{"id":4907,"date":"2024-02-11T13:37:34","date_gmt":"2024-02-11T12:37:34","guid":{"rendered":"https:\/\/my-swiss-company.com\/?p=4907"},"modified":"2026-06-23T13:37:38","modified_gmt":"2026-06-23T11:37:38","slug":"incorporation-of-a-company-in-switzerland","status":"publish","type":"post","link":"https:\/\/my-swiss-company.com\/en\/incorporation-of-a-company-in-switzerland\/","title":{"rendered":"Company Formation in Switzerland: The Complete Guide for Foreign Entrepreneurs"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.27.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.27.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.27.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<div class=\"intro-box\">\n<p>Yes \u2014 a foreigner can form a company in Switzerland and own <strong>100% of it<\/strong>. There is no nationality or residency requirement for shareholders, which catches a lot of entrepreneurs off guard. You will choose between two vehicles: the <strong>GmbH<\/strong> (limited liability company, CHF 20,000 capital) and the <strong>AG<\/strong> (public limited company, CHF 100,000). The one rule that trips people up is local representation \u2014 at least one person who can sign for the company has to live in Switzerland. After that, formation runs through a notary, a blocked capital deposit and the commercial register, and usually takes <strong>two to four weeks<\/strong>. Below, we walk through the legal forms, the resident-director rule, the steps, what it costs and how Swiss companies are taxed.<\/p>\n<\/div>\n<div class=\"table-of-contents\">\n<h3>Contents<\/h3>\n<ol>\n<li><a href=\"#foreigners\">Can a foreigner open a company in Switzerland<\/a><\/li>\n<li><a href=\"#legal-forms\">Choosing your legal form: GmbH or AG<\/a><\/li>\n<li><a href=\"#capital\">Capital requirements<\/a><\/li>\n<li><a href=\"#resident-director\">The resident director requirement<\/a><\/li>\n<li><a href=\"#steps\">Step by step: forming your Swiss company<\/a><\/li>\n<li><a href=\"#costs\">Costs and timeline<\/a><\/li>\n<li><a href=\"#tax\">Corporate taxation in Switzerland<\/a><\/li>\n<li><a href=\"#why\">Why form a company in Switzerland<\/a><\/li>\n<li><a href=\"#faq\">FAQ<\/a><\/li>\n<li><a href=\"#sources\">Sources<\/a><\/li>\n<\/ol>\n<\/div>\n<h2 id=\"foreigners\">Can a foreigner open a company in Switzerland<\/h2>\n<p>Yes, without restriction. Swiss law puts <strong>no nationality or residency condition<\/strong> on who owns a company \u2014 a foreign individual, or a foreign company, can hold 100% of a GmbH or an AG. On this point Switzerland is more open than its buttoned-up reputation suggests.<\/p>\n<p>Where it does draw a line is representation: someone able to sign for the company has to be <strong>resident in Switzerland<\/strong> (Code of Obligations art. 718 para. 4 for the AG, art. 814 para. 3 for the GmbH). If nobody in the company lives there, founders bridge the gap with a resident director or manager mandate \u2014 more on that below.<\/p>\n<h2 id=\"legal-forms\">Choosing your legal form: GmbH or AG<\/h2>\n<p>Almost every Swiss business runs on one of two forms: the GmbH (limited liability company) or the AG (public limited company). They share the essentials \u2014 limited liability, identical tax treatment \u2014 so the decision really comes down to three questions: how much capital you can commit, whether you want your name kept off the public register, and how big you plan to grow.<\/p>\n<div class=\"msc-table-wrap\">\n<table class=\"msc-table\">\n<thead>\n<tr>\n<th>Criterion<\/th>\n<th>GmbH (LLC)<\/th>\n<th>AG (Ltd)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Minimum capital<\/td>\n<td>CHF 20,000<\/td>\n<td>CHF 100,000<\/td>\n<\/tr>\n<tr>\n<td>Capital to pay in<\/td>\n<td>100% (CHF 20,000)<\/td>\n<td>At least 50% (CHF 50,000)<\/td>\n<\/tr>\n<tr>\n<td>Owners public in the register<\/td>\n<td>Yes (quotaholders)<\/td>\n<td>No (shareholders)<\/td>\n<\/tr>\n<tr>\n<td>Confidentiality<\/td>\n<td>Limited<\/td>\n<td>High<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>SMEs, owner-managed businesses<\/td>\n<td>Larger projects, fundraising, holding<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"msc-caption\">Both require at least one Switzerland-resident signatory. Sources: CO art. 772 ff. (GmbH), 620 ff. (AG).<\/p>\n<\/div>\n<p>For the detail of each vehicle, see our guides on forming a <a href=\"https:\/\/my-swiss-company.com\/en\/fiduciary-in-switzerland-everything-you-need-to-know-about-setting-up-a-limited-liability-company-sarl-gmbh-2\/\">GmbH in Switzerland<\/a> and an <a href=\"https:\/\/my-swiss-company.com\/en\/fiduciary-in-switzerland-setting-up-a-public-limited-company-sa-ag-everything-you-need-to-know-2\/\">AG in Switzerland<\/a>.<\/p>\n<h2 id=\"capital\">Capital requirements<\/h2>\n<p>First, the reassurance that saves a lot of needless worry: the capital is not a fee you give away. You pay it into a blocked account to prove it exists, and the moment the company is registered the bank hands it back to the business to use. It lands on your balance sheet as a company asset \u2014 not money spent.<\/p>\n<ul>\n<li><strong>GmbH<\/strong>: CHF 20,000, fully paid in at incorporation (CO art. 773 and 777c).<\/li>\n<li><strong>AG<\/strong>: CHF 100,000, of which at least CHF 50,000 paid in at incorporation (CO art. 632); the balance can be called later.<\/li>\n<li>Contributions may be made in cash (on a blocked deposit account) or in kind, with a founder&#8217;s report and an audited confirmation.<\/li>\n<\/ul>\n<h2 id=\"resident-director\">The resident director requirement<\/h2>\n<p>This is the requirement that trips up most foreign founders. A Swiss company has to be <strong>represented by at least one person who lives in Switzerland<\/strong> and holds signing authority \u2014 a director in an AG, a managing officer in a GmbH. Leave that box unticked and the commercial register simply won&#8217;t register the company.<\/p>\n<p>There are three ways to satisfy it. Someone already in your circle \u2014 a partner or a shareholder \u2014 lives in Switzerland. You relocate yourself. Or, if you are staying abroad, you appoint a <strong>resident director or manager<\/strong> under a professional mandate, which is the route most of our clients take.<\/p>\n<div class=\"important-box\">\n<h4>Important<\/h4>\n<p>The resident director answers a <strong>legal representation requirement<\/strong>, distinct from the <strong>economic substance<\/strong> expected by tax authorities. A resident signatory alone is not enough: the company must also show real activity in Switzerland (effective seat, management, accounting), especially when it is owned from abroad.<\/p>\n<\/div>\n<p>My Swiss Company provides this <a href=\"https:\/\/my-swiss-company.com\/en\/resident-director-services-in-switzerland-local-expertise-legal-compliance-and-growth-facilitation\/\">resident director and manager mandate<\/a>, compliant with the commercial register&#8217;s requirements.<\/p>\n<h2 id=\"steps\">Step by step: forming your Swiss company<\/h2>\n<p>Whether you go for a GmbH or an AG, the path is the same seven steps \u2014 from picking a name to the day your company lands on the register.<\/p>\n<h3>1. Choose the company name<\/h3>\n<p>Pick a name that is free and ends with the legal form (GmbH or AG). A quick search on the federal <a href=\"https:\/\/www.zefix.ch\/en\/search\" target=\"_blank\" rel=\"noopener\">Zefix<\/a> register tells you in seconds whether it is already taken.<\/p>\n<h3>2. Draft the articles of association<\/h3>\n<p>Your articles set out the company&#8217;s purpose, registered office, capital and how it is governed. It is the founding document, so it pays to get it right from the start rather than amend it later.<\/p>\n<h3>3. Open a blocked capital account and deposit the capital<\/h3>\n<p>You pay the capital into a blocked account at a Swiss bank. In return, the bank issues a deposit confirmation \u2014 the document the notary will ask for at the next step.<\/p>\n<h3>4. Notarisation<\/h3>\n<p>In front of a notary, you sign the deed of incorporation: the articles are adopted, the board or management is appointed, and the capital contributions are formally confirmed.<\/p>\n<h3>5. Registration in the commercial register<\/h3>\n<p>The notary files the whole dossier with the cantonal commercial register. The moment it is recorded, your company legally exists \u2014 it receives its <strong>legal personality<\/strong> and UID number, and is published in the Swiss Official Gazette of Commerce (SOGC).<\/p>\n<h3>6. Release of the capital<\/h3>\n<p>With registration done, the bank unblocks the capital and hands it to the company, which is free to put it to work.<\/p>\n<h3>7. Final registrations<\/h3>\n<p>Then the housekeeping: register with social insurance (OASI\/AHV), set up occupational pension (BVG) if you employ staff, and sign up for VAT once your turnover passes CHF 100,000.<\/p>\n<h2 id=\"costs\">Costs and timeline<\/h2>\n<p>Set the capital aside \u2014 it comes back to the company \u2014 and the real out-of-pocket cost is fairly modest: roughly <strong>CHF 1,500 to 2,500 for a GmbH<\/strong> and <strong>CHF 4,000 to 8,000 for an AG<\/strong>, before advisory fees. The AG costs more mainly because its articles run longer and its capital is larger.<\/p>\n<div class=\"msc-table-wrap\">\n<table class=\"msc-table\">\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Indicative amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Notary deed<\/td>\n<td>CHF 800 \u2013 3,000 (GmbH lower, AG higher)<\/td>\n<\/tr>\n<tr>\n<td>Commercial register + SOGC publication<\/td>\n<td>CHF 400 \u2013 800<\/td>\n<\/tr>\n<tr>\n<td>Blocked capital account (bank)<\/td>\n<td>CHF 0 \u2013 300<\/td>\n<\/tr>\n<tr>\n<td>Capital (contribution, not a cost)<\/td>\n<td>CHF 20,000 (GmbH) \/ 100,000 (AG)<\/td>\n<\/tr>\n<tr>\n<td>Corporate services fees<\/td>\n<td>On quote<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"msc-caption\">Indicative 2026 figures, varying by canton and complexity.<\/p>\n<\/div>\n<p>Plan on <strong>two to four weeks<\/strong> end to end. The notary and the register move quickly; what really sets the pace is the bank account, because Swiss compliance teams look hard at every new account \u2014 more so when the owner lives abroad. Show up with a complete file (ID, proof of where the funds come from, a business plan) and you spare yourself weeks of back-and-forth.<\/p>\n<h2 id=\"tax\">Corporate taxation in Switzerland<\/h2>\n<p>A Swiss company pays tax on its profit and its capital at three levels: federal, cantonal and communal. The federal slice is a flat 8.5% and identical everywhere; it is the cantonal and communal part that moves the needle, taking the effective rate anywhere from about <strong>11.9% to 21%<\/strong> depending on where you put down roots.<\/p>\n<div class=\"msc-table-wrap\">\n<table class=\"msc-table\">\n<thead>\n<tr>\n<th>Canton (My Swiss Company location)<\/th>\n<th>Effective profit tax rate (indicative 2026)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Zug (ZG)<\/td>\n<td>\u2248 11.9%<\/td>\n<\/tr>\n<tr>\n<td>Lucerne (LU)<\/td>\n<td>\u2248 12.2%<\/td>\n<\/tr>\n<tr>\n<td>Geneva (GE)<\/td>\n<td>\u2248 14.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"msc-caption\">Combined effective rates (federal + cantonal + communal), indicative 2026, varying by commune. Source: Swiss Federal Tax Administration (FTA).<\/p>\n<\/div>\n<p>At roughly 14% on average, Switzerland sits comfortably below France (25%), Germany (~30%) or the UK (25%). But the rate is only half the story. What keeps companies here is the whole package around it \u2014 a stable currency, predictable courts, a moderate bill \u2014 and that package only holds up if the company has genuine substance on the ground.<\/p>\n<h2 id=\"why\">Why form a company in Switzerland<\/h2>\n<p>Tax aside, Switzerland gives a foreign entrepreneur something harder to put a number on: credibility. A stable currency, more than a hundred double-taxation treaties, courts that behave the way you expect, access to the European market through the bilateral agreements, and an address that opens doors. Used properly, it is a genuine base \u2014 not a letterbox.<\/p>\n<div class=\"conseil-msc\">\n<h4>My Swiss Company advice<\/h4>\n<p>When you set up from abroad, build for where you will be in five years, not five weeks. The legal form, the canton, the resident director, the substance \u2014 all of it is decided on day one, and all of it shapes what comes next. We have watched founders reach for the cheapest, fastest option only to unpick it when a bank or a tax office starts asking questions. Far better to get it right once.<\/p>\n<\/div>\n<section id=\"faq\">\n<h2>FAQ: forming a company in Switzerland<\/h2>\n<div class=\"question\">\n<h3>Can a foreigner own 100% of a Swiss company?<\/h3>\n<p>Yes. There is no nationality or residency requirement for shareholders of a GmbH or an AG; a foreign individual or company can own the entire capital. The only condition is that at least one person with signing authority is resident in Switzerland.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How much capital do I need?<\/h3>\n<p>A GmbH requires CHF 20,000, fully paid in. An AG requires CHF 100,000, of which at least CHF 50,000 must be paid in at incorporation. The capital is deposited on a blocked account, then released to the company and used for its activity.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>Do I need a resident director?<\/h3>\n<p>Yes \u2014 at least one person who can sign for the company must be domiciled in Switzerland. If no shareholder or officer lives there, founders cover the requirement with a resident director or manager mandate from a corporate services firm. It is a standard, fully compliant arrangement, not a workaround.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How long does company formation take?<\/h3>\n<p>Usually two to four weeks, from the capital deposit to final registration in the commercial register. The notary and the register move fast; it is the bank account that tends to stretch the timeline, because of compliance checks \u2014 especially for non-resident owners.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How much does it cost to form a company in Switzerland?<\/h3>\n<p>Excluding capital, around CHF 1,500\u20132,500 for a GmbH and CHF 4,000\u20138,000 for an AG: notary deed, commercial register and SOGC publication, bank fees, plus advisory fees on quote.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How are Swiss companies taxed?<\/h3>\n<p>On profit and capital, at federal (8.5% flat on profit), cantonal and communal level. The effective profit-tax rate ranges from about 11.9% (Zug) to 21% depending on the canton, for a Swiss average near 14%.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"sources\">\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.fedlex.admin.ch\/eli\/cc\/27\/317_321_377\/en\" target=\"_blank\" rel=\"noopener\">Swiss Code of Obligations (CO), art. 620 ff. and 772 ff. \u2014 Fedlex<\/a><\/li>\n<li><a href=\"https:\/\/www.kmu.admin.ch\/kmu\/en\/home\/concrete-know-how\/setting-up-sme\/starting-business.html\" target=\"_blank\" rel=\"noopener\">Setting up a business \u2014 SME Portal (SECO)<\/a><\/li>\n<li><a href=\"https:\/\/www.zefix.ch\/en\/search\/entity\/welcome\" target=\"_blank\" rel=\"noopener\">Zefix \u2014 Central Business Names Index<\/a><\/li>\n<li><a href=\"https:\/\/www.estv.admin.ch\/en\/\" target=\"_blank\" rel=\"noopener\">Swiss Federal Tax Administration (FTA)<\/a><\/li>\n<\/ul>\n<\/section>\n<div class=\"conclusion-box\">\n<h2>Conclusion<\/h2>\n<p>Forming a company in Switzerland as a foreigner is well within reach: you keep 100% ownership, you pick between a GmbH and an AG, and you meet one firm condition \u2014 a signatory who lives in Switzerland. The hard part is rarely the law. It is the practical side: lining up the resident director, showing real substance, and choosing the canton that genuinely fits what you do.<\/p>\n<p>My Swiss Company SA, a Swiss corporate services provider present in Geneva, Lucerne and Zug and active in 20+ countries, handles the full path: formation, resident director mandate, registered office and tax advice, with a single point of contact. <a href=\"https:\/\/my-swiss-company.com\/en\/our-services\/swiss-company-formation-services\/\">Discover our company formation services<\/a> or <a href=\"https:\/\/my-swiss-company.com\/en\/contact\/\">contact us for an initial consultation<\/a>.<\/p>\n<\/div>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Managing a business in Switzerland, especially for foreign residents, requires a meticulous and expert approach. This involves juggling various aspects, from legal structure to financial management, to regulatory and tax compliance. Fortunately, specialized partners like MY SWISS COMPANY offer comprehensive assistance for every step of the process, ensuring the success and compliance of businesses in the Swiss market.<\/p>\n","protected":false},"author":3,"featured_media":11873,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[30],"tags":[51],"class_list":["post-4907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-formation","tag-en"],"_links":{"self":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/4907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/comments?post=4907"}],"version-history":[{"count":3,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/4907\/revisions"}],"predecessor-version":[{"id":12094,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/4907\/revisions\/12094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media\/11873"}],"wp:attachment":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media?parent=4907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/categories?post=4907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/tags?post=4907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}