Business

Switzerland — Business: Company Formation

Setting up a company in Switzerland typically means choosing between a GmbH/Sarl (limited liability company, minimum capital CHF 20,000) or an AG/SA (corporation, minimum capital CHF 100,000, of which at least CHF 50,000 must be paid in), both registered with the cantonal Commercial Register (Handelsregister) after notarization of the founding deed. Formation typically takes 1-3 weeks once documents and capital are in place, and at least one director/signatory with sole signing authority must be resident in Switzerland for most company forms.

Swiss Commercial Registry Office (Handelsregisteramt) / SECO business guidance · Last verified 2026-07-20

Why This Matters

The requirement for a Switzerland-resident signatory is the single biggest structural hurdle for foreign entrepreneurs incorporating remotely — many use a local fiduciary/nominee director service to satisfy this before they've personally relocated.

Key Facts

  • GmbH/Sarl (limited liability company): minimum share capital CHF 20,000, fully paid in at formation — the most common structure for small/medium businesses and solo founders.
  • AG/SA (corporation): minimum share capital CHF 100,000, of which at least CHF 50,000 (or 20%) must be paid in at formation — used for larger businesses or where the AG's greater prestige/flexibility for raising capital matters.
  • At least one person with individual or joint signing authority resident in Switzerland is required for most company forms — foreign founders without Swiss residency commonly use a fiduciary/nominee director service to meet this.
  • The founding deed must be executed before a notary, then registered with the cantonal Commercial Register (Handelsregister/registre du commerce).
  • Formation typically takes 1-3 weeks from notarization to Commercial Register entry, assuming capital is deposited in a capital deposit account (Kapitaleinzahlungskonto) beforehand.

Steps

  1. Choose a legal form — GmbH/Sarl for most small/medium businesses; AG/SA for larger capital needs or prestige.
  2. Deposit share capital — Open a capital deposit account at a Swiss bank and deposit the minimum required capital before notarization.
  3. Notarize the founding deed — Articles of association and founding documents are executed before a Swiss notary.
  4. Register with the Commercial Register — Submit the notarized deed for entry in the cantonal Handelsregister — this creates the legal entity.
  5. Register for VAT, social security, and pension — Complete follow-on registrations with ESTV (VAT if applicable), AHV compensation office, and pension fund (BVG) once employees are hired.

Costs

  • GmbH/Sarl minimum capital: CHF 20,000 (fully paid in)
  • AG/SA minimum capital: CHF 100,000 (at least CHF 50,000 paid in)
  • Notary and Commercial Register fees: Typically CHF 1,500-3,500 combined

Timelines

  • Company formation (notarization to registration): 1-3 weeks

Required Documents

  • Articles of association
  • Capital deposit confirmation from bank
  • Notarized founding deed
  • Proof of Swiss-resident signatory

Common Mistakes

  • Not arranging a Swiss-resident signatory in advance, which can stall formation for foreign founders without local presence.
  • Underestimating the fully-paid-in capital requirement for a GmbH (CHF 20,000) as just a nominal figure rather than actual cash needed upfront.
  • Choosing AG/SA for prestige without needing the higher CHF 100,000 capital commitment a GmbH/Sarl would have avoided.

Related Topics

limited-companysole-proprietorshipcorporate-tax
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