You can own and manage a Swiss company entirely from abroad, provided one legal condition is met: at least one representative resident in Switzerland. For a foreign company, a Swiss corporate services provider handles everything distance makes complex — resident director, registered office, accounting compliant with the Code of Obligations, VAT and cross-border tax — all steered remotely, on one condition: genuine economic substance in Switzerland. This guide covers the available structures, the legal obligations, the published costs and what makes a Swiss presence hold up before banks and tax authorities.
Contents
- Cross-border expertise: a solid foundation
- Subsidiary, branch or seat transfer: choosing your structure
- The obligations of a foreign company in Switzerland
- International tax management and structuring
- Economic substance: what makes the structure hold
- Managing your Swiss company from abroad
- How much does it cost to run a Swiss subsidiary?
- FAQ
Cross-border expertise: a solid foundation
Switzerland has established itself as a premier international financial hub, drawing businesses globally through its stable framework, business-friendly regulations and strong financial infrastructure. At the heart of it, a Swiss corporate services provider offers specialised support that goes far beyond basic financial management.
Corporate services providers in Switzerland support both domestic and foreign enterprises. Their core mission is to assist with the formation and administration of Swiss companies, accounting, taxation and financial management in compliance with Swiss law.
What distinguishes them is cross-border expertise. As business operations increasingly span multiple countries, these firms deliver comprehensive cross-border solutions: they understand international transaction complexities, multi-jurisdictional tax frameworks and global business structuring requirements.
Subsidiary, branch or seat transfer: choosing your structure
A foreign company has three ways to establish in Switzerland: form a subsidiary (a Swiss AG or GmbH), register a branch of the parent company, or transfer its seat. The subsidiary is the most common route: a legally distinct entity, it ring-fences the group’s liability and lends credibility to the Swiss presence.
| Structure | Legal personality | Key points |
|---|---|---|
| Subsidiary (Swiss AG or GmbH) | Distinct from the parent | Own capital (AG: CHF 100,000, min. CHF 50,000 paid up; GmbH: CHF 20,000), ring-fenced liability, strong local image |
| Branch | Extension of the foreign company | No own capital, registered in the commercial register, the parent answers for its commitments, Swiss tax on local activity |
| Seat transfer | The company becomes Swiss | A heavy operation (home law + Swiss law), relevant for a full relocation of the business |
The choice depends on the activity, flows, liability and home-country taxation — decided case by case, not off a catalogue.
For the detail of the two main routes, see our comparison of the key differences between a branch and a Swiss subsidiary.
Real case: Approach People Recruitment, an international recruitment group, entrusted us with the formation of its Swiss subsidiary and the full administrative and accounting mandate — the textbook illustration of the setup described in this guide.
The obligations of a foreign company in Switzerland
Four obligations structure the Swiss presence of a foreign company: a person resident in Switzerland empowered to represent the company, an effective seat, accounting compliant with the Code of Obligations and, depending on turnover, VAT liability.
- Local representation: at least one director resident in Switzerland for an AG (art. 718 CO), a managing officer for a GmbH (art. 814 CO). This is the purpose of the resident director or managing-officer mandate, exercised within a strict framework of governance and KYC.
- Swiss seat: an address entered in the commercial register — from a notification domicile to a registered office with private premises, depending on the level of substance required.
- Accounting: bookkeeping and year-end closing under art. 957 ss CO, in Swiss francs or the group’s functional currency.
- VAT: liability applies from CHF 100,000 in worldwide turnover; a foreign company without a Swiss seat must also appoint a VAT fiscal representative in Switzerland.
From the first local employee, social insurance (AVS/AHV, occupational pension, accident insurance), withholding tax and any work permits are added.
International tax management and structuring
As a global financial centre, Switzerland attracts many international enterprises. Corporate services providers leverage their cross-border knowledge to guide clients through international tax planning, regulatory compliance across jurisdictions and lawful tax optimisation.
They also help organisations optimise their financial structuring while considering the legal and tax implications across different regions, enabling companies to benefit from tax advantages while remaining compliant with local and international requirements.
In practice, for a foreign group this runs through double-taxation treaties (Switzerland has a broad treaty network governing the taxation of profits, dividends and interest), the choice of canton of establishment (effective profit tax rates range from about 11% to 15%) and a documented transfer-pricing policy between the parent and its Swiss structure.
Economic substance: what makes the structure hold
A Swiss company owned from abroad is only worth its substance: an effective seat, genuine local governance and decisions taken and documented in Switzerland. Without it, the structure is exposed on two fronts — the home-country tax authority can requalify it (permanent establishment, effective management abroad), and Swiss banks refuse to open or maintain the account.
This is the point low-cost providers keep quiet: a domicile alone does not create substance. What counts is the coherence of the whole — a resident director who genuinely exercises the mandate, documented board meetings, local means proportionate to the activity, and financial flows aligned with the contract.
Important
We decline arrangements with no real activity. An empty shell always ends up costing more than the substance it tried to avoid: reassessment in the home country, a closed bank account, the director’s liability engaged. If your project is not meant to exist economically in Switzerland, we will tell you so at the initial consultation.
Switzerland is known for its discretion and commitment to financial confidentiality. Corporate services providers uphold client confidentiality while ensuring transparent, standards-aligned financial practices — confidentiality protects legitimate business, it never replaces compliance.
Managing your Swiss company from abroad
Running a Swiss subsidiary is done entirely remotely: digital transmission of documents, an online accounting platform, a digital vault, video calls for decisions — with a senior contact coordinating accounting, VAT, payroll and dealings with the authorities.
The typical setup for a foreign parent: a resident director who ensures legal representation and local governance, a domicile with the appropriate level of substance, and an administration mandate covering the recurring work — every strategic decision staying in the group’s hands. Reporting in your format (group standards, consolidation) and exchanges in English, French, German or Spanish.
This guide addresses companies; corporate governance and the day-to-day of a subsidiary rest on the resident representative described above, not on the shareholders abroad.
How much does it cost to run a Swiss subsidiary?
Running a foreign group’s Swiss subsidiary budgets between CHF 8,000 and 20,000 per year depending on volume and reporting requirements. The group’s published grid: accounting administration from CHF 500 per month (Business package, payroll and VAT included) and from CHF 1,500 per month for groups with multi-standard reporting; domiciliation from CHF 1,000 to 4,000 per year excl. VAT depending on the level of substance; VAT fiscal representation CHF 3,000 per year excl. VAT; resident director mandate on quote after KYC review.
The full item-by-item detail — hourly grid, in-house vs outsourced comparison, worked example — is in our guide to accounting fees in Switzerland.
FAQ: managing a Swiss company from abroad
Can a foreign company own a Swiss subsidiary without residing in Switzerland?
Yes. No shareholder needs to be Swiss or resident: the only legal requirement is that at least one person empowered to represent the company be resident in Switzerland (art. 718 and 814 CO). A resident director or managing-officer mandate, combined with a registered office, lets a foreign parent own and manage its Swiss subsidiary entirely from abroad.
What is the difference between a subsidiary and a branch in Switzerland?
A subsidiary is a fully-fledged Swiss company (AG or GmbH) with its own capital and liability distinct from the parent. A branch has no legal personality of its own: it is an extension of the foreign company, registered in the Swiss commercial register, for which the parent is fully liable. The subsidiary offers stronger risk ring-fencing and local credibility; the branch avoids paid-up capital but exposes the group.
Does a foreign company have to register for Swiss VAT?
Yes, once its worldwide turnover reaches CHF 100,000 and it supplies services taxable in Switzerland. Without a Swiss seat or establishment, it must also appoint a VAT fiscal representative resident in Switzerland, who handles registration with the Federal Tax Administration and the periodic returns. At My Swiss Company, this fiscal representation package is published at CHF 3,000 per year excl. VAT.
What economic substance is required for a Swiss company owned from abroad?
Economic substance means the real means the company has in Switzerland: an effective seat, a governing body that meets and decides there, documented board meetings and means proportionate to the activity. It conditions the company’s tax recognition against the home country (risk of permanent establishment or effective management abroad) and access to Swiss banks, which check this point systematically when opening the account.
Can everything be handled in English?
Yes. My Swiss Company AG manages the full relationship in English — accounting, VAT, payroll, resident director and dealings with the authorities — with real-time access to your accounts through an online platform. The company must nonetheless maintain genuine substance in Switzerland, starting with the resident representative.
Sources
Conclusion
For a foreign company, a successful Swiss presence rests on three things: the right structure (subsidiary, branch or seat transfer), compliance with local obligations (representation, seat, accounting, VAT) and genuine economic substance — the rest is execution, steered remotely with the right tools.
My Swiss Company AG (Lucerne) / SA (Geneva), a corporate services provider with cross-border expertise, is an essential partner for globally-operating businesses: present in Geneva, Lucerne and Zug, it supports groups and entrepreneurs from more than 20 countries in the formation, administration and management of their Swiss structures — with the ability to navigate complex tax environments, attested by its AIWM, SFAA, STEP and IFA certifications. Contact us for an initial consultation on your Swiss project.
