The founders are usually committed to the company via a shareholders’ agreement. However, employees who are not part of the founders may also be indispensable to the company. Indeed, the involvement of employees can be vital for a company’s successful further development. Employee participations offer a good method for ensuring sustainable and successful cooperation throughout an organisation. At the same time, offering employee participation can help offset possible below-market salaries in the early stages of the start-up’s development.
Employee participation can be structured in different ways, but each specific structure will have another effect on taxes for both employees and the company. In addition, Switzerland is a federal state, which means each canton has its own tax policies, and this may cause difficulties. Start-ups need to obtain solid tax advice when developing employee participation – otherwise both the company and its employees may end up experiencing some unpleasant surprises. Our tax expertise and our open communication and consensual relations with various tax authorities enable us to provide you with the legal certainty you need to ensure a successful future for your company.