Switzerland Company Formation
Switzerland is a small state with a developed infrastructure, a stable economy, and a transparent legal system. The jurisdiction has a high image and close trade and economic ties with Europe. All this creates excellent conditions for doing business, making the Switzerland company register highly sought after by entrepreneurs. It is no coincidence that Switzerland has ranked the world’s first for many years.
Switzerland consists of 26 cantons. Each has its legislation concerning the organization of new companies. Taxation of companies is carried out at the municipal, cantonal, and federal levels. The final interest rate can be high, so non-residents and citizens should focus on offshore when planning company formation in Switzerland.
Switzerland is one of the most expensive countries in the world because of its high living standards. It is attractive to large businesses, financial institutions, agricultural firms, IT, Fintech companies, and holdings.
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Process of Company Incorporation in Switzerland
A person wishing to form a company in Switzerland must first draw up a detailed business plan and submit it to the cantonal economic development agencies (you can apply to all 26 cantons). An agency, based on the results of the application review, makes a decision considering the following factors:
- How interesting this or that project is to the canton;
- How many quotas a company will request for foreigners (there is a limit on quotas);
- Whether the newly established organization will create new jobs for locals;
- How promising the new business is for attracting investment.
If the cantonal agency’s opinion is positive, you can proceed to Swiss company formation. The procedure includes the following steps:
- Selection of the legal form, unique legal address, and name.
- Preparation of all necessary statutory documents.
- Opening a bank account and payment of the amount of the share capital (in full or a certain part).
- Registration of the entity through the Central Business Name Index (Zentraler Firmenindex).
- Registration of the business with the tax office (for companies with a turnover above CHF 100,000).
- Registration of the employees with the social security service.
Company registration in Switzerland takes 2-3 weeks and does not require many documents. In addition, the cantonal economic development agencies will assist in the search for commercial real estate, interaction with the tax authorities, and other issues arising during the registration process.
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Types of Companies That Can Be Set Up in Switzerland
Opening a company in Switzerland is possible in various legal forms, but the most common are:
Gesellschaft mit beschränkter Haftung (GMBH) – Limited Liability Company. Founders can be foreigners. At least 1 director must reside in Switzerland. There are requirements for the share capital – CHF 20,000. It is necessary to have a registered office. It is possible to incorporate a business remotely, but the account must be opened in person in a bank. The founders are responsible for the amount of the contribution.
Aktiengesellschaft (AG) – Public Limited Company. Founders can be non-residents, but at least 1 director has to be a Swiss resident. There are requirements for the amount of the share capital, so at least CHF 100,000. At the time of company formation in Switzerland, 20 per cent of the share capital, but a minimum of CHF 50,000, has to be paid in at the time of incorporation. Liability depends on the number of shares issued.
Thus, Switzerland has several legal forms of companies for entrepreneurs wishing to set up company in Switzerland, depending on the kind of liability, share capital and operational activity involved. Do not hesitate to contact our legal sales team to get a comprehensive guide on how to properly choose the type of legal entity for your business.
Terms of Doing Business in Switzerland for Non-residents
Any foreigner can register a company formation in Switzerland. But there are certain conditions. First, at least one of the directors with the right to sign in the newly formed entity must be a Swiss citizen or a resident of Switzerland (a person with a residence permit). At the same time, there is no legal requirement that Swiss residents own a majority of the share capital or part of the share capital.
The need for mandatory involvement of locals in the management of international companies is caused by the peculiarities of the law: you must have a residence and work permit to legally work in the country, especially in management positions. A work permit can be obtained later, after the registration of the entity. Then you can also apply for a residence permit. But at the business start stage, a local is always required.
When hiring a local to run a business, the Swiss authorities are concerned about the possibility of bringing the individual in question to justice in the event of law violations. Documents Requirements for Company Registration in Switzerland The following documents will be required for company formation (Switzerland):
- Desired name for the entity;
- Information about the direction of future work;
- Business plan;
- National and foreign passports of the shareholder, translated into English and notarized;
- Proof of address of the shareholder (e.g., a receipt for a utility payment);
- A certificate from the bank where the personal account is opened, in English, indicating the name and address of the shareholder;
- CV resume in English.
Documents Requirements for Company Registration in Switzerland
The following documents will be required for company formation (Switzerland):
- desired name for the entity;
- information about the direction of future work;
- business plan;
- national and foreign passports of the shareholder, translated into English and notarized;
- proof of address of the shareholder (e.g., a receipt for a utility payment);
- a certificate from the bank where the personal account is opened, in English, indicating the name and address of the shareholder;
- CV resume in English.
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Advantages of Opening a Company in Switzerland
Investors and business developers who want to open a company in Switzerland are offered a number of advantages.
Tax advantages
Company registration in Switzerland comes with numerous tax advantages. Switzerland’s federal tax system is an example of a successful solution. Taxes are set and collected at the federal, cantonal, and municipal levels. The tax can range from 11,9% to 21%, depending on the canton. The corporation tax rate may be reduced through OECD compliant patent box, a research and development (R&D) super deduction, and other measures.
Switzerland is commonly known for its excellent legal framework and access to European and global markets, making it an attractive location for both startups and established companies. Among the general advantages of incorporating a company in Switzerland, we can distinguish some most attractive ones that are listed below.
Stability of the political and economic situation in Switzerland
Switzerland is the richest country, famous for its neutrality, high economic stability, and developed banking sector. All conditions are created here for investors planning Swiss company formation. Switzerland is a great choice for entrepreneurs seeking a stable and predictable business environment. The country’s stability is an attractive asset for investors and enables a general business growth.
Qualified labour potential
Switzerland is a magnet for highly qualified specialists from abroad. Employees in Switzerland are generally highly trained, speak several foreign languages, and have considerable experience working abroad. They are highly motivated, reliable, and creative.
Banking privacy
The Swiss banking system is the safest in the world. In the unlikely event of a collapse, holders’ funds are fully secured by an agreement with depositors of the Swiss Bankers Association. Additionally, Swiss banks are commonly known for their strict privacy laws that have led to increased transparency in recent years, particularly in tax matters. The local laws prohibit the client’s information disclosure offering a high level of confidentiality.
Strategic location
Situated at the heart of Europe, Switzerland enjoys a strategic location with excellent transportation and logistics infrastructure. It offers easy access to European markets, making it a gateway for businesses to expand and connect with customers across the continent. Registering a company in Switzerland means reaching a new level, establishing yourself as a successful and promising entrepreneur, and securely protecting your capital.
Company Registration Assistance From Fintech Harbor
Creating a start-up on your own is a complicated and time-consuming process. If an experienced businessperson handles it, everything will go quickly. But for a novice entrepreneur, the procedure can take many months. Contact Fintech Harbor to save time and effort in starting your business.
We have more than a dozen successfully completed projects related to company formation (Switzerland). You choose the experience accumulated over many years of work by choosing us. We are always aware of all the changes and nuances in international business. Our impeccable reputation and hundreds of satisfied clients speak for us.
Services and support for company formation in Switzerland
Switzerland provides a well-developed framework, to perform the company formation process and related actions efficiently. Contact our expert team for a solution for both locals and foreigners to gain proper assistance on going though company formation stages.
Professional advice on incorporation in Switzerland
Engaging professional advisors is crucial when incorporating in Switzerland to navigate the legal and regulatory requirements. Our experts can assist with tax planning, structuring, and compliance to ensure your smooth business operations.
Cost of company incorporation in Switzerland
The cost of incorporating a company in Switzerland typically depends on several factors, including the preferred legal type of entity established, notary fees, as well as administrative registration costs. Additionally, these costs include fees for professional legal assistance which includes drafting legal documents, registering with the commercial registry, and fulfilling the minimum capital requirements.
FAQ
How do I check a Swiss company?
You can check a Swiss company by searching the online commercial register, known as the “Zefix” platform, which provides details on company ownership, registration status, and more.
Is there a Swiss version of Companies House?
Yes, Switzerland has a similar system called the commercial register, accessible via the Zefix platform. It contains details on registered companies across all Swiss cantons.
Can a foreigner start a company in Switzerland?
Yes, foreigners can start a company in Switzerland. A citizen of any country (except sanctioned) can register a company there. However, at least one director or manager must reside in Switzerland.
Does a company need an office in Switzerland?
Swiss enterprises must have their registered office at their place of incorporation.T his can be a physical location or a virtual office, depending on the type of business.
What is the minimum authorized capital in Switzerland?
It all depends on the legal form of incorporation. For Swiss AG (PLC), the minimum authorized capital is CHF 100,000, and for GMBH (LLC) – CHF 20,000.
What are the requirements for opening a bank account in Switzerland?
To open a bank account, you must have a passport, an identification card (ID), or other official document identifying you. The bank may also ask for a document about the origin of the money to be deposited in the account, and that tax has been paid on the funds deposited.
How long does it take to open a company in Switzerland?
Swiss company formation takes 2-4 weeks, depending on the canton and municipality. The timeline generally depends on the accuracy and completeness of the submitted documents.
What other services can your company provide after the company registration?
We offer legal and accounting support after successful company formation in Switzerland. Additionally, we offer legal and compliance support to ensure your business operates smoothly.
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*Your contact information will be used for our inner purposes and only with the aim to provide you with the best business solutions.