Swiss Company – Establishing a Foundation and Verein

What Is a Swiss Company?

A Swiss company is one of the most popular legal forms for businesses operating in Europe and globally. Entrepreneurs, investors, and multinational corporations use this structure for commercial ventures, holding companies, and trading platforms.

Benefits of Registering a Swiss Company

• Prestige and Credibility: A Swiss-registered business carries global respect and trust.
• Tax Optimization: Access to favourable tax regimes in many Swiss cantons.
• Legal Protection: Strong rule of law and protection of corporate rights.
• EU Market Access: Though Switzerland is not an EU member, bilateral treaties ensure seamless trade and cooperation.

Types of Swiss Companies: AG and GmbH

Switzerland offers two primary company types:

• AG (Aktiengesellschaft): Ideal for larger enterprises or those seeking investors. Requires a minimum share capital of CHF 100,000. Learn more about swiss ag.
• GmbH (Gesellschaft mit beschränkter Haftung): More suitable for SMEs, requiring a minimum capital of CHF 20,000. Learn more about swiss gmbh.

Both structures provide limited liability and require registration with the Swiss Commercial Register (https://www.kmu.admin.ch/kmu/en/home/concrete-know-how/setting-up-sme/starting-business/commercial-register.html ) maintained by SECO.

Tax and Legal Framework

Swiss companies benefit from:

• Low cantonal tax rates in regions like Zug, Nidwalden, or Lucerne.
• Access to double tax treaties with over 100 countries.
• Clear corporate governance rules and confidentiality.
• Strong and predictable corporate structure in Switzerland.
• Detailed tax comparisons are available from the Swiss Federal Tax Administration (https://www.estv.admin.ch/estv/en/home.html) and our overview on swiss tax.

Understanding the Swiss Foundation

A Swiss foundation is a legal entity established to pursue a specific goal, such as charitable, educational, scientific, or private asset management purposes. It does not have shareholders or members but operates independently based on its founding charter.

Swiss Foundation: Purpose and Setup

To establish a Swiss foundation, you must:

• Define a lawful purpose.
• Contribute initial capital (typically CHF 50,000 or more).
• Draft statutes and appoint a board.
• Register with the Swiss supervisory authority.

More information can be found on Swiss Foundations (https://www.swissfoundations.ch/en/), the national association for grant-making foundations in Switzerland.

Legal Structure and Compliance

• No Ownership: The foundation is self-owned.
• Independent Management: Governed by a board of trustees.
• Supervision: Subject to federal or cantonal oversight depending on the purpose.

Swiss Foundation vs Other Entities

A foundation is not intended for commercial profit. Compared to a Swiss company, it offers better asset protection and purpose-driven operations, often appealing to philanthropists and private wealth planners. As a non-profit structure in Switzerland, it is recognised worldwide for legal clarity and respectability. Explore more about swiss foundation.

What Is a Swiss Verein?

The Swiss Verein is a unique, flexible legal entity used by global networks, associations, and professional firms. It allows separate legal entities to operate under a shared brand without merging assets or liabilities.

Swiss Verein for International Associations

Well-known in the legal and consulting world, a Swiss Verein structure is often used by:

• Law firms
• NGOs and advocacy groups
• Sports and cultural federations

Each member organization remains legally autonomous while benefiting from the Verein’s framework, as permitted under Swiss association law (https://www.fedlex.admin.ch/eli/cc/24/233_245_233/en).

Key Advantages of a Swiss Verein

• Decentralised Governance: Local entities maintain control.
• Liability Shielding: No shared liabilities between members.
• Ease of Registration: No capital requirements or complex procedures.

Use Cases: Law Firms, NGOs, and More

• Legal Networks: International law firms often operate under a Verein to manage cross-border teams.
• Nonprofits: Ideal for global nonprofits with independent chapters.
• Corporate Alliances: Businesses collaborating on international ventures under a common business structure in Switzerland.

Comparison Table: Swiss Company vs Foundation vs Verein