What is the most popular company form in Switzerland and why?

AG is most popular for larger businesses due to flexibility, credibility, and shareholder anonymity. GmbH is favored by SMEs/startups for its CHF 20,000 fully paid-in capital and simpler governance.

Can a foreigner open a company in Switzerland?

Yes. At least one director with signatory power must be a Swiss resident. Foreigners can appoint a nominee director or relocate. Third-country nationals generally need a residence permit supported by investment/job creation.

Which canton has the lowest taxes for business?

Zug has the lowest effective CIT at about 11.8%. Others: Lucerne 11.9%, Schwyz 13.4%, Basel-Stadt 14.5%. Consider talent, infrastructure, and admin efficiency—not just rates.

What is the main difference between AG and GmbH for small businesses?

Capital and governance: GmbH needs CHF 20,000 (fully paid-in); AG needs CHF 100,000 (CHF 50,000 paid-in). GmbH is simpler; AG offers prestige, anonymity, flexible shares, and easier transferability.

Is a physical office in Switzerland mandatory?

A Swiss registered address is mandatory. A virtual office/domiciliation is sufficient for most businesses. Regulated sectors (e.g., banking/insurance) may require a physical presence and local staff.

What are the audit thresholds for Swiss companies?

Audit is required if a company exceeds two of: assets CHF 20m, revenue CHF 40m, 250 FTEs for two consecutive years. Small companies may opt out if all shareholders agree. Simplified accounting for sole/partnerships < CHF 500k turnover.

How long does it take to register a company in Switzerland?

Typically 2–4 weeks for EU/EFTA; 6–12 weeks for third-country nationals. Bank account 1–2 weeks; notarization and commercial register 2–3 weeks; tax/social security 1–2 weeks.

Can I transfer shares in a GmbH easily?

Transfer is more restricted: notarization and approval from existing shareholders (unless articles state otherwise). AG shares are freely transferable unless restricted in the articles.

What is the participation exemption in Switzerland?

Dividends and capital gains from qualifying subsidiaries are largely tax-free if the parent holds at least 10% for at least one year. Valuable for holding structures and corporate groups.

Do I need a Swiss bank account to register a company?

Yes. You must deposit the share capital (CHF 20,000 for GmbH; CHF 50,000 for AG) into a blocked capital account. The bank issues a confirmation for the commercial register.

What are the requirements for a branch office vs. a subsidiary?

A branch is not a separate legal entity; the parent is liable and must appoint a Swiss-resident representative. A subsidiary (AG/GmbH) is separate, has its own capital, and is taxed as a Swiss company.

Can I use a nominee shareholder in a GmbH?

No. GmbH shareholders must be disclosed in the commercial register. AG shareholders remain anonymous; only directors are public.

What is the difference between a shelf company and a new company?

A shelf company is pre-registered and can be acquired for faster entry (about 1–2 weeks) but may cost more and offer less customization. A new company takes 2–4 weeks and allows full tailoring of name and articles.

How do I choose between Zug and Zurich for my company?

Zug: lowest tax (~11.8%), business-friendly; ideal for holdings, trading, crypto. Zurich: higher tax (~19.6%) but top talent, infrastructure, connectivity; favored by finance and tech HQs. Choose per model and needs.

02.12.2025

Companies in Switzerland: complete guide to business structures and leading industries

Switzerland stands as one of the world's most attractive jurisdictions for business formation, combining political stability, a robust legal framework, and a favorable tax environment.

Taxes in Switzerland

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