Guide for Foreign Entrepreneurs: How to Start a Business in Switzerland

Switzerland is known for its business-friendly environment and attracts many international companies and start-ups. The advantageous tax system, strategic location, and market stability are some of the reasons for this interest. Thanks to its strong economy and reputation for excellence, Switzerland is a center for innovation and entrepreneurship.

The process of setting up a business in Switzerland can initially seem challenging for foreign entrepreneurs. However, with the right advice and adequate preparation, the benefits can be considerable. Whether it is an established company or a start-up, Switzerland is an ideal place to grow your business and reach new markets.

Requirements for Ltd./LLC

The law sets out territorial representation requirements for the creation of an Ltd. or LCC in Switzerland. Article 718, paragraph 4 of the Code of Obligations (CO) explains the requirements for an Ltd., while Article 814, paragraph 3 CO specifies them for a Sàrl. The administrative bodies must include at least one person domiciled in Switzerland, authorized to sign on behalf of the company.

Representation of an Ltd.

The company must be represented by a person domiciled in Switzerland. This person must be a member of the board of directors or authorized to sign and must have access to the share register and the GAFI register (Article 718, paragraph 4 CO).

Representation of an LLC

The company must be represented by a person domiciled in Switzerland. This person must be a manager or possess individual signing authority and must have access to the share register and the register of beneficial owners (Article 814, paragraph 3 CO).

Requirements for a Sole Proprietorship

There is no uniform regulation for the creation of a sole proprietorship in Switzerland. The owner can also reside abroad, but the business must have a registered office in Switzerland. Regulations vary at the cantonal level: in some cantons, the owner must reside near Switzerland or the signatory must be domiciled in Switzerland. The creation must therefore comply with specific cantonal provisions.

Self-Employment and Citizenship

Switzerland applies a dual system:

– Citizens of EU and EFTA countries benefit from the agreement on free movement and can work as self-employed individuals.

– Self-employed workers from third countries must comply with the Federal Act on Foreign Nationals and Integration (FNIA) and the Ordinance on Admission, Period of Stay and Employment (ASEO).

To create a business in Switzerland, founders need a business address on Swiss territory, which can be a private office or a “c/o” address.

This blog article does not constitute legal advice, it is made available “as is” and makes no claim to completeness or accuracy. Hoop makes no warranty or liability as to its content. This is excluded to the extent permitted by law. Use is at your own risk. Legal advice is recommended if necessary.


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