The Swiss Principal model has become an effective means to optimize the structure of multinational companies on a regional basis, maximizing efficiencies by restructuring EMEA-area procurement, distribution and sales activities around a “Swiss Principal” company, which becomes the counterparty to the company’s vendors and customers. The Swiss Principal structure takes advantage of Switzerland’s favorable tax rates and advance tax rulings, business-friendly environment, advanced body of commercial law that provides certainty in strategic planning, banking center status, low tax rates, central location in the heart of Europe (combined with independence from the European Union regulatory overlay and European monetary union), and federal cantonal structure, all of which have contributed to the increasing popularity of Swiss Principal structures. Asia Principal structures are also possible, and can be included in the same restructuring.

Owen D. Kurtin of Kurtin PLLC, a New York City-based law firm, recently led as outside counsel a three-year Swiss Principal restructuring for a U.S.-based industrial and technology public corporation with operations in over thirty countries and a multibillion dollar market capitalization. The new corporate structure will greatly enhance the company’s yearly profitability.

This linked article is a free, downloadable case study with diagrams on the strategic, legal, tax and regulatory aspects of implementation of the Swiss Principal model for that multinational corporation. The case study discusses how to plan and allocate resources for the Swiss Principal project, which parts of the corporate structure to include in the Swiss Principal restructuring and which to exclude; liquidation of superfluous corporate structures and disposition of their assets; reorganizing the corporate structure in a supply chain and tax-efficient manner and in compliance with other countries’ laws and regulations; how to structure inter-company agreements that allow sharing and consignment of inventory without breaching the Swiss Principal model; and, in general, what worked, what did not work, details, nuances and practical pointers on how a Swiss Principal structure was successfully implemented in a globally-based, multibillion dollar public company.

Kurtin PLLC will be happy to discuss on a preliminary basis with companies contemplating a Swiss Principal model restructuring how such a project might be undertaken for them. The case study should also be of use to those who, while not necessarily implementing a Swiss Principal corporate structure, are interested in rationalizing and streamlining their companies to improve performance and profitability both in the U.S. and in other countries.

Further information is available at, or by e-mail at

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Owen Kurtin, Kurtin PLLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.