Founding a Swiss company: A comprehensive guide for entrepreneurs

Founding a company in Switzerland is an exciting undertaking that offers both challenges and immense opportunities. Switzerland, known for its stable economy and entrepreneurial friendliness, is an ideal location for setting up a new company. Within Switzerland, the canton of Zug in particular is a popular company headquarters, offers tax advantages and a strategic position in the heart of Europe.

Costs of setting up a company in Switzerland

One of the first questions that potential entrepreneurs ask is: “How much does it cost to set up a company in Switzerland?” The costs vary depending on the type of company and the canton. The costs include start-up capital, administrative fees and tax advice. A GmbH, for example, requires a minimum capital of 20,000 CHF, while a public limited company requires at least 100,000 CHF. There are also notary fees, bank fees for opening the share capital account, registration in the commercial register and any consulting costs. Overall, you should expect a minimum of 2,000 Swiss francs here.

Sole proprietorship, or corporation: Which legal form suits my company?

The choice between an AG, GmbH and a sole proprietorship depends on various factors, such as the desired liability protection, tax implications and the desired flexibility in management. A GmbH offers more protection, but requires higher initial capital and more administrative effort. An AG requires more share capital, but allows more anonymity on the part of the shareholders. A sole proprietorship is easier to set up and manage, but offers less protection.

When is an AG suitable instead of a GmbH?
Who is liable in a collective society?
Do I have more tax benefits as a sole proprietorship or as a GmbH?

An overview of the legal forms of companies in Switzerland, which will help you make this decision well informed, can be found here.

How to start a company in Switzerland?

Steps to setting up a company in Switzerland

1. Deciding the legal form
   The process begins with the decision on the legal form of your company. To do this, it is important to understand the differences between legal forms in order to make the appropriate considerations and to be able to make the right decision.
   
   
2. Finding a name
   This is followed by the naming process. Here, you should not only make sure that the name fits your company well, has no negative connotations, etc., but you should also check early on that the name has not already been taken. However, this can be easily done by a quick search in the Zefix Swiss company register.
   
   
3. Create a business plan
   This is only required for certain types of companies. To set up a GmbH, for example, they do not need it, unless it is needed for borrowed capital to finance the founding of the company. So in this case, this step is where you create the business plan. Insider tip: Keep it short, even bankers don't like to read and mainly want to see well-supported figures.
   
   
4. Choose your company home
   The next step is to find a domicile address. Where should your official company address be? If you live in Zug or are considering moving there, there are plenty of options here. For example, you can rent a virtual office, which is a cost-effective solution. Office Group Zug offers you numerous solutions tailored to your situation.
5. Opening the capital deposit account
   The next step is to choose a bank and contact its corporate client advisor, or submit the appropriate online form. Here you will be asked for some information about your company (name, legal form, number of shares and shareholders, KYC documents, declaration of domicile acceptance, etc.). As soon as the account is opened and you have deposited the share capital, you will receive the capital payment confirmation, which you will need in the next step.
6. Registration in the commercial register
   This is done after going to the notary, who notarizes all required documents and then arranges for them to be registered with the commercial register office. Insider tip: There are numerous notaries in Zug, some of whom charge very high notary fees (around 2,000 CHF are quickly collected here for a few stamps). Furthermore, some notaries are very slow and may cause delays in your incorporation process. We are also happy to advise you here so that you stay within your budget and schedule.
   
   
7. VAT registration
   If your company meets certain requirements, you can or must also register your Swiss company for VAT. You can find out in this article when exactly this is the case.
8. Soviet insurance AHV, UVG, BVG
   This is also only necessary if your company meets certain requirements, for example if you employ employees. In this case, however, registration with social security is mandatory. Here you read about AHV registration for newly established companies.

Checklist for setting up a company in Switzerland

A checklist for setting up a company in Switzerland can be very helpful so that you have all the necessary founding documents together when you go to the notary and can start your business model as quickly as possible.

Checklist of documents required to set up a company in Zug:

Make sure you meet all legal requirements, prepare the necessary documents, and learn about Swiss taxes and insurance.

Time frame for setting up a company

The duration of setting up a company in Switzerland may vary. It usually takes a few weeks, from registration to entry in the commercial register. The exact time depends on various factors, such as the complexity of the business model and the speed of the authorities. We are happy to help you reduce this time to the absolute minimum.

Further considerations for setting up a company

Market research and business strategy

• Thorough market research and a sound business strategy are essential.
• Understand your target audience and the market to be successful.

Financial planning and budgeting

• Detailed financial planning is crucial for a company's success.
• Take into account all possible costs and plan a reasonable budget.

Who can set up a company in Switzerland?

In principle, anyone can set up a company in Switzerland, provided they meet the legal requirements. This applies to both Swiss citizens and foreign nationals, although the latter require certain residence and work permits.

Turnover without business registration possible?

In Switzerland, there is a turnover limit above which you have to register a business. This limit is currently 100,000 CHF. This means that you can generate sales of up to this amount without a business registration. This aspect is particularly relevant for small business owners and freelancers who want to build up their business activities slowly.

Challenges and solutions when setting up a company in Switzerland

Legal challenges

Understand legal requirements and seek professional help when needed. Feel free to contact our competent team for a non-binding consultation, as well as for recommendations for specialised lawyers and legal experts.

Sources of funding

Explore various financing options, including loans, investors, and grants. Here too, the Office Group Zug team can provide you with advice and assistance as well as good contacts to (private) banks and investors.

Conclusion

Setting up a company in Switzerland can be a worthwhile decision. With the right planning, knowledge of legal requirements and a clear business plan, your company, especially with headquarters in Zug, is perfectly designed to be successful.

If the step-by-step explanation above and checklist for setting up a company in Zug has only given you a headache, please feel free to contact us. We are happy to take on the bureaucratic and administrative tasks associated with founding a company. And since we have done this many times before, we can of course also help you with any questions related to setting up a company in Zug, without any obligations — from entrepreneur to entrepreneur.

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