
	Answer	Score
Strength of insolvency framework index (0-16)		12.0
Commencement of proceedings index (0-3)		3.0
What procedures are available to a DEBTOR when commencing insolvency proceedings?	(a) Debtor may file for both liquidation and reorganization	1.0
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?	(a) Yes, a creditor may file for both liquidation and reorganization	1.0
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value of its assets	(c) Both (a) and (b) options are available, but only one of them needs to be complied with	1.0
Management of debtor's assets index (0-6)		4.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor?	Yes	1.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?	Yes	1.0
Does the insolvency framework allow avoidance of preferential transactions?	Yes	1.0
Does the insolvency framework allow avoidance of undervalued transactions?	Yes	1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings?	No	0.0
Does the insolvency framework assign priority to post-commencement credit?	(c) No priority is assigned to post- commencement creditors	0.0
Reorganization proceedings index (0-3)		1.0
Which creditors vote on the proposed reorganization plan?	(b) Only creditors whose rights are affected by the proposed plan	1.0
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation?	No	0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally?	No	0.0
Creditor participation index (0-4)		4.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative?	Yes	1.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?	Yes	1.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative?	Yes	1.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims?	Yes	1.0

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
Is a full-time employee.
Is not a member of the labor union, unless membership is mandatory.

The business:

Is a limited liability company (or the equivalent in the economy).
Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Has 60 employees.
Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.
Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Switzerland

Details – Employing Workers in Switzerland

Hiring

Fixed-term contracts prohibited for permanent tasks? No

Maximum length of a single fixed-term contract (months) 120.0

Maximum length of fixed-term contracts, including renewals (months) 120.0

Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0

Ratio of minimum wage to value added per worker 0.0

Maximum length of probationary period (months) 3.0

Working hours

Standard workday 9.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 25.0

Premium for work on weekly rest day (% of hourly pay) 50.0

Premium for overtime work (% of hourly pay) 25.0

Restrictions on night work? Yes

Restrictions on weekly holiday? Yes

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 20.0

Paid annual leave for a worker with 5 years of tenure (working days) 20.0

Paid annual leave for a worker with 10 years of tenure (working days) 20.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? No

Priority rules for reemployment? No

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 8.7

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 13.0

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 8.7

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 10.1

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 0.0

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 0.0

Unemployment protection after one year of employment? Yes

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 0.0

PEO Switzerland

Switzerland, as a Professional Employer Organization (PEO) country, epitomizes stability, efficiency, and a business-friendly environment. Renowned for its political neutrality, strong economy, and robust financial services sector, Switzerland has emerged as a sought-after destination for companies looking to establish a presence in Europe. Its strategic location at the heart of the continent and access to a highly skilled and multilingual workforce contribute to its attractiveness as a business hub. PEO services in Switzerland play a vital role in simplifying market entry by handling complex employment regulations, payroll, and HR functions, allowing companies to focus on their core competencies. Additionally, Switzerland’s favorable tax policies and global connectivity provide a competitive edge for international businesses. With a reputation for precision, innovation, and quality, Switzerland continues to be a preferred choice for companies seeking long-term growth and success in the European market.

PEO services in Switzerland offer a practical and effective solution for international companies seeking to establish a presence in this highly competitive market. By partnering with a reputable PEO service provider, businesses can outsource their human resources, payroll, and compliance functions to local experts. The PEO acts as the official employer of record, ensuring compliance with Swiss labor laws and regulations. This eliminates the need for foreign companies to establish a legal entity in Switzerland, saving time and resources. PEO services also provide access to a skilled and multilingual workforce, crucial for successful market entry and operations. With administrative burdens taken care of, businesses can focus on their core competencies and seize the promising opportunities that Switzerland offers as a global business hub.

Business Reforms in Switzerland

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2018

Enforcing Contracts: Switzerland made enforcing contracts easier by introducing an electronic filing system.

DB2016

Registering Property: Switzerland made transferring property easier by introducing a national database to check for encumbrances.

DB2015

Starting a Business: Switzerland made starting a business easier by introducing online procedures.

Protecting Minority Investors: Switzerland strengthened minority investor protections by increasing the level of transparency required from publicly traded companies.

Resolving Insolvency: Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions.

DB2012

Getting Electricity: Switzerland made getting electricity less costly by revising the conditions for connections.

Resolving Insolvency: Switzerland introduced a unified civil procedure code and made a number of changes to its federal bankruptcy law.

DB2009

Starting a Business: Switzerland made starting a business more difficult by doubling the paid-in minimum capital requirement.

DB2008

Employing Workers:

Switzerland allowed the workweek to extend to 50 hours (including overtime) for 2 months a year in response to a seasonal increase in production.

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Economy Profile of Switzerland

Ease of Doing Business in Switzerland

Rankings on Doing Business topics – Switzerland

Topic Scores

Starting a Business

What the indicators measure

Procedures to legally start and formally operate a company (number)

Time required to complete each procedure (calendar days)

Cost required to complete each procedure (% of income per capita)

Paid-in minimum capital (% of income per capita)

The business:

The owners:

Starting a Business – Switzerland

Figure – Starting a Business in Switzerland – Score

Figure – Starting a Business in Switzerland and comparator economies – Ranking and Score

Figure – Starting a Business in Switzerland – Procedure, Time and Cost

Details – Starting a Business in Switzerland – Procedure, Time and Cost

1 Place the paid-in capital in an escrow account with a bank

2 Draft the articles of association and authenticate documents in the presence of a notary public

3 File the deed certifying the articles of association to the local commercial register to obtain a legal entity

4 Pay stamp tax at post office or bank after receiving an assessment by mail

5 Register for VAT

6 Enroll employees in the social insurance system (federal and cantonal authorities)

Dealing with Construction Permits

What the indicators measure

Procedures to legally build a warehouse (number)

Time required to complete each procedure (calendar days)

Cost required to complete each procedure (% of income per capita)

Building quality control index (0-15)

The construction company (BuildCo):

The warehouse:

The water and sewerage connections:

Dealing with Construction Permits – Switzerland

Figure – Dealing with Construction Permits in Switzerland – Score

Figure – Dealing with Construction Permits in Switzerland and comparator economies – Ranking and Score

Figure – Dealing with Construction Permits in Switzerland – Procedure, Time and Cost

Figure – Dealing with Construction Permits in Switzerland and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Switzerland – Procedure, Time and Cost

1 Obtain fire department approval

2 Obtain construction permit

3 Receive inspection for scaffolding works

4 Receive inspection for excavation works

5 Receive inspection for frame works

6 Obtain approval from the department for waste and recycling

7 Obtain approval from the department of electric power supply

8 Obtain approval from the water department

9 Obtain sewage connection from the department for waste and recycling

10 Obtain water connection from the water department

11 Receive sanitary inspection from the department for waste and recycling

12 Receive final inspection from the municipal building authority

13 Obtain occupancy permit from the municipal building authority

Details – Dealing with Construction Permits in Switzerland – Measure of Quality

Getting Electricity

What the indicators measure

Procedures to obtain an electricity connection (number)

Time required to complete each procedure (calendar days)

Cost required to complete each procedure (% of income per capita)

The reliability of supply and transparency of tariffs index (0-8)

The warehouse:

The electricity connection:

The monthly consumption:

Price of electricity (cents per kilowatt-hour)*

Getting Electricity – Switzerland

Figure – Getting Electricity in Switzerland – Score

Figure – Getting Electricity in Switzerland and comparator economies – Ranking and Score

Figure – Getting Electricity in Switzerland – Procedure, Time and Cost

Figure – Getting Electricity in Switzerland and comparator economies – Measure of Quality

Details – Getting Electricity in Switzerland – Procedure, Time and Cost

1 Submit application to EKZ and await estimate

2 Pay estimate and obtain external works from EKZ

3 Receive meter installation, internal inspection and electricity flow

Details – Getting Electricity in Switzerland – Measure of Quality

Note:

Registering Property

What the indicators measure

Procedures to legally transfer title on immovable property (number)

Time required to complete each procedure (calendar days)

Cost required to complete each procedure (% of property value)

Quality of land administration index (0-30)

The parties (buyer and seller):