Company Formation in Switzerland: 2025 Guide

Switzerland offers one of the most stable and competitive business environments in Europe. Its strong economy, predictable legal system, attractive tax rates, and central location make it an ideal place to establish a company.

This guide by NewCo explains how to form a company in Switzerland in 2025, from choosing your structure to registration with the Swiss Commercial Register.

Why start a business in Switzerland

Switzerland combines economic stability, innovation, and a favorable tax framework. Key advantages include:

• One of the lowest corporate tax rates in Europe (as low as 11.85% in Zug)

• Full foreign ownership allowed for all company types

• Only one representative must reside in Switzerland, and this can be a professional local director appointed for compliance

• Access to a multilingual, highly qualified workforce

• Strong infrastructure and world-renowned banking system

Switzerland’s reputation for reliability and transparency makes it an attractive base for both startups and international groups.

Who can form a company

Any person aged 18 or over can form a company in Switzerland. Foreign nationals are eligible and do not need Swiss nationality. If you live abroad, at least one director or authorized representative with signing authority must be domiciled in Switzerland. NewCo works with trusted partners who can provide a resident Swiss director if required.

Step 1 - Choose your company name

Your company name must be unique and available in the Swiss Commercial Register. For sole proprietorships, the owner’s surname must appear in the name (e.g., Dupont Bakery). For an AG (SA) or GmbH (Sàrl), you may choose any distinctive name. You can instantly verify availability with NewCo’s name checker before registration.

Step 2 - Choose your legal form

The three most common legal forms in Switzerland are:

LLC - Limited liability company

GmbH in German and Sàrl in French. The most popular choice for small businesses:

• Requires CHF 20’000 fully paid-in capital and one resident director.

• Liability is limited to the company’s capital.
  
  

LTD - Limited company

AG in German and SA in French. Suited for larger companies and investors:

• Requires CHF 100’000 share capital, of which CHF 50’000 must be paid in.

• Only directors are listed publicly, not shareholders, providing confidentiality.
  
  

Sole proprietorship

Ideal for freelancers or independent professionals:

• No minimum capital required.

• Registration in the Commercial Register becomes mandatory once turnover exceeds CHF 100’000.

Not sure which to choose? NewCo’s interactive legal form assistant helps you select the structure that best fits your goals and capital.

Step 3 - Prepare incorporation documents

Once your structure is chosen, founding documents must be drafted and notarized. For GmbH (Sàrl) and AG (SA) companies, this includes:

• Articles of Association

• Public Deed of Incorporation

• Information on directors, shareholders, and registered office

NewCo’s legal team prepares all documents within 24 hours, and our partner notaries handle authentication and filing with the Commercial Register. Everything is done online, with no need to travel or visit a notary in person.

Step 4 - Open a capital deposit account

Before registration, Swiss law requires founders to deposit their share capital in a temporary capital deposit account. This ensures transparency and confirms the company’s initial funding.

• CHF 20’000 for a GmbH/Sàrl (fully paid)

• CHF 50’000 for an AG/SA (half of CHF 100’000 total)

NewCo coordinates directly with UBS to open the account and obtain the capital payment certificate required by the notary. If you choose another bank, NewCo guides you through the process.

Once your company is registered, the funds are released to your corporate account.

Step 5 - Register with the Commercial Register

Registration with the Swiss Commercial Register gives your company its legal personality and a unique company ID (UID in German or IDE in French). With NewCo, all documents are submitted within 48 hours, and registration is typically completed within one to two weeks, depending on the canton.

Costs of company formation

Forming a company in Switzerland is transparent and affordable:

• NewCo incorporation package: CHF 490 (includes notary and legal fees)

• Commercial Register fees: approx. CHF 550

• Capital deposit account: approx. CHF 250 (free with UBS via NewCo)

Total: around CHF 1’100 for a complete, compliant setup.

For sole proprietorships, NewCo offers packages from CHF 190, plus registration fees.

Timeline

Using NewCo’s online platform, the entire process takes 2 to 3 weeks:

• Incorporation documents ready within 24 hours

• Notarization and filing within 48 hours

• Registration completed in 1-2 weeks, depending on the canton

Your Swiss company can be fully operational in less than three weeks.

Corporate taxes in Switzerland (2025)

Corporate income tax is levied at the federal, cantonal, and communal levels. The total tax rate depends on where your company is domiciled. In 2025, combined effective rates are approximately:

• Zug: 11.85%

• Basel-City (Basel) : 13.04 %

• Vaud (Lausanne): 14.00%

• Geneva: 14.70%

• Zurich: 19.60%

The Swiss average is around 14.4%. Some cantons offer additional incentives such as tax holidays, R&D deductions, and the Patent Box regime for intellectual property income.

After incorporation

After your company is registered, you must complete several formalities:

• Register for social security (AHV/AVS)

• Enroll employees in a pension fund (BVG/LPP)

• Obtain accident insurance (UVG/LAA)

• Register for VAT if annual turnover exceeds CHF 100’000

• Maintain accounting records for 10 years

• Appoint an auditor if you employ more than 10 full-time staff
  
  

Why choose NewCo

NewCo manages every legal and administrative aspect of company formation in Switzerland. Our lawyers and partner notaries prepare and authenticate all documents within 24 hours. If you choose UBS, NewCo coordinates the entire capital deposit process directly with the bank, ensuring a smooth and secure setup. If you prefer another bank, our team provides full support and guidance.

More than 8’000 entrepreneurs have already trusted NewCo to create their company quickly, securely, and fully online.

FAQs

How much does it cost to start a company in Switzerland?

Around CHF 1’100 including all legal and administrative fees.

Can a foreigner open a Swiss company?

Yes. You only need one director or representative domiciled in Switzerland.

How long does it take?

Usually 2-3 weeks.

What is the minimum capital?

CHF 20’000 for a GmbH (Sàrl), CHF 100’000 for an AG (SA, CHF 50’000 paid in).

Do I need to travel to Switzerland?

No. Everything can be done remotely via NewCo’s secure online platform.

Start your Swiss business with NewCo

Switzerland offers one of the most reliable and efficient business environments in Europe. With NewCo, your entire company setup in Switzerland is managed by experienced lawyers and partner notaries. Every stage of the incorporation process is handled with precision and efficiency, from legal drafting to registration, through a secure online process that saves you time and ensures full compliance.

Official sources:
- The Code of Obligations
- Ordonnance sur le registre du commerce (ORC)
- Federal Tax Administration, Tax burden statistics