Switzerland is chosen for reputation, legal certainty, a strong banking system and cantonal tax rates that are competitive in Europe. It is also a jurisdiction that expects real substance: share capital paid in before registration, a notary deed and at least one person with signing authority who lives in Switzerland. If you need a fast, low-cost company, other countries are simpler. If you need a solid base for a serious business, Switzerland is worth the effort. This guide explains the main choices. For support, see company registration.
Not legal or tax advice. Requirements and tax rates depend on the canton and change over time. Use this as an overview and work with Swiss professionals for your case.
GmbH or AG?
| GmbH (limited liability company) | AG (company limited by shares) | |
|---|---|---|
| Minimum capital | CHF 20,000, fully paid in | CHF 100,000; at least CHF 50,000 paid in |
| Owners | Partners (Gesellschafter), recorded in the commercial register | Shareholders, not published in the register |
| Management | One or more managing directors | Board of directors |
| Transfer of ownership | Notarized form; register entry | Simpler share transfer |
| Typical use | Small and medium businesses, subsidiaries | Larger companies, investor rounds, holding structures |
Since the company law reform of 2023, share capital can also be denominated in a major foreign currency, such as EUR or USD, if it is the currency relevant to the business.
The Swiss-resident signatory rule
Both a GmbH and an AG must be represented by at least one person who lives in Switzerland and is authorized to sign for the company: a managing director, a board member or an officer with signing authority. Foreign founders usually solve this with a local director or a professional director service. Choose carefully: that person carries legal responsibility and will want to understand the business.
Step by step
| Step | What happens | Typical time |
|---|---|---|
| 1. Structure and canton | GmbH or AG, canton, address, activity, Swiss-resident signatory | Several days |
| 2. Name check | Check availability in the commercial register | 1 day |
| 3. Capital deposit account | Open a blocked capital account at a Swiss bank and pay in the capital | 1 to several weeks |
| 4. Notary deed | Founding deed and articles of association signed before a notary (in person or with a power of attorney) | 1 day once documents are ready |
| 5. Commercial register | Filing, entry and publication in the Swiss Official Gazette of Commerce | Several days to 2 weeks |
| 6. After registration | Capital released to the operating account; VAT and social insurance registration if needed | Days to weeks |
In practice, a full formation takes about 2–6 weeks. The bank step is usually the slowest, especially when the founders are not Swiss residents and the business model needs explanation.
Costs to budget for
- Share capital: CHF 20,000 or at least CHF 50,000, which stays in the company.
- Notary, commercial register and publication fees.
- A Swiss-resident director or signatory service, if no founder lives in Switzerland.
- A registered address or an office; for many activities, banks and tax authorities expect real premises.
- Accounting, the annual tax return and, if required, an audit.
Taxes
- Profit tax: the combined federal, cantonal and communal rate depends on the canton and is roughly in the range of 12–21% effective. Choosing the canton is a real tax decision.
- Capital tax: cantons also tax equity, at low rates.
- Withholding tax: 35% on dividends, which can be refunded or reduced under double tax treaties.
- VAT: standard rate 8.1%; registration is required once worldwide turnover from taxable supplies reaches CHF 100,000 per year.
Banking in Switzerland
Swiss banks are known for careful onboarding. Expect questions about the business model, the source of funds, the beneficial owners, the expected flows and the reason for using Switzerland. A clear business plan, contracts or letters of intent and a coherent ownership structure make the difference. For the order of company, account and payment acceptance, see company, bank account and acquiring: the launch order.
Annual obligations
- Annual financial statements and a general meeting of owners.
- A tax return for the company.
- An audit, unless the company qualifies for and chooses an opting-out (small companies with the consent of all owners).
- Updating the commercial register when directors, signatories or the address change.
Switzerland for crypto and fintech
Switzerland has a well-known crypto ecosystem, but regulated activities need the right status. Depending on the activity, that can mean joining a self-regulatory organisation for anti-money-laundering supervision, or an authorization from FINMA, the Swiss financial market supervisor, such as a FinTech, banking, securities firm or DLT trading facility licence. Forming a GmbH or AG does not by itself allow you to provide financial services. For an overview of routes, see financial and crypto licences.
When Switzerland is the right choice, and when it isn't
- Good fit: holding and IP structures, B2B services with European clients, wealth and fintech businesses that need a strong reputation, founders ready to build real substance.
- Weaker fit: very small online businesses, projects that need a company in days, or businesses without the budget for capital, a local signatory and ongoing compliance.
If you are still comparing countries, see jurisdiction selection.
Frequently asked questions
Can a foreigner own 100% of a Swiss company?
Yes. There are no general restrictions on foreign ownership of a GmbH or AG; special rules apply to some sectors, such as residential real estate.
Do I need to live in Switzerland?
No, but at least one person authorized to sign for the company must live in Switzerland.
Can I use the share capital for business expenses?
Yes, after registration the capital is released and can be used for the business. It is not a fee; it is the company's equity.
How long does it take?
Usually 2–6 weeks, depending mostly on the bank and on how quickly documents are signed.
Plan your Swiss company. On the company registration page we'll help you choose between GmbH and AG, prepare the documents and coordinate the notary, the bank and the commercial register.