How to Set Up a Business in Switzerland

Switzerland is one of the wealthiest nations in the world with an annual per capita income of almost CHF 80,000 (approx. US$82,140). Swiss industrial production per capita is higher than the US, China and Germany, focusing on the most complex and regulatory sensitive outputs.

Manufacturing is Switzerland’s strongest sector, particularly chemicals, pharmaceuticals and luxury consumer goods. It’s at the top of the Global Innovation Index league table, making it a great place for high-tech products or services.

The Swiss economy draws its strength from the country’s stable political environment, low taxes, highly skilled labor force, sophisticated financial markets and strong domestic purchasing power. Whilst Switzerland isn’t a member of the EU, it is a member of the European Free Trade Association (EFTA). It also has a global network of 28 free trade agreements with 38 partners outside of the EU.

Due to low crime rates and good infrastructure, Swiss cities often rank as some of the best places for expats to live – with over 24.6 percent of Switzerland’s 8.23 million population being non-Swiss.

However, there are certain issues to consider when choosing to set up a business in Switzerland.

Do some research on potential competitors to see if your business plan is sustainable. You can see what company names are already registered by consulting Switzerland’s commercial register.

There are seven types of business structures you can choose from:

1. Single-owner company or sole proprietorship: Suitable for sole owners of a company or professionals who work for themselves. The person running the business must be a Swiss resident.
2. General partnership: Like a sole proprietorship but with two or more people jointly operating the company. Partners must be Swiss residents and the company must have a Swiss address.
3. Limited partnership: A less common version of the general partnership where general partners have unlimited liability and limited partners may be liable up to an agreed amount.
4. Corporate/Joint-stock company: The most common form of business; the corporation is considered a separate legal entity. A member of the board or director (or two members) must be Swiss residents and have sole (or joint) signatory rights.
5. Limited liability company (GmbH/Sárl): These companies are also a legal entity, requiring a minimum shareholders’ equity of CHF20,000. At least one managing partner must be a Swiss resident.
6. Subsidiary: A legally independent company affiliated to a foreign entity. Can take the form of a corporation or a limited liability company.
7. Branch: A branch is a financially independent but legally dependent wing of a head office operating outside its home company. One Swiss resident with legal authority is required, and the branch is taxed in Switzerland as a Swiss company.

Explore the guidance and information given by the Swiss Federal Council here.

The World Bank provides detailed legal and bureaucratic steps to register a new legal entity in Switzerland.