1. To maintain peace and order . Together with other aspects of the legal system, legally enforceable property rights help minimise physical violence – and the associated destruction of economic resources - aimed at securing the control of assets that are sources of economic rewards. This factor clearly applies to all types of property, ‘real’ or ‘intellectual’. 2. To assign decision rights . efficient allocation of resources cannot obtain unless someone (individual or collectivity) has the right to decide how economic assets are used. However, the consequences of this principle are rather different depending on whether it is applied to ‘real’ or to ‘intellectual’ property. This is because most forms or real property are seen as private goods while intellectual property is generally thought to a public good . Private goods are characterised by rivalry in usage, i.e. they cannot be used by more than one economic agent at the same time: we cannot both eat the same apple. Because of this, it is generally optimal to let a single agent decide how the good ought to be used. Public goods, on the other hand, are such that usage by one agent does not preclude usage by another: 3. To reward investment . This factor relates to dynamic efficiency. The idea is simply that no rational economic agent will incur the cost of investing in developing or maintaining property unless she his able to collect some corresponding reward. Hence, if sufficient investment is to be induced, investors must be given property rights over the fruits of their investment so that they can capture a significant proportion of the value that they create. Although this factor applies to all types of property, it is of special importance for assets whose development and/or maintenance require significant effort. 4. To favour the diffusion of information. Agents investing in assets might try to exploit them ‘secretly’, expending effort to prevent others from gaining information about the asset.
Country Analysis :Switzerland Anil kumar Singh Arushi Divya Jain Mamta Singh Neelesh Pal Sushant Sharma
Comparative Analysis - Switzerland V/s United States
Switzerland Healthcare Policies United States Healthcare Policies By Law, Swiss are required to purchase basic health insurance Employers purchase health insurance for their employees In Switzerland, federal regulators determine what services a health insurance company must cover. Health care facilities are largely owned and operated by the private sector. Swiss have quality, universal coverage, while spending 40 per cent less than Americans, a savings of $1 trillion Nearly 50 million people in the US have no health insurance at all
The US system of dual sovereignty (federalism) is foremost, which prevents central control in all areas not specifically delegated by the Constitution. The lack of central control allows real diversity and the potential for the free market to flourish
No federal health care system would work in the US because of its unique constitutional system and complex collection of partially-sovereign states. Notably, the federal government has no jurisdiction to force citizens to purchase insurance by threat of penalty
Moreover, the Swiss are a homogenous and distinct people whose health and health care system cannot reasonably be compared to the diversity we would find in America. Thus a ‘One size fits all’ wouldn’t cater to the diversity in the US.
The income distribution in India is vastly divergent than what we have in Switzerland.
The Indian healthcare system is still ailing with poor infrastructure and obsolete healthcare facilities. To resurrect that, a tremendous investment need to be made into these sectors, this would rather burden the central government.
Better approach would be to need to decentralize the Indian health system. Local bodies and Panchayat, rather than the central government, should have control over government hospitals and primary healthcare centres.
Public private partnerships is required to strengthen the Indian healthcare system
Corporate governance encompasses the full range of principles directed towards shareholders’ interest seeking a good balance between direction and control and transparency at the top company level while maintaining decision-making capacity and efficiency.
“ Swiss Code of Best Practice for Corporate Governance”
Intended for public limited companies
Purpose- to set out guidelines and recommendations
Each company should retain the possibility of putting its own ideas on structuring and organization into practice.
Switzerland Residence and Liability for Taxation
Switzerland Residence and Liability for Taxation
He has Swiss employment ;
He carries on a business in Switzerland; or
He lives in Switzerland for not less 180 days.
Federal taxes Cantonal taxes Municipal taxes Individual income taxes Individual income and net wealth taxes Individual income and net wealth taxes Corporate income taxes Corporate income and net worth taxes Corporate income and net worth taxes Real estate capital gains taxes Real estate capital gains taxes Real estate taxes Real estate taxes Real estate transfer taxes Real estate transfer taxes Inheritance and gift taxes Inheritance and gift taxes Withholding tax on passive income Value added tax and Customs duties Motor vehicle taxes Trade taxes Stamp duties Military and civil service exemption tax Tobacco tax Beer tax Spirits tax Overview of the Swiss taxation system Switzerland is a confederation of 26 cantons with about 3000 municipalities. Taxes are levied not only by the Federation but also at the cantonal and municipal level.
Switzerland's new 'super regulator,' the Financial Market Supervisory Authority (FINMA) commenced operations on January 1, 2009.
The effect of the Act is to merge three bodies – the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority – into a single supervisory authority.
Money laundering and Funding to Terrorist Organizations
The Swiss Stock Exchange(SWX) is controlled by an association of banks which number 55. Each of these banks have equal voting rights in the matter of decision making concerning the management and regulation of the Swiss Stock Exchange.
The Swiss Stock Exchange(SWX) has a blue-chip index as its stock market index. It is called the Swiss Market Index (SMI) and comprises of a maximum of thirty largest and at the same time most liquid, large and mid-cap SPI stocks.
The Federal Act on Stock Exchanges and Securities Trading (SESTA) entered into force in 1997/98. With the introduction of SESTA, the Commission for Regulatory Issues of the SWX became the Swiss Takeover Board. The task of supervising the stock exchanges was assigned to the Swiss Federal Banking Commission. The new law also confirmed, and in certain respects expanded, the self-regulatory powers granted to the SWX under the earlier cantonal rules.
Based on art. 12 of the Swiss Cartel Act, civil actions can be restraint of competition from entering or competing in a market may request:
removal or cessation of the restraint;
damages and reparations;
remittance of the illicitly earned profits.
Legal requirements for bringing an action for damages
A person impeded by an unlawful restraint of competition
from entering or competing in a market may request:
Unlawful horizontal or vertical agreements which significantly affect competition in the market for certain goods or services and are not justified on grounds of economic efficiency or lead to the suppression of effective competition, (art. 5 Swiss Cartel Act) or
Abuse of a dominant position (art. 7 Swiss Cartel Act)
Administrative barriers arise in particular from the information requirements imposed upon market parties by the enforcement of regulations. When such requirements are particularly burdensome or obstructive or otherwise hamper operators or shippers in business activities they are called administrative
Switzerland is traditionally considered a safe haven for foreign investors, because it has maintained political neutrality, an elaborate banking system with a high degree of bank secrecy, and it has maintained its currency's value through the instabilities of surrounding Europe's wars and crises
Administrative Barriers in Doing Business Economy Rankings - Ease of Doing Business : Rank#21 out of 183 economies Switzerland - Compared to global good practice economy as well as selected economies
Administrative Barriers in Doing Business Summary of Indicators
Administrative Barriers in Doing Business Economic Indicators Switzerland Germany United Kingdom Ease of Doing Business 21 25 5 Starting a Business 71 84 16 Construction permits 35 18 16 Registering Property 15 57 23 Employing Workers 16 158 35 Getting Credit 15 15 2 Protecting Investors 165 93 10 Paying Taxes 21 71 16 Trading across borders 39 14 16 Enforcing Contracts 29 7 23 Closing a Business 38 35 9
The Swiss federal government, the Federal Council, recently announced a range of corporate tax reforms designed to increase Switzerland's attractiveness and prospects for growth as a business location.
The main elements of the reforms include –
Abolition of issue tax on equity and debt capital and the elimination of tax barriers to company financing
At the cantonal level, it should be made possible for the cantons to waive capital tax
Abolition of the status of domiciliary companies
The range of reforms contemplated would enhance capital formation and entrepreneurial activity, have a positive impact on growth and strengthen Switzerland's position in international tax competition in the face of similar measures taken by other countries
GDP is forecast to contract by 3.6% in 2009, with a further contraction of 0.6% in 2010. Unemployment is set to rise, and investment spending and net exports will be particularly weak. Industrial production will decline heavily
The Swiss Standards Association (SNV) publicize industrial standards, compliance with which may be specified by Swiss customers. Increasingly suppliers are required to deliver in accordance with ISO 9000 service development series.
Tariff preferences to LDCs
Switzerland uses its scheme of tariff preferences to grant ample market access for industrial and agricultural products from LDC countries
Corporate tax-rate at in Switzerland are very low. It is through this that it attracts many investors rather than investor friendly incentives.
Besides, The Agreement for the Avoidance of Double Taxation between the Swiss Confederation and the Republic of India with respect to income taxes, which came into force on 29th December 1994 form one of India’s key features of its Bilateral agreements with Switzerland.Thus,many Indian investors can avail this opportunity for venturing into business in Switzerland.
People with disabilities in Switzerland are better represented in the workforce than in other countries but still face more obstacles than the general population
On an international level, the country has not signed up to the UN Convention on the Rights of Disabled Persons. The Swiss government has said that adhering to the convention is "desirable", but that it wants to find out how it fits in with the legal system first
Mobility issues such as Public Transport form a major hurdle for the disabled.