Company formation in Switzerland is a premier solution for entrepreneurs and businesses seeking a favorable environment for starting up an international business.
Switzerland is generally known for its low corporate tax rates, political stability, and business friendly legislation.
Amongst other cantons, Zug offers numerous advantages for setting up a swiss company.
This guide provides a detailed overview of the incorporation process, opening a bank account, and other essential aspects of company formation in Switzerland.
Quck facts about incorporating a company in Switzerland
| Aspect | Details |
|---|---|
| Timeframe | Incorporation typically takes 1 month, with possible expedited cases |
| Remote Incorporation | Fully possible -common practice for GmbH and AG |
| Legal Forms | GmbH (LLC): min CHF 20,000 capital - AG (Joint-Stock): min CHF 100,000, with at least CHF 50,000 paid in |
| Director Requirements | At least one Swiss-resident director (GmbH/AG). For GmbH, majority of directors must be resident |
| Shareholders | At least one shareholder (individual or entity); no Swiss residency requirement |
| Company Name | Must clearly indicate its form (e.g., “GmbH”, “AG”) |
| Bank Account | Swiss bank account required for deposit of share capital -temporary account permitted |
| Notary & Registration | Notarisation of Articles + IDs; submitted to Cantonal Commercial Register |
| Accounting & Audit | Mandatory accounting + annual financials. Audit required if 2 of: turnover > CHF 40 M, assets > CHF 20 M, > 250 employees |
| Tax Structure | Three-tier system:- Federal: 8.5% flat- Cantonal + municipal: together ~3–13%, total ~11.9–21.6% - VAT: standard 7.7% |
| Tax Highlights | - Strong canton-level tax optimization (Zug, Schwyz)- Federal R&D incentives- Holding company privileges and ~80 double tax treaties |
| Costs | Registration fees start CHF 10,000 (€10K). Advisory/service fees vary |
| Political & Economic Environment | High political stability, strong financial infrastructure, very high quality of life |
| Crypto-Friendly | Zug is "Crypto Valley" with supportive regulatory treatment for crypto firms |
Start a business in Switzerland - key points to consider about the Swiss jurisdiction
Switzerland is an attractive jurisdiction for entrepreneurs and businesses due to its stable economy, favorable tax system, and high quality of life. If you're considering starting a business in Switzerland, here are some key points to keep in mind about Swiss jurisdiction:
- Taxation. This is probable one of the key aspects why starting a business in Switzerland is popular. Corporate tax rates are relatively low compared to most EU jurisdictions and vary by canton. Zug, for example, has one of the lowest rates at approximately 11.8%. Value added tax (VAT) is several times lower if compared to the European Union. The standard VAT rate is 8%, applicable to most goods and services. VAT should be considered if selling goods and services to Swiss residents. There are various tax incentives and deductions available, particularly for holding companies and businesses involved in research and development (R&D).
- Banking system. Switzerland is world known for its one of the most secure banking systems on the planet. Swiss banks provide top-notch quality of service for its most demanding clients. Swiss banks are less regulated than the EU banks which makes quality banking services generally more accessible for business owners.
- Globally recognized business friendly environment. According to Doing Business 2019 review, Switzerland was ranked 36 in the Ease of Doing Business rank and 26 in the Trading across borders rank.
- Strategic location. Switzerland is located in the very heart of Europe. Though, Switzerland is not an EU member country, it is included in the EEA (European Economic Area), which makes the country highly integrated in the European busines without the unnecessary overragulations which sometimes overcomlicate starting a business.
- Innovative approach. Switzerland is known for its love to innovations and strong focus on research and development. The country is home to numerous tech startups and established companies in sectors such as fintech, biotech, and pharmaceuticals.
Company formation in Switzerland can be a rewarding venture, thanks to the country's favorable economic environment, competitive tax system, and high quality of life. By considering these key points, you can make balanced decision whether to set up a Swiss company or not.
Company formation in Switzerland - procedure
The process of forming a company in Switzerland is as follows:
- Know Your Customer (KYC) check. Just a standard procedure of checking the client for any matches in specialized compliance databases in order to ensure that the client is not a politically exposed person or does not have any convictions for financial crimes. The initial KYC check also helps us assist whether we can help with opening a bank account, including a temporary bank account for depositing share capital;
- Choosing of the legal form. You should decide whether to form a GmbH (limited liability company, a simple but effective solution) or an AG (stock corporation, a more complicated and expensive instrument in terms of initial share capital contribution);
- Name check. We ensure the chosen name is unique and complies with Swiss regulations and advise you if it needs to be changed prior to starting the incorporation procedure. The chosen company name must be unique and comply with Swiss naming regulations. The name should clearly indicate the legal form of the company (e.g., GmbH or AG) and cannot mislead or suggest a government affiliation;
- Preparation of statutory documents and other documents for incorporation. We arrange drafting the articles of association and other necessary documents for company formation in Switzerland. The articles of association must include company name and address, business purpose, share capital and shares distribution, details of the board of directors or managing directors;
- Opening a capital contribution account with a Swiss bank. This one is a tricky step as not always the Swiss banks are looking forward to open a capital contribution account for a Swiss company that has been formed by individuals with certain citizenship or background. Before registering the company, open a capital payment account at a Swiss bank. This account is used to deposit the initial share capital required for the GmbH or AG. The bank will block this account until the company is officially registered. In some situations it is preferable to incorporate a company with the help of a Swiss resident, pay the share capital and afterwards transfer the shareholding to the client. This allows us to circumvent any obstacles created by the bank in terms of payment of the share capital;
- Notarization and Apostille of documents. In order to form the Swiss company remotely the client has to notarize and Apostille a certain set of documents such as passport, proof oof address, Power of Attorney, Director's consent. In case the company in Switzerland is formed with personal presence, such documents can be notarised at Public notary's office in Switzerland;
- Application to the Commercial Registry. Once we gather all the necessary documents, we submit them to the cantonal commercial registry for approval. Zug is one of the most popular cantons for company formation for non-resident. Though, we can assist with incorporation in other cantons as well (Zurich, Bern, Lucerne, Uri, etc.);
- The company is formed. Once registered, the company details will be published in the Swiss Official Gazette of Commerce. This publication serves as an official announcement of the company's formation. We provide the client with the set of documents required to proceed with opening a current bank account. Thus, the company formation in Switzerland procedure is complete.
What is required to register a company in Switzerland
In order to set up a company in Switzerland the shareholder would be generally required to produce the following documents:
- notarized and apostilled passport copy;
- notarized proof of address (utility bill or equivalent document) not older than 3 months;
- notarized and apostilled Power of Attorney;
- notarized and apostilled Director's consent;
- if the founder is a legal person, additional documents regarding the mother company will also be required.
In the process of Swiss company registration and after the company is formed a registerred office address will be required. We will provide you with an office address in Switzerland that will serve as the company's registered office. We will also process any incoming correspondence upon your request.
In some cases the legal requirements for company formation in Switzerland may require some additional steps or documents depending on your specific situation.
Swiss GmbH vs AG - what is the difference between two popular forms of business
Two most common forms of doing business in Switzerland are:
- GmbH (Gesellschaft mit beschränkter Haftung). This is a limited liability company, suitable for small to medium-sized enterprises.
- AG (Aktiengesellschaft). This is a stock corporation, ideal for larger businesses.
| GmbH vs AG comparison | GmbH | AG |
|---|---|---|
| Share capital contribution | GmbH requires a minimum share capital of CHF 20,000 | AG requires a minimum share capital of CHF 100,000, with at least CHF 50,000 paid upon registration |
| Anonymity of shareholders | GmbH form requires the shareholders' details to be registered in the commercial register and thus, makes such details publicly available | On the contrary, shareholders of the AG or not publicly listed in any commercial registers, thus providing more privacy. |
| Transfer of shareholding | Transfers of shares must be registered in the commercial register whenever such transfer takes place with shares of GmbH | Transfer of shares of AG do not involve the commercial register in any way and are done "within" the AG's internal files. |
| Management Structure | GmbH is managed by one or more managing directors | AG requires a board of directors. |
| Cost and compalexity | GmbH is less expensive and more "user-friendly" | AG is a more complex and expensive instrument |
When considering company formation in Switzerland in form of GmbH or AG, we carefully consult every client to choose the best option.
Swiss company registration in Zug - benefits and downfalls
Zug is a small but wealthy canton in central Switzerland. It’s known for its beautiful landscapes, including lakes and mountains, as well as its charming old town. Zug is also a major business hub, attracting many international companies and expats due to its low taxes and business-friendly environment. The quality of life in Zug is very high, with excellent infrastructure, healthcare, and education systems. It’s a great place to live and work.
Zug is the most popular canton in Switzerland in terms of business setup in Switzerland by foreigners.
What are the benefits of registering a company in Zug, Switzerland:
- Low Corporate Tax Rates - Zug has one of the lowest corporate tax rates in Switzerland which is around 11.8%;
- Efficient Administration and responsiveness of the local authorities - Zug is known for its streamlined and efficient administrative procedures. The local authorities are responsive and supportive, making it easier and faster to set up a company and run a business;
- Financial hub - Zug hosts offices for most major Swiss banks and international high street banks;
- Tax Incentives and Support - Zug provides various tax incentives, including deductions for research and development (R&D) expenses and a patent box regime. The local government also offers support programs for startups and businesses.
What are the downfalls of registering a company in Zug, Switzerland:
- Relatively high costs of company registration and ongoing administration. Setting up a company in Zug can involve significant initial expenses, including legal fees and registration costs3.
- Regulatory Compliance. Businesses must adhere to strict Swiss regulations and reporting requirements.
- Swiss companies require a local Swiss resident director to be appointed as one of the members of the company's management board.
While Zug, Switzerland, offers a number of advantages for businesses, such as low corporate tax rates, political stability, and a high quality of life, it also presents challenges like high costs and regulatory complexities. Weighing these pros and cons will help you make an informed decision about whether Zug is the right jurisdiction for company formation in Switzerland.
Accounting and bookkeeping services for a Swiss company
Maintaining accurate financial records is crucial for compliance purposes of a Swiss company. We can provide you with professional accounting and bookkeeping services in Swizerland, which include:
- Preparing financial statements and reports;
- Preparation and submission of tax returns to cantonal tax authorities;
- Handling employee salaries and related deductions in terms of payroll;
- Seeing that your Swiss company is compliant with the legal regulations;
- Audit support - in some cases your Swiss company may be liable to carrie out audit of financial statements by a certified auditor.
Note, that after the company formation in Switzeland is complete, the company should start preparing and handling accounting documentation to stay compliant with the laws.
Swiss corporate taxation System
Switzerland's is knows for its favorable corporate tax rates which in many cases are lower than in a majority of European countries.
A two-tier system is applied, when the companies are taxed both on federal and cantonal/municipal level. Each canton has the authority to amend the local tax rates applied in the respective canton.
The federal tax rate is 8,5 % and applies to net income and the effective tax rate is somewhere about 7,8% (as taxes are deductible when determining the taxable income).
The cantonal tax rates are in between roughy 12% (Zug has one of the lowest cantonal tax rates) and 21% (Bern and Zurich have one of the highest tax rates).
The overall effective corporate tax rate combined for both federal and cantonal / municipal level ranges between 12 % to 21 % depending on the canton where the company is based. So far Zug seems to be the most popular canton due to one of the lowest effective tax rates at around 12%.
Other key points of the Swiss taxation system to consider:
- Patent Box. Zug and most other cantons offers a patent box regime with a cantonal tax relief of 90% on income derived from patents;
- Companies can benefit from a cantonal tax deduction of up to 150% for R&D expenses;
- No Capital Gains Tax on Private Assets. Switzerland does not impose a specific capital gains tax on the sale of private movable assets, such as shares or cryptocurrencies. However, capital gains from the sale of business assets or real estate may be taxable at the cantonal level.
It is a must to assess the tax implications for your business prior to starting the company formation in Switzerland.
Cost of forming a company in Switzerland
Swiss company registration fees (the basic set of services) are as follos:
- The all inclusive price of forming a GmbH or AG is round 10,000 CHF and may somewhat vary depending on how the company is formed technically. In some cases it may appropriate to incorporate the Swiss company in the name of a Swiss local resident, who, in turn, will transfer ownership to the client. The reason for this is that in some cases the Swiss banks may be reluctant to opening temporary accounts for depositing share capital when the company is formed by a non-EU national (e.g. a citizen of Ukraine). Thus, as soon as the company is formed and as soon as the share capital has been deposited to the company's temporaty bank account, we can arrange for a transfer of shares to the client and the whole procedure of company formation in Switzerland is complete.
- The legal address for 1 year in Zug may be around 2600 CHF per annum.
- Additional costs may apply for handling incoming correspondence 240 CHF annually.
- Swiss local director who is a resident (a mandatory requirement for Swiss company) with minimum to no functional duties can cost aroung 6000 CHF annually.
- Basic accounting services are at around 200 CHF per month (2400 CHF annually).*
*Note that all of the above information regarding cost of forming a company in Switzerland is merely an indicative and should not be treated as a price offer. To calculate the exact cost of services for your specific needs, kindly contact us for quotation.
Conclusion. Why choose Taxters for company formation in Switzerland
Forming a company in Zug, Switzerland, offers numerous benefits, including favorable tax rates, political stability, and a supportive business environment. By following the outlined steps and adhering to Swiss regulations, businesses can successfully establish and grow in this attractive jurisdiction.
Our company will offer professional guidance and personal approach as we offer only tailored solutions to meet the clients needs when forming a company in Switzerland.
Written by: Pavlo Dubynskyi, partner at Taxters. December 2024, information updated in 2025
FAQ
How much time will it take to incorporate a firm in Switzerland?
The approximate timeframe for company formation in Swizterland starts from 1 month.
Can company formation in Switzerland be carried out remotely?
Yes, remote procedure of incorporation is usual practice when setting up GmbH or AG in Switzerland
Do I require services of a Swiss resident Director to form a company?
Yes, the local laws require a Swiss company to have at least one local resident director to be in the management board of a company
