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The Importance of Local Substance for Your Business

Updated: Mar 27

Starting a business can be a daunting task, especially when it comes to ensuring compliance with the legal requirements of your chosen jurisdiction. The importance of having a solid local substance cannot be overstated, especially when it comes to protecting your business and maximizing its potential for growth. In this article, we'll be discussing why local substance is crucial for businesses, and how Swiss legal structures can offer advantages for your company.

Why Local Substance Matters

Local substance refers to the physical presence of your company in the jurisdiction where it is registered. This includes having a registered office, employees, and conducting business activities in the country. Having local substance is important for several reasons:

  1. Reputation and Credibility: Companies that have a physical presence in a jurisdiction are often seen as more reputable and credible. This is because they have a tangible connection to the country and are subject to its laws and regulations.

  2. Compliance: By having local substance, you ensure that your company is compliant with the laws and regulations of the jurisdiction. This includes tax laws, employment laws, and other regulations that are specific to the country.

  3. Access to Resources: Having a physical presence in a jurisdiction can provide you with access to local resources and networks that can help you grow your business. This includes access to local talent, market information, and business opportunities.

The Advantages of Swiss Legal Structures

Switzerland is a leading hub for international business and is known for its favorable tax regime, stable political environment, and strong economy. In addition to these advantages, Swiss legal structures also offer the following benefits:

  1. Privacy and Security: Swiss privacy laws are among the strongest in the world, making Switzerland an ideal location for companies that value privacy and security.

  2. Attractive Tax Regime: Switzerland has a favorable tax regime for companies, offering low tax rates and a business-friendly environment.

  3. Strong Economy: Switzerland has a strong and stable economy, making it an attractive location for businesses looking to grow and expand.

ILFP's Basic Substance Offer

At ILFP, we understand the importance of having a solid local substance for your business. That's why we offer a range of services to help you establish a physical presence in Switzerland, including a staff lease license. Our team of experts will work with you to ensure that your company is fully compliant with Swiss laws and regulations, and that you have access to all the resources you need to grow and succeed.


In conclusion, having local substance is crucial for businesses, and Swiss legal structures can offer significant advantages for companies looking to establish a presence in Europe. By partnering with ILFP, you can be confident that you have a reliable and experienced partner by your side, helping you to navigate the complexities of setting up a business in Switzerland. Whether you're an entrepreneur, startup, venture capitalist, or high net worth individual, we have the expertise and resources you need to succeed.

So if you're looking to establish a solid local substance for your business, don't hesitate to reach out to ILFP today. Our team of experts will be happy to assist you in setting up a Swiss legal structure that is tailored to your unique needs and goals.


ILFP is a boutique multi-disciplinary firm able to assist clients in all matters related to their business strategies. Especially when it comes to new technologies such as fintech and blockchain. ILFP has many years of experience in creating and executing business strategies, financial transactions and trust services.


ILFP Legal Partners LLC - Gotthardstrasse 3 - 6300 Zug - Switzerland -

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