Starting a business in Switzerland offers exciting possibilities—whether you’re launching a tech startup in Zurich, opening a boutique in Geneva, or offering consultancy services across cantons. As an expat, you enjoy many of the same options as locals, but it’s crucial to understand the Swiss business environment, legal framework, and administrative steps to succeed.
This article provides a detailed and practical roadmap—step by step, legal requirements, financial planning, and tips tailored to expats—so you can launch your business confidently and sustainably.
Why Switzerland is Attractive for Businesses
Switzerland ranks high globally for its business-friendly ecosystem. Reasons include:
- Political and economic stability, low corruption
- Central European location with excellent infrastructure
- Highly educated workforce and multilingual marketplace
- Competitive corporate taxes (around 12–21% depending on canton)
- Robust support for startups, including accelerators, innovation hubs, and funding
- High purchasing power and global market access
Today’s global marketplace makes Switzerland even more attractive if you provide cross-border digital services or export goods internationally.
Step 1: Confirm Your Legal Right to Start a Business
Your residence permit determines which business forms you can choose:
- C and B permit holders (with employment) can start businesses and become self-employed
- L permit holders (short-term) are generally not allowed to launch independent businesses
- Citizens of EU/EFTA countries enjoy more flexibility
- Non-EU/EFTA C-permit holders can start a business after three years in Switzerland, subject to cantonal approval
Always confirm your eligibility with your canton’s Immigration Office or communal administration before taking steps.
Step 2: Choose Your Business Structure
Switzerland offers several business structures, each with benefits and obligations:
Sole Proprietorship (Einzelfirma/Société individuelle)
- Ideal if you’re the only owner
- No minimum capital required
- Personal liability for all business debts
- Less paperwork and easier setup (register via Swiss “Business Registry”)
General Partnership (Kollektivgesellschaft/Société en nom collectif)
- Two or more owners sharing ownership and liability
- No startup capital required
- Partners are jointly liable forever
- Simple registration and tax treatment
Limited Liability Company (GmbH/Sàrl)
- Popular for small-to-medium enterprises
- Minimum share capital of CHF 20,000
- Personal liability limited to capital invested
- Requires a Swiss-resident director
Public Limited Company (AG/S.A.)
- Suitable for larger ventures and potential public fundraising
- Minimum share capital of CHF 100,000
- Requires a board of directors, one of whom must reside in Switzerland
Branch of a Foreign Company
- Registration required for foreign firms doing business in Switzerland
- Parent company liable for branch obligations
- Requires Swiss-resident representative
Choosing the right structure is a strategic decision—consider startup capital, liability risk, administrative complexity, and growth plans.
Step 3: Register Your Business
Most capacity setting is unbureau providing as followable:
- Sole proprietorships and partnerships register via your canton’s Commercial Registry (Handelsregister / Registre du Commerce) when revenue exceeds CHF 100,000/year or employees are hired
- LLC (GmbH) and AG require full registration for any activity
- Foreign companies and branches also require Commercial Registry entry
Registration includes:
- Official paper forms or online submission via Zefix.ch
- Paying set registry fees (usually CHF 600–1,000)
- Publishing details in the Swiss Official Gazette, Swiss Official Site for Public Notices
You also need to register with:
- AHV/IV Office (social security)
- If turnover exceeds CHF 100,000/year, with the Federal VAT Administration
Step 4: Draft Foundational Documents
For GmbH/AG or partnerships, you must formalize:
- Articles of association (Statuten): company name, purpose, capital, management setup
- Shareholder agreement for multi-person entities: governance, profit distribution, exit procedures
- Signature authority documents: officialize who can legally sign on behalf of the company
These are essential for registration and corporate clarity.
Step 5: Open Swiss Bank Accounts and Insurance Coverage
Even freelancers or sole proprietors benefit from a dedicated business bank account—essential for clear bookkeeping and professional credibility.
Popular bank options include:
- PostFinance, Credit Suisse, UBS, Zürcher Kantonalbank, Raiffeisen, and regional banks
- Fintech firms like Neon, Zak, or Yuh that offer business accounts too
- Some banks specialize in cross-border needs or startup accelerator projects
Swiss insurance requirements include:
- Liability insurance (Haftpflichtversicherung), especially critical for consultants
- Accident and occupational insurance (UVG/UVG‑L) for employees
- Pension plans (BVG) for staff and voluntary retirement planning (Pillar 3a)
Step 6: Set Up Accounting and Tax Administration
Swiss businesses face strict accounting obligations:
- Sole proprietors and partnerships: simplified bookkeeping if turnover is under CHF 500,000
- GmbH and AG: double-entry accounting and annual financial statements required
- Keep records for at least 10 years
Register for VAT (MwSt/TVA)/TPS if revenue exceeds CHF 100,000. Standard rate is 7.7%, with reduced rates of 3.7% for hotels and 2.5% for essentials. Quarterly filings via the Swiss Confederation’s portal are standard.
While some founders manage accounting themselves using software like Bexio or Sage, it’s often wise to engage a fiduciary (Swiss accountant) for tax filing and audit compliance.
Step 7: Recruit Employees (If Needed)
If hiring employees:
- Register with AHV/IV/EO Office to handle social security
- Set up unemployment insurance (ALV), accident coverage (UVG), and pension fund contributions (BVG)
- Understand typical Swiss employment contracts, with probation periods, negotiated salaries, and benefit expectations
Labor law is lighter than in some countries, but established norms and cantonal specifics apply. Make sure you provide fair working conditions to avoid legal complications.
Step 8: Understand Taxation
Swiss businesses are taxed on multiple levels:
- Federal corporate tax: flat 8.5% on profit
- Cantonal/communal taxes: vary widely; many cantons discount for new players
- Dividend taxes: usually 35% withholding, reclaimable through Swiss tax treaties
Coordinate closely with your accountant to optimize use of deductions, loss carryforwards, and business expenses to reduce your taxable income.
Step 9: Obtain Permits or Licenses (If Applicable)
Some businesses require additional authorization:
- Hospitals, childcare, educational services
- Food services, hospitality
- Financial services regulated by FINMA (Swiss Financial Market Supervisory Authority)
- Retail liquor sales, cannabis products, regulated goods
- Construction-related operations often need building permits
Verify with your cantonal commerce office before launching to avoid fines or delays.
Step 10: Market Your Business and Build a Network
Success in Switzerland depends heavily on personal connections:
- Attend industry events, incubator demos, and trade fairs
- Join professional associations like SwissMem, SwissICT, Swiss Innovation Park (depending on your sector)
- Use LinkedIn, Xing, and βusiness cafés to share expertise and connect
- Collaborate with coworking spaces like Impact Hub, Westhive, or RocketStation for visibility and community
Swiss customers value trust, transparency, and relationship-building—consistent interactions will help you grow your network and credibility quickly.
Step 11: Maintain Compliance and Plan for Growth
After setup, keep your business in top shape by ensuring:
- Quarterly or annual tax/VAT filings
- Timely social security and staff payment documentation
- Regular updates to shareholder registers or accounting statements
- Annual meetings and resolutions for GmbH or AG structures
If you’re scaling, explore expanding to other cantons (double commercial registration helpful), add new employees, or pivot your structure from GmbH to AG for investment readiness.
Expats: Special Considerations
- Cross-border workers must manage cross-cantonal taxation and bilateral agreements
- Intellectual property should be protected; Swiss law is robust in trademark, patent, and copyright enforcement
- Language localization: French, German, Italian website versions build trust with local customers
Final Thoughts
Starting a business in Switzerland as an expat is a rewarding yet detailed journey. From permit clarification to company structure, registration, and Swiss specifics—each phase demands careful attention and planning.
Success lies in building a solid legal foundation, embracing local norms, managing finances expertly, and engaging consistently with your business community. If you’re prepared and diligent, Switzerland can be home to your next thriving venture. Congratulations on taking the first step—and if you’re ready, next we’ll explore writing a Swiss-style resume to match your entrepreneurial ambition.