Starting a company in Switzerland is an extremely attractive option for many entrepreneurs due to low corporate tax rates, political and economic stability, a strong banking system, and access to the European market. However, especially for foreign founders, local regulations, cantonal differences, and bank compliance processes require careful planning.
Why You Should Consider Starting a Company in Switzerland?
As of 2025, Switzerland remains one of the most competitive and business-friendly countries in the world. Efficient company formation processes, digital application platforms, and a predictable tax system offer significant advantages for foreign investors.
Some highlighted advantages:
- Low and competitive corporate tax: The effective corporate tax rate varies by canton, ranging from about 11.5% to 24.4%. In cantons like Zug, this rate is well below the European average.
- Structure open to foreign ownership: There is no requirement for company partners to be Swiss citizens or residents; foreign entrepreneurs can own 100% of the company.
- Strong innovation ecosystem: There is a global R&D and startup ecosystem, especially in technology, finance, pharmaceuticals, and advanced manufacturing sectors.
- Access to the EU market: Free trade agreements and geographical location make Switzerland an ideal hub for European operations.
In addition to these advantages, the different tax rates and procedures of each canton make the initial choice of structure and location critical.
Main Requirements You Will Encounter When Starting a Company in Switzerland
The processes for starting a company in Switzerland are generally fast and transparent; most applications can be completed within 10–21 days. However, there are some essential conditions that foreign founders should pay attention to:
- No residency requirement for partners: Partners can reside anywhere in the world.
- Requirement for a manager residing in Switzerland: In common structures like GmbH and AG, at least one manager (or board member) with signing authority must be a resident of Switzerland.
- Registered office address in Switzerland: Every company must have a registered address in Switzerland (in most cantons, a virtual office/fiduciary address is also possible).
- Notary certification: The articles of association and incorporation documents are signed in the presence of a notary when establishing GmbH and AG.
- Trade Register registration: The establishment is registered with the relevant cantonal Trade Register and through EasyGov.swiss into the central system.
These requirements vary depending on the structure; therefore, it is essential to clarify which type of company is suitable for you first.
Most Common Types of Companies in Switzerland
The choice of structure is shaped by the amount of capital, risk profile, scaling goals, and your investment plans. The most commonly used legal structures in Switzerland are:
1. GmbH (Limited Company – SARL)
- Minimum capital: 20,000 CHF
- Paid-in capital: Must be fully paid at incorporation
- Manager: At least one manager residing in Switzerland with signing authority is mandatory
- Liability: Liability limited to the company’s assets
- Suitable for: SMEs, technology startups, service companies
GmbH is one of the most balanced options for foreign founders; the capital requirement is lower than that of AG, allowing for investment and scaling.
2. AG (Aktiengesellschaft – Joint Stock Company)
- Minimum capital: 100,000 CHF
- Paid-in capital: At least 50,000 CHF must be paid at incorporation
- Manager/Board member: At least one board member residing in Switzerland
- Liability: Limited to the company’s assets
- Suitable for: Larger scale, international, and investor-focused structures
AG provides advantages with its professional and corporate image among corporate investors and banks, but the establishment and management costs are higher than those of GmbH.
3. Branch Office
- Minimum capital: None
- Swiss manager: A responsible person residing in Switzerland is required for the branch
- Suitable for: Foreign parent companies wishing to operate in Switzerland
A branch is not a separate legal entity; it operates as an extension of the parent company. Tax and legal liability rests with the parent company.
4. Sole Proprietorship
- Minimum capital: None
- Registration requirement: Registration in the Trade Register is mandatory when annual turnover exceeds 100,000 CHF
- Suitable for: Freelancers, small-scale individual activities
It is easy to set up, but since the individual and the company are considered the same, there is unlimited personal liability for debts. For foreign founders, GmbH or AG is generally a safer choice.
Step-by-Step Company Formation Process in Switzerland
The process for GmbH and AG is largely similar. The following steps provide a typical roadmap for a foreign entrepreneur.
1. Market Research and Canton Selection
First, you should clarify your business model and target customers, and determine which canton you will establish the company in. Because:
- Tax rates vary significantly from canton to canton (for example, Zug and Nidwalden generally have lower rates).
- Some cantons offer more established ecosystems and talent pools for certain sectors (such as finance, fintech, insurance).
- Office rents and living costs are also higher in cities like Zurich and Geneva.
2. Determining and Checking the Company Name
The name must be unique. You can check the suitability of the chosen name by searching the central name index of the Swiss Trade Register (Zefix). In the name:
- The company structure must be clearly stated (e.g., “XYZ Consulting GmbH”, “ABC Holding AG”).
- It must be distinctive enough to avoid confusion with another company.
- If applicable, it should align with your trademark registration goals.
3. Preparing Incorporation Documents
The next step is to establish the legal framework of the company:
- Articles of Association: Defines the company’s purpose, capital structure, shares, management, signing authorities, and decision-making processes.
- Incorporation deed: Contains the founders’ intention to establish the company and their capital commitments.
- Identification documents: Passports and IDs of partners and managers (apostille/legal translation may be required for foreigners).
- Registered office address documents: Lease agreement, usage rights letter, or fiduciary address contract.
At this stage, it is crucial to establish a structure that complies with the Swiss Code of Obligations and provides flexibility when seeking investment or transferring shares in the future.
4. Opening a Swiss Bank Account and Capital Blocked Account
For GmbH and AG, you need to deposit the minimum capital into a blocked capital account that you open in Switzerland before incorporation:
- The bank issues a confirmation letter stating “capital has been deposited” in exchange for the deposited amount.
- This letter is a mandatory document in your Trade Register application.
- The account remains blocked until the company is registered; after registration, it converts to a normal business account.
As of 2025, due to strict anti-money laundering and KYC regulations, especially non-EU founders need to be prepared to document their business plan, source of funds, and business model in detail when opening a bank account.
5. Notary Approval
The prepared incorporation documents are signed and certified in the presence of a notary in Switzerland. At this stage:
- Partners or their authorized representatives (with a power of attorney) sign.
- The notary officially certifies the signature samples and the articles of association.
Notary fees typically range from 1,000 – 3,000 CHF.
6. Trade Register Registration
After notary certification, you register your company with the cantonal Trade Register. This registration:
- Can be done through digital platforms like EasyGov.swiss or directly at the relevant cantonal Trade Register office.
- Requires submission of the notary-approved articles of association, incorporation deed, bank capital letter, list of managers and partners, and signing declarations.
- The registration fee typically ranges from 600 – 1,200 CHF.
Once the registration is completed, your company is officially born, and you are assigned a trade register number and UID (corporate identity number). The company name, address, and managers are published publicly.
7. Tax, VAT, and Social Security Registrations
After the Trade Register registration, the following obligations come into effect for your company:
- Corporate tax registration: Notification is made to the relevant cantonal and federal tax authorities.
- VAT registration: If your annual turnover is expected to exceed 100,000 CHF, you need to register for VAT liability.
- Social security registration: When you employ staff, registration with the relevant social insurance institutions (compensation funds) is mandatory.
- Sectoral licenses: Licenses must be obtained from FINMA and relevant authorities in regulated areas such as finance, insurance, and payment services.
Costs of Starting a Company in Switzerland (Approximate for 2025)
The main cost items you will encounter when establishing GmbH or AG can be summarized as follows:
- Minimum capital:
- GmbH: 20,000 CHF (fully paid)
- AG: 100,000 CHF (at least 50,000 CHF paid)
- Notary fees: 1,000 – 3,000 CHF
- Trade Register registration fee: 600 – 1,200 CHF
- Bank/legal transaction costs: 500 – 2,000 CHF
Total initial setup cost (excluding capital) typically ranges from 3,000 – 8,000 CHF in most cases. The capital amount is considered an asset of your company and appears on your balance sheet; it is part of your working capital, not a “loss”.
In the following years:
- Annual accounting and tax declaration costs,
- Independent audit costs when certain turnover, balance sheet, or employee count thresholds are exceeded,
- Canton-based corporate tax and VAT obligations,
- Social security contributions and payroll management
will come into play.
Special Requirements for Foreign Founders
Switzerland is quite open to foreign capital; however, corporate and immigration aspects need to be evaluated separately.
- No residency requirement for partnership: Partners can reside anywhere in the world; passports are sufficient.
- Requirement for a Swiss resident manager: At least one manager with signing authority residing in Switzerland is mandatory for GmbH and AG. This position is often fulfilled through fiduciary services or professional management.
- Distinction between starting a company with a work permit: No direct residence or work permit is required to establish a company; however, if you want to work personally in Switzerland, move, or employ staff, you need to obtain permission according to immigration regulations.
- Registered office: A physical postal address within Switzerland is mandatory; in some cantons, officially recognized virtual office solutions are also possible.
It is particularly important for non-EU founders (e.g., Turkish citizens) to manage the bank account opening, residence permit processes, and tax planning in an integrated manner.
Ongoing Obligations After Establishment
After the company is established, regular compliance and reporting are required in the following areas:
- Taxes: Federal and cantonal corporate tax declarations, VAT returns.
- Financial reporting: Preparation of annual financial statements; simpler for small companies, detailed reporting and auditing required for larger ones.
- Trade Register updates: You must timely report any changes such as partnership structure, management changes, address changes.
- Labor law and payroll: Compliance with Swiss labor law provisions regarding social security, employment contracts, holidays, and working hours is mandatory for employees.
How Can Corpenza Facilitate Company Formation in Switzerland?
Starting a company in Switzerland is not legally “difficult”; however, it is a multi-step, documented process that varies by canton. Three critical risk areas stand out, especially for foreign founders:
- Unnecessarily high tax burden due to incorrect structure and canton selection,
- Delays and rejected applications in opening a bank account,
- Inadequate management of local requirements such as Swiss resident manager, registered office, and payroll.
As Corpenza, we work with a team specialized in company formation on a European and global scale, international accounting, payroll/EOR, posted worker model for personnel deployment, and investment-based residency – citizenship. Specifically for Switzerland:
- We analyze whether GmbH, AG, or branch is more advantageous according to your business model from a tax and operational perspective.
- We prepare scenarios for suitable canton selection and tax optimization (for example, a combination of Switzerland + another EU country).
- We coordinate the opening of a bank account, capital blocked account, notary appointments, and Trade Register applications end-to-end.
- We offer integrated solutions for Swiss resident manager, registered office, payroll and social security processes through our reliable local network.
- Additionally, if necessary, we position your company in Switzerland within a comprehensive international tax and mobility strategy compatible with your other structures in Europe, holding companies, or investment plans.
Thus, rather than a one-time incorporation service, we ensure that your Swiss operations achieve a long-term, sustainable, and tax-optimized structure.
Conclusion: What You Need to Start a Company in Switzerland
In summary, to start a company in Switzerland, you need:
- The right structure (GmbH, AG, branch, or others) and canton selection,
- A unique company name and legally compliant articles of association,
- A bank account in Switzerland and blocked capital investment,
- Notary approval and Trade Register registration,
- Tax, VAT, social security, and sectoral license applications if applicable,
- At least one Swiss resident manager and registered office address
When the process is coordinated correctly, most companies can be registered to start operations in 3–5 business days expedited, or approximately 2–3 weeks under standard conditions.
Your business model, target markets, tax planning, and personal mobility (residency, work permit, family relocation, etc.) goals are interrelated factors. Therefore, it would be the healthiest approach to proceed with a holistic strategy that addresses not only company formation but also corporate structuring, individual residency, personnel deployment, and tax optimization together.
Disclaimer
The information here is for general informational purposes; it does not constitute legal, financial, or tax advice. Swiss legislation, cantonal regulations, and tax rates may change over time. Before making your company formation and investment decisions, be sure to check current official sources (such as government portals like EasyGov.swiss) and seek professional support from a licensed tax/legal expert.
