Company Formation in Switzerland
Last updated: September 2026
Switzerland registered just over 50,000 new companies in 2025, the bulk of them GmbHs (the Swiss private limited company and the local equivalent of an LLC) with the statutory CHF 20,000 minimum capital. A Swiss company is not a cheap company. It is a credibility product: cantonal tax rates from 11.9% in Zug, zero withholding tax on outbound royalties, no WHT on ordinary interest, a functioning participation exemption, and a corporate register that counterparties in every OECD jurisdiction treat as investment-grade. The catch is the Swiss-resident director rule. Every GmbH and AG must have at least one signatory domiciled in Switzerland, the single constraint that shapes how non-resident founders structure the entity.
We form Swiss GmbHs and AGs end to end: name reservation, Articles drafting, Sperrkonto opening, notary, Handelsregister filing, VAT registration, and resident-director and registered-office arrangements where needed. Fixed price, fixed timeline, one point of contact.
| Quick facts | Value |
|---|---|
| Direct federal corporate tax | 8.5% flat (effective ~7.83% after deduction) |
| Local company form | GmbH (Gesellschaft mit beschränkter Haftung), equivalent of an LLC / private limited company |
| Combined effective CIT (federal + cantonal + communal) | 11.9% (Zug) to ~20.5% (highest cantons) |
| VAT (standard) | 8.1% — registration threshold CHF 100,000 worldwide turnover |
| Minimum share capital (GmbH) | CHF 20,000, fully paid before registration |
| Minimum share capital (AG) | CHF 100,000, at least CHF 50,000 or 20% paid |
| Minimum directors / shareholders | 1 director, 1 shareholder — at least one director must be Swiss-resident |
| Residency requirement | At least one signatory must be domiciled in Switzerland |
| Standard formation time | 10–20 business days (Zug and Nidwalden faster) |
| Government fees | Included in our packages |
| Language of filings | German, French, Italian (per canton); English tolerated in supporting docs |
| Currency | Swiss Franc (CHF) |
| Commercial register | Handelsregister (cantonal) / Zefix national search |
Why Form a Company in Switzerland
Switzerland is not in the EU, not in the EEA, and not a passport for EU financial services. It wins on a different set of attributes.
Cantonal tax competition is real. The combined effective corporate rate swings from 11.9% in Zug to around 20.5% in Bern. That is a live arbitrage, not a marketing slogan. A holding company headquartered in Zug or Nidwalden pays materially less profit tax than an equivalent entity in France (25%) or Germany (~30%). Lucerne, Appenzell Innerrhoden, Schwyz, and Glarus all sit under 13% effective.
No withholding on royalties. No withholding on ordinary interest. Switzerland does not levy a WHT on outbound royalty payments, full stop. Ordinary interest paid to non-residents is also exempt (the 35% WHT applies only to bank deposits and Swiss-issued bonds). A Swiss IP-holding or financing company can pay royalties and arm's-length interest offshore without leakage.
Participation exemption with no holding period. Dividends from qualifying participations — 10% ownership or CHF 1m market value — are effectively tax-free under the participation relief. There is no minimum holding period and no subject-to-tax test on the subsidiary. Capital gains on qualifying participations held for at least one year are similarly exempt.
The banking system exists. Switzerland has roughly 240 banks including UBS, PostFinance, Raiffeisen, the 24 cantonal banks, and a deep bench of private banks. Banking substance matters for counterparties, for regulators, and for the family-office segment.
Schengen access. Switzerland joined Schengen in 2008. Directors and employees move freely within the 29-state area, which the UK cannot offer and which matters for sales-led businesses with European customer visits.
The trade-off is cost. Swiss formation is more expensive than UK, Estonia, or Poland. Share capital must be fully paid in cash before registration. At least one signatory must be Swiss-resident. Labour, office, and compliance costs run high. The jurisdiction rewards substance; it punishes shell structures.
Why are so many headquarters in Switzerland?
Nestlé, Novartis, Roche, ABB, Glencore and Zurich Insurance are Swiss-headquartered, and Google runs its largest engineering site outside the United States in Zurich. The pull is measurable. Switzerland has led the WIPO Global Innovation Index every year since 2011 and carries a AAA sovereign rating from all three agencies. The franc is a reserve currency that has strengthened against the euro and the dollar since 2000. The bilateral agreements with the EU give free movement of persons and tariff-free trade in goods without EU membership. Add cantonal tax competition, the participation exemption and 100 plus treaties. A group headquarters in Zug or Basel pays less tax with more legal certainty than in any neighbouring capital.
If price beats prestige for your project, our guide to the cheapest countries to form a company in Europe lists the low-capital EU alternatives.
Company Types Available in Switzerland
Swiss company law gives you two primary limited-liability forms and three minor variants. Most clients pick the GmbH or the AG.
Gesellschaft mit beschränkter Haftung (GmbH / Sàrl / Sagl)
The default form for SMEs, holding companies, and most non-resident incorporations. Minimum share capital CHF 20,000, fully paid in cash or in kind before registration. One shareholder and one managing officer suffice; the latter must be domiciled in Switzerland. Quotaholders appear on the public Handelsregister with their names — this is unusual compared with an AG and is the main reason some founders opt for the AG for privacy. Statutory audit only above the size thresholds (CHF 20m balance sheet, CHF 40m turnover, 250 employees — two of three over two consecutive years).
What does GmbH mean?
GmbH stands for Gesellschaft mit beschränkter Haftung, German for "company with limited liability"; the French Sàrl and Italian Sagl are the same form in the official languages. It is the Swiss private limited company under the Code of Obligations and the local equivalent of an LLC. SMEs, holding companies and non-resident founders use it, with quotaholders listed in the Handelsregister.
Aktiengesellschaft (AG / SA)
The classic Swiss stock corporation. Minimum share capital CHF 100,000, of which CHF 50,000 or 20% (whichever is higher) must be paid before incorporation. Shareholders do not appear on the Handelsregister (unlike the GmbH) — ownership is recorded in the internal share register only, though beneficial ownership is separately reportable under Article 697j of the Swiss Code of Obligations. One director minimum, at least one resident in Switzerland with single signatory authority. Used for larger operating businesses, listed vehicles, group holdings, and cases where quotaholder privacy matters.
How do you form a joint stock company (AG) in Zurich or Zug?
A Swiss joint stock company is the AG. Formation follows the same route in Zurich, Zug or elsewhere. You need Articles of Association, a Sperrkonto holding CHF 50,000 of the CHF 100,000 capital, a notarial public deed, and entry in the cantonal Handelsregister. Zug enters it in 24 to 48 hours; Zurich can take two weeks. One director must be Swiss-resident.
Branch (Zweigniederlassung / Succursale)
A permanent establishment of a foreign company. Not a separate legal person; liability flows to the parent. Required to register with the Handelsregister at the canton of the branch, to appoint a Swiss-resident representative, and to file Swiss accounts for branch activity. Commonly used by foreign banks, insurers, and large industrial groups as an alternative to subsidiarisation.
Kollektivgesellschaft / Kommanditgesellschaft
Swiss general and limited partnerships. No minimum capital. Unlimited liability for the general partners. Used mainly by professional partnerships (law, audit, notary) or for fund structures. Not a typical cf24 client choice.
| Form | Min capital | Paid-in | Liability | Directors | Common use |
|---|---|---|---|---|---|
| GmbH | CHF 20,000 | 100% at formation | Limited | 1 (Swiss-resident) | SMEs, holdings, non-resident subsidiaries |
| AG | CHF 100,000 | CHF 50,000 or 20% | Limited | 1 (Swiss-resident) | Listed cos, larger groups, privacy-sensitive holdings |
| Zweigniederlassung | n/a | n/a | Parent's | Swiss representative | Foreign branch presence |
| Kollektivgesellschaft | None | n/a | Unlimited | Partners | Professional partnerships |
| Kommanditgesellschaft | None | n/a | Mixed | Partners | Fund structures |
If your timeline is urgent and a 10–20 business day incorporation will not fit, our sister brand offers ready-made Swiss GmbH vehicles — pre-incorporated, dormant, and transferable in days. For new substantive business, fresh formation through this service is usually the right answer; shelf companies serve specific time-sensitive acquisition, tender, or banking deadlines.
Step-by-Step Formation Process
The end-to-end timeline assumes a GmbH formed in Zug or Lucerne with a non-resident founder and one nominee Swiss-resident managing officer. As your formation agent in Switzerland, we file every step below on your behalf. The registry is the cantonal Handelsregister (commercial register), searchable nationally through Zefix, which enters the company and issues its UID. Swiss sources call the procedure GmbH-Gründung, so the founding or foundation of a limited liability company in Switzerland means exactly these seven steps.
- Canton selection and name reservation. We recommend the canton based on your substance plan, tax profile, and banking preference. Zug and Nidwalden for lowest tax; Zurich or Geneva for banking and talent; Lucerne or Schwyz for balance. The proposed name is checked via Zefix (the national register portal) and cleared for trademark conflicts. Allow two or three alternatives.
- Articles of Association and founder pack. We draft the Articles, the shareholders' resolution, the declaration of acceptance for the managing officer(s), and the founder's declaration. The share capital structure, signing rights, domicile, and purpose clauses are finalised here. Each founder and director provides passport, address proof, and a statement of beneficial ownership.
- Sperrkonto opening. The paid-up share capital is deposited into a Swiss bank blocked account (Sperrkonto). The bank issues a Kapitaleinzahlungsbestätigung confirming the deposit. Non-resident founders often route this through a specialised bank — Hypothekarbank Lenzburg, Valiant, or a cantonal bank — because some universal banks will not open a Sperrkonto before the operating account is approved. This step is the single biggest bottleneck in the timeline: three to ten business days, bank-dependent.
- Notarial deed of incorporation. Swiss law requires a public deed. The founders (or their attorneys under power of attorney) sign before a Swiss notary. The notary verifies identity, reads the Articles, records the contributions, and issues the deed. For non-resident founders we execute by PoA — you sign an apostilled PoA in your home country, we attend in person.
- Handelsregister filing. The notary or our office files the Handelsregister application with the cantonal commercial register (Zug, Zurich, Geneva, etc.). Processing time ranges from 24–48 hours in Zug to up to two weeks in slower cantons. On entry, the company exists as a legal person and receives its UID (format CHE-123.456.789).
- Sperrkonto release. On confirmation of the Handelsregister entry, the bank converts the Sperrkonto into the operating account and releases the capital. Until release, funds are not available to the company.
- Tax and post-incorporation registrations. Federal and cantonal tax registration is largely automatic via the Handelsregister. VAT registration with the Federal Tax Administration is mandatory where annual worldwide turnover exceeds CHF 100,000 (voluntary below that). AHV/social security registration applies once the company pays Swiss-resident salaries. We file all three in parallel.
Realistic lead time from engagement to operating company: 10 to 20 business days for a clean non-resident case, 5 to 7 days for a Swiss-resident founder using a fast canton.
How to register a company in Switzerland in 2026
Registering a company in Switzerland in 2026 runs under the revised corporate law in force since 1 January 2023. Share capital may now be denominated in euro, US dollars, pounds sterling or yen instead of francs, provided the amount matches the CHF minimum at formation. General meetings may be held virtually if the Articles allow it. The public deed before a notary and the cantonal Handelsregister entry remain mandatory, and Zefix remains the free national search.
What is the Swiss company registration number?
The Swiss company registration number is the UID (Unternehmens-Identifikationsnummer), format CHE-123.456.789, assigned by the Federal Statistical Office when the Handelsregister enters the company. The same number with the suffix MWST serves as the VAT number, and the cantonal register adds its own file number. Any company's UID, seat, board and signatories can be checked free of charge on Zefix.
Required Documents
For each founder, shareholder, and director we need:
- Passport (certified copy), plus for directors a live identity check
- Proof of residential address dated within the last three months — utility bill, bank statement, or government letter
- CV summary for directors (bank compliance)
- Declaration of beneficial ownership (Article 697j of the Swiss Code of Obligations)
- For corporate shareholders: certificate of incorporation, register of directors, UBO declaration, good-standing certificate — apostilled
You confirm: registered office address (we provide in Zug, Zurich, Geneva, or Lucerne if you do not have a Swiss address), share capital currency and denomination, purpose clause, and signing rights structure.
Apostille and certified translation into German, French, or Italian (per canton) is generally required for foreign-language corporate documents used in the deed. Founders sign by power of attorney where attendance is impractical; the PoA itself is apostilled in the country of execution.
Costs and Timeline
Swiss formation is a paperwork-heavy process with multiple moving parts — notary, bank, canton. Cost varies with canton, share capital size, whether you need a resident director, and the urgency of the bank account.
Our packages cover drafting, notarial attendance (by PoA), Sperrkonto coordination with a cooperative Swiss bank, Handelsregister filing, UID issuance, VAT registration where applicable, and delivery of the certificate pack. Add-ons include resident-director service, registered office, tax and accounting setup, and introductions to UBS, PostFinance, Raiffeisen, or a cantonal bank. Contact us for a fixed-price quote — government fees and notarial fees are included; no surprise invoices after filing.
How much does it cost to start a company in Switzerland?
Six items make up the price. The notary's fee for the public deed, set by cantonal tariff. The Handelsregister entry charge. The bank's charge for the Sperrkonto. The apostille and certified translation of foreign documents. The resident director and registered office, both recurring. And the paid-in share capital, which is not a cost because it stays in the company. Federal issuance stamp duty of 1% applies only to share capital above the CHF 1 million threshold, so a GmbH or a standard AG pays none.
Typical timeline from KYC clearance:
| Day | Milestone |
|---|---|
| 0 | Engagement, KYC submitted |
| 2 | KYC cleared, Articles drafted, PoA prepared |
| 3–8 | Sperrkonto opened, capital deposited |
| 9 | Notary attendance and deed execution |
| 10–14 | Handelsregister entry and UID issuance |
| 15–20 | Sperrkonto release, operating account active, VAT registration |
Tax Overview for Swiss Companies
Three taxes drive the total profit burden on a Swiss company: federal income tax, cantonal/communal profit tax, and — for large multinationals from 2024 — the Pillar Two top-up.
Federal corporate income tax is 8.5% (rate applicable in 2026) on profit after tax, translating to an effective rate of approximately 7.83% because the tax is itself deductible. The federal rate is flat and uniform across all 26 cantons.
Cantonal and communal profit tax is where the real variation sits. The combined federal + cantonal + communal effective rate ranges from around 11.9% in Zug to approximately 20.5% in the higher-tax cantons. Zug, Nidwalden, Lucerne, Appenzell Innerrhoden, Schwyz, Glarus, and Obwalden all sit under 13% effective. Zurich is around 19.7%, Geneva around 14.7% after the STAF reform, Bern around 20.5%.
VAT is 8.1% at standard rate (unchanged from 1 January 2024 through at least 2027 — a proposed 0.7 percentage point increase has been delayed by Parliament to no earlier than 1 January 2028). Reduced rate 2.6% on essentials, 3.8% on lodging. The registration threshold is CHF 100,000 of worldwide turnover, which means foreign e-commerce and SaaS businesses servicing Swiss customers cross the threshold quickly. From 1 January 2026, online platform operators are jointly liable for VAT on sales made through them.
Withholding tax on dividends is 35%. This is the Swiss particularity. Domestic dividends are grossed up and withheld at 35%, reclaimable by Swiss-resident recipients and reducible to 0% for EU parents under the Swiss–EU agreement on automatic exchange of information (10% shareholding, two-year holding period), or to 5% / 15% under most double-tax treaties. Structures are engineered around this WHT; it is not optional.
Withholding tax on ordinary interest is 0%. Withholding tax on royalties is 0%. Both are unusual in Continental Europe and drive IP- and finance-holding substance into Switzerland. The 35% Swiss WHT does apply to bank-deposit interest and to interest on Swiss-issued bonds.
Participation exemption. Dividends and capital gains from qualifying participations (10% ownership, or CHF 1m market value for dividends; one-year holding period for capital gains) are effectively exempt under the participation relief. No subject-to-tax test on the underlying subsidiary.
OECD Pillar Two. Switzerland introduced a Qualified Domestic Minimum Top-up Tax on 1 January 2024 and the Income Inclusion Rule on 1 January 2025. Both apply only to multinational enterprises with global annual turnover of at least EUR 750m — approximately 99% of Swiss companies are unaffected. First GloBE Information Return filings are due 30 June 2026.
Capital tax is a small cantonal tax on equity, typically 0.01% to 0.5% depending on canton. Many cantons credit the capital tax against the profit tax.
Switzerland has over 100 double-tax treaties in force, including with all EU member states, the US, China, India, Gulf states, and most of Latin America.
Banking for Swiss Companies
Swiss business banking is a two-speed market. Universal banks (UBS, Raiffeisen, ZKB) dominate the top end and apply thorough KYC. Specialised banks and cantonal banks handle most new incorporations.
UBS is the default flagship option after the 2023 merger with Credit Suisse. Excellent counterparty reputation internationally. Non-resident-controlled entities face selective onboarding; UBS typically expects either material Swiss substance (resident shareholder with ≥20%, Swiss operating team) or a private-banking relationship with the ultimate owner (indicative CHF 500k+ deposits). The brand carries weight with foreign counterparties.
PostFinance is the state-backed retail and SME bank. Very accessible for Swiss-registered GmbHs and AGs with moderate deposit sizes. Straightforward onboarding for companies with a Swiss-resident signatory and standard business activity. Multi-currency accounts available.
Raiffeisen is the cooperative banking network — the second-largest domestic deposit-taker after UBS. Strong for local SMEs, weaker for cross-border non-resident-owned entities, where documentation requirements are stricter.
Zürcher Kantonalbank (ZKB) is the largest cantonal bank and often the right fit for Zurich-registered operating companies. AAA-rated (state-backed). Onboards foreign-owned Swiss companies where substance is documented — office, local staff, clear business purpose.
Hypothekarbank Lenzburg and Valiant are mid-size banks that specialise in the Sperrkonto process and in SME business accounts for founders. Faster to open, more flexible on foreign ownership, and a common bridge during formation.
For cross-border heavy businesses, Swissquote, Dukascopy, and Alpian (a digital private bank licensed in 2022) offer multi-currency accounts and digital onboarding — useful complements to a traditional bank relationship.
Swiss banking onboarding for non-resident-controlled entities typically takes 3–6 weeks end-to-end, with source-of-funds and source-of-wealth documentation the key compliance pillars. Opening the Sperrkonto is faster (3–10 business days) because its only function is to hold the paid-up share capital until Handelsregister entry.
Nominee Director Services in Switzerland
Swiss law requires at least one director or authorised signatory to be domiciled in Switzerland. This is the most common reason non-resident founders use a nominee resident director.
The requirement is structural, not cosmetic. Article 718 paragraph 4 of the Swiss Code of Obligations states that the AG must be represented by at least one person resident in Switzerland. Article 814 paragraph 3 mirrors the rule for the GmbH. This is a mandatory rule; there is no workaround by powers of attorney or by electronic registration. Compliance is checked at Handelsregister entry.
Nominee resident-director services are standard. The Swiss market has a deep supplier base of professional resident directors — accountants, lawyers, and corporate service providers licensed to sit on boards. The nominee's name is recorded on the public Handelsregister. A service agreement governs duties, liability, indemnification, and the scope of signing authority. Beneficial ownership remains with the client and is separately recorded in the company's internal share/quota register per Article 697j of the Code of Obligations and reported to the bank under the Anti-Money Laundering Act.
Substance matters for tax residency. A Swiss company managed exclusively from abroad risks being treated as dual-resident under foreign CFC or place-of-effective-management rules. A nominee director who attends board meetings, signs contracts, and participates in management decisions in Switzerland supports Swiss tax residency; a nominee who signs only formal filings does not. We structure our resident-director service to provide real management substance — board meetings in Switzerland, local signature authority, and participation in material decisions — consistent with the level of substance Swiss tax residency requires.
We provide nominee resident-director services where the structure is legitimate, disclosed to the bank, and supported by a KYC-compliant ownership chain. We do not provide nominee services where the intent is to obscure beneficial ownership from regulators, tax authorities, or counterparties.
Compliance and Reporting Obligations
Ongoing compliance for a Swiss company is lighter than in most EU states in one respect: annual accounts are not filed publicly. Everything else runs on the calendar below.
| Obligation | Deadline or rule |
|---|---|
| Annual accounts | Balance sheet, income statement and notes under Articles 957 to 960 of the Code of Obligations; kept for 10 years, not published |
| Ordinary general meeting | Within 6 months after the end of the financial year (Article 699 CO) |
| Audit | Limited audit by default; opting out is possible with 10 or fewer full-time employees and all shareholders' consent; ordinary audit above the thresholds in Company Types |
| Tax return (federal and cantonal in one return) | Filed with the cantonal tax administration by the cantonal deadline, extensions granted on request |
| VAT returns | Quarterly, due 60 days after the quarter; semi-annual under the net tax rate method |
| Withholding tax on dividends | Form 103 (AG) or Form 110 (GmbH) with the 35% remittance within 30 days of the dividend falling due |
| Share register and beneficial owner register | Kept at the company; a shareholder reaching 25% reports the beneficial owner within one month (Article 697j CO) |
| Handelsregister changes | Board, signatories, seat, capital and Articles amendments filed with the cantonal register |
A shareholder who fails to report the beneficial owner has voting and dividend rights suspended under Article 697m CO. Once salaries are paid, the company registers with the cantonal AHV compensation office and files an annual salary declaration. Our Swiss accounting partners handle the full calendar.
Hiring staff in Switzerland
Swiss labour law is liberal and most of it sits in Articles 319 to 362 of the Code of Obligations. A written contract is not compulsory but is the norm, and notice periods run one to three months by length of service under Article 335c. The Labour Act caps the working week at 45 hours for office and industrial staff and 50 hours for others. On payroll the employer registers with the cantonal AHV compensation office. It pays half of the 10.6% AHV/IV/EO contribution and half of the 2.2% unemployment insurance, plus the BVG pension and UVG accident premiums. EU and EFTA citizens work under free movement; third-country hires need a quota permit from the canton.
Forming a Swiss Company as a Non-Resident
A non-resident can hold 100% of a Swiss GmbH or AG and sit on its board. The one fixed rule is Article 718 (AG) and Article 814 (GmbH) of the Code of Obligations: at least one signatory must be domiciled in Switzerland. Non-resident founders satisfy it with the resident-director service described above.
A non-resident supplies a certified passport copy, proof of address dated within three months, a short CV for the bank, and the beneficial-ownership declaration under Article 697j. Corporate shareholders add apostilled incorporation papers with a certified translation into the cantonal language. The public deed is signed by our office under an apostilled power of attorney, so no visit to Switzerland is needed for the notary or the Handelsregister.
Banking is where a non-resident spends the time. The Sperrkonto for the paid-up capital opens in 3 to 10 business days at Hypothekarbank Lenzburg, Valiant or a cantonal bank. The operating account takes 3 to 6 weeks of source-of-funds and source-of-wealth review, and UBS onboards non-resident-controlled companies selectively. PostFinance and ZKB are the usual landing points once a Swiss-resident signatory is in place.
Founders from Germany and Austria have one practical advantage: German-language documents need no translation in Zug, Zurich or Lucerne, and an apostille from the Landgericht (Germany) or the Landesgericht (Austria) completes the file. UK and US founders obtain the apostille from the FCDO Legalisation Office or the Secretary of State of the issuing state, and add a certified German translation.
Owning a GmbH or AG does not by itself give a non-resident the right to live in Switzerland. EU and EFTA citizens who move to run their company obtain a B permit as self-employed persons under the Free Movement Agreement by proving the business is viable. Third-country nationals fall under the Foreign Nationals and Integration Act: cantonal quotas apply, and a self-employed permit is granted only where the business serves Switzerland's overall economic interest through investment and jobs. We form the company; immigration lawyers handle the permit.
Frequently Asked Questions
How long does it take to form a company in Switzerland?
A Swiss GmbH or AG formed in Zug or Nidwalden takes 10 to 15 business days from engagement to UID issuance. Slower cantons such as Bern or Zurich add one to two weeks. The main variable is the Sperrkonto — depositing the paid-up share capital — which runs 3 to 10 business days depending on the bank's KYC workload.
What is the minimum capital to form a Swiss company?
A GmbH requires CHF 20,000 of share capital, fully paid in cash or in kind before the company is registered. An AG requires CHF 100,000, of which CHF 50,000 or 20% of the issued capital (whichever is higher) must be paid before registration. The balance of an AG's authorised capital can remain uncalled and is paid on demand.
Do I need a Swiss-resident director?
Yes. Every GmbH and AG must have at least one director or authorised signatory domiciled in Switzerland. This is a mandatory requirement of the Swiss Code of Obligations (Articles 718 and 814). Non-resident founders who do not have their own Swiss-resident manager engage a nominee resident director under a service agreement — standard and fully legal practice.
Can a foreigner own a Swiss company?
Yes. There is no restriction on foreign ownership of a Swiss GmbH or AG. 100% of the share capital can be held by non-residents and by non-Swiss corporate shareholders. The only residency constraint is the Swiss-resident signatory rule at board level. Real-estate holding structures are a separate regime under the Lex Koller regulations.
What is the corporate tax rate in Switzerland?
Direct federal corporate income tax is 8.5% flat, effective around 7.83% after deduction. Cantonal and communal profit taxes add on top. The combined effective rate ranges from 11.9% in Zug to roughly 20.5% in Bern for 2026. Zug, Nidwalden, Lucerne, Appenzell Innerrhoden, and Schwyz all sit under 13% combined effective.
What is the difference between a Swiss GmbH and an AG?
A GmbH has CHF 20,000 minimum capital, lists quotaholders publicly on the Handelsregister, and suits smaller owner-managed businesses. An AG has CHF 100,000 minimum capital, keeps the shareholder register private (ownership is only in the internal register and beneficial-ownership filings), and suits larger groups, listed vehicles, and privacy-sensitive holdings.
Is Switzerland a good location for a holding company?
For many groups, yes. Participation exemption eliminates tax on qualifying dividends and capital gains. No withholding tax on outbound interest or royalties. Zug and Nidwalden deliver cantonal effective rates around 12%. The Swiss–EU AEOI agreement gives zero WHT on dividends to qualifying EU parents. Pillar Two only affects groups above EUR 750m turnover. Substance is expected — operational presence, not a mailbox.
Is Switzerland a good place to start a business?
Yes, for a business that will have real presence: an office, a Swiss-resident signatory and paid-in capital. It ranks first in the Global Innovation Index, taxes profit at 11.9% to 20.5% depending on canton, charges 8.1% VAT and levies no withholding on royalties. It is a poor fit for a shell with no substance, which Swiss banks decline.
Can I manage setting up a company in Switzerland without an agent?
Partly. EasyGov.swiss, the federal SECO portal, lets a founder file the Handelsregister application, VAT registration and AHV enrolment online. Two steps stay offline: the public deed before a notary and the Sperrkonto at a bank. A non-resident also still needs a Swiss-domiciled signatory, so setting up a company in Switzerland from abroad in practice runs through a local representative.
Get Started — Form Your Swiss Company
Fixed-price quote in 60 seconds. GmbH or AG, any canton, with Sperrkonto, notary, and Handelsregister filing handled by our team. Resident-director service where you need it. Bank introductions to UBS, PostFinance, ZKB, or Hypothekarbank Lenzburg included in standard packages.
Call +48 2222 5 2222 or email info@companyformation24.com to start. Most Swiss formations are complete and operating with a bank account within 15 to 20 business days from KYC clearance.
Content prepared by Piotr Walter, In-house Counsel. Approved by Tomasz Bielski, Managing Director.
Looking for a faster route? Our sister brand offers ready-made Swiss GmbH, pre-incorporated and transferable in days.
