Starting a business in Switzerland as a foreigner

Starting a business in Switzerland provides many advantages for a foreigner, since the state has the most developed economy in Europe and the world, a stable currency and a relatively favorable tax environment. For a company created on Swiss territory, authority in international markets and ease of access to European partners are guaranteed.

The procedure for open a company in Switzerland non resident depends on the form of activity, but standardly includes the steps of choosing a name, preparing documents and submitting a request to the trade register to register a new commercial organization.

If citizens of EU countries are provided with favorable conditions for registering a company in Switzerland for business immigration, then for immigrants from third countries it is more difficult in this aspect and they need to meet some additional requirements. At the same time, if they pass all the required checks, foreign non resident will be able to appreciate the benefits of the business environment and, thanks to international agreements, avoid double taxation.

Starting a business in Switzerland

Conditions for opening and running a business in Switzerland for foreigners

The following categories of applicants from third countries can open a company in Switzerland:

  • Type C permit holders and their spouses;
  • persons with protection status S, subject to the additional receipt of a work permit.

Applicants who, at the time of the idea of ​​registering a business or starting a branch of a company in Switzerland, do not have a settlement permit, can contact the cantonal authorities with a corresponding request. Mostly foreigners will be able to apply for a type B permit, which is issued for a year, and eventually switch to permanent settlement with a category C residence permit.

To access the labor market as entrepreneurs, these persons must demonstrate the economic benefit of the project for the Swiss market. For example, an enterprise must contribute to industry diversification in the region, ensure job creation, and investment, which is demonstrated by the example of a promising business plan. The future owner of the company must have the finances to realize his goals. Access to the Swiss labor market, whether as an employee or self-employed person, is only granted to applicants with higher education and appropriate qualifications.

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Possible forms of ownership

The most common legal forms of business for business immigration to Switzerland are individual entrepreneurship, joint stock company and limited liability company (LLC), which have universal advantages for different niches. At the same time, depending on the industry and market, it is necessary to choose the appropriate format of activity, taking into account capital requirements, the amount of responsibility, flexibility in doing business, and taxation features. Next, the main formats of Swiss business will be considered:

  • Individual entrepreneurship (IP)
  • Simple partnership
  • LLC
  • Limited company
  • Stock corporation

How to open a business on your own

Starting a business in Switzerland as a foreigner includes the following steps:

Choosing a name

 

In addition to the fact that the company name must be unique in the market, each legal form has additional requirements. For example, in the case of individual entrepreneurs, it is necessary that the name of the entrepreneur be included in the name, and with partnerships and limited liability companies, the abbreviation of the activity format should also be used. It is not possible to check the options in advance; this is done when accessing the register.
Capital contribution and distribution

 

This stage also depends on the legal form of the business. For example, for individual entrepreneurs there are no requirements for amounts, and there is no requirement to deposit funds in advance. For an LLC and a joint-stock corporation, there are minimum investment amounts; in addition, money must be contributed to the capital in advance, and, accordingly, care must be taken to open a bank account.
Preparation of documents

 

The exact list of dossiers will also vary depending on the form of activity. Most documents will have to be prepared to register an LLC or a joint stock company. In this case, a charter must be signed indicating the structure of the management company in Switzerland, capital, number of shares, rights and obligations of participants. In the designated organizations, managers and a board of directors are pre-appointed, which then must be specified in the charter. Also among the necessary documents are the identity cards of the founders, legal address, and confirmation of the contributed capital.
Entry of the company into the commercial register

 

The prepared constituent documents for the company must initially be certified by a notary, and then applied to the commercial register at the cantonal commercial register office. Upon receipt of documents and recording of data, the applicant is issued a business identifier (UID) – a number that confirms the legal existence of the organization and will be used for tax reporting and other formalities.
Registration in other fundsDepending on the format of the activity, it may be necessary to register a company in Switzerland with pension and compensation funds – this is relevant for limited liability companies and joint-stock corporations. Organizations that have a turnover above 100,000 CHF/106,000 EUR per year must also pay VAT with prior registration with the Federal Tax Administration.

FAQs

Switzerland offers a highly developed economy, a stable currency, and favourable tax conditions, making it attractive for foreign entrepreneurs. Establishing a business here provides access to international markets and European partners, bolstering the company’s credibility and opportunities for growth.

Non-residents can open a company in Switzerland by choosing a business name, preparing required documents, and submitting a registration request to the trade register. EU citizens benefit from easier registration conditions, while non-EU residents must meet additional criteria and potentially secure work permits.

Foreigners eligible to open a company in Switzerland include holders of Type C permits and their spouses, and individuals with protection status S, subject to obtaining additional work permits. Non-residents without settlement permits may apply for a Type B permit initially, with potential to transition to permanent residency

The common forms of business ownership in Switzerland suitable for foreign entrepreneurs include Sole Proprietorship (IP), Simple Partnership, Limited Liability Company (LLC), and Stock Corporation. Each form offers distinct advantages in terms of liability, flexibility, and taxation, tailored to different business needs and industries.

Starting a business in Switzerland involves several steps: choosing a unique business name, determining capital requirements (if applicable), preparing necessary documents like articles of incorporation, and registering with the commercial register. Notary certification and obtaining a business identifier (UID) are also crucial steps in the process.

Foreigners seeking to immigrate for business purposes in Switzerland must demonstrate economic benefit to the Swiss market through job creation, investment, and industry diversification. Higher education, relevant qualifications, and a viable business plan are essential to gain access to the Swiss labour market as entrepreneurs.

Required documents vary based on the chosen business form but typically include articles of incorporation, identification documents of founders, proof of legal address, and confirmation of capital contribution (if applicable). These documents must be notarized and submitted to the commercial register for official registration.

Switzerland facilitates business registration for non-residents by offering clear procedures and access to international agreements that mitigate double taxation risks. This supports a transparent and conducive environment for foreign entrepreneurs to establish and operate businesses.

Foreigners starting a business in Switzerland must adhere to local tax regulations, including corporate taxes and VAT. Corporate tax rates vary by canton, while VAT registration is mandatory for businesses with annual turnover above a specified threshold. Understanding these tax implications is crucial for financial planning and compliance.

Switzerland’s robust economy, political stability, and strategic location in Europe make it an ideal choice for business immigration and company formation. The country’s supportive business environment, coupled with its global reputation for innovation and quality, offers unparalleled opportunities for entrepreneurial success.

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