Starting a business in Switzerland: position your business at the heart of Europe

The choice for many foreign investors comes down to two structures: a private limited liability company (GmbH/Sárl) or a stock corporation (AG/SA). We provide more information on this below.

The former is commonly used by small and medium-sized enterprises (SMEs) and closely held businesses, while the latter may suit larger operations or those anticipating external investment. One key distinction is that the quotaholders or members of a GmbH/Sárl are publicly listed in the Commercial Register, whereas the shareholders of an AG/SA are generally not publicly disclosed there; the company instead maintains its own shareholder register. This is a distinction that can influence entity choice where ownership privacy is a consideration.

Switzerland generally imposes no restrictions on foreign ownership, and both GmbH/Sárls and AG/SAs may be wholly foreign-owned. However, Swiss corporate law requires each company to be capable of being represented by at least one person domiciled in Switzerland with the necessary authority to represent it. This is often one of the first practical considerations for foreign investors.

Where the foreign investor does not intend to relocate, a suitably authorised Swiss-resident representative may need to be appointed, which can create an ongoing cost and governance considerations that should be factored into your planning.

Swiss incorporation generally requires notarisation of the constitutional documents. Where capital is contributed in cash, the required cash contribution is normally deposited into a blocked bank account before registration. A GmbH/Sárl requires its minimum CHF 20,000 capital to be fully paid, while an AG/SA requires at least 20% of the share capital to be paid up, subject to a minimum aggregate amount of CHF 50,000. The bank issues a deposit confirmation for the incorporation process. Where qualifying contributions in kind are used, separate statutory procedures and documentation apply.

Banks also carry out know your customer (KYC), beneficial ownership and source-of-funds checks when opening the relevant account. The time required can vary depending on the ownership structure, jurisdictions involved and the bank's due diligence requirements.

Switzerland's 26 cantons levy their own corporate taxes in addition to federal taxation, while municipal taxes also contribute to the overall burden. As of 2026, combined effective corporate income tax rates in cantonal capitals range from approximately 11.66% in Lucerne and 11.71% in Zug to 20.54% in Bern and 19.47% in Zurich.

Beyond tax, canton selection also determines the relevant Commercial Register office and cantonal migration authority and can affect certain local administrative or regulatory requirements. Federal or sector-specific regulators may still have jurisdiction over regulated activities regardless of the canton chosen. Modelling the combined federal, cantonal and communal tax position before selecting a location can therefore form an important part of the set-up process.

Switzerland levies corporate income tax at federal, cantonal and municipal levels. The federal corporate income tax rate is 8.5% on profit after tax, equivalent to an effective pre-tax rate of approximately 7.83%, with cantonal and municipal taxes increasing the combined effective rate to approximately 11.66%–20.54%, depending on location.

Value added tax (VAT) is charged at a standard rate of 8.1%, and businesses generally become subject to Swiss VAT registration once the applicable CHF 100,000 qualifying turnover threshold is met, subject to the nature of the activities undertaken and, for foreign businesses, whether they make relevant supplies in Switzerland. Switzerland also imposes a 35% withholding tax on dividends, although this may be reduced or eliminated under applicable domestic relief rules or a double tax treaty.

While the overall tax framework is largely federal, cantons retain significant autonomy over rates, assessments and administrative procedures. Please reach out to our team at Hawksford for more information.

Switzerland distinguishes between EU and European Free Trade Association (EFTA) nationals and third-country nationals. EU and EFTA nationals benefit from rights under the Agreement on the Free Movement of Persons, while third-country nationals are generally subject to annual quotas and additional eligibility requirements for admission to the Swiss labour market. Separate quota arrangements apply to United Kingdom (UK) nationals. In 2026, Switzerland has made available 4,500 long-term B permits and 4,000 short-term L permits for qualified third-country workers and specialists.

Most non-EU/EFTA work permits require cantonal and federal involvement, and employers generally must demonstrate that suitable candidates could not be found in the Swiss or EU/EFTA labour market. Applications involving entrepreneurs or founders are also assessed against criteria including whether their presence is considered to be in the country's overall economic interest. Because permit availability, quota usage and processing arrangements can vary by canton, immigration planning should begin well before operations are scheduled to start.

The limited liability company – a GmbH in German-speaking cantons and Sárl in French-speaking regions – is commonly used by SMEs and closely held businesses. As a separate legal entity, the company itself is liable for its obligations. Quotaholders are generally not personally liable once their capital contributions have been fully paid, although the articles may provide for additional contribution obligations within the limits permitted by the Swiss Code of Obligations (CO).

A GmbH/Sárl requires a minimum share capital of CHF 20,000, which must be fully paid up at incorporation, and must be capable of being represented by at least one person resident in Switzerland with the necessary authority. This structure allows 100% foreign ownership and is subject to corporate income tax at federal, cantonal and communal levels.

The stock corporation – AG (German) or SA (French) – is commonly used for larger businesses, subsidiaries, holding structures and companies seeking greater flexibility around ownership or external investment. An AG/SA requires a minimum share capital of CHF 100,000, with at least 20% of the share capital paid up at incorporation, subject to a minimum contribution of CHF 50,000.

Shareholders are generally not personally liable beyond their obligations in respect of subscribed shares. Registered shares can be transferred, although the articles may impose transfer restrictions within the limits permitted by the CO. The company must be capable of being represented by at least one individual resident in Switzerland with the necessary authority, and profits are subject to corporate income tax at federal, cantonal and communal levels.

The two main partnership forms are the general partnership (KlG) and the limited partnership (KmG). Neither has a statutory minimum capital requirement, although partners may agree on contributions.

A KlG must consist of at least two natural persons. The partnership assets are primarily liable for its obligations, while the partners have subsidiary, unlimited and joint and several personal liability. KlGs must be entered in the Commercial Register.

A KmG requires at least one natural person as a general partner with unlimited liability and at least one limited partner. The limited partner may be a natural person, legal entity or commercial company. The limited partner's liability is generally limited to the amount registered in the Commercial Register. KmGs must also be registered.

A Swiss branch allows a foreign company to operate locally without creating a separate legal entity. It forms part of the foreign parent company and can conduct commercial activities in Switzerland. Liability for branch obligations ultimately remains with the parent company.

Branches are commonly considered where a foreign business wants a direct Swiss presence without incorporating a subsidiary. At least one authorised natural person representative domiciled in Switzerland must be appointed and entered in the Commercial Register. The foreign parent is generally subject to Swiss tax on profits attributable to its Swiss permanent establishment where the applicable tax conditions are met.

Switzerland does not have a separate general statutory legal form known as a representative office. A foreign company may nevertheless maintain a limited presence for activities such as market research, relationship management, coordination or promotion.

Whether such a presence requires Commercial Register registration or creates a Swiss permanent establishment, VAT liability or other regulatory obligations depends on the activities actually carried out. Businesses planning a non-commercial presence should therefore assess the proposed arrangement carefully before commencing operations.

A Swiss foundation (Stiftung in German, fondation in French) is an independent legal entity, with no owners or members. Assets are dedicated to a defined purpose, which may include charitable, family-related or other permitted purposes.

A foundation is generally established by public deed or by testamentary disposition and, subject to limited exceptions, acquires legal personality through entry in the Commercial Register. The competent supervisory authority depends on the foundation's purpose and geographic scope; nationally or internationally active classical foundations may fall under the Federal Supervisory Authority of Foundations, while other foundations may fall under cantonal supervisory authorities or other competent regulators.

Foundations recognised as pursuing public or charitable purposes may qualify for tax exemption where the applicable statutory conditions are satisfied. There is no general statutory CHF 50,000 minimum endowment or universal three-member board requirement under Swiss law, although the Federal Supervisory Authority of Foundations generally expects an initial net cash endowment of at least CHF 50,000 for foundations under its supervision and governance requirements may lead to a multi-member foundation board. Foundations can be established in any Swiss canton.

We can help you assess the most suitable company form in Switzerland based on your business objectives and operational needs. View our 'at-a-glance' comparison table outlining key information on different company formation options.

Switzerland's largest city and financial centre, Zurich is often a preferred location for international businesses entering the Swiss market. It has particular strengths in finance, information and communications technology (ICT), life sciences and professional services, with a dense concentration of banks, insurers and asset managers. Its talent pool, anchored by ETH Zurich, also supports a growing artificial intelligence (AI) and fintech ecosystem.

Geneva is a global hub for international organisations, commodities trading, private banking and high-value services, and is home to numerous multinational headquarters. Its role as a major centre for the United Nations (UN) makes it particularly attractive to businesses with an international or institutional focus.

Zug is consistently among Switzerland's lowest-tax cantons, with a combined effective corporate tax rate of approximately 11.71% in 2026. It also has an established commodities trading presence. Its 'Crypto Valley' ecosystem has made the region a prominent centre for blockchain, digital assets and Web3 businesses. This is supported by Switzerland's broader regulatory framework for distributed-ledger and digital-asset activities.

Basel is one of Switzerland's leading life sciences centres, home to global pharmaceutical groups including Roche and Novartis as well as a deep ecosystem of biotech, medtech and pharmaceutical-services businesses. Strong links between industry, universities and research institutions have helped establish the wider Basel Area as an internationally significant life sciences cluster.

Vaud is a leading innovation and research canton with strengths in life sciences, ICT and cleantech. The Swiss Federal Institute of Technology Lausanne or École Polytechnique Fédérale de Lausanne (EPFL) has helped generate a substantial spin-out and start-up ecosystem around Lausanne. The canton also hosts major international companies and regional headquarters, while Nestlé maintains its global headquarters in Vevey.

The Neuchâtel region is an established centre for microtechnology and precision engineering, with expertise rooted in its watchmaking heritage and extending into areas such as microelectronics, medical technology and advanced manufacturing. The broader Swiss watchmaking and microtechnology belt remains heavily concentrated in the Jura Arc. For foreign businesses in precision engineering, microtechnology or high-end manufacturing, the region offers a dense concentration of specialist skills and suppliers.

Our team at Hawksford can provide guidance and assist you in choosing the most suitable canton and location for your Switzerland business set-up.

Before entering the market: Under the CO, international investors generally enjoy a liberal commercial framework with no broad restrictions on foreign equity, allowing complete foreign ownership of standard corporate vehicles. An AG or GmbH must, however, be capable of being represented by at least one person domiciled in Switzerland with the necessary authority to represent the company.

In regulated and restricted activities: The nature of the proposed business activity can determine whether additional licences, regulatory approvals or sector-specific requirements apply. Sector eligibility is broad, though regulated activities such as banking, insurance and certain financial services may require authorisation from the relevant Swiss regulator, including the Swiss Financial Market Supervisory Authority (FINMA). Foreign ownership restrictions may also arise in specific areas, including certain acquisitions of Swiss real estate.

When structuring the investment: Corporate origin may affect access to specific bilateral treaty benefits and tax reliefs. Firms frequently use cantonal tax incentives, double taxation treaties or intellectual property structures as part of their tax and operating arrangements, subject to applicable substance, transfer pricing and anti-abuse rules.

For overseas personnel: Where visas or work permits are required, strict adherence to applicable federal and cantonal immigration rules is essential, with quotas applying to certain categories of non-EU/EFTA nationals and, where relevant, UK nationals.

During set-up: Failing to correctly identify and address these compliance obligations can delay registration or licensing and may result in regulatory or financial penalties, depending on the requirement involved.

The commercial relationship between the UK and Switzerland is characterised by advanced financial networks and life sciences collaboration. With total bilateral trade reaching approximately £53 billion in 2025, British firms continue to view Switzerland as an important European market outside the EU. Supported by the British-Swiss Chamber of Commerce, UK investors frequently establish operations here to access highly skilled talent pools and sophisticated financial and life sciences ecosystems.

Investors should assess whether their proposed activities require sector-specific authorisation or trigger other restrictions, while reviewing applicable bilateral trade arrangements. The Berne Financial Services Agreement, which entered into force on 1 January 2026, significantly expands cross-border market access in covered areas. This mutual recognition framework reduces certain regulatory barriers for specified wholesale financial services and some services to high-net-worth clients, subject to the agreement's scope and any applicable registration or regulatory requirements.

Entry approach: Financial institutions and asset managers often consider Zurich or Geneva, capitalising on established financial services infrastructure and regulatory expertise. Alternatively, UK pharmaceutical and biotech manufacturers may favour the Basel region, drawn by its concentrated life sciences clusters and cross-border logistics capabilities.

Proximity and deep economic integration make neighbouring European markets, particularly Germany and France, important sources of cross-border trade and investment. Germany remains one of Switzerland's most important trading partners, with strong commercial ties in machinery, automotive components and other industrial supply chains. Supported by organisations such as the German-Swiss Chamber of Commerce, European businesses may establish local subsidiaries to serve Swiss customers directly and manage cross-border distribution.

Assessing the proposed business activity is essential to determine whether sector-specific licensing or other regulatory restrictions apply and whether bilateral frameworks provide relevant market access benefits. The network of Swiss-EU Bilateral Agreements, particularly the Agreement on the Free Movement of Persons and the Mutual Recognition Agreement, plays an important role in these arrangements. The Free Movement of Persons Agreement facilitates the residence and employment of eligible EU nationals in Switzerland, while the Mutual Recognition Agreement reduces technical barriers to trade in covered product sectors. The Swiss-EU Bilaterals III package was signed in March 2026 but remains subject to the applicable Swiss and EU approval and implementation processes.

Entry approach: German industrial and logistics operators may consider cantons such as Aargau or St. Gallen because of their proximity to Germany and established transport links. French consumer goods and luxury businesses may find Geneva and the wider Lake Geneva region attractive because of linguistic proximity, established commercial links and access to the French market.

Corporate activity from Southeast Asia continues to expand, focusing heavily on commodities trading, digital commerce and wealth preservation. Singapore and Indonesia serve as vital hubs for this reciprocal investment corridor, with total two-way trade between the Association of Southeast Asian Nations (ASEAN) and Switzerland reaching US$ 28.33 billion in 2024. Supported by the ASEAN-Switzerland Sectoral Dialogue Partnership, businesses from the region may consider Swiss structures when establishing a corporate base for European operations.

The nature of the proposed business activity should be assessed to determine whether sector-specific licensing or other regulatory requirements apply and whether bilateral trade agreements provide relevant market access benefits. The EFTA-Singapore Free Trade Agreement and the EFTA-Indonesia Comprehensive Economic Partnership Agreement provide preferential market access for qualifying trade. EFTA and Singapore also signed a Digital Economy Agreement in September 2025. It entered into force for Norway and Singapore on 1 March 2026, while Switzerland's ratification remained pending as of 2026. The agreement is designed to support areas such as digital trade, electronic transactions and cross-border data flows once applicable to the relevant parties.

Entry approach: ASEAN commodities traders and agricultural conglomerates may consider Geneva or Zug, given Switzerland's established commodities trading and trade finance ecosystem. Southeast Asian financial or wealth management businesses may also consider Zurich or Geneva, subject to applicable financial services licensing requirements.

Mainland of China and Hong Kong businesses may take different approaches to establishing operations in Switzerland depending on their sector and investment objectives. Companies from the Mainland of China may establish industrial, technology or research operations, while Hong Kong businesses may use Swiss entities for investment, trading or regional operations. Supported by organisations such as the Swiss-Chinese Chamber of Commerce, commercial links between Switzerland and Mainland China remain significant. Swiss bilateral goods trade with Mainland China totalled CHF 55.1 billion in 2024 when gold is included, according to official Swiss figures.

Switzerland and the Mainland of China concluded negotiations on an upgrade to their existing free trade agreement (FTA) on 20 August 2026. The upgraded agreement is intended to broaden tariff-free access and strengthen provisions covering investment and other areas, although the existing FTA continues to govern until the revised agreement completes the necessary approval and implementation process.

The nature of the proposed business activity should be assessed to determine whether sector-specific licensing or other regulatory requirements apply. Chinese Mainland businesses can benefit from the Switzerland-China Free Trade Agreement for qualifying trade. Hong Kong businesses may also benefit from the Switzerland-Hong Kong Double Taxation Agreement, which can reduce or eliminate Swiss withholding tax on qualifying dividend payments and provides treaty treatment for other categories of cross-border income, subject to the applicable conditions.

Entry approach: Technology and engineering businesses from the Mainland of China may consider Zurich or the Lausanne region because of their research institutions and technology ecosystems. Hong Kong investment and trading businesses may consider Geneva, Zurich or Zug depending on their operating model, regulatory requirements and preferred tax and business environment.

Transatlantic commercial ties are strong, supported by substantial investment and trade in pharmaceuticals, technology and advanced manufacturing. The United States (US) is Switzerland's largest single export market for goods, with Swiss exports to the US reaching approximately CHF 103.9 billion in 2025. Assisted by organisations such as the Swiss-American Chamber of Commerce, US companies may establish Swiss operations to access the European market, skilled talent and Switzerland's established intellectual property and research environment.

Companies should assess their proposed activities, regulatory requirements and ownership structure alongside the applicable bilateral tax framework. The US-Switzerland Double Taxation Treaty can reduce Swiss withholding tax on qualifying dividends and provides treaty relief for certain other cross-border income, including royalties. The availability and extent of relief depend on the ownership structure, beneficial ownership and other treaty conditions, so the tax implications of repatriating profits should be assessed before selecting a structure.

Entry approach: Technology and software companies may consider the Greater Zurich Area because of its engineering talent and technology ecosystem. US medtech and advanced manufacturing businesses may also consider cantons such as Vaud or Neuchâtel because of their established research and precision engineering clusters.

Setting up a company in Switzerland involves a range of costs, which can vary depending on several factors, such as the chosen entity, specific business activity and intended operating location.

We can set out a clear and detailed overview of the expected costs based on your requirements, helping you plan more accurately across both financial and operational matters.

• Registration and licensing fees: Costs associated with incorporating the company and registering it with the relevant cantonal Commercial Register. Additional licensing or permit fees may apply where the proposed activity is regulated or subject to cantonal or municipal approvals.

• Other relevant taxes and fees: These typically include a notary fee for company incorporation and any other legal transaction costs.

• Capitalisation costs: Minimum capital depends on the entity type. A GmbH/Sàrl requires at least CHF 20,000, fully paid up, while an AG/SA requires a minimum share capital of CHF 100,000, with at least 20% of the share capital paid up, subject to a minimum contribution of CHF 50,000.

• Visa costs: Expenses may arise when applying for Swiss residence and work permits for foreign employees, founders or managers. Depending on nationality and circumstances, a national Type D visa may also be required.

• Office space rental: Costs for leasing office space can vary significantly depending on the location, size and quality of the premises, with Zurich and Geneva generally among Switzerland's more expensive business locations. A company may use a domiciliation or c/o arrangement for its registered address where appropriate, although additional premises or substance may be required depending on its activities, regulatory position and tax circumstances.

• Professional fees: Costs for engaging professional services, such as legal counsel, company formation consultants and accounting services.

• Other potential costs: These may include translation costs, bank charges and miscellaneous expenses.

At Hawksford, we take the time to understand your requirements and then follow a structured approach to complete your company incorporation in Switzerland. We can guide you through each stage, minimising potential delays and ensuring a seamless experience.

We usually start with a thorough consultation to gain a clearer understanding of your business objectives, operational requirements and longer-term goals. On that basis, we can then propose the legal structure, location and incentives most likely to best suit your business.

Following the initial consultation, we can put together a strategic set-up plan that outlines the most appropriate route for establishing your business in Switzerland. This can include company incorporation and registration, corporate structuring and any legal considerations relevant to your sector and proposed activities.

Our team can assist with preparing and processing the required documentation, helping to ensure that your submission is accurate and compliant with Swiss regulations. This can cover drafting legal documents, completing application forms, opening a capital contribution account with a commercial bank or an attorney, and securing the necessary approvals from relevant government or cantonal authorities.

We can oversee your company name registration, sector-specific licensing and, where relevant, investment notifications. Throughout the process, we can liaise with the relevant Swiss authorities to secure the necessary approvals and complete the required formalities.

We can help open a corporate bank account in Switzerland, providing guidance on the required documentation and liaising with banks on your behalf. Our experience working with a wide range of clients has also allowed us to build trusted relationships with several leading banks.

This includes helping with office establishment requirements and other essential services necessary for your business operations.

Beyond incorporation, we provide ongoing support to help businesses scale effectively in Switzerland. This may include accounting, audit coordination, tax compliance, corporate governance, company secretarial support and regulatory reporting. For foreign executives and employees, we can also assist with visa applications, work permits and immigration-related requirements to support long-term operational success.

The overall timeline for setting up a business in Switzerland can vary from case to case. The factors outlined below can often determine how quickly the process moves. As your trusted partner, we can help coordinate the process of registering your entity in Switzerland and provide realistic timings for each requirement.

• Chosen legal structure: While the choice of entity type can influence the timeline, differences are relatively minor, with company incorporation typically completed within a matter of weeks (although foundations can take longer).

• Complexity of business activity: Business activities that require special approvals from specific government entities may take longer to process.

• Special cantonal requirements: Timelines for each canton can vary, with some, such as Zug, having a fast-track process. These differences, however, are not usually substantial.

• Capital contribution account opening for non-European Economic Area (EEA) beneficial owners: For most types of legal entities, the capital of the entity must be paid up either partially or fully prior to incorporation. Commercial bank onboarding processes can result in delays, notably for entities with beneficial owners residing in non-EEA countries.

• Efficiency of document processing: The time it takes the relevant authorities to process documents can also play a role.

Our expertise and proactive approach can provide your company with a more structured and manageable process for entering the Swiss market. We can provide clear guidance on the required steps and potential bottlenecks, enabling you to meet deadlines and prepare effectively. We can also work with you to ensure all documentation is accurate, complete and submitted correctly, so avoidable delays are kept to a minimum.

• Initial planning and document preparation: Typically 1 to 2 weeks.

• Capital contribution account opening and capital injection: 4 to 6 weeks when completed remotely and can be expedited by visiting Switzerland for 2 to 3 working days.

• Company registration: Generally around 1 week.

• Visa processing (if required): Usually takes 2 to 4 weeks.

• Bank account opening: Typically between 2 and 3 weeks.

If you are looking to expand operations in Switzerland, we can provide timelines based on your company's specific circumstances and keep you updated throughout the set-up process. With clear communication and proactive management at each stage, your incorporation in Switzerland can be handled smoothly and in line with the country's legal and regulatory requirements.

Businesses are generally required to maintain accurate corporate records and statutory registers throughout their lifecycle. These commonly include shareholder or ownership records, director, officer or authorised representative details, registered office information, constitutional documents and key corporate resolutions. Beneficial ownership information may also need to be maintained or reported, depending on the applicable jurisdiction and reporting regime.

Many jurisdictions also impose event-driven obligations, requiring businesses to notify authorities of significant changes, such as director appointments or resignations, shareholder changes, registered office changes or share capital amendments. Failure to maintain accurate records or meet update deadlines can lead to fines, compliance breaches, banking issues or legal complications.

Businesses are typically required to maintain proper accounting records, financial statements and supporting documentation, often subject to local bookkeeping, accounting or audit requirements, depending on the jurisdiction. Tax compliance may include corporate income tax, VAT or sales tax, payroll obligations, social security contributions and other local tax registrations. Filing frequencies vary, but timely and accurate reporting is essential.

Strong governance, regulatory compliance and financial management are critical to long-term legal stability and uninterrupted business operations.

Many jurisdictions require recurring filings or renewals, which may include annual returns, confirmation statements, licence renewals or sector-specific reports. These filings are often subject to strict deadlines and may need to be submitted through designated government systems or portals. Late, inaccurate or missed filings can result in penalties, loss of good standing, licence restrictions or increased regulatory scrutiny.