Commissionaire Structures - Switzerland As A Location For The Principal Supplier

PLEASE NOTE: THIS ARTICLE WAS ORIGINALLY SUBMITTED BY REVISUISSE PRICE WATERHOUSE, SWITZERLAND


1. INTRODUCTION

In European business today there is an emphasis on simplifying corporate structures and reducing costs across the board. A commissionaire arrangement is one of several streamlining products designed and marketed by Price Waterhouse. A commissionaire is really quite similar to an undisclosed agent; i.e., a commissionaire acts in its own name but on behalf of and at the risk of an undisclosed principal, or, its agency status may be undisclosed.

1.1 Setting up Commissionaire Arrangements

A commissionaire structure usually replaces traditional buy/sell operations. Instead of several principals (i.e. buy/sell companies), the commissionaire structure requires only one principal. Under a commissionaire arrangement, the local sales companies (commissionaires) act on a commission basis, i.e. they sell goods in their own name but on behalf and at the risk of one central