Starting a business in Switzerland
Start-ups are well and truly booming: in 2020, in spite of the pandemic, a record-breaking 46 842 new businesses were registered in Switzerland, according to Le Temps. However, launching is business is no mean feat and requires a huge financial and time commitment. Before taking the leap, think about which legal form is best for you.
Legal forms
The legal forms available to new companies in Switzerland are:
- Sole trader/proprietorship – start-up legal costs of around 130-190 CHF*;
- General partnership (SNC) – start-up legal costs of around 290-370 CHF*;
- Limited liability company (Sàrl/GmbH) – start-up legal costs of around 4000-9000 CHF*;
- Public limited company (SA/AG) – start-up legal costs of around 6000-12000 CHF*.
*These amounts are purely indicative.
This table summarises our thoughts on the pros and cons of the different legal forms possible for new businesses in Switzerland:
| Legal form |
Advantages |
Disadvantages |
| Sole trader |
- Low start-up costs.
- Consists of only one person.
- No need to be entered in the register of commerce unless your gross annual turnover exceeds 100 000 CHF.
- No capital required.
- No shares.
- No need to draw up statutes.
- No double taxation: the owner is simply taxed as a self-employed worker.
- Second-pillar (workplace) pension is optional.
|
- You must be Swiss or hold a C permit, or, if you are an UE citizen, a B or G permit.
- The company has no legal personality.
- The company name must include the owner’s family name (subject to a few exceptions).
- The owner bears unlimited personal responsibility and puts their personal property at risk.
- Accounting is obligatory.
- The owner has no right to unemployment insurance.
|
| General partnership |
- Low start-up costs.
- No capital required.
- No shares.
- No need to draw up statutes.
- You are free to choose the company name.
- No double taxation: each associate is taxed as an individual.
|
- At least two natural persons must found the company.
- The company has no legal personality.
- The partners bear joint, unlimited liability.
- Accounting is obligatory.
- The partners have no right to unemployment insurance.
|
| Limited liability company
|
- Can consist of one or many natural persons or legal entities.
- Has its own legal personality.
- Only the company itself is liable.
- You are free to choose the name, which must be followed by “Sàrl” in French-speaking Switzerland or “GmbH” in German-speaking Switzerland.
- A tax declaration is completed on the company’s behalf.
- The company’s employees are eligible for unemployment insurance.
|
- Higher start-up costs.
- The associates’ identities and details of the number and value of their stakes are made public.
- Setting up the company can be a long and complicated process.
- You have to open a capital payment account with a bank.
- It is a certified form, so you have to use a notary, which is quite expensive.
- Minimum capital of 20 000 CHF.
- Statutes are obligatory.
- Employees of the company must be covered by AVS and AA insurance and the workplace (second-pillar( pension.
- Obligatory inclusion in the register of commerce.
|
| Public limited company |
- Can consist of one or many natural persons or legal entities.
- Neither the shareholders’ names nor the number or value of their shares is made public.
- Has its own legal personality.
- Only the company itself is liable.
- You are free to choose the name, which must be followed by “SA” in French-speaking Switzerland or “AG” in German-speaking Switzerland.
- A tax declaration is completed on the company’s behalf.
- The company’s employees are eligible for unemployment insurance.
|
- High start-up costs.
- Setting up the company can be a long and complicated process.
- You have to open a capital payment account with a bank.
- It is a certified form, so you have to use a notary, which is quite expensive.
- Minimum capital of 100 000 CHF, of which at least 20% or 50 000 CHF (whichever is highest), must be accessible.
- Statutes are obligatory.
- Employees of the company must be covered by AVS and AA insurance and the workplace (second-pillar pension).
- Obligatory inclusion in the register of commerce.
|
Don’t hesitate to contact us for more information or advice – we will do whatever we can to help you achieve your goals. We can also put you in touch with companies specialising in start-ups to offer you tailored support depending on your needs and objectives.
