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Last update: 3 March 2024

Establish and administer a Swiss company: Open a new start-up business in Switzerland, an operating, trading, or technology company (FinTech, IT, E-commerce firm), register a holding structure or set up a branch or a subsidiary of a foreign corporate group

We offer competent and practical advice on how to set up any type of Swiss business

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FAQ on Starting a Business in Switzerland

What advantages does Switzerland offer as a location for new startup companies?

Most importantly, Switzerland offers favorable framework conditions for businesses in all sectors, especially for international commercial, trading, operating and holding companies, but also for innovative technology companies, blockchain firms and FinTechs in general.

Anyone wishing to open, set up, register, incorporate and start a Swiss company, enterprise, branch, subsidiary or holding benefits from (i) low Swiss corporate tax (ii) low Swiss VAT rates (iii) a strong Swiss banking infrastructure (iv) the availability of skilled personnel with a high work ethic and (v) Switzerland's status as a hub for commodity trading and trade finance (here).

How easy is it really to establish a Swiss start-up remotely?

In fact, the formation and registration of a Swiss start-up business is simple and straightforward, regardless of whether it is (i) a smaller limited liability company: LLC, GmbH, sarl, sagl (here) or (ii) a full-fledged enterprise limited by shares: Ltd, AG, SA (here). Setting up and registering a company in Switzerland takes less than 3 weeks and does not require the physical presence of the shareholder.

In which Swiss canton is corporate taxation the lowest?

In the Swiss canton of Lucerne (one hour south of Zurich airport), established and newly incorporated companies benefit from the lowest corporate tax rate in Switzerland: the effective tax rate in the canton of Lucerne is as low as 11.15% for the fiscal year 2024.

How does Switzerland compare with other countries in terms of corporate taxation?

Swiss companies benefit from one of the lowest business tax rates in Europe, as the following comparison of European corporate tax rates shows:

Comparison of European Corporate Income Tax Rates

(last update March 2024)

Which Are the Key Benefits of Doing Business in Switzerland?

• Switzerland has established itself as Europe's hub for foreign trade (here) due to stable political, economic and legal institutions and a principles-based yet flexible regulatory framework
• Switzerland benefits from low corporate and personal income taxes, in addition to the lowest VAT in Europe (7.7%)
• Although there is no special holding company regime, Switzerland is regarded as an attractive location for setting up a holding company or a private equity vehicle ("Beteiligungsgesellschaft") most importantly due to the Swiss participation exemption whereby dividends or capital gains derived from qualifying participations (10% or at least worth CHF 1m) are tax free
• In Switzerland there are no capital gain taxes on the disposal of assets in private ownership
• Switzerland grants a Swiss residency permit to non-European investors (here) who register an innovative Swiss start-up that creates 2 - 3 new local jobs
• Switzerland benefits from 4 efficient airport hubs serving most European and international destinations: Zurich (ZRH), Geneva (GVA), EuroAirport Basel Mulhouse Freiburg (BSL), Milano Malpensa (MXP) and Milano Bergamo (BGY), in addition to over 30 private airports (Lausanne, Sion, Gstaad, Saint Moritz, Berne, St. Gall, Lucerne etc.)
• Executives and business people who want to settle in Switzerland are attracted by the high standard of living, excellent infrastructure, healthcare and education system
• According to the Boston Consulting Group, Switzerland has the most efficient rail system in all of Europe in terms of punctuality and reliability
  

Which Are the Main Business Forms in Switzerland?

What Are the Audit Requirements for Swiss Companies?

1) A Swiss company's annual financial statements (here) are subject to an ordinary audit ("ordentliche Revision") if, for two consecutive fiscal years, two of the below threshold values are exceeded:

2) Smaller Swiss companies that do not meet the above criteria may opt down and go for the less costly and less far-reaching limited audit ("eingeschränkte Revision"), which is similar to the internationally known "review":

3) Very small Swiss companies with less than 10 full-time employees may "opt out" altogether of the audit requirement:

When Must a Swiss Company Register for VAT?

Companies in Switzerland with an annual turnover above CHF 100,000 must register with the Federal Tax Administration (FTA) and file quarterly VAT returns within 60 days (here) after the end of a quarter.

You'll find everything you need to know about VAT in Switzerland in general under this link (here).

Payment (here) of the VAT tax liability must equally be made within 60 days after the end of a quarter.

On the other hand, the credit balance, if positive, is paid out by the Swiss authorities 30 days after the FTA receives the VAT statement from the taxpayer.

Which Are the Current (2024) Swiss VAT Rates?

General Swiss Value-Added-Tax (VAT) Liability

Switzerland and Liechtenstein levy a standard VAT rate of 8.10%, a special rate of 3.80% ("Beherbergungssatz", mainly for accommodation services) and a reduced VAT rate of 2.60% (food, medication, print media) applying to (i) the supply of goods and services within Switzerland and Liechtenstein ("output tax" or "Umsatzsteuer") and (ii) the import of goods and services into Switzerland or Liechtenstein.

You'll find current Swiss VAT rates under this link (here).

Exports of goods and services out of Switzerland or Liechtenstein are tax-exempt.

Swiss VAT Number

The official VAT number of a Swiss company has the following format: CHE-187.974.011.

Swiss Radio and Television Fee

Since 2019, Swiss businesses with a global turnover above CHF 500,000 are subject to the Swiss Radio and TV Fee between CHF 160 and CHF 49,925 p.a. based on the previous year's turnover.

The precise tariff categories of the radio and TV tax in Switzerland can be found under this link (here).

How much Are the Swiss Social Security Contributions?

The contributions to the Swiss social security (here) are mandatory and are borne equally by the employer and the employee. All effectively paid 1st pillar wages in Switzerland must be reported to the respective cantonal compensation offices (here) by January 30 of each year for the previous year:

Comparison of Swiss Cantonal Corporate Income Tax Rates

(last update March 2024)

> Swiss corporate capital gains on the sale of assets are treated as as ordinary business income at regular income tax rates (and losses are deductible) regardless of the length of time for which the assets were held.

> Swiss corporate losses can be carried forward for 7 years and may be set off against any income or capital gains. However, company losses cannot be carried back.

Swiss Participation Exemption ("Beteiligungsabzug")

In Switzerland, dividends and capital gains from qualifying participations (i) of at least 10% or (ii) with a value of CHF 1m in a subsidiary or affiliate benefit from the Swiss participation relief (also referred to as "participation reduction" or "participation exemption") and are not subject to taxation (iii) if the participation has been held for more than one year at the time of disposal.

You'll find the relevant legal text about the Swiss participation exemption in German language under this link (here).

What Are the Deadlines for Filing Cantonal Corporate Tax Declarations in Switzerland?

(last update March 2024)

Swiss Withholding Tax and Double Tax Treaties

A Swiss federal withholding tax (WHT) of 35% on outbound payments from Switzerland is levied on:

• Dividends paid to non-residents
• Interest from Swiss bank deposits
• Coupon from Swiss bond issuers
• Income from Swiss investment funds

> For Swiss resident taxpayers, the withholding tax is fully credited against their Swiss tax liability.

> A foreign recipient of interest and dividends may be granted a full or partial refund if a Swiss double tax treaty (DTT) exists between Switzerland and the recipient’s country of residence. Switzerland has concluded double tax treaties with over 100 countries which are available under this link (here). Double taxation treaties define the maximum withholding tax that can be collected by contracting states (known as "residual tax").

> Swiss residents must declare and can claim back Swiss withholding tax directly via the online portal of the Swiss VAT authorities (here). Payment must be made spontaneously to bank details available under this link (here).

> In order to claim a withholding tax refund in Switzerland, foreign residents must fill out a special refund form classified by countries available under this link (here).

> The Swiss VAT authorities do not confirm the receipt of refund forms received by mail, but Swiss WHT refund claims are processed depending on the date of receipt. Processing time depends on the quality of the received claims and can take up to several months. In fact, the Swiss authorities process over 300,000 withholding tax claims every year.

Which Double Tax Treaties Are in Force in Switzerland?

(last update March 2024)

What Is the Process to Register a Company in Switzerland?

In order to establish, incorporate and register a Swiss company the following steps are necessary:

1. Due diligence, selection of a name for the Swiss startup company, name check in the Swiss commercial registry, draft of articles of association, subscription of shares
2. Opening of a Swiss share capital contribution account ("Kapitaleinzahlungskonto") with a bank or a FinTech licensed in Switzerland (open Swiss share capital account)
3. Redemption of the shares: transfer of the foundation capital to the capital payment account (the foundation capital is CHF 20,000 for a Swiss GmbH and CHF 100,000 for a Swiss AG)
4. A bank confirmation letter is usually sent by physical mail to the company's future registered address
5. Incorporation of the company with a Swiss notary public based on the Articles of association and the bank confirmation letter (the shareholder is not required to be present)
6. The Swiss notary sends the signed incorporation documents to the respective cantonal Commercial Registry for verification
7. If the Swiss cantonal Commercial Registry is satisfied with the paperwork it sends its invoice for the foundation alternatively to the founder, the fiduciary, or to the corporate address whose mailbox must indicate the company name
8. Upon payment, the Commercial Registry sends the registration documents for the new Swiss company to the Federal Commercial Registry Office - EHRA (here) for publication
9. The extract from the Swiss Commercial Registry of the new Swiss company can be retrieved online under www.zefix.ch available under this link (here) which is the official central company index in Switzerland
10. Based on the extract, the Swiss bank transforms the capital contribution account into a current corporate bank account and issues additional IBANs

How much Time Does it Take to Register a Swiss Company?

What Are the Costs for Incorporating and Running a Swiss Company?

> In our experience, additional corporate work may include:

• Accounting and financial reporting: Accounting services under Swiss GAAP and IFRS (here)
• Swiss VAT: Consulting, accounting and declaring (here)
• Bank due diligence on trading partners: vetting of business partners, background research, AML checks, KYC updates (here)
• Corporate banking: Management and documentation of payment traffic (here)
• Trade finance: Issuance and handling of letters of credit (L/Cs)
• Swiss and international contract law: drafting of contracts and internal documents
• Shareholder activity: strategic tax, regulatory, accounting and reputation advice
• C-Level staffing (CEO, CFO, CRO), affiliation with trade associations
• Marketing: creation and upkeep of corporate website and social media channels (Google My Business, LinkedIn, YouTube, Instagram)
• Swiss IT infrastructure: Setup and upkeep of Swiss webhosting, Swiss e-mail addresses
  

Download factsheet on how to found a Swiss company

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References

R. James Breiding (2013) Swiss Made. The Untold Story Behind Switzerland's Success (Profile Books) (here)

Jung Peter, Krauskopf Frédéric, Cramer Conradin (2020) Theorie und Praxis des Unternehmensrechts Festschrift zu Ehren von Lukas Handschin (Schulthess) (here)

Simonek Madeleine, Müller Karin, Opel Andrea, Egli Philipp (2021) Unternehmensrecht I. Gründung und Aufbau, Sanierung und Liquidation (Schulthess) (here)

Simonek Madeleine, Eitel Paul, Müller Karin (2022) Unternehmensrecht II. Nachfolge und Umstrukturierung. Gesellschafts-, Erb- und Steuerrecht (Schulthess) (here)