Setting Up a Company in Switzerland – The Key Steps

Many people dream of establishing themselves in Switzerland because it offers stable economic and political conditions, world-class infrastructure, and an attractive, low tax burden – combined with business-friendly authorities. This gives you legal and tax certainty that many European countries simply cannot offer.

To set up your own business, you need to make a number of preparations that will lay the foundation for your Swiss company.

You have likely already thought about topics such as the right legal form, VAT registration, your business plan, and financing. But the concrete implementation still seems unclear? No problem – in this article, we give you a comprehensive overview of everything you need to consider when founding a company in Switzerland.

How to Start a Company in Switzerland – The Key Steps

Build a solid foundation. Plan the necessary steps carefully and consult a professional if needed.

A solid foundation can be built as follows:

• Define a promising business idea as a starting point
• Develop a business plan, supplemented by a financial plan and a liquidity plan
• Choose the appropriate legal form
• Choose your location
  • Where you settle can affect your liquidity plan, as Switzerland – as a federal state – has different tax rates and cost structures depending on the canton.
• Formelle Gründung des Unternehmens in der gewählten Rechtsform
• Take out insurance for your company and your employees and/or yourself
• Work with a fiduciary/tax advisor that operates digitally via an online platform you can also access. This creates the following added value for you:
  • Up-to-date accounting visible through dashboards
  • Thanks to a high degree of automation in accounting, these fiduciary firms focus primarily on the client relationship and proactive, personal advice.
  • You as an entrepreneur – with your needs and challenges – are at the centre

A Good Business Idea as the Basis for a Successful Company

Without a promising business idea, it is not possible to build a profitable company in the long term. It is therefore all the more important that you invest significant time in developing your business idea and positioning yourself correctly in the Swiss market.

It is important to align your personal goals with your strengths and the needs of the local market. To position your product or service correctly, a thorough analysis of the competition and the target market is essential.

Formally Incorporating Your Swiss Company – Making It Concrete

Once you have established your business strategy, your plan to found a company in Switzerland can take concrete shape. A central question is the choice of legal form. Here you can choose between various models, each with advantages and disadvantages depending on the activity and number of founders. This article covers the 3 most common legal forms:

• Sole proprietorship
• Legal entity – GmbH (limited liability company)
• Legal entity – AG (public limited company)

In Switzerland, the sole proprietorship (Einzelfirma) is one possible legal form. It is founded by one person and requires no minimum capital. Only when annual turnover exceeds CHF 100,000 is registration in the commercial register required and VAT liability applies. To combat bogus self-employment, the social insurance authority requires a strategy plan in which you demonstrate that you have at least three clients. A disadvantage of the sole proprietorship is that in the event of bankruptcy, you are personally liable with your private assets. For digital and international entrepreneurs, the sole proprietorship carries additional disadvantages and is best avoided.

Founding a company (legal entity) is safer because your personal assets remain protected. The only financial risk you have is the capital you invest at incorporation. Under certain conditions, the share capital can also be contributed in kind. Compared to a sole proprietorship, a company offers more tax advantages and greater flexibility in tax planning. A company can be founded by one or more persons. If you do not move to Switzerland yourself, you will need a resident Swiss director who must have individual signatory authority for the company.

Both the GmbH and the AG must be notarised and entered in the commercial register. The key differences between them are as follows:

->A fourth option is the establishment of a branch office of your foreign company in Switzerland. Find out more in our blog post: Setting Up a Branch in Switzerland – The Key Steps.