Can a Foreigner Start a Company in Switzerland?

Yes, foreigners can start a company in Switzerland, but the process and requirements vary significantly based on your nationality and residency status.

• Simplified Access: Thanks to the Agreement on the Free Movement of Persons, EU/EFTA citizens enjoy nearly the same rights as Swiss nationals when it comes to setting up a business.
• Residence Permit: You will generally need to obtain at least a B residence permit for self-employed activity. This typically requires demonstrating your intention to be self-employed (e.g., with a business plan, initial business registration, or VAT number application) and registering with the relevant cantonal authorities.

• Stricter Requirements: Citizens from outside the EU/EFTA face more stringent conditions. Ideally, you should possess a C settlement permit (permanent residence) to have an unrestricted right to start a company.
• Special Authorization Needed: If you do not hold a C permit, you must apply to the cantonal authorities for permission. A crucial factor in this approval is demonstrating that your business will provide a significant and lasting positive impact on the Swiss economy. This often means generating jobs for Swiss residents, bringing substantial investment, or introducing innovative technologies. A robust and well-articulated business plan is essential to support your application.
• Permit Types: If approved, you might initially receive a B (residence) permit or an L (short-term) permit. These permits allow you to conduct business, sometimes with an initial trial period to prove the viability and economic benefit of your enterprise.
• Swiss Representation: For certain legal structures, such as a GmbH (limited liability company) or an AG (public limited company/corporation), it is a legal requirement to have at least one individual with residency in Switzerland who can legally represent the company.