How to Register a Business in Switzerland

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In terms of the world view, business in Switzerland is known primarily for two things: watches and banking. While these are certainly respectable businesses, there are a vast number of other business establishments in Switzerland. Everything from bakeries to transportation can be found in Switzerland, and there are literally thousands of different types of businesses that one can start there. Opening your own business in Switzerland can be slightly more complicated than in other countries, but if you follow these simple steps, you’ll be able to start a business in Switzerland in record time.

Things You'll Need

• Business plan
• Startup capital
• Identification

Instructions

1. Write a business plan. Regardless of what type of business you plan to start, and no matter where you plan to start it, the first step to any successful business is to write a business plan. This will detail every aspect of your business and keep you on track as the months go by. The Internet is full of free business plan templates. Find one that looks good to you and then use it as a guide to write your own. It may seem like a time consuming task for someone who is anxious to get their business up and running, but writing a business plan is the most important step in the process and is time well spent.

2. Decide on what kind of business structure you will need for the business you start. The main options in Switzerland are to start a business as a Sole Proprietor, as a Limited Liability Company, or as a publicly traded PLC Corporation. For most small businesses, registering as a sole proprietorship is adequate. If multiple people are starting the business together, then an LLC is probably your best bet. A PLC is used for companies who will sell stocks on the stock exchange.

3. Write your Articles of Association. The Articles of Association will need to be drafted and signed by all company officers, in the presence of a Notary Public. The notary should have templates available that can simply be filled out with the correct information. This works fine for simple business structures, but complex partnerships may require that custom Articles of Association be written.

4. Create an escrow account for your starting capital. This step is required for anyone who wants to start a business in Switzerland. The capital must be held in an escrow account before your business license will be registered. After your business has been registered and licensed, the bank will transfer the capital to your business bank account. There will be a fee of 200 CHF assessed for the transfer of funds into your business bank account.

5. Once Steps 3 and 4 have been completed, you should file your Articles of Association, along with proof of the escrow account, with the Register of Commerce. The Register will also ask you to fill out a Stampa Declaration Form to declare any other investments, as well as a Lex Friedrich Declaration Form for any foreigners involved in the business. It will take about a week for your paperwork to be processed and for your to be issued a business license in Switzerland.

6. Register for VAT. You can register to pay your Value Added Tax after all of your paperwork has been processed by the Register of Commerce, also referred to as the Commercial Registry. Not every company is required to register for VAT, but those that are can fill out an application for VAT registration at their local Federal Tax Administration office.

7. Enroll employees in the Social Insurance System. After all previous steps have been completed, Ausgleichskasse (the Cantonal Social Security Office) will send an application to the registered business owner or manager. The application will be for registering employees in the social insurance system. This is an important step because it includes all of the benefits of retirement and survivors insurance, retirement pension accounts, disability insurance and occupational accident insurance.

Tips & Warnings

• Some types of businesses may be required to pay a tax of 1 percent on any starting capital over 1,000,000 CHF. If this tax applies to your business, you will receive a notice in the mail instructing you to pay your tax at the post office or your bank.

Resources

• Checklist For Business Formation