How to start a business in Switzerland

Starting a business in Switzerland can be done fairly quickly, but you must follow several administrative and legal steps. Choosing the legal form is the first crucial decision. It determines the capital required, the founders' liability and the accounting obligations.

The most common legal forms are the sole proprietorship (raison individuelle: no minimum capital, unlimited liability), the GmbH/Sàrl (limited liability company: minimum capital of CHF 20'000, fully paid up, liability limited to the company's assets) and the public limited company (SA: minimum capital of CHF 100'000, of which at least CHF 50'000 must be paid up, liability limited to the company's assets). For freelancers and small businesses, the sole proprietorship is often the simplest choice. For more ambitious projects, the Sàrl offers a good balance between simplicity and protection.

Registration in the commercial register is mandatory for Sàrl and SA companies, and for sole proprietorships with an annual turnover of at least CHF 100'000. You register with the commercial register office of the canton where the company has its registered office. For a Sàrl or an SA, a public deed drawn up by a notary is required. The documents required include, in particular, the deed of incorporation, the articles of association, the application for registration, the bank certificate confirming the capital deposit if contributions are made in cash and, if the company does not have its own premises, the declaration from the domicile provider.

Affiliation with AHV/AVS (old-age and survivors' insurance) is mandatory from the start of your activity, both for self-employed people and for employers. You join through the cantonal compensation office (caisse de compensation) or, if you are a member of a professional association that runs one, through that association's office. VAT registration is mandatory as soon as your annual turnover from taxable supplies reaches CHF 100'000, in Switzerland and abroad. You apply for VAT registration with the Federal Tax Administration.

Tax conditions can vary considerably depending on the canton where you settle. Cantons such as Zug, Nidwalden or Lucerne apply some of the lowest profit tax rates in Switzerland, while Bern and Zurich are among the cantons with the highest rates. However, tax is only one criterion among others, alongside proximity to clients and the labour market.

For the articles of association and commercial register entry, contact a notary or a fiduciary (accounting and trust firm). Once your business is set up, SwissDoc helps you draft everyday documents, such as an employment contract or a power of attorney. Your first three documents are free, no credit card required.