How to Start a Business in Switzerland

The Swiss franc.

The economic policies of Switzerland are based on the Federal Constitution's principles, guaranteeing free trade and industry. Switzerland has been forced to build its economy on foreign trade due to having limited surface area and virtually no natural resources. Swiss-company shareholders need not be Swiss citizens or companies. Switzerland's currency is called the Swiss Franc (shown as "CHF"). Its conversion to the US dollar (USD) is approximately: $1.00 USD = CHF 1.075. The Swiss currency, CHF, will be used here.

Things You'll Need

• Articles of association
• Stampa Declaration form
• Lex Friedrich Declaration form
• Escrow account
• Company bank account
• Social security insurance system registration

Instructions

1. Create articles of association for the company and have a notary witness as all parties sign the articles. Along with the articles, you will need to sign and submit the Stampa Declaration Form (a company registration application form) and the Lex Friedrich Declaration Form (permits foreigners to purchase real estate) to the Register of Commerce; the filing fee is about CHF 50. The forms are available online, and are required for incorporation. A name check is not needed but highly suggested. This step can range from a minimum of CHF 500 to a maximum of CHF 20,000 (determined by 0.1 percent of the company's capital). This does not include the CHF 100 that it will cost to legalize the signatures (for five signatures). This process takes about seven days.

2. Deposit the paid-up capital into an escrow account with a bank, which will transfer the capital to the company bank account after the successful completion of registration at the Commercial Registry. Bank fees range from CHF 200 to CHF 2,000, and there is a mandatory CHF 200 bank fee for the transfer of money from the escrow account. This step only takes one day to complete.

3. File the deed that certifies the articles of association to obtain an identity from the legal register. The registry publishes the articles of association along with the statutes, and shareholders' names, in the Swiss Commercial Gazette within five to nine days. This entry gives the entity a legal personality, and secures the company's trade name, documents such as the Stampa and Lex Friedrich declaration forms (from Step 1), and registration for income tax payment. The cost of this step varies depending on the company's capital. A company with capital of CHF 20,000 will be required to pay CHF 600, and the maximum is CHF 10,000.

4. Submit stamp tax payment to the post office after receiving the mail assessment. The cost is 1 percent of capital, with the first CHF 1 million exempt. After you have incorporated the company with the commercial registry, you can file an application with the Federal Tax Administration. Since not all companies are subject to taxation, a procedure exists to determine whether the company is taxable. This step takes only one day to complete.

5. Register for the value tax added system (VAT). This process requires no fee and takes just one day to complete (within a month of being subject to VAT). Tax-exempt assessment also pertains to this step.

6. Enroll the employees of your company into the social insurance system. The cantonal social security office will send a registration application for the enrollment of the company's employees into the social security insurance system. This system offers disability insurance, retirement and survivors' insurance benefits, retirement pension, and occupational accident insurance. This step takes just one day, and there is no fee.

Tips & Warnings

• Swiss business hours are 8:00 to 12:00 and 14:00 to 17:00 (2 p.m. to 5 p.m.), Monday through Friday, with a maximum of 45 hours per workweek.

• Remember your etiquette. In Switzerland the handshake is the customary form of greeting for every person you meet. The Swiss are known for their ability to get the best possible deal in negotiations through their exhibition of quiet confidence. Avoid the pressure sell.

References

• Doing Business: Starting a Business in Switzerland
• Start Up Overseas: Why Start a Business in Switzerland?
• Switzerland 4 You: Setting up a Business in Switzerland

Resources

• Swedish Chamber of Commerce: Doing Business in Switzerland