For business stability, Switzerland has long been considered to be the gold standard. Your company has low corporate taxes, a reputation that opens doors worldwide, and an economy that remains stable even when the rest of the world wobbles. For many foreign companies, opening a store here is the ultimate aim.
Many people, however, are kept from firing by a prevalent misbelief. The conviction is that Swiss administration is insurmountable or that you must physically go to Zurich or Geneva to accomplish something.
That used to be accurate. It has ceased to be.
As a non-Swiss, registering a firm in Switzerland is quite doable without moving. Using the right approach and contemporary digital tools, most of the process can be managed from a distance. This book clarifies precisely how to negotiate the Swiss system, pick the appropriate legal structure, and launch your company.
Why Switzerland is Still the Top Choice?
Before we get into the paperwork, let's look at why you are doing this. It goes beyond just having "AG" or "GmbH" after your company name.
Switzerland offers a strategic advantage that is hard to replicate elsewhere. The corporate tax rates vary by canton but are generally among the lowest in Europe. You are looking at a system that respects privacy and intellectual property rights deeply.
For foreign investors, the biggest draw is often credibility. When clients see a Swiss address, they assume quality and reliability. It is an instant brand lift.
The Two Main Company Types: AG vs. GmbH
You have two primary options when incorporating. Choosing the right one depends on your capital, your privacy needs, and how you want your business perceived.
The GmbH (Limited Liability Company)
This is the most common form for smaller businesses and startups. It is similar to an LLC in the US or an Ltd in the UK.
* Minimum Capital: CHF 20,000. This must be fully paid in.
* Shareholder Visibility: Shareholders are listed in the public commercial register. If privacy is your top priority, this might be a drawback.
* Structure: It requires less administrative upkeep than an AG.
The AG (Public Limited Company)
The Aktiengesellschaft (AG) is the heavyweight champion of Swiss corporate structures. It is generally preferred for larger enterprises or those seeking higher anonymity.
* Minimum Capital: CHF 100,000. You only need to pay in 20% of this, but it must be at least CHF 50,000. So effectively, you need 50k to start.
* Shareholder Visibility: Shareholders are not listed in the public registry. This offers a significant layer of privacy.
* Perception: An AG often commands more respect in international banking and trade.
The Residency Hurdle (and How to Clear It)
Here is the part that trips up most foreign entrepreneurs.
Swiss law requires that at least one person with signature authority for the company must be a resident of Switzerland. This person does not have to be a shareholder. They do not have to own the company. They just need to be a director or manager who lives there.
If you plan to move to Switzerland, you can fill this role yourself. If you plan to stay in London, New York, or Dubai, you will need a nominee director.
This is a standard service in Switzerland. A local director fulfills the legal requirement while you retain ownership and operational control. It is a clean, compliant way to run a Swiss company from abroad.
Step-by-Step Registration Process
Once you have your capital ready and your structure picked out, the actual formation process moves relatively quickly. It usually takes two to three weeks from start to finish.
1. Name Check and Reservation
Switzerland has strict rules about company names. Your name cannot be misleading, and it must be unique. If you are forming an AG, you have more flexibility. If you are forming a GmbH, the name is also generally flexible but must not conflict with existing trademarks.
We always recommend running a check with the Federal Commercial Registry right away to ensure your desired name is available.
2. Opening a Consignment Account
You cannot just wire money to a notary. You need to open a temporary capital contribution account (a blocked account) with a Swiss bank.
You transfer your share capital (CHF 20,000 for GmbH or CHF 50,000+ for AG) here. The bank holds it and issues a confirmation letter. You need this letter to prove to the notary that the money exists.
For foreigners, this step can sometimes be tricky due to compliance checks. Working with a provider who has established banking relationships speeds this up significantly.
3. Drafting the Articles of Association
This is your company's constitution. It outlines the purpose of the business, the capital structure, and the organization.
You need to be precise here. The "purpose" clause defines what your company can and cannot do. If you make it too narrow, you might need to pay to amend it later. If you make it too broad, the registry might reject it.
4. The Public Deed of Incorporation
This is the official birthday of your company. You (or your representative) go to a Swiss notary. They review the Articles of Association and the bank capital confirmation.
If everything looks good, they notarize the deed. If you are not in Switzerland, you can grant power of attorney to your incorporation partner to sign this for you. You do not need to fly in for a 15-minute meeting.
5. Commercial Register Entry
Once the notary signs off, the documents go to the local Commercial Registry office. They review everything one last time.
Once they approve it, your company is published in the Swiss Official Gazette of Commerce. At this exact moment, your company becomes a legal entity. The blocked capital account is released, and the money is transferred to your regular business operating account.
6. VAT and Social Security
If your company expects to generate more than CHF 100,000 in annual revenue, you must register for VAT. This is not optional.
You also need to set up social security if you have employees. Even if you are the only employee, you generally need to account for social contributions.
Banking for Foreign-Owned Swiss Companies
Getting the company registered is one thing. Getting a bank account can be another battle entirely.
Swiss banks have become extremely cautious over the last decade. They have strict compliance procedures for companies owned by non-residents. If you walk into a major bank branch in Zurich without an introduction, you might face a long vetting process or a rejection.
However, the landscape is changing. There are now excellent digital banking solutions and fintechs that cater specifically to international business. They offer Swiss IBANs and are often much faster to set up than traditional legacy banks.
Don't let the banking fear stop you. It is manageable if you know which institutions are friendly to foreign owners.
Ongoing Compliance and Maintenance
Owning a Swiss company is not a "set it and forget it" situation. You have annual obligations.
You must file a tax return every year. You need to maintain proper accounting records. If you have a nominee director, you need to maintain that relationship to keep your local representation valid.
The good news is that the Swiss government works well. You're not working with a disordered system. Dates are certain. Rules make sense. Compliance is simple if you remain organized.
Final Thoughts on Swiss Incorporation
For a foreigner, starting a business in Switzerland is a wise step. It sends the message to the world that you really want to run your company. Provided you have the money and the correct advice on the residency requirement, the obstacle to entry is less than most people imagine.
You need not negotiate the Italian, German, or French forms on your own. You don't have to physically relocate. All you have is a strategy.
At Swiss Incorporated AG, specializes in helping foreign business owners to enter the Swiss market smoothly. You require a partner who may manage local residency standards, negotiate banking problems, and guarantee compliance while you concentrate on expansion—not only paperwork. Our remote-friendly method will have your Swiss AG or GmbH operating quickly, whether you need to change from a provider not meeting expectations or you're seeking a free incorporation kit.
