WHY INVEST IN SWITZERLAND?

It offers stable political, economic and financial framework conditions combined with the highest standard of life.

 

UNIQUE ADVANTAGES

Switzerland is the most competitive business center in the world. There are numerous good reasons to locate a business in Switzerland: innovation and technology, a liberal economic system, political stability, close links with foreign markets, excellent education and healthcare systems, an outstanding infrastructure, a high standard of living, and a competitive tax system.

The most innovative country in the world

Switzerland’s prosperity stems from its propensity for innovation. Swiss enterprises habitually strive to make improvements to their products, services and processes by investing heavily in research and development.

Stable, safe, secure

A stable currency, a federal state system, strong purchasing power, and economic, social and political stability guarantee a high level of security for investments in Switzerland.

Internationally integrated

Switzerland isn’t in the EU, but it has bilateral trade agreements in place with every country in Europe. This ensures free movement of goods, services and people. Switzerland has even more free trade agreements than the EU has: in total 41 separate FTAs. Investing in an independent country like Switzerland significantly reduces the risks associated with international expansion.

Talent pool  

Switzerland acts like a magnet to qualified workers from abroad and retains the talent it grows. In the Global Talent Competitiveness Index by INSEAD, Switzerland takes first place. Swiss workers are generally well-educated and multilingual with above-average international experience. They are motivated, reliable, and dedicated employees.

Easy labor laws

Switzerland’s labor market is characterized by liberal legislation, light-touch regulation, and exceptional social stability. Labor disputes are resolved by the social partners. Strikes are rare. The social insurance system for workers is based on the principles of solidarity and personal responsibility.

An internationally competitive tax situation

Switzerlandʼs federal tax system is a successful model: taxes are determined and levied at the federal, cantonal, and municipal levels. Domestic tax competition plays a significant role in the very low rates of taxation. The most attractive cantons in tax terms are international leaders with regard to both corporate taxes and the tax imposed on highly skilled workers.

 

  

 

COMPANY FORMATION IN SWITZERLAND

Who can start a business in Switzerland?

Any person over 18 years old can set up a business in Switzerland. If you are not a Swiss national, you can start a business if you have the right of residence and work in Switzerland.

If you want to open an AG/SA or a GmbH/Sàrl in Switzerland and live abroad, at least one director authorized to sign must be domiciled in Switzerland. A local nominee director can fulfill this obligation.

Types of companies that can be established in Switzerland

1. The Swiss Limited Liability Company

The Limited Liability Company, known as GmbH in German and Sàrl in French, is a common choice for company incorporation in Switzerland. Therefore, if you plan to open a family business or an SME, the LLC can support your project and offers many advantages.

Advantages of the Swiss LLC

The GmbH/Sàrl does not impose personal liability for the debts: the liability is only guaranteed by the assets and the share capital or the shares of the company;

A low share capital: creating a GmbH/Sàrl requires a relatively low initial investment capital of CHF 20'000.-;

When creating a GmbH/Sàrl, you can freely choose the company's name, unlike a sole proprietorship, which requires you to mention your name.

Conditions for creating an LLC

The creation of a GmbH/Sàrl requires a capital of CHF 20'000.-. Also, note that the minimum value of a share is CHF 0.01. In addition, to create this type of legal form, it is required that at least one director resides in Switzerland. Finally, the name of the company you create must be distinguishable from any other company name in Switzerland.

2. The Swiss Limited Company

The Limited Company (Aktiengesellschaft or AG in German / Société Anonyme or SA in French) can be created by one or more natural or legal persons. It is one of Switzerland's most famous legal forms, which convinces with its reliability. Let's take a look at the advantages of AG/SA.

Advantages of the Swiss LTD

It does not require personal liability: just as with the GmbH/Sàrl, the shareholders are only liable for their share of the share capital;

Thanks to the AG/SA, the anonymity of the shareholders is preserved;

The AG/SA may freely prescribe the transfer of shares. There is no restriction linked to the legal or statutory transferability of this type of legal form.

Conditions for creating an LTD

To create an AG/SA, several conditions are required: first, it is essential to note that a capital of CHF 100'000.- is necessary to create this legal form. An amount that can hold back some entrepreneurs. In addition, the minimum value of a share is CHF 0.01.

In addition, to create an AG/SA, it is also required that at least one director resides in Switzerland. Finally, in the context of creating an AG/SA, the company's name must be clearly distinguished from any other company name in Switzerland.

3. The sole proprietorship

The sole proprietorship ("Einzelunternehmen" in German / "Raison individuelle" in French) is the second most common legal form in Switzerland. It is recommended when a single natural person carries out commercial activity. The liberal professions, artisans, consultants, architects, doctors, and traders often use this legal form, since they exercise their activity alone.

Advantages of the sole proprietorship

The creation of a sole proprietorship requires few formalities. Only registration in the Commercial Register is necessary when the company is operated in commercial form, and the annual income exceeds CHF 100'000.-. It will suffice for the entrepreneur to notify the social organizations (AHV/AVS, accident insurance, etc.) of his project;

To create a sole prop, no minimum capital is required, unlike AG/SA and GmbH/Sàrl;

Sole proprietorships do not have to face the double taxation contrary to AG/SA and GmbH/Sàrl.

Conditions for creating a sole proprietorship

To create a sole proprietorship, you are not entirely free to choose your company name. However, you are indeed required to mention your last name.

In addition, to create this legal form, you must register with the OASI (AHV/AVS) and must have a work permit.

 

  

 

PROCEDURE FOR SETTING UP A BUSINESS IN SWITZERLAND

To start your business in Switzerland, several steps are necessary: to set up your business calmly and efficiently, here are the essential steps.

1. Find a business name: If you have a sole prop, your name should be in your business name. If you have an AG/SA or a GmbH/Sàrl, you are free to choose your company name. When you have found it, check that the chosen name is not already exploited, and register your domain name to create a website that will carry your brand;
2. Choose the legal form: this choice will depend on your initial capital, the anonymity you wish to take advantage of, the level of responsibility you want to assume, but also the reputation you want to give to your company;
3. Choose the canton where your company's head office will be located: here, check the taxation in force in the canton you are targeting. But also pay attention to its geographical location, its proximity to your suppliers, your customers, and its commercial interest;
4. Open a consignment account: if you launch a GmbH/Sàrl or AG/SA, you will have to open an account on which you deposit the capital necessary to create your company. This is a transitory account: the funds in it will be released and transferred to the company's current account as soon as you have registered with the Commercial Register;
5. Prepare the constitutive documents: to create a GmbH/Sàrl or an AG/SA, you must draft your constitutive documents and articles of association, which must contain much information (legal form, company name, head office, amount of share capital or capital, purpose of the company, associates, shareholders, signature rights, powers of the members, conditions for holding general meetings, appointment of directors, appointment of the auditor, etc.). To ensure that these documents contain all the essential information, you can delegate their creation to dedicated companies,  the company drafts the legal documents you need for you in just 24 hours.
6. Register the company in the Commercial Register: this step is mandatory if you want to form a Limited Liability Company (GmbH/Sàrl) or a Limited Company (AG/SA).

 

  

 

Costs of creating a business in Switzerland

There are several costs to consider when setting up your business. These costs strongly depend on the legal form and the related services.

If you're considering starting a company in Switzerland and want to establish a Limited Liability Company (GmbH/Sàrl) or a Limited Company (AG/SA), offers a comprehensive package for CHF 490.-, including legal advice and notarization.

In addition, you will also need to include the cost of registering with the Commercial Register, which is approximately CHF 520.-, as well as bank costs, which will be approximately CHF 250.

If you wish to create a sole proprietorship, can support you with its services from CHF 190.-. The costs to be allocated to the Commercial Register will amount to approximately CHF 150.

Timeframe for setting up a business in Switzerland

The process of company registration in Switzerland typically takes 2 to 3 weeks. To save time, you can choose to delegate the preparation of the constitutive documents and articles of association to a dedicated company: thanks to Platin International, the preparation of these documents takes a maximum of 24 hours. The partner notaries then send the documents to the Commercial Register within 48 hours: enough to save precious time to set up your business quickly and efficiently.

The opening of the deposit account with a bank and the transmission of the certificate takes about a week if the payment of the capital is made immediately.

Registration in the Commercial Register takes approximately 1 to 2 weeks, depending on the canton you are applying for.

Things to know before starting a business

Official documents are not the only ones to support you in building your business. To make the best decisions and keep your company towards the growth you dream of; several documents must also be produced: the business plan and the market study.

Market analysis is the work of collecting and analyzing essential information for your business. It helps you understand the needs of your market so that you can meet them accurately. Thanks to this crucial document, you reduce the risk of failure and offer a helpful product or service that meets a real customer's needs.

Furthermore, the analysis also helps you reassure the financial partners by proving that your project meets a real need and that your activity has every chance of being sustainable.

 

  

 

Market analysis gathers information such as;

The history of the market, its evolutions;

The actors who form the competitive territory, their strengths and their weaknesses;

Information on the target: buying behavior, habits and motivations;

Supplier information;

The regulations.

The business plan is also a critical document when creating your business. It helps you understand whether your project can be profitable by combining several information;

The area of ​​the activity;

Markets and customers;

The marketing strategy;

The characteristics of your product or service;

Direct and indirect competitors;

Business objectives;

Prices, manufacturing costs;

Distribution channels;

Standards controls;

Expenses, such as human resources, equipment, rent, etc.

Thanks to this crucial information, you will make financial forecasts over 3 or 5 years.

Things to know after the creation of a company

When your company is created, you must carry out administrative formalities that protect your workers. You must register with the OASI (AHV/AVS) and with a pension fund (BVG/LPP).

You will also need to take out accident insurance. All salaried workers employed in Switzerland must be insured against accidents at work and occupational diseases. And to ensure that your business is well covered, you should also consider loss of earnings insurance.

Finally, companies with their headquarters in Switzerland will have to register for VAT. Note that the registration of a company for VAT is only compulsory from an annual turnover of CHF 100'000.