Company formation in Switzerland: Cost
Considering starting a new business or opening a branch office in Switzerland? Well, you’ve come to the right place. Located in the heart of Europe, Switzerland is well-known for its favorable tax rates, thriving economy, and accessibility to the European marketplace. Switzerland’s healthy international economy attracts highly qualified employees, which makes it easier to find suitable staff.
In this article, we’ll take a brief look at the different legal forms, average time frames, and how much it costs to establish a business in Switzerland.
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How to open a company in Switzerland
Switzerland’s company set up process is relatively straightforward. It begins by determining the appropriate legal form for your company, where it will be located, and which documents are required before any costs can be calculated. This phase may involve creating business plans, forecasting sales, or establishing articles of association and company contracts.
The Swiss government is divided into three tiers: federal, cantonal, and municipal. There are 26 cantons in Switzerland, and tax obligations vary per municipality. Therefore, choosing a location for your company will be a decisive factor. Furthermore, each canton manages its own commercial trade registry. Your business will be registered in the canton that your business is located in
Some legal forms will require at least a legal contract, while others may require articles of association, certificates, etc. Some documents, such as the articles of association, will also need to be notarized.
Seeking legal advice is recommendable for any type of business as it will help ensure that the formation process is done correctly from start to finish. Errors can result in costly fines, penalties, or legal disputes. Although attorney or consultant fees may seem expensive, hiring these professionals will prevent a lot of headache, frustration, and additional expenses.
Founding a company without a residence permit
If you want to set up a company in Switzerland without already having a residence permit in Switzerland things are somewhat more complicated. In cases like that the country of origin and the company’s activity are relevant.
Since the formation of a company without a residence permit is a complicated matter we advise you to get in touch with us – we are happy to help and show you the available options.
Sole Proprietorship
A sole proprietorship is the easiest legal form and is often chosen by independent contractors and freelancers. In this legal form, the entire liability of the company is backed by the owner’s personal assets. Sole proprietorships are also very inexpensive.
To register this type of business with the commercial registry, it will cost approximately CHF 120 (~ $135) and there is no minimum capital requirement. Registration is optional, unless the annual income exceeds CHF 100,000 (~ $113,250) or the operation is being run in a commercial fashion.
General Partnership
A general partnership may be commercial or non-commercial. There must be at least two individuals registered as company owners, a contractual agreement, and the liability of the company will be divided evenly between these individuals.
To register a general partnership with the commercial registry, it will cost approximately CHF 240 (~ $270) and there is no minimum capital requirement.
Legal Forms for Foreign Companies in Switzerland
Virtual Establishment
GmbH
AG
Limited Partnership
A limited partnership is similar to a general partnership, however, there are generally two or more individuals registered as company owners and some may have more liability than others (general partners vs. limited partners). There must also be contractual agreement between the parties.
To register a general partnership with the commercial registry, it will cost approximately CHF 600 (~ $680) and there is no minimum capital requirement.
Limited Liability Company
Limited liability company is one of the most popular legal forms in Switzerland. It offers a reasonable level of flexibility and only requires one person to register as company owner. There must also be notarized articles of registration and any necessary company contracts. The business name is required to include the acronym GmbH or Sàrl.
Switzerland’s company incorporation cost for this legal form is approximately CHF 600 (~ $680) for registration with the commercial registry and a minimum capital of CHF 20,000 (~ $22,650).
Corporation
A corporation, also known as a joint stock company or limited company, is also a very common legal form in Switzerland. It requires one person to register as founder, but is owned by shareholders and managed by an elected board of directors.
A corporation must have notarized articles of registration and any necessary company contracts or certificates. The business name is required to include the acronym AG or SA.
Switzerland’s company incorporation cost for this legal form is approximately CHF 600 (~ $680) for registration with the commercial registry and a total minimum capital of CHF 100,000 (~ $113,250) with at least 20 % (CHF 50,000 or ~ $56,625) paid out upon registration.
What is ANobAG?
ANobAG is a special employment model that enabled foreign companies to employ staff in Switzerland without having to set up a company in Switzerland. It is important to comply with Swiss law when hiring employees who are residents of Switzerland. ANobAG solves this problem and offers a convenient solution.
This employment model is ideal for foreign companies without a Swiss legal entity. With ANobAG, the responsibility to process payroll and pay into the Swiss social system is transferred to the employee. You can also involve a local payrolling agency for which you are welcome to contact us.
Conclusion
Forming a company in Switzerland opens the door to new opportunities and enables business owners to reach new markets. The planning phase is a pivotal process that is best done with an advisory service. DieVorsorge offers a full suite of services to assist you in your endeavour to open a company in Switzerland, including choosing a legal form and business name, opening a bank account, and registering with the commercial trade registry office.
FAQ
What are the different legal forms in Switzerland?
There are five standard legal forms that are divided into two categories: capital-based and partnership-based.
- Capital-based Legal Forms:
- Limited Liability Company – GmbH/Sàrl
- Limited Company – AG/SA
- Partnership-based Legal Forms:
- Sole Proprietorship
- Limited Partnership
- General Partnership
Capital-based legal structures are incorporated businesses, meaning they have their own legal entity that is responsible for the company’s liability. Conversely, partnership-based legal structures are unincorporated businesses without a separate legal entity, meaning the liability of the business is backed by the owner(s) personal assets.
How much does it cost to open up a company in Switzerland?
Start up costs for company formation in Switzerland vary per legal structure. Here are the approximate registration fees and minimum capital requirements for each legal structure.
Sole Proprietorship | General Partnership | Limited Partnership | Limited Liability Company | Corporation | |
Registration Fee | CHF 120 | CHF 240 | CHF 600 | CHF 600 | CHF 600 |
Minimum Capital | No minimum capital required | No minimum capital required | No minimum capital required | CHF 20,000 | CHF 100,000 |
It’s important to consider that there will likely be additional costs including but not limited to: legal fees, notary fees, and advisory fees.
How long does it take to set up a company in Switzerland?
Once the initial details, such as business name, address, legal form, etc. have been decided, the company can be registered with the local cantonal commercial registry office. For sole proprietorships and general or limited partnerships, this registration process can be completed online via the official government portal easygov.swiss.
As for limited liability companies and corporations, there are still certain steps that can not be done online. On average, the registration/establishment process can take anywhere from 1 to 3 months.