Company Formation in Switzerland: A Comprehensive Guide
Company formation in Switzerland is a relatively straightforward process with considerable benefits for both Swiss nationals and foreigners. Historically, Switzerland has had a reputation as a ‘tax shelter’, safeguarding the identities and assets of all individuals and corporations registered within the country from foreign prosecution.
Although this image still lingers, Switzerland has implemented disclosure laws to prevent tax evasion and other money-laundering schemes. Despite these changes, corporations and high-net-worth individuals can still enjoy flexible regulations, strict privacy policies, and reduced tax benefits.
What We Offer – Swiss Quick Start
With 20+ years of experience and a team of 15 experts, we provide full-service solutions for opening and registering your company in Switzerland. From legal formation to virtual office services, we ensure a smooth, compliant, and efficient setup for your business. Let us know how we can support you in your journey.
Comprehensive Legal Support
We ensure that your business is fully compliant with Swiss regulations, so you can avoid costly mistakes.
Fast and Cost-Efficient Setup
Our streamlined system allows you to achieve the fastest and most cost-efficient company formation in Switzerland.
Well-Connected
Our extensive network in Switzerland accelerates your business setup and ensures that no aspect is overlooked.
Comprehensive Legal Support
We ensure that your business is fully compliant with Swiss regulations, so you can avoid costly mistakes.
Fast and Cost-Efficient Setup
Our streamlined system allows you to achieve the fastest and most cost-efficient company formation in Switzerland.
Proven Expertise
With decades of experience, we handle even the most complex cases efficiently, ensuring a smooth transition.
Reliable Partner
We actively understand and anticipate your needs, offering solutions that work. Trust us to think ahead and act with your best interests in mind.
Well-Connected
Our extensive network in Switzerland accelerates your business setup and ensures that no aspect is overlooked.
Legal Advice
Corporate law
Employment contract law
Contract law
Local Administration Service
Our start-up service includes everything you need to launch in Switzerland
Fast & Legally Secure
Support for fast and legally secure market entry into Switzerland.
Consultation on choosing the right corporate structure and Its
registration.
Coordination & Administration
Handling of legally compliant payroll accounting, salary payments according to Swiss legislation.
Provision of the legally required social security package.
Competent & Connected
Assistance in obtaining expert legal advice (social security and labor law, tax law).
Local competent partner for your concerns. Over 20 years of experience.
Easily Establish a Swiss Company!
How to Open a Business in Switzerland
Opening a business in Switzerland involves a few essential steps. The process is straightforward enough to carry out independently but can also be facilitated with the help of a firm or agency. For non-residents, the only additional step may be acquiring a work and/or residence permit.
Steps to Register a Company in Switzerland:
1. Choose a Business Name, Create a Business Plan, and Choose a Legal Form
- Select a unique name that complies with legal requirements, avoiding misleading information.
- Develop a thorough business plan before founding your company.
- Choose an appropriate legal form, such as GmbH or AG, each with specific legal and financial requirements.
2. Set Up a Swiss Business Bank Account and Deposit the Initial Capital Requirement
3. Choose a Domicile and Establish a Business Address in Switzerland
- The location can have tax implications, varying by canton.
4. Work with a Lawyer to Draft the Company’s Articles of Association (AOA)
5. Create an EasyGov.swiss Account or Work with a Firm to Fill Out the Application Forms
6. Submit the Registration Paperwork and Pay the Required Fees
Costs of Registering a Business in Switzerland
Starting a business in Switzerland incurs registration and maintenance fees. For foreigners, additional costs may include permits and legal fees. The total cost can range from CHF 5,000 to CHF 20,000. Ideally, start-up capital should consist of 30 to 50% equity, with the remainder from borrowed capital such as loans.
Expected Costs
- Share capital of CHF 20,000 for a limited liability company.
- Professional advice: CHF 600 to CHF 2,500.
- Notary fees for founding documents: CHF 700 to CHF 2,000.
- Commercial register entry fee: CHF 600.
Legal Fees
To draft the Articles of Association (AOA) for a SA/AG or Sàrl/GmbH, you will need legal assistance. The fees associated with this step will vary per the lawyer or law firm of choice.
Additional Non-Resident Fees
Additional fees for non-residents may include work permit or residence permit fees and any relevant legal fees.
In addition to the basic registration and legal fees, there are other initial costs to consider when setting up a business in Switzerland. These include development costs for new products, initial inventory build-up, investments in office furniture, hardware, telephone systems, technical installations, and initial marketing campaigns. Planning for these expenses is crucial for a successful business launch.
Ongoing costs must be factored into the financial planning of your business in Switzerland. These include bookkeeping fees, office rental and operating costs, employee wages, and social security contributions. Regular tax payments and insurance contributions should also be considered. Proper financial planning, including a projected income statement, is essential for long-term success.
Value Added Tax (VAT)
All Swiss corporations are required to pay VAT (Value Added Tax) as well as sole proprietorships with a revenue of CHF 100,000 or more. As of January 2024, the standard VAT rate in Switzerland is 8.1% and the reduced VAT rate is 2.6%. However, outside of the, the European Union regulates their VAT rates, with a minimum standard VAT of 15% and a minimum reduced VAT of 5%.
Legal Forms for Foreign Companies in Switzerland
Virtual Establishment
A cost-effective and easy way to employ someone in Switzerland.
GmbH
(Limited Liability Company) Your own company with minimal equity capital for growing clients. The equity capital contribution amounts to CHF 20’000.00.
AG
(Public Limited Company) Your own company with more equity capital for growing clients. Owners can remain anonymous. The equity capital contribution amounts to CHF 100’000.00.
Setting Up a Company as a Non-Resident in Switzerland
It is possible to set up a company in Switzerland without a residence permit. Citizens and cross-border commuters from EU/EFTA states can establish their own businesses. Special regulations apply to third-country nationals, who may receive a cross-border commuter permit if they have a permanent residence permit in a neighboring country and have lived in the border zone for at least six months.
Swiss citizenship is not mandatory for setting up a company, but nationality affects residence permits. EU/EFTA citizens with valid employment contracts in Switzerland find the process particularly simple.
Further Information for Foreign Nationals
For comprehensive assistance and important information, foreign nationals can refer to SECO’s SME portal. Foreign companies can operate in Switzerland if they comply with the legal framework ANobAG.
ANobAG Switzerland
The ANobAG concept (employees without an employer liable to pay contributions) applies to people working in Switzerland for an employer without a domicile or permanent establishment in Switzerland. These employees are responsible for paying contributions to the AHV, IV, EO, unemployment insurance, and family allowances.
This ensures social insurance coverage even if the employer is not liable for contributions. Employers without a Swiss establishment must pay contributions if their employees are insured in Switzerland, with arrangements for the employee to be reimbursed for administrative costs.
Offshore Business Registration in Switzerland
Offshore company registration in Switzerland is accompanied by certain benefits that make it a highly desirable location for this type of business formation. Switzerland has a unique standing in the international market. Despite being a landlocked country within mainland Europe, it is not an EU member state and is one of the most politically stable countries in the world.
Switzerland is especially known for its low tax rates, asset protection regulations, and extremely strict privacy and security laws. Due to these benefits, Switzerland is recognized internationally as a tax and wealth safe haven.
What is an Offshore Company?
An offshore company, also known as a shell company, is a business that is registered in one country but operates in another. Offshore companies are generally registered in countries with loose legal requirements that are considered advantageous for specific business operations. The operations of an offshore company are commonly referred to as ‘outsourcing’. Establishing an offshore company is perfectly legal, however, it is often associated with tax evasion, fraud, or money-laundering schemes.
Registering an Offshore Company in Switzerland
The registration process for an offshore company in Switzerland follows the same procedures as a regular incorporation. Switzerland is a preferred location to set up an offshore company due to its low VAT, strict confidentiality and security regulations, and Double Taxation Agreements with over 100 countries to prevent double taxation
Conclusion
Setting up a company in Switzerland is a well-defined process with numerous benefits, including low taxes, strict privacy, and a stable political environment. Whether you are a Swiss national or a foreigner, understanding the steps and associated costs is crucial for a successful business launch. With the right guidance and preparation, Switzerland can be an excellent location for both local and offshore business operations.
FAQ
What are the benefits of doing business in Switzerland?
Switzerland’s company formation system enables Swiss nationals and foreigners alike to register and conduct business in a country with strict confidentiality and security regulations. Further benefits include having the lowest VAT rate in all of Europe (8.1%) and DTAs with over 100 companies.
How long does it take to register a business in Switzerland?
Swiss company formation must be carried out in a series of steps that require a specific order. The entire process generally takes 2-4 weeks.
Can I register a business in Switzerland as a non-resident?
In short, yes, a non-resident can register a business in Switzerland, however, there are certain prerequisites depending on the legal form of the company. A non-resident can register a limited liability company in Switzerland as long as there is at least one Swiss resident appointed as a managing director and company representative. Similar to the limited liability company, to register a joint stock company, there must be at least one Swiss resident on the board of directors.
On the other hand, to register a sole proprietorship in Switzerland, non-residents must have a valid work and residence permit.
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