Company Formation and Consulting Services in Switzerland

Switzerland offers several well-established legal structures: AG (Aktiengesellschaft/SA) — Corporation: The most common Swiss company type. Minimum share capital of CHF 100,000, with at least CHF 50,000 to be paid up at incorporation. Shares can be registered or bearer. A board of directors is mandatory, and at least one member must be resident in Switzerland. GmbH/Sàrl (Gesellschaft mit beschränkter Haftung) — Limited Liability Company: Minimum capital of CHF 20,000, fully paid up at incorporation. Partners' names are published in the Handelsregister. The most suitable structure for SMEs. Einzelunternehmen — Sole Proprietorship: Single-person business. Handelsregister registration is mandatory if annual turnover exceeds CHF 100,000. Carries unlimited personal liability. Kollektivgesellschaft — General Partnership: Partnership of two or more natural persons. All partners bear unlimited liability. Kommanditgesellschaft — Limited Partnership: At least one general partner with unlimited liability and one limited partner. Zweigniederlassung — Branch Office: Foreign companies can establish a branch in Switzerland. It has no separate legal personality.

Company names in Switzerland are verified through the Handelsregister (Commercial Registry). Each canton maintains its own Handelsregister office. The company name must be unique across Switzerland. An AG must include "AG" or "SA" in its name, while a GmbH must include "GmbH" or "Sàrl". Registration is filed with the cantonal Handelsregisteramt and typically requires notarized documents.

Company formation in Switzerland follows a professional and structured process: AG Formation Steps: 1. Verify company name availability in the Handelsregister 2. Notarize the articles of association before a public notary 3. Deposit share capital in a Swiss bank escrow account 4. File registration application with the Handelsregister 5. Register with AHV (Social Security) 6. Register for MWST (VAT) if applicable GmbH Formation Steps: A similar process applies but with lower capital requirements. All partners' details are published in the Handelsregister. The formation timeline is typically 2-4 weeks. Total costs include notary fees, Handelsregister charges and advisory fees.

Switzerland's banking system is globally recognized for its reliability and discretion: • AG: Minimum share capital CHF 100,000, at least CHF 50,000 paid up at incorporation • GmbH: Minimum capital CHF 20,000, fully paid up at incorporation Capital is deposited into a Swiss bank escrow account and released after Handelsregister registration. Major banks include UBS, Zürcher Kantonalbank, Raiffeisen and numerous cantonal banks. Switzerland's banking stability and financial infrastructure make it a premier destination for international investors seeking a secure and efficient business environment.

Switzerland's unique three-tier tax system offers significant optimization opportunities: Federal Level: • Corporate income tax: Flat rate of 8.5% (effective rate approximately 7.83%) • Applies uniformly to all companies Cantonal Level: • Each canton sets its own tax rates • Significant variations exist between cantons • Some cantons offer special tax incentives for specific activities Communal (Municipal) Level: • Municipalities set their own tax multipliers • Rates can vary even within the same canton The total effective corporate tax rate ranges from approximately 11.9% to 21.6% depending on the canton and municipality.

Switzerland's inter-cantonal tax competition allows companies to choose strategic locations: Zug: One of Switzerland's lowest-tax cantons. Hub for crypto and blockchain companies ("Crypto Valley"). Effective corporate tax rate approximately 11.9%. Schwyz: Attractive low tax rates combined with proximity to Zurich. Effective rate approximately 14%. Nidwalden and Obwalden: Low-tax cantons in Central Switzerland. Appenzell Innerrhoden: Also offers advantageous personal income tax rates. Lucerne: Central Switzerland's commercial hub with competitive tax rates. Tax optimization should consider canton selection, holding structures and Switzerland's extensive network of double taxation agreements with over 100 countries.

Switzerland's comprehensive social security system is built on three pillars: First Pillar — AHV/IV/EO (State Insurance): • AHV (Old Age and Survivors' Insurance): Employer 4.35% + Employee 4.35% • IV (Disability Insurance): Employer 0.7% + Employee 0.7% • EO (Income Compensation): Employer 0.25% + Employee 0.25% • Unemployment Insurance (ALV): Employer 1.1% + Employee 1.1% Second Pillar — BVG (Occupational Pension): • Mandatory occupational pension scheme • Employer must contribute at least 50% Third Pillar — Individual Savings: • Voluntary individual retirement savings • Tax advantages available Total employer social security contributions amount to approximately 6.4% of gross salary (excluding BVG).

Accounting and financial reporting in Switzerland are governed by the Swiss Code of Obligations (Obligationenrecht/Code des obligations): • All companies registered in the Handelsregister must maintain proper books • Annual balance sheet, income statement and notes are required • Audit is mandatory for larger companies (opt-out available for small companies with fewer than 10 FTEs) • Swiss GAAP FER or IFRS standards may apply • IFRS is mandatory for publicly listed companies Tax returns are filed separately with the cantonal tax authority and the federal tax administration.

Switzerland's MWST (Mehrwertsteuer/TVA) system operates independently from the EU: • Standard rate: 7.7% (significantly lower than EU countries) • Reduced rate: 2.5% (food, medicine, books, newspapers) • Special rate: 3.7% (accommodation services) Businesses with annual turnover exceeding CHF 100,000 must register for MWST. As Switzerland is not an EU member, trade with the EU is subject to customs procedures, though bilateral agreements streamline the process.

While not an EU member, Switzerland maintains comprehensive market access through bilateral agreements: • Free movement of persons agreement • Mutual Recognition Agreement (MRA) on technical barriers • Public procurement agreement • Agricultural products trade • Land and air transport agreements • Participation in research programs International Advantages: • Double taxation agreements with over 100 countries • Political neutrality and stability • WTO and EFTA membership • Strong intellectual property protection • Highly qualified, multilingual workforce (German, French, Italian, Romansh)