Switzerland is a friendly place to start a business, with many international companies having their headquarters in the country. Companies both large and small are attracted to Switzerland for its stability, the strength of its currency and some of the lowest corporation taxes in Europe.
According to the Swiss Federal Statistical Office, businesses with fewer than 250 employees make up about 99 percent of all companies in the country and create two-thirds of jobs in Switzerland. Recently, the process of registering a company has become far simpler and is now possible online as well.
If you would like to work as a freelancer in Switzerland, it is recommended to start a sole proprietorship. Initially, freelancers can work independently - without founding a company - if evidence of their work is provided during the application for a Swiss residence permit.
However, it is recommended to start a company as soon as you receive a long-term permit, if you wish to continue working as a freelancer. This will allow you to contribute to social security and become eligible to receive benefits like accident insurance and unemployment benefits. The process of founding a sole proprietorship as a freelancer or as a business selling products or services is the same, and is outlined on this page.
In order to start a business in Switzerland as an expat, you must fulfil certain financial obligations as well as residency requirements. Before you start a business as an expat, you must:
In order to make the process of starting your own company easier, Switzerland has many accounting firms that will be able to assist you in creating your company and making sure you select the right company form for your needs (see below).
As part of streamlining the process for new business startups, the Swiss government has created the new online platforms SECO and EasyGov. These allow for smaller companies to begin the company registration process online without having to contact a local office. They streamline the process for registering a company and will be able to submit all the relevant documents on your behalf.
The platforms can also set up the necessary insurance and social security systems involved in founding a company. The service is available in English.
The business forms (see more below) you can set up using EasyGov are:
Alternatively, you can start your application at your local notary office in the capital of your canton of residence.
As part of your application to start a business, your first step should be creating your business plan. This section of the application is to detail what services your company will provide once it is set up. It is here that you are expected to provide a novel or necessary service description for your company. Some of the key things you should include are:
In order to register your new company with EasyGov or with your notary office, you must decide on a legal structure for the company. The structure of a Swiss company is determined by the size of the company, its purpose and its turnover. Some legal structures require additional documents in order to proceed.
Once you have determined your business plan, you must register the name of your new company with EasyGov or with a notary office. The rules for names in Switzerland differ based on the type of company you wish to set up, to make sure there is no confusion between different company names. General rules for company names are that they:
In order to register a sole proprietorship company, you must include a family name as part of the company name. It is possible to add additional words to the company name, so long as it does not assume a relationship between another person or company. You cannot change the name of this type of company without re-registering.
The name of a general or limited partnership company must include the family name of at least you or one of your partners. It also must include the legal designation of the company (KIG, KMG or KMAG). It is possible to add “& co” to the name so long as the legal code of the company is not obscured in the text.
The names of all other company types can be chosen freely, as long as your chosen name includes the correct legal code for the company type. The name of your company can be changed but the name change must be registered with EasyGov or a notary as soon as possible.
In order to register a company in Switzerland at a notary office or on EasyGov, you must provide the following information:
Once this section is complete, your notary will inform you of any obligations that you must complete in order to successfully register your company in Switzerland.
All forms of company in Switzerland must contribute to social security. This is a system that guarantees social assistance in the event of illness or unemployment, and includes support for mandatory pensions. These contributions are mandated by the Swiss government.
As part of your application, you will submit details of the salaries paid to you and all of your employees, and your company will be registered with the OASI/IV/LEC/ALV compensation office which will charge your company the correct amount of contribution each year.
All companies with multiple employees must also take out accident insurance, regardless of the type of work. The accident and occupational illness insurance is typically provided by SUVA, who will charge a set contribution to each employee’s salary. Independent workers can take out voluntary accident insurance if they wish. The amount that you must pay is dependent on the salary declaration made during the application.
There are other forms of company and private insurance that must be considered while registering a business, these are:
If you expect your company to earn over 100.000 Swiss francs a year on a regular basis or are starting a company that produces a product, you must register with the Federal Tax Administration to pay VAT. Value-added tax is a general tax levied on the distribution, import, export and sale of a product or service by any company in Switzerland. For more information about taxes levied on businesses, please see our guide to business taxes in Switzerland.
If you plan to start a business that produces a unique product or service, it is recommended to patent or protect your idea. In Switzerland, protection of intellectual property and product protection is done via the Federal Institute of Intellectual Property (IGE/IPI). They are responsible for all patents and intellectual property claims in Switzerland and will be happy to assist you in the process of registering a patent.
Once you have chosen a name that adheres to the guidelines set for your type of business and have organised and completed your application, your company will be added to the Swiss trade register. This is a comprehensive list that allows the government to find and check the operations of all businesses in Switzerland.
The information you will find about your company on the register will be:
In addition to your place on the trade register, you will also receive a unique enterprise identification number. As of 2014, UIDs have become mandatory for all companies operating in Switzerland. The system is designed to identify companies clearly during business transactions, correspondences and the calculation of any value-added tax or social security payments.
The cost of starting a company in Switzerland varies depending on the legal type of company you start. For example, when founding a limited compay you are required to submit 20.000 Swiss francs alongside your application to be placed into a company account.
Costs vary dramatically depending on the type of company, size of workforce and expected profits, meaning that costs could range from 500 to 50.000 Swiss francs.