Company Formation in Switzerland

If businesspersons do not have residence or aren’t married to a citizen, he/she may launch mercantil projects in Switzerland while applying in one of the cantons. First of all, a person who wants to implement company formation in Switzerland has a detailed project description, which is submitted to cantonal economic agencies (you can apply to all 26 cantons). Entrepreneurs who wish to connect their activities with this jurisdiction may turn to help of Eli-Swiss experts - qualified professionals with many years of experience in interacting with the commercial sphere of this country.

Based on the results of consideration of the application, the specified agency makes a decision taking into account the following factors:

• to what extent this or that project is of interest to the canton;

• whether organization of a new project creates new jobs for local residents;

• whether new enterprises will attract investments.

If there is a positive opinion of cantonal agency, you can continue registration. Simultaneously, agency assists the entrepreneur in finding commercial estate, helps at the stage of interaction with tax bodies, helps to find partners within the cantons, thereby speeding up the process of entering regional markets.

Launch company in Switzerland

Switzerland possesses well-developed infrastructure: corruption absence together with a transparent legal system, creates excellent basis for doing commercial operations. It’s a country where innovative ideas find their practical implementation, so jurisdiction will be an excellent platform for expansion of high-tech businesses. Switzerland is actively attracting businesspersons to create firms on its territory. 

It’s democratic country with a liberal and free market economy. It’s the twentieth largest economy in the world in terms of nominal gross domestic product (GDP). It is one of the most flourishing countries, ranking first in quality of life, business transparency, economic competitiveness, literacy, human development, research and development. Switzerland has been reliable environment with modernly organized legal basis for many years. More recently, corporate tax reform has been carried out in line with new international standards. Some noteworthy recent legislative projects include a distributed ledger technology law, a major reform of Swiss corporate law (expected to come into force in 2023), and new provisions in Swiss cartel law that extend the prohibition of abuse of dominant position to firms with relative market power.

Foreigners are especially often under the delusion that the best accounting, legal, etc. services may only be organized in Zurich, Geneva and Lausanne. The Swiss entrepreneurs themselves, even if they themselves are in large cities, hire accountants, lawyers, etc., located in small towns. Why do they do it? It’s simple: many qualified specialists do not work in centers, but ask for up to 20 percent less for their services than their colleagues in Zurich, Geneva and Lausanne.

What business is in demand?

The hotel business in Switzerland remains one of the most popular among foreigners. The influx of wealthy tourists, thanks to the excellent climate and picturesque nature, does not dry out here all year round, so the profitability of hotels and companies offering various types of services is extremely high.

There is an opportunity to invest in a ready-made business. There’re quite a lot of interesting offers in Switzerland, and migration firms usually keep track of them in order to offer their clients. Most often, foreigners invest in enterprises in the field of pharmaceuticals, the production of various luxury goods (clothes, umbrellas, accessories, etc.), public catering (restaurants, cafes), and agriculture.

Business application

The most difficult, in some cases the only way to buy commercial project or create your own enterprise in this state is to submit an application to the canton. This is the name of the administrative-territorial units - districts. For an application to be successfully considered, several conditions must be met. The applicant must:

• possess entrepreneurial experience and professional qualities;

• to provide local residents with a certain number (depending on the size of the future organization) of jobs;

• consider whether the region needs to open commercial structure in this area;

• make a significant investment;

• to prove that the work of the company will positively and effectively influence the country’s economy for a long time;

• draw up a cooperation agreement with local companies.

Procedures in cantons

In general, a citizen of any state can establish Swiss company. In the event that the founder opens a company here, but lives outside the Swiss Confederation, he/she needs to hire local representatives with a physical address in this country. Also, the conditions for doing business in Switzerland for non-residents prohibit foreign capital holders from owning land without permission.

LLC in this jurisdiction is very common. Establishing an LLC has many advantages and is also one of the most preferred ventures for foreign capital holders.

Peculiarities are as follows.

First step should be to create a detailed plan. This section details what services your firm provides once it is established. Some of the key things to include in business-plan are:

• the purpose of your organization and the services it will provide;

• expected company size;

• your target audience;

• the structure of your firm (eg shareholders, board structure, etc.).

Once you have defined your plan, you need to register a name. Requirements here may vary based on organization type. General rules for company names:

• uniqueness and originality;

• you can not use straight profanity;

• it must not undermine organization.

Once you have chosen a name that complies with norms set for your type of operations, and organized and completed the application, the application will be reviewed by the regulatory authorities. If approved, the firm will be matched in state commercial registry.

In case you have any questions regarding the nuances of doing business-operations in Switzerland, ask Eli-Swiss experts directly. They’ll promptly answer you and advise you in detail. You may also get the latest information about the possibilities of opening a company in European countries.