Switzerland’s attractive economic environment, international access, and stability make it a top destination for entrepreneurs. But to launch your business legally—and successfully—you need to understand Swiss corporate structures, registration processes, permits, taxes, and compliance.
Here’s a step-by-step guide to help you launch your Swiss business with confidence.
1. Verify Your Eligibility and Residency
Your permit type affects the structures you can establish:
- C- or B-permit (with work authorization) holders can found companies.
- L-permit (short-term) holders usually cannot.
- EU/EFTA nationals enjoy more freedom, but other nationalities may need cantonal approval after three years in Switzerland.
Check with your canton’s Migration Office to ensure your permit supports entrepreneurship.
2. Choose the Appropriate Legal Structure
Choose based on financial risk, capital requirements, tax efficiency, and investor needs:
- Sole Proprietorship (Einzelfirma/Société individuelle)
- No capital requirements; simplest to register.
- Personal liability applies.
- General Partnership (Kollektivgesellschaft)
- Two or more partners share full personal liability.
- Simple accounting, shared management.
- Limited Liability Company (GmbH/Sàrl)
- Requires CHF 20,000 minimum capital.
- Liability limited to contributed capital.
- Requires at least one Swiss-resident managing director.
- Public Limited Company (AG/S.A.)
- CHF 100,000 minimum capital.
- Suitable for raising funds or expansion.
- Requires a Swiss-resident board member.
- Branch of Foreign Company
- Your home company registers a branch in Switzerland.
- Liability and audits tied to parent company.
Choose wisely—your structure affects taxes, investor potential, and administrative complexity.
3. Register with the Swiss Commercial Registry
Registration is mandatory for GmbH, AG, and needed when annual turnover exceeds CHF 100,000 for sole proprietorships or partnerships.
Required documents include:
- Identification (passport and permit)
- Notarized articles of association (GmbH/AG)
- Board and director details
- Proof of capital deposit (for GmbH/AG)
- Business address and purpose
Submit in person or via an online portal (Zefix.ch), paying fees (CHF 600–1,000). Registration makes your company legal, creditable, and public.
4. Register for Social Insurance and VAT
- Submit to AHV/IV/EO social security as employer and employee.
- If you hire staff, register for unemployment insurance (ALV), accident insurance (UVG), and pension fund (BVG).
- If projected turnover exceeds CHF 100,000/year, register with the Federal Tax Administration for VAT (7.7% standard).
This ensures you comply with Swiss bookkeeping and filing rules.
5. Establish a Business Bank Account
Swiss business banking is typically required:
- Open an account in your company’s name with banks such as UBS, Credit Suisse, PostFinance, or local cantonal banks.
- Present company registration, permit, and directors’ IDs.
- Fintech options like Neon and Zak may offer SME accounts for convenient digital management.
Separate personal and business accounts for clarity and compliance.
6. Set Up Accounting Systems
Swiss business operations require structured accounting:
- Sole proprietorships and partnerships may use simplified accounting if turnover < CHF 500,000.
- GmbH and AG require double-entry bookkeeping and audited financial statements.
- Maintain accounting records for at least 10 years.
- Use Swiss-compliant software (e.g., Bexio, Sage, Abacus) or hire a fiduciary for accuracy and legal compliance.
7. Obtain Needed Permits and Approvals
Some sectors require additional authorization:
- Food, hospitality, education, financial advisors, medical services: regulated and must obtain cantonal or federal licenses.
- Retailing alcohol or tobacco: must apply for specific permits.
- Construction and real estate development: subject to zoning and building permits.
Verify requirements with your canton’s Commercial Registry or relevant industry authorities before launching.
8. Put Employment Contracts in Place
If you hire staff:
- Draft contracts with wage, working hours, probation, vacation, and notice terms.
- Provide mandatory insurances (UVG, BVG pension contributions) and social payments.
- Offer fair working conditions (minimum wage if applicable, public holiday and sick leave entitlements).
9. Navigate Taxation
Switzerland levies multiple tax layers:
- Federal corporate tax: 8.5% on profits.
- Cantonal and municipal taxes vary—often low in business-friendly cantons.
- Capital gains on share disposals may be tax-exempt under certain circumstances.
- Dividend withholding tax: paid at source at 35%, refundable under double-tax treaties.
A fiduciary can help optimize tax structures, deductions (e.g., interest, salary), and ensure compliance.
10. Protect Legal Identity and IP
- Register trademarks or domain names with Swiss authorities.
- Patent applications for innovations should go through Swiss Federal Institute of Intellectual Property.
- Create clear shareholder agreements outlining roles and ownership.
IP protection is crucial, especially for tech and product-based startups.
11. Launch and Market Smartly
- Develop a professional digital presence (website, LinkedIn, social media).
- Attend local networking events (Swiss Startup Days, industry chambers).
- Participate in pitch events at incubators and accelerators like Innosuisse or Impact Hub.
- Implement marketing plans (email newsletters, local media, partnerships).
Switzerland values strong branding and business reputation—focus on professionalism and quality.
12. Stay Compliant and Plan for Growth
After launching, maintain good standing:
- File annual VAT or financial customs reports
- Submit AHV reports and employer contributions
- Update commercial registry on board or address changes
- Sign annual resolutions and meetings for GmbH/AG
- Audit optional for small companies (<CHF 500k revenue) unless mandated
If you plan to expand—adding staff, opening branches—be prepared with compliant systems and fiduciary guidance.
Final Thoughts
Legally establishing a business in Switzerland is a structured, step-by-step process that varies depending on your chosen structure, canton, and industry. By:
- confirming your legal residency status,
- selecting the appropriate corporate form,
- registering with the registry and tax authorities,
- setting up banking and insurance,
- securing any necessary permits, and
- building compliance into your ongoing operations— you position your venture for long-term success.
With thoughtful preparation and alignment to Swiss standards, your Swiss business can flourish in one of the world’s most respected and stable markets.