# business-in-switzerland.com — full content > Concatenated text content of every public page on the site. For LLM ingestion. Generated 2026-04-26. ~58 pages. --- ## Business in Switzerland: company formation for foreigners URL: https://business-in-switzerland.com/ Description: Form a Swiss AG, GmbH or holding from anywhere. English-speaking advisors in Zug, serving all 26 cantons. Formation runs two to six weeks. Request a proposal. Business in Switzerland: company formation for foreigners STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Swiss business setup Set up a Swiss business from anywhere. AG, GmbH, holding and FINMA-regulated structures across all 26 cantons. Delivered end-to-end in English by practitioners based at Baarerstrasse 14, Zug. Request a proposal View all services → PATH 01 Register a Swiss company AG from CHF 100k · GmbH from CHF 20k PATH 02 Relocate yourself or your team EU/EFTA register · third-country B-permit quota PATH 03 Set up a specialised structure Holding · family office · FINMA · crypto 02 · Switzerland in numbers The fiscal contract behind every Swiss setup. 14.6% Federal CIT effective DBG art. 57 ff 11.85% Zug — lowest cantonal ESTV 2026 8.1% VAT standard rate MWSTG · 2024 ~80 DTAs in force ESTV 2026 CHF 20k GmbH min capital OR art. 773 CHF 100k AG min capital OR art. 621 2 – 6 wks HRG processing Cantonal · 2026 26 Independent cantons Federal · 2026 03 · Cantonal canvas Choose the canton that matches your tax & industry. Switzerland is a three-layer tax system: 8.5% federal, plus cantonal, plus municipal. Canton choice alone moves your effective corporate rate by ~9 percentage points. Zug 11.85% · Crypto Valley · holding Zurich 19.61% · banking hub · talent Geneva 14.70% · international HQs Effective corporate tax rates at the main city of each canton, 2026. Canton Code Effective CIT Industry anchor Zug ZG 11.85% Crypto Valley · holding · low-tax HQ Nidwalden NW 11.9% Low-tax small canton, often overlooked Lucerne LU 12.3% Second-lowest, SME-friendly Basel-Stadt BS 13.0% Pharma and chemical cluster Schwyz SZ 14.0% Low-tax alternative to Zug Geneva GE 14.70% International HQs · UN agencies Zurich ZH 19.61% Banking hub · deepest talent pool Bern BE 20.54% Federal capital · highest effective rate Effective rate combines federal direct tax at 8.5% statutory (~7.83% effective after the tax-on-tax calculation) with cantonal and municipal corporate income tax at the main city. Rates shift with fiscal year: Ticino cut 3.11 pp for 2025, Basel-Land 2.45 pp the same year. Compare all 26 cantons → 04 · Services Across the Swiss company lifecycle. Each service is its own page with figures, residency obligations, and the statutory anchor in the Code of Obligations. CORE · 02.01 Company formation AG, GmbH and branch incorporation. Zefix name check, articles drafted with counsel, notarial deed, capital consignment, Handelsregister filing, VAT registration. 2–6 weeks. Learn more LEGAL FORM · 02.02 Dedicated AG formation CHF 100,000 share capital with at least CHF 50,000 or 20% paid in at formation, shareholders held privately. Built for capital raising and holding (OR art. 621, 632). Learn more LEGAL FORM · 02.03 Dedicated GmbH formation CHF 20,000 share capital fully paid in, partners listed in the Commercial Register. Closely held operating businesses (OR art. 773, 777c). Learn more ONGOING · 02.04 Accounting & compliance Bookkeeping, statutory year-end accounts, VAT returns at 8.1% standard, payroll. VAT registration mandatory at CHF 100,000 worldwide turnover (MWSTG art. 10). Learn more SUBSTANCE · 02.05 Nominee director Resident-signatory rule satisfied without relocation. AG: ≥1 board member resident CH (OR art. 718.4). GmbH: ≥1 managing officer resident CH (OR art. 814.3). Learn more EXIT · 02.06 Company liquidation Voluntary or insolvency liquidation: shareholder resolution, liquidator appointment, creditor call, blocking period, tax clearance, deregistration (OR art. 736–747). Learn more 05 · Specialised structures Holding · family office · FINMA · crypto. Where our work differs from peer fiduciaries. Each engagement carries its own substance, staffing and regulatory file, not a template drawn from a standard GmbH. STRUCTURE · 04.01 Holding company Participation exemption under DBG art. 69-70 effectively removes federal tax on qualifying dividends. Outbound 35% withholding reduced to 0/5/10/15% under ~80 DTAs. Explore STRUCTURE · 04.02 Family office Single and multi-family offices in Zug or Geneva, combining corporate vehicles with substance, governance, external manager coordination, cross-jurisdiction tax. Explore LICENCE · 04.03 FINMA-regulated entities Portfolio managers and trustees under FinIA, collective investment under CISA, banks under BankG, DLT operators under FMIA. Authorisation: 6–18 months from filing. Explore STRUCTURE · 04.04 Crypto and DLT Zug Crypto Valley anchors Swiss DLT companies, token issuers and exchange operators. FMIA extended in 2021 to cover DLT trading and tokenised securities (DLT Act). Explore 06 · Foreign founders Eligibility and residency, mapped. Nationality does not block ownership of a Swiss company. It does shape the permit path if you intend to move. 06.01 · EU / EFTA Free movement of persons Under the FZA agreement, EU and EFTA nationals may work or open a business in Switzerland without a work permit. Cantonal registration required after three months. 06.02 · Third country B-permit and federal quota Non-EU/EFTA founders move under B-permit, renewable annually, subject to the ~8,500 federal annual quota (2025). Self-employment requires economic-interest proof under FNA art. 19. 06.03 · Ownership-only Do I need to move at all? No. Foreign nationals may own 100% of a Swiss AG or GmbH regardless of where they live. The resident-signatory rule (OR art. 718.4 / 814.3) is satisfied through nominee-director. 06.04 · Cross-border G-permit / L-permit / C-permit G covers cross-border workers. L covers short-term up to 12 months. C is permanent residence after ~10 years (5 for US/CA nationals). 07 · How we work A predictable five-step engagement. Published fixed fees for most services (formation CHF 990–1,490, accounting CHF 990–1,900/yr, payroll CHF 120/mo, trademark CHF 690). Multi-step engagements (M&A, FINMA, restructuring) scoped on a free 30-minute call and confirmed in a written proposal. 01 Scoping call in English 30-minute call to map legal form, canton, timeline and substance or permit blockers. 02 Custom proposal Written proposal: scope, fixed and variable fees, named advisors, expected cantonal timings. 03 Incorporation GmbH 2–4 weeks · AG 3–6 weeks. Zefix name check, articles, notarial deed, HRG filing. 04 Banking & VAT Operating accounts after registry (CDD 5–30 days for foreign UBOs). VAT registration where turnover requires. 05 Ongoing compliance Bookkeeping, VAT returns, statutory year-end, audit coordination at OR art. 727 thresholds. 08 · Our team Built in Zug, trusted across Switzerland. A small, deliberately sized team. Every file is staffed by a named advisor — the person on your scoping call is also the person drafting articles and replying to your tax letters. 08.01 · PRACTITIONERS Five practitioners · 8–12 years each. Swiss-trained advisors with early-career stints at Big Four and 8–12 years subsequent corporate, tax and regulatory practice. We do not trade on bar admission, do not publish honorific titles, and do not share team bandwidth across hundreds of live files. Full profiles, including subject-matter focus and language coverage, on the team page. Ask during the scoping call for the named advisor fit to your structure. Lukas Andreas Marc Stefan Eva Meet the team → 08.02 · OFFICE Baarerstrasse 14, 6300 Zug. Our office sits on Zug's principal business artery. Zug is Switzerland's lowest-tax canton at an effective 11.85% and home to Crypto Valley. Baarerstrasse 14, 6300 Zug, CH info@business-in-switzerland.com 09 · FAQ Frequently asked questions. Answers to the questions we hear most often from foreign founders considering Swiss setup. Each answer cites its statutory anchor where one applies. Do I need to be a Swiss resident to form a company in Switzerland? No. Foreign nationals may own 100% of a Swiss AG or GmbH regardless of residency. However, at least one authorised signatory must reside in Switzerland, the resident-director rule (OR art. 718.4 for AG, 814.3 for GmbH). Nominee-director services satisfy this without you relocating. Which legal form should I choose, AG or GmbH? The GmbH is built for closely held businesses: CHF 20,000 capital fully paid in, partners publicly listed in the Commercial Register. The AG is built for capital raising and holding structures: CHF 100,000 capital with CHF 50,000 or 20% paid in at formation, shareholders held privately. What is the minimum share capital for a Swiss company? CHF 20,000 for a GmbH, fully paid in at formation. CHF 100,000 for an AG, with at least CHF 50,000 or 20% paid in at formation (OR art. 621, 632, 773, 777c). Sole proprietorships have no minimum but carry unlimited personal liability. How long does it take to incorporate in Switzerland? A GmbH typically completes in two to four weeks. An AG typically runs three to six weeks. Steps include a name check via Zefix, drafting articles, notarial deed, Handelsregister filing and capital consignment. Cantonal processing speed varies. Which canton has the lowest corporate tax rate? Appenzell Innerrhoden posts the lowest headline rate at around 11.5%, with Zug at about 11.85% carrying the strongest combination of low tax, Crypto Valley depth and international infrastructure. Lucerne and Nidwalden follow at ~12.3% and ~11.9%. Do I need a Swiss-resident director or board member? Yes. An AG must have at least one board member or officer resident in Switzerland with signing power (OR art. 718.4). A GmbH must have at least one managing officer resident in Switzerland (OR art. 814.3). A nominee-director mandate satisfies this for non-Swiss founders. Can a non-EU citizen form a company in Switzerland? Yes. Nationality is not a bar to ownership. It does affect the permit path if you intend to move: EU/EFTA nationals benefit from free movement; third-country nationals need a B-permit under the annual federal quota and must show economic interest to Switzerland (FNA art. 19). Do I need a Swiss bank account before registration? Yes. Share capital must be deposited into a consignment account at a Swiss bank and blocked until the Handelsregister entry is recorded. Operating accounts can be opened separately, timelines vary from five to thirty days depending on the bank’s due diligence on foreign beneficial owners. Will I automatically get a residence permit after forming my company? No. Forming a Swiss company does not grant a residence permit. The permit track is separate, B-permit for third-country nationals under quota, direct registration for EU/EFTA nationals. For third-country founders, expect three to six months where the economic-interest test is passed. What do I need to know about Swiss VAT as a foreign founder? Switzerland’s standard VAT rate is 8.1% (effective 1 January 2024, replacing 8.0%). Registration is required once worldwide taxable turnover reaches CHF 100,000 (MWSTG art. 10). Foreign businesses making any supply in Switzerland are liable from the first franc of Swiss turnover if the worldwide threshold is met. Is Switzerland still attractive for holding companies? Yes. The participation exemption removes federal tax on dividends from qualifying shareholdings (DBG art. 69-70). Withholding on outbound dividends is 35% statutory, typically reduced to 0/5/10/15% under a network of about 80 double taxation treaties, including 0% CH-EU intercompany. How do I request a proposal, and what will you need from me? Use the contact form at /contact/. Most services have published fixed fees — see the relevant service page for the rate (GmbH formation CHF 990, AG formation CHF 1,490, registered address CHF 1,200/year, etc.). For multi-step engagements (M&A, FINMA licensing, restructuring) we send a written proposal once we know: target legal form, canton preference, activity and expected turnover, founder nationality and residence, and nominee-director need. 10 · Start here Request a proposal. Tell us your target legal form, canton, activity and expected turnover. We reply in English with a written proposal scoped to the work you actually need. Request a proposal --- ## About URL: https://business-in-switzerland.com/about Description: English-first Swiss fiduciary for foreign founders: AG, GmbH, holding, family office, FINMA coordination. Based at Baarerstrasse 14, Zug; 8-12 years experience. About — business-in-switzerland.com STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content About the firm We build Swiss businesses for founders who don't speak the language of Swiss law. business-in-switzerland.com is an English-first Swiss fiduciary based in Zug. We serve foreign founders, international groups placing a Swiss subsidiary, and wealth advisors placing their clients' Swiss footprint — with Swiss-law-trained specialists and cantonal fluency beyond our home canton. Request a proposal Why we exist The gap we saw The Swiss fiduciary market is optimised for Swiss natives. For everyone else, the procedure is in the wrong language and the map is the wrong shape. Open a German-speaking Handelsregister form for the first time, try to read the cantonal fee schedule in its original French, or work through a FINMA pre-screen question list without a Swiss-law reference in front of you, and the problem becomes concrete. The forms are correct. The cantonal procedure is correct. What is missing is a counterparty who reads all of it in English and translates the substance, not the words. Foreign founders hit three walls in sequence. The first is language, procedural rather than conversational: not "does my lawyer speak English" but "will the notary minute, the bank KYC annex and the cantonal decision come back in English". The second is cantonal nuance: 26 cantons, 26 tax codes, combined effective rates that range from 11.85% in Zug to 20.54% in Bern, and choosing wrong costs the entity real money for years. The third is regulatory segmentation — FINMA, the cantonal Handelsregister, SEM for permits, ESTV for VAT, each with its own clock and its own forms. We built the firm to dismantle those three walls for English-speaking founders. Everything downstream — the service list, the cantonal map, the specialised structures, the team pattern — follows from that one decision. Four ways What we do differently Concrete answers to the vendor-comparison question, without marketing superlatives. Pick the differentiator that matters to your case. English throughout, not as a translation layer Every procedural document, every notarial check-in, every Handelsregister form, every bank KYC pack and every FINMA pre-screen is reviewed and explained in English. You do not work in a language you do not read. Our files are English by default, in German, French or Italian only where cantonal procedure requires it. Cantonal depth, not a single home canton Zug is our office, not our only canton. Cantonal combined effective corporate rates run from 11.85% in Zug to 20.54% in Bern, and we pick the canton against your structure, not the other way around. Zurich, Geneva, Schwyz, Vaud, Basel and smaller cantons are all in scope. Specialised-structure fluency, not only plain AG and GmbH Holding companies under the Swiss participation exemption, family-office structures, FINMA-licensed asset managers under FinIA, and DLT-Act crypto companies out of Zug — we work in the B-angle where a generalist fiduciary hands off to a specialist. On a plain AG or GmbH we are equally at home. Transparent pricing, no hidden hours Fixed fees published on every service page where the work has predictable scope: GmbH formation CHF 990, AG CHF 1,490, accounting from CHF 990/year, payroll from CHF 120/month, trademark CHF 690, debt collection CHF 190. Multi-step engagements (M&A, FINMA, restructuring) get a written proposal with a fee band after a free 30-minute call. In practice, that means our Swiss company formation and corporate-services work , we work across all Swiss cantons , and specialised structures — holding, family office, FINMA licence, crypto company sit at the same bench as plain AG and GmbH formation. For the shape of an engagement, see our process and what you receive . Where we sit Our home — Zug Not a marketing tax-haven line. The ecosystem is here, and most of our specialised work anchors with it. We chose Zug because the canton combines the lowest combined effective corporate tax rate in Switzerland at 11.85% with a regulatory framework that is proactive on the structures we work in — the DLT Act and related 2021 amendments around distributed-ledger securities laid the foundation for what is now called Crypto Valley. Family-office, holding and FINMA-adjacent work clusters here for the same reason. Baarerstrasse is the main business artery of the city, a short walk from the Kanton Zug Handelsregister. Most routine filings, notary check-ins and bank meetings happen inside a 15-minute radius of the office. For Zug in depth — tax, substance requirements, ruling practice — the canton page has the detail. Office Baarerstrasse 14 6300 Zug, Switzerland Meeting rooms by appointment through the contact form . Drop-ins are not guaranteed — the lead on your matter needs to be in-house on the day. Who runs the file The people Five Swiss-law-trained specialists, one Zug office, one working language. Role labels describe specialisation, not equity status. Each member of the team holds a law degree from a Swiss university and has 8 to 12 years of post-qualification experience in corporate or fiduciary work, with an early-career stint at one of the Big Four. We deliberately do not claim bar admission for any team member, and we do not decorate role labels with doctorates or partnership badges that have no equivalent in our firm's actual legal form. The person who scopes your engagement is the person who runs it. LB Lukas Brunner AF Andreas Furrer MW Marc Wyler SL Stefan Locher ES Eva Schibli Meet the team Who we serve Three classes of client we fit If one of these reads like you, a first email is the right next step. If not, we will say so and point you somewhere that fits better. Foreign founders forming a Swiss company First Swiss entity, any legal form, any canton. A founder moving to Switzerland, or a founder staying abroad and appointing a nominee director for the first year — both cases fit. Most new engagements fall here. International groups placing a Swiss subsidiary Parent, subsidiary or branch decisions; holding-vs-operating-company trade-offs; the 0% CH–EU parent-subsidiary dividend regime on qualifying intercompany flows. We pair with the group tax team and the home-jurisdiction counsel instead of taking over from them. Wealth advisors placing their clients' Swiss footprint Private clients behind the advisor, family-office structures, co-advisory with the client's home-jurisdiction counsel. We work as the Swiss leg of a structure, not as the lead relationship — the advisor keeps the client. If you are earlier in your thinking than a vendor-diligence read, our starting a Swiss business from abroad guide covers the ground that precedes the choice of firm. Frequently asked Six things visitors ask first The questions that arrive most often in the first exchange. Longer or case-specific questions belong in a scoped proposal. Do you have offices outside Zug? Our office is Baarerstrasse 14, 6300 Zug, and it is our only physical office. We work across Switzerland on a nationwide basis. Zurich, Geneva, Schwyz, Vaud, Basel and other cantons are covered remotely and with travel, not through additional branches. Do you work with Swiss clients or only foreigners? Our focus is foreign founders — the people who need Swiss law translated into English procedure. Swiss-resident founders are welcome but are not our target market. They usually prefer a German-speaking local fiduciary, and that is the right answer for them. What languages do you work in? English only, for client-facing work. We read and file in German, French and Italian because cantonal procedure requires it, but every explanation, draft, email and call you receive from us is in English. Are you regulated by FINMA? No. We are a Swiss fiduciary providing corporate-services and specialised-structure advisory. When clients pursue FINMA licences of their own, for example an asset manager under FinIA or a DLT facility, we coordinate their application. The regulated party is the client entity, not us. Are your team members licensed Swiss lawyers? Our team is Swiss-law trained, with law degrees from Swiss universities and 8 to 12 years of experience in corporate and fiduciary work, typically with an early-career stint at one of the Big Four. We do not claim bar admission for any team member, and Swiss litigation or formal legal opinions are not our service. How do I request a proposal? Use the form on our contact page. We reply within one working day with either a scoped proposal, a list of clarifying questions, or a referral if the case is outside our scope. There is no public phone line by design — written intake routes the matter cleanly to the right lead. Talk to us. Published fees on every service page. For multi-step engagements we reply within one working day with a tailored proposal. Baarerstrasse 14, 6300 Zug. Request a proposal --- ## Swiss canton comparison: where to form your company URL: https://business-in-switzerland.com/cantons Description: Compare all 26 Swiss cantons for company formation. Effective corporate tax 11.85%–20.54%, language, registry speed, industry fit. Decide by business type. Swiss canton comparison: where to form your company STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Canton comparison Swiss canton comparison: where to form your company Switzerland is a federation of 26 cantons, and each sets its own combined corporate tax rate, registry language and administrative rhythm. Effective rates run from 11.85% in Zug to 20.54% in Bern. This hub gives you the full 26-row comparison, a niche-to-canton matrix and full canton guides for the handful we cover in that depth. Table of contents Last reviewed: May 2026. Cantonal rates are re-verified every January–February against the KPMG Clarity on Swiss Taxes edition and ESTV cantonal tables. If you have not yet decided whether to form at all, start with our company formation overview or our starting-a-business guide . If you already know you want to form and only need the canton decision, the table below is the place to start. At a glance The Swiss cantonal tax range 11.85% Lowest effective corporate tax (Zug) ESTV cantonal data, 2024 / facts-switzerland §2.2 20.54% Highest effective corporate tax (Bern) ESTV cantonal data, 2024 / facts-switzerland §2.2 14.4% Swiss average, combined federal + cantonal + municipal KPMG Clarity on Swiss Taxes / facts-switzerland §2.2 The spread between the lowest and highest cantonal rate is roughly 2.1×. That is material at profit above CHF 500,000 per year and a rounding error below CHF 200,000. Talent, language and industry-cluster proximity often dominate when margins are thin. Comparison Compare all 26 Swiss cantons at a glance The table below shows the combined effective corporate income tax at each canton's main city. The combined rate adds the federal 8.5% statutory layer (effective ≈ 7.83% because the tax is itself deductible), the cantonal layer and the municipal layer. Rates at non-capital cities can differ by up to ±1 percentage point, and cantons publish revisions with fiscal-year effect every January–February. How to read this table Effective rate (2026) : combined federal + cantonal + municipal, at the canton's main city. YoY change : the 2025 revision where material (Ticino −3.11 pp, Basel-Land −2.45 pp). A right arrow means no announced change. Admin language : the official language of the Handelsregister and cantonal tax administration. Not the same as practical English availability at service-provider level. English practice : our practical assessment of whether a non-German / non-French speaker can run their filings end-to-end in English. This is service-level observation, not legal status. 26 Swiss cantons ranked by effective combined corporate income tax rate, ascending. Canton Code Effective rate (2026) YoY change Admin language English practice Notes Appenzell Innerrhoden AI ~11.5% → DE Low Lowest headline rate nationally; small canton. Zug ZG 11.85% → DE High Lowest among cantons with English-friendly administration. Nidwalden NW ~11.9% → DE Medium Low-tax central-Swiss canton, often overlooked. Lucerne LU ~12.3% → DE Medium Second-lowest; central transport hub. Glarus GL ~12.4% → DE Low Uri UR ~12.6% → DE Low Obwalden OW ~12.7% → DE Low Basel-Stadt BS ~13.0% → DE Medium Pharma / life-sciences cluster. Thurgau TG ~13.2% → DE Low Basel-Land BL ~13.5% ↓ 2.45 pp (2025) DE Low Cut 2.45 pp for 2025; cost-lower neighbour of Basel-Stadt. Appenzell Ausserrhoden AR ~13.5% → DE Low Rate subject to annual re-verification. Schaffhausen SH ~13.8% → DE Medium Fribourg FR ~13.9% → FR / DE Low Schwyz SZ ~14.0% → DE Low Freienbach municipality materially lower. Ticino TI ~14.0% ↓ 3.11 pp (2025) IT Low Largest rate move in 2025; Lugano commodities corridor. Neuchâtel NE ~14.0% → FR Low Graubünden GR ~14.0% → DE / IT Low St. Gallen SG 14.29% → DE Low Geneva GE 14.70% → FR Medium International HQs, UN agencies, private banking. Vaud VD 14.72% → FR Medium Lausanne / EPFL tech corridor. Aargau AG ~15.1% → DE Low Solothurn SO ~15.3% → DE Low Jura JU ~16.0% → FR Low Valais VS 17.12% → FR / DE Low Zurich ZH 19.61% → DE High Deepest finance talent, FINMA density, highest cost base. Bern BE 20.54% → DE / FR Low Highest combined rate in Switzerland; federal seat. Source: KPMG Clarity on Swiss Taxes 2026 and ESTV cantonal data, cross-checked with ax-fiduciaire.ch and PwC Tax Summaries. See recent cantonal rate changes . Appenzell Ausserrhoden rate subject to annual re-verification. What the table does not show The comparison captures corporate tax only. It does not show individual income tax (canton rankings for individuals differ materially: Zug is lowest for corporations but sits near the middle for personal income), the cantonal capital tax on equity (0.001%–0.5% by canton), or case-specific economic-promotion incentives negotiated with cantonal authorities. Those matter for owner-founders, capital-heavy structures and regulated applicants respectively. The table also does not replace professional advice on domicile choice. It is a first filter, not a ruling. The constant layer What's the same across all 26 cantons A lot of what foreign founders worry about is federal, not cantonal. The following points do not change whether you form in Zug, Bern or anywhere in between. Legal forms are federal The Swiss legal forms, AG (Aktiengesellschaft), GmbH (Gesellschaft mit beschränkter Haftung), Einzelfirma (sole proprietorship) and Zweigniederlassung (branch office), are defined by the federal Code of Obligations (OR), not by any single canton. Minimum capital for an AG is CHF 100,000 (OR art. 621) with at least CHF 50,000 or 20%, whichever is higher, paid in at formation (OR art. 632). A GmbH requires CHF 20,000 fully paid-in (OR art. 773, 777c). A sole proprietorship has no capital minimum; it must enter the Handelsregister above CHF 100,000 annual turnover (HRegV art. 36). A branch office has no capital requirement. No canton can offer a different legal form or vary the capital floor. Federal direct tax is 8.5% for every canton The federal direct tax on corporate profit is 8.5% statutory and roughly 7.83% effective (the tax itself is deductible from taxable profit). That 7.83% sits underneath every canton's combined rate. The federal rate cannot be negotiated canton-by-canton; it is a constant. Swiss-resident signatory required everywhere At least one authorised representative of a Swiss company must reside in Switzerland: OR art. 718.4 for an AG and OR art. 814.3 for a GmbH. This is not a nationality requirement; it is a residence requirement. No canton waives it. For foreign-only founders the standard solve is a nominee director service : a regulated fiduciary provides the resident signatory while economic control stays fully with the foreign owner. VAT, withholding tax and stamp duty are federal Swiss VAT is 8.1% standard / 2.6% reduced / 3.8% accommodation, with a CHF 100,000 worldwide-turnover registration threshold (MWSTG art. 10). Withholding tax on dividends is 35% (Verrechnungssteuer), reduced through double-taxation treaties. Issuance stamp duty is 1% on paid-in capital with a CHF 1,000,000 lifetime exemption. These are federal rates and rules. No canton alters them. See our Swiss VAT rules page for the registration workflow. Handelsregister structure is federal, processing is cantonal zefix.ch is the federal aggregator of the Swiss Commercial Register; it mirrors every cantonal Handelsregisteramt. The filing rules are identical nationally; throughput is not. Zug is typically the fastest on the filing step; rural cantons are usually slower. That operational difference is real, but it is not a legal difference. The variable layer What cantons can change The five axes below are where canton choice actually matters. Combined effective rate gets the headlines, but registry language, ruling culture and processing time often decide the outcome for specific founders. Effective corporate tax rate The combined effective rate runs from roughly 11.85% (Zug) to 20.54% (Bern), a 2.1× spread. Recent movement has been uniformly downward: Ticino cut 3.11 percentage points for 2025 and Basel-Land cut 2.45 points in the same year. That direction reflects pressure from the OECD Pillar Two global minimum tax and competitive realignment between cantons. Cantonal capital tax Capital tax is levied by the canton only (there is no federal capital tax), at roughly 0.001%–0.5% of equity depending on canton. Zug's effective capital tax is around 0.07%. Capital tax is usually a rounding error for operating companies but matters for equity-heavy Swiss holding structures and treasury vehicles where retained equity sits on the balance sheet for long periods. Registry language and practical English Every Handelsregisteramt works in its canton's official language: German in most of Switzerland, French in Vaud / Geneva / Jura / Neuchâtel, Italian in Ticino, and bilingual in Fribourg / Bern / Valais / Graubünden. Practical English availability is a separate question. Zug and Zurich process filings in English with no friction through local service providers; Geneva is workable bilingually; Ticino and smaller rural cantons are not English-practical and you will need translation for every step. Registry processing time Swiss company registration runs 3–6 weeks end-to-end for an AG and 2–4 weeks for a GmbH (name check, notary, bank consignment account, Handelsregister entry, VAT registration). Within that envelope, Zug's Handelsregister is consistently one of the fastest on the filing step and some rural cantons are slower by several weeks. No canton has a statutory-speed advantage; the difference is purely administrative throughput. Tax ruling culture and economic-promotion incentives Advance tax rulings are issued by the cantonal tax administration, not the federal one. Response times vary from two to four weeks (Zug, Nidwalden) to two or three months in less active cantons. Economic-promotion offices exist in every canton; their responsiveness, foreign-investor orientation and willingness to engage on specific incentives (R&D incentives, relocation packages, patent-box negotiations) varies widely. Niche-to-canton matrix Which canton fits which business? Tax rate is necessary, not sufficient. The following matrix maps common foreign-founder business types to their natural Swiss canton. Most readers will recognise their own niche in one of these eight rows. Mapping of business niches to primary and secondary Swiss cantons with rationale. Niche Primary canton Secondary Why Crypto / Web3 / blockchain Zug Zurich Crypto Valley, pragmatic FINMA engagement, DLT Act adoption. Crypto Valley company setup . Fintech / SaaS / tech Zug Zurich Zug for tax, Zurich for engineering talent if scaling beyond 50 staff. Pharma / biotech / R&D Basel-Stadt Zug Roche and Novartis anchor; patent-box regime; specialised talent density. Commodities / trading / family office Geneva Zug SITC cluster, proximity to UN agencies, multilingual finance talent. family office setup . Holding / IP holding / treasury Zug, Nidwalden, Schwyz n/a Participation exemption (DBG art. 69–70) plus low capital tax and fast ruling culture. Swiss holding structures . SME / industrial / logistics Lucerne Aargau Central transport hub, affordable cost base, ~12.3% effective rate. Private wealth / asset protection Schwyz Obwalden Low individual income and wealth tax for owner-founders; calm registries. E-commerce / remote-first Nidwalden Schwyz Very low rate (~11.9%), minimal physical-presence friction, quiet registry. A recurring pattern: foreigners arrive assuming Zug is the answer. It often is, but not always. A pharma founder in Zug will struggle to hire; a Web3 founder in Bern will not find peer density. The matching matters more than the rate. The B-angle specialised structures, Swiss holding structures , family office setup , FINMA authorisation and Crypto Valley company setup , each have a preferred canton set documented on their own page. If your business is one of these, start there first. Canton guides Seven cantons, side by side Zug, Zurich and Geneva account for the majority of foreign-founder incorporations and each has a dedicated deep-dive page covering effective tax rate, cantonal incentives, talent depth and sector fit. Basel, Schwyz, Vaud and Ticino each carry a clear use-case (life sciences, low-tax holding, French-speaking access, Italian-speaking gateway) and are summarised below alongside their row in the comparison table . Zug ZG · 11.85% Lowest rate, Crypto Valley, English administration Zug combines the lowest combined corporate tax rate in Switzerland with an English-working Handelsregister and the Crypto Valley ecosystem. Our office sits at Baarerstrasse 14 in the heart of the canton. Zug is the default choice for holding structures, crypto and DLT vehicles, family offices and foreign-founded fintech, and the Handelsregisteramt Kanton Zug is consistently one of the fastest in the country on filing throughput. Read the Zug guide Zurich ZH · 19.61% Largest economic hub, fintech and insurance talent Zurich is the largest Swiss economy and carries the deepest hiring pool for engineering, finance and insurance roles. The combined effective rate is materially higher than Zug, but for scale-ups needing 50+ technical staff or FINMA-regulated asset-management businesses, Zurich is usually worth it. Office rents and salary baselines are the highest outside Geneva; the trade-off is talent access, airport connectivity and international-school infrastructure. Read the Zurich guide Geneva GE · 14.70% Commodities trading, international orgs, private banking Geneva is the historic home of Swiss private banking and the commodities-trading cluster around the SITC (Swiss Trading and Shipping Association). UN agencies, WTO and several hundred international NGOs anchor the diplomatic layer. French is primary at the registry, but English proficiency is broad in service-provider and banking circles. The canton fits commodity trading, private banking, family offices and any structure that benefits from proximity to international organisations. Read the Geneva guide Basel-Stadt BS · ~13.0% Pharma and biotech cluster, patent box Basel-Stadt anchors Roche and Novartis and the supporting pharmaceutical supply chain. Specialised biotech and clinical-research talent density is unmatched elsewhere in the country. The canton also benefits from a tri-border position (France, Germany) and a patent-box regime that rewards IP-intensive activity. We currently cover Basel-Stadt via the comparison row below; a standalone canton page is on our 2026 roadmap. See Basel-Stadt in the comparison row above Schwyz SZ · ~14.0% Low tax, wealth-friendly, conservative tradition Schwyz sits next to Zug on Lake Zug and combines a low-tax profile with strong individual-tax treatment for owner-founders; the Freienbach municipality in particular is one of the most tax-efficient in Switzerland for high-earning individuals. Registry administration is quieter and less crowded than Zug. We currently cover Schwyz via the comparison row below; a standalone canton page is on our 2026 roadmap. See Schwyz in the comparison row above Vaud VD · 14.72% Lake Geneva region, EPFL spin-out ecosystem Vaud covers the Lausanne region and the EPFL spin-out corridor, with secondary strengths in medical devices and sports federations. The registry works in French, and English is commonly available through service providers and EPFL's wider network. Vaud is a strong alternative to Geneva for tech-leaning founders who want Lake Geneva proximity without Geneva's cost baseline. We currently cover Vaud via the comparison row below; a standalone canton page is on our 2026 roadmap. See Vaud in the comparison row above Ticino TI · ~14.0% South-facing, Italian administration, recent rate cut Ticino cut its combined effective rate by 3.11 percentage points for 2025, the largest move in any Swiss canton that year. The canton is the natural corridor for Italy-facing commerce and commodities flows and clusters around Lugano. Registry administration is Italian-only and service-provider availability in English is narrower than in German-speaking cantons. We currently cover Ticino via the comparison row below; a standalone canton page is on our 2026 roadmap. See Ticino in the comparison row above Parallel decision AG vs GmbH, federal not cantonal Canton and legal-form decisions usually run in parallel. The canton sets the tax; the legal form (AG or GmbH) is federal and identical in every canton. Most foreign founders pick one of these two. AG versus GmbH side-by-side reference. Axis AG (Aktiengesellschaft) GmbH (LLC) Minimum share capital CHF 100,000 CHF 20,000 Paid-in at formation CHF 50,000 or 20% (whichever higher) CHF 20,000 fully paid-in Shareholder privacy Yes (shareholders private) No (partners published in register) Share transfer Simple; board registration Partner consent required Bearer shares Abolished 2019; registered only N/A Ordinary audit threshold OR art. 727: 20m balance / 40m revenue / 250 FTEs Same federal threshold Which one do foreigners usually pick? The AG dominates for privacy (shareholders stay off the public Handelsregister), international-M&A optics and structures expecting future rounds or trade sales. It signals "proper corporate" to counterparties outside Switzerland. The GmbH wins on capital efficiency, CHF 20,000 fully paid-in versus CHF 50,000 paid-in for an AG, and on speed for single-founder or founder-pair operating businesses. Canton does not change this calculus. For a full walk-through of both, see the AG formation and GmbH formation pages. If you want to see how the numbers model out for your specific capital target, run the capital-requirements calculator . Changing legal form later Conversion between AG and GmbH is legally permitted under the Swiss Merger Act (Fusionsgesetz) without company dissolution. It requires a notarial deed, a revised articles-of-association filing and Handelsregister processing. Most founders who think they will need to convert later should look at the optics of starting with the target form instead; the conversion cost is real but modest. Recent cantonal changes What moved in 2025 Two cantons made material rate cuts for the 2025 fiscal year. Both moves are larger than typical annual revisions and reshape the cantonal ranking at the margin. Ticino cut its effective rate by 3.11 percentage points Ticino landed around 14.0% combined effective for 2025, following the largest single-year cantonal cut in Switzerland that year. The move reflects competitive realignment with low-tax central-Swiss cantons and the Italian-facing commodities-trading cluster around Lugano. Italian remains the registry language and English-service availability is narrower than in Zug or Zurich. Basel-Land cut by 2.45 percentage points Basel-Land landed around 13.5% combined effective for 2025, a 2.45 percentage point reduction that positions the canton as a credible cost-lower neighbour to Basel-Stadt for pharma supply-chain and biotech-adjacent operations. What we expect in 2026 The OECD Pillar Two framework, a 15% minimum effective tax on multinational enterprises with EUR 750 million or more in consolidated revenue, puts pressure on the very-low cantons (Zug, Appenzell IR, Nidwalden) to use targeted incentives rather than headline rate cuts. For smaller and mid-sized companies below the Pillar Two threshold, the cantonal rate race continues. Expect further cuts from higher-tax cantons looking to narrow the spread. As of August 2026, ESTV's own cantonal tax-burden comparison confirms the direction: across all 26 cantons, average direct cantonal-and-communal tax on corporate profit sits at just under 9% of profit for 2026, down from 2025. That figure is the cantonal-plus-communal layer only, separate from the roughly 8.5% federal component that applies nationwide, but the year-over-year decline corroborates that rate pressure did not stop with the Ticino and Basel-Land cuts above. Source: Federal Tax Administration (ESTV) , published 3 February 2026. Mobility Can I move my company between cantons later? Yes. Switzerland permits cross-canton domicile transfer without dissolving the company. Nobody gets trapped by an initial choice. Cross-canton domicile transfer, how it works The legal mechanism is a change of registered office. It requires a notarial deed amending the articles of association, a deregistration filing at the old Handelsregister and a registration filing at the new Handelsregister. zefix.ch mirrors the update automatically. The company itself continues, retaining its share capital, contracts, VAT number and bank accounts; no new capital deposit is required. The total workflow typically runs 4–8 weeks depending on both cantons' registry throughput. Tax consequences of relocating The new canton's effective corporate tax rate applies from the date of the domicile change, with pro-rata apportionment in the transition year. Capital tax also follows the registered-office canton from the transfer date. Advance tax rulings from the old canton do not transfer; new rulings must be negotiated with the new cantonal tax administration where relevant. Decision framework How to decide: three factors Most foreign founders we talk to over-weight tax and under-weight the other two factors. For structures expecting CHF 500,000 or more in annual profit, tax is decisive. Below that, the other two usually win. Factor 1. Tax, but not in isolation The 11.85%–20.54% spread is real. On CHF 1 million of profit, the absolute-CHF difference between Zug and Bern is about CHF 87,000 per year. That is material. On CHF 200,000 of profit the same spread is about CHF 17,000 per year; meaningful but not typically decisive if the other factors point the other way. Model both figures honestly before anchoring on the rate. Factor 2. Talent and industry cluster proximity A crypto-engineering founder who incorporates in Ticino will spend years paying Zurich-level relocation packages to get the hires they want. A pharma researcher in Nidwalden will face the same problem. Cluster gravity, who lives nearby and wants to work in your industry, matters more than rate for hiring-intensive businesses. Zurich, Basel and Geneva rank first for their dominant clusters; Zug punches above its weight in crypto, fintech and holding structures. Factor 3. Administrative language and your own team's language mix If no one on your team reads German, a canton where the Handelsregister and cantonal tax administration work only in German makes every filing and every ruling negotiation a translation exercise. Zug and Zurich deliver working English at the registry counter and across the service-provider base. Geneva works in French and English comfortably. Ticino is Italian-only and rural cantons are German-only in practice. Either plan for that or pick a canton that does not require it. Quick picks Bottom line: who each canton is for Lowest corporate tax Appenzell Innerrhoden at around 11.5% has the lowest headline rate nationally but is a very small canton of roughly 16,000 residents with limited service-provider depth. Zug at 11.85% is the lowest rate among cantons with English-friendly administration and a full formation ecosystem; Nidwalden (~11.9%) and Lucerne (~12.3%) follow. For most foreign founders the practical ranking is Zug first. English-friendly administration Zug, Zurich and Geneva are the three cantons where a non-German and non-French speaker can realistically run their filings and tax interactions in English end-to-end. Zug leads because the registry itself routinely works in English. Zurich follows closely on service-provider fluency. Geneva works in English and French in parallel. Financial cluster Zurich for FINMA-regulated entities (asset managers, funds, insurance). Geneva for private banking and commodities trading. Zug for holding structures and crypto / DLT vehicles. Any FINMA-authorised path lives in the intersection of these three, with the cantonal choice driven by business-model fit rather than rate. Pharma and life sciences Basel-Stadt is the anchor, with Roche and Novartis and the supporting cluster. Basel-Land (at around 13.5% after the 2.45 pp cut) is a cost-lower neighbour for supply-chain and early-stage R&D. Vaud's EPFL corridor is a strong tech-leaning adjacent choice. Commodity trading Geneva for the historic SITC cluster and UN-adjacent infrastructure. Zug for physical-and-paper hybrids and for trading structures that want Swiss-German administration. Lugano (Ticino) for Italy-facing commodity flows, with the caveat that registry administration runs in Italian. FAQ Frequently asked questions Does the canton change federal minimum capital rules? No. Minimum share capital is set by federal law for every canton: CHF 100,000 for an AG (OR art. 621) and CHF 20,000 fully paid-in for a GmbH (OR art. 773, 777c). The canton cannot raise or lower it. Which canton has the lowest corporate tax rate? Appenzell Innerrhoden has the lowest headline effective rate (~11.5%). The practically more relevant lowest is Zug at 11.85%, which combines a low rate with English-friendly administration. Nidwalden (~11.9%) and Lucerne (~12.3%) follow. Which canton is best for an English-speaking founder? Zug first: its registry routinely processes filings in English and most local service providers work in English. Zurich is close behind. Geneva is French-primary with broad English proficiency; Ticino is Italian-only. Is tax the main factor in canton choice? For profit above roughly CHF 500,000 per year, yes: the 11.85%–20.54% effective-rate range creates material absolute differences. Below that, talent cluster, administrative language, and proximity to customers usually matter more than a few percentage points. Can I move my company from one canton to another later? Yes. Cross-canton domicile transfer is legally permitted without dissolving the company, a notarial deed amending the articles of association plus filings at both the old and new Handelsregister. The new canton's tax rate applies from the date of transfer. Does my canton determine my personal tax too? Yes, your canton and municipality of personal residence set your individual income and wealth tax. Corporate and individual rankings are not the same: Zug is lowest for corporations but sits near the middle for individuals. Which canton is fastest to register a company? End-to-end timelines are 3–6 weeks for an AG and 2–4 weeks for a GmbH. Zug's Handelsregister is consistently one of the fastest on the filing step. No canton has a statutory-speed advantage; it is administrative throughput. Is Zug always the right choice? No. Zug is optimal for holding, crypto, fintech and foreign-holder structures wanting English administration. Basel fits pharma and biotech. Zurich fits scale-ups needing deep talent. Geneva fits trading and private banking. Which cantons are best for pharma and life sciences? Basel-Stadt is the anchor: Roche and Novartis plus deep specialised talent and the patent-box regime. Basel-Land (around 13.5% after the 2.45 pp cut in 2025) is a cost-lower neighbour. Vaud's EPFL cluster is a strong tech-leaning alternative. Which cantons are best for finance and trading? Geneva for commodities and trading. Zurich for FINMA-regulated entities and insurance. Zug for crypto, DLT-based structures and holding vehicles. Can a foreign shareholder pick any canton? Yes. Swiss federal law permits 100% foreign ownership of an AG or GmbH in any canton. At least one Swiss-resident authorised signatory is required (OR art. 718.4 for AG, OR art. 814.3 for GmbH); this can be satisfied with a nominee director. Do cantons offer incentives for new businesses? Yes, cantonal economic-promotion offices offer case-by-case incentives (advance tax rulings, grants, relocation support). Scope and responsiveness vary by canton: Zug's office is foreign-investor-oriented and responsive; less-active cantons may take longer. Not sure which canton? Not sure which canton fits your structure? Talk to us. We work across all 26 cantons from our office at Baarerstrasse 14, Zug. A 30-minute call maps your canton, legal form, timeline and Swiss-resident signatory arrangements. No price-list; every engagement is scoped on the call. Request a proposal --- ## Company Formation in Geneva | Swiss Incorporation Experts URL: https://business-in-switzerland.com/cantons/geneva Description: Form a Sàrl or SA in the canton of Geneva, Switzerland. Full foreign ownership, 2–4 weeks end-to-end, 14.70% effective corporate tax. Request a proposal. Company Formation in Geneva | Swiss Incorporation Experts STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Canton of Geneva Company formation in Geneva — Switzerland's international-business gateway Register a Swiss Sàrl or SA in the Canton of Geneva. 14.70% combined effective corporate tax, full foreign ownership, 2–4 weeks end-to-end for a Sàrl and 3–6 weeks for an SA. Most steps can be handled remotely. We scope the work from our Zug office and coordinate with Geneva notaries, banks, and the Office du Registre du commerce de Genève. Request a proposal Geneva at a glance Four numbers that shape the decision 14.70% Combined effective CIT (City of Geneva) facts-switzerland §2.2 (KPMG, ESTV 2026) CHF 20k Sàrl minimum share capital OR art. 773, 777c (facts §1.2) CHF 100k SA minimum share capital OR art. 621, 632 (facts §1.1) 2 – 6 weeks End-to-end formation (Sàrl to SA) facts §4.2 Cantonal rates shift every fiscal year. We re-verify the 14.70% figure annually against KPMG Clarity on Swiss Taxes and the ESTV cantonal tables. Why Geneva Why foreign founders pick the Canton of Geneva Geneva's pull on foreign founders is ecosystem, not tax. The canton's advantage is the density of international organisations, private banks, and physical-commodity traders it has built over a century, all operating in a city where French, English, and the foreigner experience are the working default. Around 40% of residents in the canton are foreign-born according to cantonal statistics, a ratio that shapes everything from notary practice to restaurant menus. For a founder arriving from outside Switzerland, Geneva is structurally the least exotic of the Swiss cantons — and that unfamiliarity-penalty is usually the hidden tax of incorporating abroad. A commodity-trading capital Geneva is widely cited as one of the world's core hubs for physical-commodity trading — oil, metals, soft commodities, and energy all route a meaningful share of their global flow through Geneva-based desks and bonded warehouses. Firms with significant Geneva presence include Vitol, Trafigura, Gunvor, Mercuria, and Cargill International, surrounded by specialist trade-finance banks and logistics operators. For a founder whose counterparties, trade-finance providers, or inspection agencies sit on the Quai Gustave-Ador and the Place du Port, physical proximity is not nostalgia — it is how the market works. International organisations and NGOs Geneva hosts a significant international presence — the UN Office at Geneva (UNOG), the WTO, the WHO, the ILO, the IOM, the ICRC, and hundreds of NGOs, missions, and standards bodies. For founders providing services to the UN ecosystem, or for mission-driven entities themselves, Geneva is the natural domicile. The procurement compliance and governance expectations that come with this ecosystem are not trivial, but the surrounding advisory depth makes them workable. Private banking and wealth-management heartland Geneva is one of the world's largest private-banking and wealth-management centres, sitting alongside Zurich at the top of Switzerland's wealth-industry map. Long-established Geneva houses include Pictet, Lombard Odier, Mirabaud, and Julius Baer; around them sits a deep population of independent asset managers, external wealth managers (EAMs), and family-office operators. For wealth-structure work — SA holding vehicles, EAMs, FINMA-authorised asset managers — the Geneva ecosystem is competitive with anywhere in Europe. A French-language bridge to francophone Europe French is the canton's administrative language. Notaries, banks, and business advisers operate bilingually in French and English, and the cantonal and municipal administrations publish mostly in French. For founders arriving from France, Belgium, Quebec, West Africa, or francophone Europe more broadly, Geneva absorbs a layer of cultural and linguistic friction that German-speaking cantons cannot match. The city is also one to three hours by direct flight from Paris, Lyon, Brussels, Lisbon, and Madrid. Biotech, life sciences, and the CERN pipeline The Lake Geneva arc is one of Europe's larger life-sciences corridors, spanning biotech, medtech, and digital health from Geneva through Lausanne, Vaud, and up to the Neuchâtel cluster. CERN, the European Organization for Nuclear Research, sits on the French border of the canton and has been a long-running pipeline for deep-tech spinouts. Founders whose thesis touches on medical devices, diagnostics, or scientific instrumentation find pre-existing talent and investor networks here. Tax mechanics How Geneva taxes a company: the 14.70% in three layers Geneva's combined effective corporate income tax rate at the City of Geneva is approximately 14.70% in 2026, mid-field nationally. Like every Swiss canton, Geneva stacks three layers on top of each other: federal, cantonal, and communal. Understanding that stack is what lets a founder reason about why Geneva sits where it does relative to Zug (11.85%) and Zurich (19.61%). Federal CIT — 8.5% statutory, around 7.83% effective The Swiss federal direct tax on corporate profit is 8.5% on net profit after tax (DBG art. 57 ff). Because federal tax is itself deductible from the taxable base, the effective federal rate works out to approximately 7.83% . This layer is identical across all 26 cantons — Geneva inherits it, as does Zug. Cantons compete on the two layers above it, not on this one. Cantonal and communal tranches in Geneva Canton Geneva and the relevant commune each levy their own corporate-tax tranche. Stacked on top of the federal base, the combination produces the 14.70% figure at the City of Geneva level. Municipalities elsewhere in the canton (Meyrin, Carouge, Vernier, Lancy, and so on) have slightly different communal multipliers, so the exact rate can drift by roughly a percentage point across the canton. For seven-figure structures this matters and we model each candidate commune; for most SME structures the delta is inside the margin of ordinary planning. How Geneva compares to other cantons The 2026 cantonal picture, at each canton's main city, looks like this: Canton Effective CIT (2026) Note Zug 11.85% Lowest combined CIT in Switzerland Basel-Stadt ~13.0% Pharma and life-sciences cluster Geneva 14.70% International HQs, UN, commodities, wealth Vaud 14.72% EPFL and the Lausanne technology corridor Schwyz ~14.0% Low-tax central-Swiss peer Zurich 19.61% Banking capital; highest-cost base Bern 20.54% Federal capital; highest rate in CH Source: facts-switzerland §2.2 (KPMG Clarity on Swiss Taxes, cross-checked against ESTV cantonal data). Re-verified every January–February. Advance tax rulings and sector-specific regimes Geneva, like all Swiss cantons, can grant an advance tax ruling on the treatment of a proposed structure before incorporation. This is how serious founders de-risk aggressive or novel set-ups. The federal IP-box and patent-box mechanisms also apply in Geneva for qualifying activities. For multinationals with consolidated annual revenue above EUR 750 million, the OECD Pillar Two 15% global minimum tax engages at the group level, not at the Geneva subsidiary level — most foreign-founder SMEs are out of scope. Withholding tax on outbound dividends Switzerland levies a statutory 35% withholding tax on dividends at source (facts §2.4). Non-resident shareholders reclaim most of it under Switzerland's 100-plus double-taxation treaties, with typical treaty residual rates of 0%, 5%, 10%, or 15% depending on the shareholding and the shareholder's home country. For qualifying CH–EU intercompany dividends, the bilateral savings agreement delivers a 0% rate. Royalties are not subject to Swiss withholding at all, which is one of the country's less-advertised advantages over most EU jurisdictions. Sector fit Who Geneva suits: a practical sector filter Geneva is the right canton for some activity profiles and the wrong canton for others. The honest matrix below is how we route founders between cantonal landings and specialised pages. Commodity trading Commodity trading and physical-goods trading Geneva's flagship sector. Bonded warehouses, trade-finance banks, maritime insurers, and inspection agencies cluster in the city because the flow of physical oil, metals, grains, and energy has historically routed through it. For a trading group, Geneva is usually the default choice; structuring the parent holding is where our holding-company structures page picks up. Wealth management Private banking, EAMs, and family offices Geneva is where private-banking ecosystems run. SA is the structure of choice for shareholder privacy. Financial intermediaries require FINMA authorisation under FinIA (art. 17, 22, 24, 28) or recognition through a Self-Regulatory Organisation. The deeper scoping lives on our Geneva family office setup page. International organisations, NGOs, mission-driven entities Founders providing services to the UN ecosystem, or running mission-driven entities themselves, often incorporate in Geneva for proximity. Governance expectations (transparency, procurement compliance, dual-use screening) are higher than for a private-sector SME. Either a Sàrl or an SA can work depending on funding model and board structure. Biotech, medtech, and life sciences Lake Geneva arc life-sciences founders usually pick an SA to keep future fundraising clean — venture rounds, IPO, trade sale. IP strategy at the holding level is the first structural question; Geneva works as the operating company's home, with holding options in Geneva or elsewhere depending on the investor base. Luxury, watchmaking, and high-end manufacturing Patek Philippe, Rolex, and Chopard are Geneva-headquartered; neighbouring Jura-arc hubs (Neuchâtel, Biel/Bienne, La Chaux-de-Fonds) host much of the manufacturing itself. Geneva is regularly the domicile for brand-holding companies even when production sits elsewhere in the country. International HQ and sales offices For multinationals standing up a European or EMEA sales, licensing, or regional-HQ entity, Geneva competes for the role on the basis of language, airport access, and international governance culture — less on tax than Zug, more on ecosystem depth than most cantons. Honest view Who should not pick Geneva Geneva is not the right canton for every structure. Three profiles we routinely redirect elsewhere, for reasons we would rather say upfront than discover at month three of a proposal. Plain-vanilla tech startups with no ecosystem need If your thesis is a standard SaaS or marketplace play and you do not need the UN, the WTO, a private bank, or a commodity counterparty, Geneva's 14.70% rate is no better than Zurich's talent pool or Zug's tax arithmetic. We route these founders to Zurich (ecosystem depth) or to incorporate in Zug (tax efficiency) depending on hiring plan. Capital-light pure holdings with no Swiss ecosystem need For a pure holding with no operational footprint, Zug's 11.85% combined CIT is the structurally better choice by roughly 2.85 percentage points. If the holding exists to own foreign subsidiaries and distribute dividends, and the holding itself has no reason to sit in Geneva, picking Geneva over Zug is paying for ecosystem you are not using. Founders who need German-speaking administration specifically Geneva administration runs in French. If your team, clients, or subsidiaries are German-mother-tongue and the daily administrative load is heavy, Zurich, Zug, Basel-Stadt, and Schwyz are better cultural fits. It is a soft friction, but a real one for founders embedded in the German-speaking Swiss or German-speaking European orbit. Process Forming a company in Geneva: the 6-step Handelsregister process 01 Clear the company name at Zefix Typical: ~1 day Confirm the proposed name is available at the federal Commercial Register portal (zefix.ch). Swiss law requires the suffix to match the legal form — "Sàrl" or "GmbH" for the LLC, "SA" or "AG" for the PLC. 02 Select the legal form and draft articles of association Typical: 3–7 days Tailor the articles (statuts) to a Sàrl or SA. Recent Swiss company-law reform has tightened shareholder-transparency provisions, so articles drafted today look different from articles drafted a few years ago; we draft against the current version of the Code of Obligations. 03 Open a capital-deposit (blocked) account Typical: 1–3 banking days Deposit the paid-in share capital with a Swiss bank — CHF 20,000 for a Sàrl, at least CHF 50,000 for an SA. The capital is blocked until the Handelsregister confirms incorporation. Several Swiss banks now support remote onboarding for this step. 04 Notarial deed of incorporation Typical: ~1 day Execute the incorporation deed before a Swiss notary. Geneva notaries are concentrated in the Old Town and around the rue du Rhône axis, and most work bilingually in French and English. Remote notarial attendance is increasingly supported for foreign founders. 05 File with the Office du Registre du commerce de Genève Typical: 7–21 days Submit the incorporation documents to the Geneva cantonal Commercial Register. National processing range is 7–21 days (facts §4.2). Post-registration, the company receives its UID and becomes a legal entity. 06 Post-incorporation compliance Typical: 5–30 days Affiliate with the cantonal OASI/AVS compensation fund, register for VAT if turnover is expected above CHF 100,000 per year (MWSTG art. 10), open an operating bank account, maintain the share register, and set up annual-accounts workflow. Swiss social-security administration now runs through a new digital portal, which we onboard the company to as part of set-up. End-to-end, a Sàrl registered in Geneva typically takes 2–4 weeks and an SA 3–6 weeks , assuming paperwork is ready and the ultimate beneficial owner clears bank onboarding without delay (facts §4.2). For most founders, no travel to Geneva is required — the notarial deed, the capital-deposit account, and the register filing can all be handled remotely or by proxy. Legal form Sàrl, SA, branch, or sole proprietorship? Four federal legal forms are available — the same in Geneva as anywhere else in Switzerland. The choice is driven by capital, privacy, liability, and future fundraising, not by the canton. Société à responsabilité limitée Sàrl — the CHF 20,000 LLC Minimum share capital CHF 20,000, fully paid in at formation (OR art. 773, 777c). Partners and their holdings are publicly listed in the Commercial Register. At least one managing officer with signatory authority must reside in Switzerland (OR art. 814.3). Preferred for owner-operated SMEs, service businesses, consulting practices, and trading shops at early scale. Swiss GmbH (Sàrl) formation → Société Anonyme SA — the CHF 100,000 PLC equivalent Minimum share capital CHF 100,000; at least CHF 50,000 (or 20%) paid in at formation (OR art. 621, 632). Shareholders are private; only registered shares since the 2019 abolition of bearer shares (OR art. 622.1bis). At least one board member with signatory authority must reside in Switzerland (OR art. 718.4). Preferred for wealth structures, FINMA-authorised activities, fundraising rounds, and any vehicle seeking capital-markets access. Swiss AG (SA) formation → Raison individuelle — sole proprietorship No minimum capital; unlimited personal liability. Commercial Register entry is mandatory only once annual turnover exceeds CHF 100,000 (facts §1.3). Suitable for pilot freelancing where the founder wants to test a market in Switzerland without committing to a Sàrl or SA; conversion to a limited-liability form later is straightforward. Succursale — branch of a foreign parent A branch has no share capital of its own; it is an extension of the foreign parent (facts §1.4). A Swiss-resident representative must be appointed. Suitable for foreign groups that want a Swiss operational footprint without creating a new legal entity. Taxed in Switzerland on branch profit; the foreign HQ remains legally responsible. Sàrl vs SA — at a glance Attribute Sàrl (GmbH) SA (AG) Minimum share capital CHF 20,000 CHF 100,000 Minimum paid-in at formation CHF 20,000 (fully paid) CHF 50,000 or 20%, whichever is higher Shareholder / partner disclosure Partners publicly listed in the register Shareholders private (registered shares since 2019) Swiss-resident signatory 1+ managing officer (OR art. 814.3) 1+ board member (OR art. 718.4) Typical use case Owner-operated SMEs, service businesses Wealth structures, fundraising, regulated activities End-to-end formation timeline 2–4 weeks 3–6 weeks Source: facts-switzerland §1.1, §1.2, §4.2. Comparisons Geneva vs its neighbours: an honest comparison Geneva vs Zurich Geneva 14.70% vs Zurich 19.61%. Zurich is Switzerland's general-economy capital, its banking centre, and its deepest labour market; Geneva's international-institution density is the counter-argument. If your counterparties are at the UN, the WTO, or on the commodity-trading circuit, Zurich's tax delta does not close the distance. Incorporate in Zurich → Geneva vs Vaud (Lausanne) Geneva 14.70% vs Vaud 14.72% — rates essentially identical. Both cantons are francophone and share a labour market around the Lake Geneva arc. Choose Geneva for international-organisation proximity, commodity trading, and private banking. Choose Vaud for tech and biotech around EPFL and the Nestlé-anchored food-science cluster. Geneva vs Zug Zug 11.85% vs Geneva 14.70%. Zug's tax edge of almost three percentage points is decisive for capital-light holdings, crypto or DLT vehicles, and HQs that do not need a Geneva ecosystem. Geneva wins where the ecosystem is the reason to be there. Incorporate in Zug → Service scope What we do for Geneva company formations What is included as standard Zefix name check and cantonal pre-clearance. Structure recommendation (Sàrl vs SA vs branch; sole or multi-shareholder). Articles of association drafting against current Swiss company law. Capital-deposit (blocked) account coordination with a Swiss bank. Geneva notary coordination for the incorporation deed, remote where possible. Filing and follow-up with the Office du Registre du commerce de Genève. UID confirmation and post-incorporation checklist. Optional add-ons Swiss-resident nominee director to satisfy OR art. 718.4 (SA) or OR art. 814.3 (Sàrl). Commercial domiciliation at a Geneva registered address. Operating bank account support once the consignment account is released. Ongoing accounting and bookkeeping , VAT registration, payroll. Coordination with FINMA for regulated activities, where relevant. Holding structure, family-office wrapper, or SA-over-SA parent structuring (see our holding-company structures page). We scope engagements through a written proposal, not a price list. Every Swiss structure is scoped differently — capital, substance, canton, licensing, residency — and quoting blind is how founders end up with the wrong structure at the wrong price. FAQ Frequently asked questions — company formation in Geneva What is Geneva's effective corporate tax rate? Geneva's effective combined corporate income tax rate is approximately 14.70% at the City of Geneva level in 2026, composed of the federal layer (8.5% statutory, around 7.83% effective), the cantonal tranche, and the communal tranche. The exact rate varies slightly by municipality within the canton. Rates are re-verified every January–February. Does Geneva administration work in English? Geneva's official language is French. In practice, notaries, banks, and business advisers in Geneva operate bilingually French and English. Statutory filings at the cantonal Commercial Register (Office du Registre du commerce de Genève) must be submitted in an official Swiss language — French, German, Italian, or Romansh. English is not an official register language. Why is Geneva considered a commodity-trading capital? Geneva hosts one of the world's core physical-commodity trading clusters. It is widely cited as accounting for a large share of global commodity trade, spanning oil, metals, soft commodities, and energy. Houses with significant Geneva presence include Vitol, Trafigura, Gunvor, and Mercuria, supported by bonded warehouses, trade-finance banks, and logistics networks. Is Geneva still attractive for private banking? Yes. Geneva is one of the world's largest private-banking and wealth-management centres, sitting alongside Zurich at the top of Switzerland's wealth-industry map. Long-established Geneva houses include Pictet, Lombard Odier, Mirabaud, and Julius Baer, supported by a deep population of independent asset managers and external wealth managers. How long does company registration take in Geneva? End-to-end, a Sàrl typically takes 2–4 weeks and an SA 3–6 weeks. The national Handelsregister processing range is 7–21 days once documents are filed; Geneva sits in the middle of that range for most standard files. The variable step is usually the capital-deposit bank account, which can take 1–3 banking days or longer depending on foreign-ownership due diligence. Do I need to live in Geneva to incorporate a company there? No. Swiss law permits 100% foreign ownership of a Sàrl or SA. The only residency requirement is that at least one authorised signatory must be domiciled in Switzerland — a role commonly filled by a professional nominee director until the founder obtains residency themselves. This is a federal rule (OR art. 718.4 for SA, OR art. 814.3 for Sàrl), not a cantonal one. What is the difference between Geneva and Vaud (Lausanne)? Corporate tax rates are essentially identical — Geneva 14.70%, Vaud 14.72% in 2026. Choose Geneva for international-organisation proximity, commodity trading, and private banking. Choose Vaud for technology and biotech ventures gravitating around EPFL in Lausanne and the Nestlé-anchored food-science cluster. Both cantons are francophone and share the same regional labour market. Is Geneva more expensive to operate in than Zurich? Taxes are lower in Geneva (14.70%) than in Zurich (19.61%). On operational costs — office rental, wages, professional services — both cities sit near the top of the Swiss range, and neither is clearly cheaper at operating scale. Total cost of operation depends on the mix of activities, headcount, and office footprint. Which banks serve foreign-owned Geneva companies? Corporate-banking options in Geneva include the universal banks (UBS, Raiffeisen-group institutions, PostFinance, the cantonal Banque Cantonale de Genève), and international banks active in Switzerland. For wealth-structure clients, private banks such as Pictet, Lombard Odier, and Mirabaud serve on the corporate side of wealth vehicles. Onboarding typically takes 5–30 days including customer due diligence. Can I run a commodity-trading company from Geneva without a physical office? A registered commercial address (commercial domiciliation) satisfies the Commercial Register’s formal address requirement. For larger trading operations, however, Swiss tax authorities and counterparties increasingly expect real economic substance — local staff, contracts signed locally, real operational activity — on top of the registered address. Domiciliation without substance is a structuring risk for anything beyond a small or dormant vehicle. Is Geneva canton better for French-speaking EU founders? Often yes. Administrative French, direct flight connectivity to Paris, Lyon, Brussels, Lisbon, and Madrid, and shared legal culture favour francophone founders. The alternative francophone Swiss cantons are Vaud (Lausanne), Neuchâtel, Fribourg, Jura, and the French-speaking part of Valais. Geneva is the largest ecosystem of the group and the most internationally oriented. How does Geneva tax dividends paid to foreign shareholders? Switzerland levies a 35% federal withholding tax on dividends at source. Foreign shareholders may reclaim most of this under one of Switzerland's 100+ double-taxation treaties — typical treaty residual rates are 0%, 5%, 10%, or 15%, depending on shareholding level and country of residence. For qualifying EU intercompany dividends, a 0% rate is available under the Switzerland–EU savings agreement. Talk to us Talk to us about your Geneva formation What to expect after you contact us A 30-minute discovery call in English or French. Canton, structure, timeline, substance, residency, licensing — we cover the lot. A written requirements brief recapping what we heard, what we recommend, and what is still open. For most services, immediate confirmation of the published fee. For multi-step engagements, a written proposal with scope, assumptions, and a fee band — no obligation. Still comparing cantons? Compare Swiss cantons side-by-side, or look at our incorporate in Zug and incorporate in Zurich profiles. If you plan to relocate alongside the incorporation, our Swiss residence permit for founders page covers the permit-path separately. Looking to base the wealth or holding wrapper in Geneva specifically? The deeper scoping lives on our Geneva family office setup and holding-company structures pages. Our base Baarerstrasse 14, 6300 Zug We scope Geneva engagements from our Zug office and coordinate on the ground with Geneva notaries, banks, and the cantonal Commercial Register. Monday to Friday, 09:00–18:00 CET. Meetings by appointment, in person or remote. Working languages: English and French. Articles of association in French for Geneva filings. Request a proposal Compare Swiss cantons Base your business in Geneva One of the world's international-business capitals, a francophone gateway to Europe, and an ecosystem built for commodity trading, private banking, and mission-driven work. We scope Geneva engagements end-to-end. Request a proposal --- ## Company Formation in Zug — 11.85% Effective Tax URL: https://business-in-switzerland.com/cantons/zug Description: Register a Swiss AG or GmbH in Zug: 11.85% effective CIT, Crypto Valley home, ~10-day Handelsregister. Foreign-founder guide from our Baarerstrasse office. Company Formation in Zug — 11.85% Effective Tax STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Canton of Zug Company formation in Zug: Switzerland's lowest-tax canton and Crypto Valley home base Register a Swiss AG or GmbH in the Canton of Zug. 11.85% combined effective corporate tax, around 10 business days at the Handelsregister, and Switzerland's densest blockchain cluster. Our office is at Baarerstrasse 14, a short walk from the Handelsregisteramt Kanton Zug and the major Zug notaries. Request a proposal Zug at a glance Four numbers that decide Zug 11.85% Combined effective CIT facts-switzerland §2.2 (KPMG, ESTV 2026) CHF 100k AG minimum share capital OR art. 621, 632 (facts §1.1) CHF 20k GmbH minimum share capital OR art. 773, 777c (facts §1.2) ~10 days Handelsregister Kanton Zug processing facts §4.2 (federal range 7–21 days) Cantonal tax rates change every fiscal year. We re-verify the 11.85% figure annually against KPMG Clarity on Swiss Taxes and the ESTV cantonal tables. Tax mechanics Corporate tax in Zug: how the 11.85% effective rate is built Zug's headline attraction is tax. The combined effective corporate income tax (CIT) rate at the city of Zug is approximately 11.85% , the lowest of all 26 Swiss cantons. It is the arithmetic of three layers: federal, cantonal, and municipal. Federal CIT (8.5% statutory, 7.83% effective) The Swiss federal direct tax on corporate profit is 8.5% on net profit after tax (DBG art. 57 ff). Because federal tax is itself deductible from taxable profit, the effective federal rate is approximately 7.83% . This layer is identical in every canton — Zug inherits it, as does Zurich, Geneva, and Bern. Cantonal and municipal layer in Zug On top of federal, Canton Zug and the municipality of Zug-city each levy their own tranche, together adding roughly four percentage points to produce the 11.85% combined rate. Rates at Baar and Cham (the canton's other corporate hotspots) differ by about ±1 percentage point. If the exact municipality matters to a seven-figure structure, we run the numbers for each candidate commune. Zug vs other cantons The 2026 cantonal picture, at each canton's main city, looks like this: Canton Effective CIT (2026) Note Zug 11.85% Lowest combined CIT in Switzerland Appenzell Innerrhoden ~11.5% Smallest canton, headline-low rate Nidwalden ~11.9% Low-tax central-Swiss peer Lucerne ~12.3% Second-lowest major canton Basel-Stadt ~13.0% Pharma / life-sciences cluster Schwyz ~14.0% Low-tax Zug peer; lower at Freienbach Geneva 14.70% International HQs, UN agencies, commodities Vaud 14.72% Lausanne / EPFL tech corridor Zurich 19.61% Banking capital; highest cost base Bern 20.54% Federal capital; highest rate in CH Source: facts-switzerland §2.2 (KPMG Clarity on Swiss Taxes 2025, cross-checked against ESTV cantonal data). Re-verified every January–February. OECD Pillar Two: does it affect me? The 15% global minimum tax applies only to multinational groups with consolidated annual revenue above EUR 750 million. For the standard foreign-founder SME — a holding vehicle, a trading company, a Web3 operating entity — Pillar Two is not triggered, and Zug's 11.85% remains your effective rate. If you are part of an in-scope group, the top-up tax accrues at the ultimate parent level, not at the Zug subsidiary; we bring in a tax adviser for that configuration. Legal form AG or GmbH? Picking the right legal form for a Zug company Aktiengesellschaft AG — the CHF 100,000 company Minimum share capital CHF 100,000; at least CHF 50,000 (or 20%) paid in at formation (OR art. 621, 632). Shareholders are private; bearer shares abolished since 2019 (OR art. 622.1bis). Preferred vehicle for holding, crypto, family office, FINMA-pathway, and any structure seeking capital-markets access. Ordinary audit triggered only above statutory thresholds (OR art. 727). Opt-out available with 10 or fewer FTEs. Swiss AG (Aktiengesellschaft) → GmbH / Sàrl GmbH — the CHF 20,000 company Minimum share capital CHF 20,000, fully paid in at formation (OR art. 773, 777c). Partners (and their holdings) are publicly listed in the Commercial Register. Preferred vehicle for lean operating companies, consulting practices, service businesses, and early-stage trading shops. At least one managing officer with signatory authority must reside in Switzerland (OR art. 814.3). Swiss GmbH (LLC) → Which one for a foreign founder in Zug? The honest matrix: AG for holding, crypto / DLT, family office, and any FINMA-authorised pathway; GmbH for lean operating companies where the capital multiple is unnecessary. If the CHF 80,000 gap between the two minimums is decisive, you can still pick AG and pay in the statutory minimum (CHF 50,000) at formation, topping up later. Fence-sitters can model the numbers at the capital requirements calculator and then bring us the output. The upstream parent for both is the Swiss company formation services hub. Foreign founders Can foreigners form a company in Zug? Residency and director rules 100% foreign ownership is allowed There is no Swiss residency or nationality requirement for AG shareholders or GmbH partners. A sole shareholder or a syndicate of investors of any nationality, resident anywhere in the world, can own a Canton Zug company in full. The question is never whether foreigners can own; it is whether the statutory signatory requirement is satisfied. The Swiss-resident signatory rule (OR 718.4 / 814.3) For an AG, at least one board member with sole or joint signatory authority must reside in Switzerland ( OR art. 718.4 ). For a GmbH, at least one managing officer with sole or joint signatory authority must reside in Switzerland ( OR art. 814.3 ). This is a federal rule — Canton Zug does not tighten or relax it, and it cannot be waived. It is the single biggest mechanical friction for overseas founders. How a nominee director works A nominee director is a licensed Swiss fiduciary who sits on the board or as managing officer for the sole purpose of satisfying OR 718.4 / 814.3. Economic ownership and strategic control stay entirely with the foreign owner, normally codified in a nominee services agreement. Indicative market practice, not a price list: the arrangement is scoped in the written proposal. The nominee is a real decision-maker for corporate-law purposes, not a rubber stamp, which is why we do not offer this as a commodity service. Do I need a residence permit to own a Zug company? No. Owning shares or partnership interests in a Swiss company does not by itself grant a residence or work permit. These are governed by federal immigration law (FNA and the EU/EFTA Agreement on the Free Movement of Persons), not by the company register. EU / EFTA nationals move freely; third-country nationals are subject to the federal quota and, for self-employment, must prove economic interest to Switzerland. The two questions — owning a Zug company, and relocating to Switzerland — are solved separately. Process How to register a company in Zug: the 6-step Handelsregister process 01 Name check at Zefix Typical: ~1 day Confirm the proposed company name is available via the Swiss federal Commercial Register portal (zefix.ch). 02 Draft articles of association Typical: 3–7 days Draft the statutes (articles of association) and have them reviewed by the Swiss notary. 03 Bank consignment account and capital deposit Typical: 1–3 days Open a consignment account with a Swiss bank and deposit the paid-in share capital. The capital is blocked until Handelsregister confirms incorporation. Foreign ultimate beneficial owners may extend onboarding. 04 Notarial deed of incorporation Typical: 1 day Execute the incorporation deed before a Swiss notary. Zug notaries cluster around Baarerstrasse, a short walk from our office. 05 Handelsregister Kanton Zug filing Typical: ~10 days File the incorporation documents with Handelsregisteramt Kanton Zug. Zug is among the fastest cantonal registers, typically processing filings in around 10 business days. 06 VAT registration and operating bank account Typical: 5–30 days Register for VAT with ESTV if taxable turnover is expected to exceed CHF 100,000 per year (MWSTG art. 10). Open an operating bank account separate from the consignment account. End-to-end, a Swiss AG registered in Zug typically takes 3–6 weeks , a GmbH 2–4 weeks , assuming paperwork is ready and the ultimate beneficial owner clears bank onboarding without delay (facts §4.2). Crypto Valley Crypto Valley Zug: incorporating a DLT or Web3 company in the canton Why Zug became Switzerland's blockchain cluster The cluster formed from 2013 onward, when Bitcoin Suisse and a handful of early teams chose Zug for its English-comfortable administration and the lowest combined CIT in the country. The Ethereum Foundation anchored in 2014; the Web3 Foundation, Cardano Foundation, Tezos Foundation, Casper Association, and Polkadot-ecosystem vehicles followed through 2017–2020. Around them grew the auditors, notaries, and banks who understand token balance sheets — the substance that makes Crypto Valley more than a marketing label. The DLT Act and FINMA licensing In 2021 Switzerland amended FMIA (the Financial Market Infrastructure Act) to introduce ledger-based securities and a dedicated DLT trading-facility licence class ( FMIA art. 73a ), together colloquially called the DLT Act. FINMA, the Swiss Financial Market Supervisory Authority, issues the relevant crypto licences: fintech, securities-exchange, investment-fund, and banking. Licences are federal — Canton Zug does not authorise crypto firms itself. Zug's role is strategic, not regulatory: tax, banking access, and an ecosystem of advisers who know the framework. Crypto as in-kind share capital In practice, and subject to auditor valuation and a notarial confirmation deed, crypto assets have been accepted as in-kind capital contributions for Swiss AG and GmbH formations. The valuation report and the audit sign-off are non-trivial; plan on additional time for a crypto in-kind deposit versus a cash one. We scope this on a case-by-case basis, not as a template. AML and the Swiss regulatory baseline All crypto businesses in Switzerland fall under the Anti-Money Laundering Act (AMLA / GwG), whether supervised directly by FINMA or through a recognised Self-Regulatory Organisation (SRO). KYC, travel-rule, and suspicious-activity reporting obligations apply from day one. The deeper structural questions — licence class, banking partner, SRO vs direct — live on our Swiss crypto and DLT company formation page. Structures Holding companies and family offices in Zug: the Pure Holding story Participation exemption (Beteiligungsabzug) The Swiss federal participation exemption under DBG art. 69–70 effectively removes corporate tax on dividends from qualifying shareholdings and on capital gains from qualifying participations. Combined with Zug's 11.85% effective CIT and Switzerland's broad double-taxation-treaty network, a Zug holding company structure is competitive with the traditional Luxembourg / Netherlands / Malta options without the EU-blacklist exposure those jurisdictions periodically attract. What TRAF 2020 changed TRAF (the Federal Act on Tax Reform and AHV Financing, in force 2020) abolished the separate cantonal holding-tax status that Zug and other cantons offered historically. The federal participation exemption survived unchanged. In plain English: the lever that delivers the holding efficiency today is federal, not a special Zug privilege. This matters because overseas founders sometimes arrive with out-of-date advice expecting a "holding regime" at cantonal level; what they actually get is a standard CIT rate of 11.85% plus the federal participation mechanic. Family office wrapper in Zug For single and multi-family offices, Zug's combination of low CIT, auditor depth, proximity to Zurich's private-banking capacity (25 minutes by train to ZRH), and an English-comfortable administrative register make it a working centre, not just a flag. The Pure Holding wrapper — typically an AG — sits alongside operating subsidiaries wherever economic activity actually happens. The deeper scoping lives on the family office setup in Zug page. Withholding tax 35% and treaty relief Swiss federal withholding tax is 35% on outbound dividends (facts §2.4). Double-taxation treaties typically reduce this to 0, 5, 10, or 15% depending on the shareholder's residence and the size of the participation. For qualifying CH-EU intercompany dividends, the bilateral savings agreement delivers 0%. Royalties are not subject to Swiss withholding at all — a feature that distinguishes Switzerland from most EU states. Honest view Who should not pick Zug Zug is not the right canton for every structure. Three profiles we routinely redirect elsewhere: High-headcount service businesses needing Zurich's talent pool Zurich's 19.61% effective CIT is 7.76 percentage points higher than Zug. But if your model depends on banking, fintech, or international-tech hiring, Zurich's labour-market depth normally outweighs the tax delta. We recommend compare Zug vs Zurich at a hiring level of 30+ FTEs. International-organisation, UN, NGO, or commodity-trading counterparty networks Geneva (14.70% effective CIT) anchors UN agencies, WTO, the humanitarian sector, and most of Swiss commodity trading. If your counterparties sit on Quai Gustave-Ador, Zug's tax edge loses to physical proximity and ecosystem gravity. French-speaking client base Zug is German-speaking. Official filings at the Handelsregisteramt are in German. If your clients, investors, or team are French-mother-tongue, Geneva, Vaud, Neuchâtel, Jura, or Fribourg absorb that friction natively. Zug still works for English-language B2B, which is most of ours, but native French is not its comfort zone. Comparisons Zug vs Schwyz and Zug vs Zurich: the practical picks Zug vs Schwyz Both are low-tax central-Switzerland cantons. Schwyz sits around 14.0% combined effective CIT, and specific municipalities (Freienbach in particular) go lower still. Zug wins on ecosystem: Crypto Valley, English-comfortable administration, and the auditor / notary cluster around Baarerstrasse. Schwyz wins on raw rate at the municipality level if the structure does not need an English working language day-to-day. Zug vs Zurich Cost versus capacity. Zurich's 19.61% rate is roughly 7.8 percentage points higher, but its banking and talent depth is the deepest in Switzerland. Zug is 25 minutes by train from Zurich airport, so the distance argument rarely survives scrutiny — the decision is almost always tax arithmetic against hiring costs and commute geography. We run that model on request. FAQ Frequently asked questions — company formation in Zug What is Zug's effective corporate tax rate in 2026? Zug's combined effective corporate income tax (CIT) rate is approximately 11.85% — the lowest of all 26 Swiss cantons. The federal layer contributes 8.5% statutory / 7.83% effective; the cantonal and municipal layers add the remainder. Rates at Baar and Cham differ by about one percentage point. Re-verified annually. Can foreigners own 100% of a Zug company? Yes. There is no Swiss residency or nationality requirement for AG shareholders or GmbH partners. At least one board member (AG, under OR art. 718.4) or managing officer (GmbH, OR art. 814.3) must reside in Switzerland — this is typically solved via a nominee-director arrangement with a licensed fiduciary, while economic control stays fully with the foreign owner. How long does company registration take in Zug? After share capital has been deposited in the consignment account, the Handelsregisteramt Kanton Zug typically processes the filing in about 10 business days — Zug is among Switzerland’s fastest cantonal registers. End-to-end (name check, notary, bank, Handelsregister, VAT), a Swiss AG takes 3–6 weeks and a GmbH 2–4 weeks. Do I need a Swiss-resident director to form a company in Zug? Yes. For a Swiss AG, at least one member of the board with signatory authority must reside in Switzerland (OR art. 718.4). For a Swiss GmbH, at least one managing officer with signatory authority must reside in Switzerland (OR art. 814.3). Non-resident founders meet this requirement by appointing a nominee director through a regulated fiduciary; the nominee signs on behalf of the company while the foreign owner retains full economic control. What is Crypto Valley and why is it headquartered in Zug? Crypto Valley is the colloquial name for the blockchain / DLT company cluster centred in Zug and the greater Zurich region. It emerged from 2013 with Bitcoin Suisse and was consolidated by the arrival of the Ethereum Foundation, Web3 Foundation, Cardano Foundation, Tezos Foundation, and Casper Association. Zug's low corporate tax, crypto-friendly banking, and the 2021 DLT Act amendments to Swiss financial-market law entrenched Zug's position as the hub. Is Zug good for holding companies? Yes. Swiss federal law provides a participation exemption (Beteiligungsabzug, DBG art. 69–70) that effectively removes tax on dividends from qualifying subsidiary shareholdings and capital gains on qualifying participations. Combined with Zug’s ~11.85% effective CIT and Switzerland’s wide double-taxation-treaty network, a Zug pure-holding structure is tax-efficient without EU-blacklist exposure. TRAF (2020) abolished the former cantonal holding privilege but the federal participation exemption remains in force. What is the minimum share capital for a Zug AG or GmbH? For a Swiss AG registered in Zug: CHF 100,000 total share capital, with at least CHF 50,000 (or 20% of share capital, whichever is higher) paid in at formation (OR art. 621, 632). For a Swiss GmbH: CHF 20,000 fully paid in at formation (OR art. 773, 777c). Zug does not change these federal minimums. What crypto licences exist in Switzerland? FINMA, the Swiss Financial Market Supervisory Authority, issues four main licence classes relevant to crypto businesses: fintech, securities-exchange, investment-fund, and banking. The appropriate class depends on business model — a crypto exchange, a DLT token-issuing vehicle, and a crypto fund fall under different authorisations. Licences are federal; Canton Zug does not issue crypto authorisations, though Zug is the physical centre of the industry. How does Zug's tax compare to Zurich, Geneva, and Bern? Zug's combined effective corporate tax is ~11.85% — the lowest of all 26 Swiss cantons. Zurich is 19.61%, Geneva 14.70%, Vaud 14.72%, Basel-Stadt ~13.0%, and Bern 20.54% (the highest). Close low-tax peers to Zug include Lucerne (~12.3%), Nidwalden (~11.9%), Appenzell Innerrhoden (~11.5%), and Schwyz (~14.0%). Rates are re-verified every January–February. Can I run my Zug company remotely from abroad? Operationally, yes — provided the Swiss-resident signatory requirement is met via a nominee director and provided the place of effective management does not create tax-residency conflict in your home country. A Zug AG or GmbH is a Swiss-resident taxpayer regardless of who runs it day-to-day, and double-taxation treaties resolve most cross-border friction. Owning a Zug company does not by itself grant you a B- or C-permit — residency is a separate matter. Talk to us Talk to our Zug team — Baarerstrasse 14 What to expect after you contact us A 30-minute discovery call in English. Canton, structure, timeline, substance, residency, licensing — we cover the lot. A written requirements brief recapping what we heard, what we recommend, and what is still open. A custom written proposal with scope, assumptions, and a fee band. We do not publish price lists because every Swiss structure is scoped differently. Prefer to browse first? See the full canton comparison before booking a call. Our office Baarerstrasse 14, 6300 Zug On Baarerstrasse, Zug's main business corridor. A short walk from Handelsregisteramt Kanton Zug and the notaries we work with most often. Monday to Friday, 09:00–18:00 CET. Meetings by appointment. Request a proposal See the full canton comparison Base your business in Zug The lowest combined CIT in Switzerland, a fast cantonal register, and an ecosystem that understands holding, family-office, and DLT structures. We scope the work from our Baarerstrasse office. Request a proposal --- ## Company Formation in Zurich — Swiss GmbH & AG URL: https://business-in-switzerland.com/cantons/zurich Description: Form a GmbH or AG in the Canton of Zurich. Effective corporate tax 19.61%, minimum capital from CHF 20,000, incorporation in 2–6 weeks. Honest canton fit. Company Formation in Zurich — Swiss GmbH & AG STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Canton of Zurich Company formation in Zurich: Switzerland's economic capital Register a Swiss AG or GmbH in the Canton of Zurich. 19.61% combined effective corporate tax, the country's deepest banking and engineering-talent pool, and the SIX Swiss Exchange listings ecosystem on your doorstep. We serve clients across Switzerland from our office in Zug. Request a proposal Zurich at a glance Four numbers that define Zurich 19.61% Combined effective CIT facts-switzerland §2.2 (KPMG / ESTV 2026) CHF 100k AG minimum share capital OR art. 621, 632 (facts §1.1) CHF 20k GmbH minimum share capital OR art. 773, 777c (facts §1.2) 2 – 6 weeks End-to-end incorporation facts §4.2 (GmbH 2–4; AG 3–6) Cantonal rates change every fiscal year. We re-verify the 19.61% figure annually against KPMG Clarity on Swiss Taxes and the ESTV cantonal tables. Why Zurich Why foreign founders consider Zurich Zurich is the Canton of Zurich, the economic capital of the Swiss confederation. It is not Zurich city alone, and it is not the insurance group of the same name. As a domicile for a new Swiss company, it pairs the country's deepest commercial infrastructure with its highest-cost base. The decision to incorporate here is almost always a decision about access: to capital, to engineering talent, and to the listings ecosystem around the SIX Swiss Exchange. The deepest talent pool in Switzerland ETH Zürich and the University of Zurich, together with the Technopark Zürich ecosystem, generate and retain a volume of senior engineering and research talent no other Swiss canton matches. For companies that must hire machine-learning engineers, quantitative analysts, or cryptography specialists in the low double digits within 12 months, Zurich is frequently the only realistic domicile. A financial and fintech hub UBS is headquartered in Zurich, as are most of Switzerland's boutique commercial banks and a significant share of the country's asset-management firms. The SIX Swiss Exchange runs its listings infrastructure from the canton. FINMA is headquartered in Bern, but its supervisory workload and the licensed institutions it oversees are disproportionately Zurich-based, which matters for firms pursuing FINMA licence considerations under FinIA or CISA. International airport and global connectivity Zurich Airport is Switzerland's largest international gateway, with direct long-haul connections to North America, the Gulf, Singapore, and most European capitals. For Swiss subsidiaries of international groups whose board members commute from abroad, this is a practical operating factor that smaller low-tax cantons cannot replicate. Fully English-capable business services Zurich notaries, banks, tax advisors, and commercial lawyers routinely work in English, and the canton's commercial authorities accept English supporting documents in most matters. Formal Handelsregister filings and articles of association are drafted in German; English translations are prepared for internal use. For a foreign-founder SME, this removes one category of friction that still exists in French-speaking and Italian-speaking cantons. Honest trade-off The trade-off — Zurich is not cheap Zurich's advantages are real, and so is its cost base. The canton is the most expensive environment in Switzerland on two compounding dimensions: corporate tax and operating cost. Effective corporate tax — Zurich 19.61% vs Zug 11.85% vs Swiss average ~14.4% The 2026 combined effective corporate income tax rate at Zurich city is approximately 19.61% , against 11.85% in Zug and a national average of roughly 14.4% . The 7.76 percentage-point gap between Zurich and Zug compounds annually on taxable profit. On CHF 1 million of profit, it is roughly CHF 77,600 per year. On a ten-year horizon, at consistent profitability, the Zurich premium reaches the low seven figures. For a profit-light early-stage team, this gap is abstract; for a profitable operating company or a holding structure, it is the single largest decision variable. Higher office rents and salaries Office rents in Zurich's central business locations and engineering salaries at the senior level are materially higher than in Zug, Schwyz, or Lucerne. We do not publish specific CHF-per-square-metre or salary-band figures here because the authoritative Swiss sources (BFS, SECO) report them at portfolio level and the numbers move with the market. The practical point is straightforward: Zurich's price of talent and space is the second compound on top of the tax line. Canton fit Who Zurich suits — sector-to-canton fit Tech and SaaS with local engineering needs The ETH Zürich and University of Zurich talent pipeline, together with the Technopark cluster, shortens time-to-hire for senior engineering roles. Companies whose differentiator depends on resident software, data-science, or cryptography expertise find the canton's labour-market depth hard to substitute elsewhere in Switzerland. Fintech and asset management Proximity to SIX Swiss Exchange, UBS, and the country's densest fintech ecosystem makes Zurich the default for firms pursuing a supervised pathway. Licensed portfolio managers under FinIA, fund houses, and securities firms cluster here and in the surrounding financial belt. International HQs of European operations The combination of a global airport, English-capable administration, and Switzerland's double-taxation-treaty network (withholding-tax reductions on intercompany dividends under facts §2.4) makes Zurich a natural European holding and regional-HQ base for international groups whose operating decisions need face-time with European counterparties. Professional services and consulting For advisory firms whose clients are Swiss banks, insurers, or listed companies, physical proximity matters more than the tax rate. Zurich's client density and the English-language working environment support a deliberate premium positioning. Honest view Who should not pick Zurich Not every foreign founder should domicile in Zurich. Three profiles we routinely redirect to a different canton, with the reasons stated plainly. Crypto and blockchain founders Zug is the natural home. Switzerland's DLT-Act framework is federal (FMIA art. 73a), so the legal footing is equal between cantons, but the ecosystem of auditors, crypto-friendly banks, token-balance-sheet accountants, and FINMA-experienced advisers is concentrated in Zug. Zurich hosts some of the listed securities and fintech infrastructure, but for a token-issuing or DeFi-protocol entity the cost premium buys nothing. Most crypto founders pick Zug for good reasons. Pure holding structures with no operational substance A capital-light holding vehicle whose only activity is holding shares in operating subsidiaries has no reason to pay 19.61% when the same federal participation exemption (DBG art. 69–70) operates in Zug at 11.85%. The decision is arithmetic. Pure-holding work typically goes to Zug, and that is reflected in our practice. See Swiss holding structures for the full mechanic. Cost-sensitive bootstrapped startups Zurich's salary and rent premium eats runway faster than the tax line. For early-stage teams optimising for months of runway per CHF raised, Lucerne at approximately 12.3% or Schwyz at approximately 14.0% can preserve capital while still giving a Swiss-quality administrative environment. The talent case for Zurich only becomes dominant at the point of hiring senior engineering at scale. Process Forming a company in Zurich — the practical process 01 Choose legal form — GmbH or AG Typical: 1–3 days Decide between a GmbH (CHF 20,000 fully paid in; OR art. 773, 777c) or an AG (CHF 100,000 with at least CHF 50,000 or 20% paid in; OR art. 621, 632). We cover the decision matrix on the Swiss AG and GmbH service pages. 02 Name check via ZEFIX and draft articles Typical: 1–7 days Confirm the company name via the federal ZEFIX register and prepare the articles of association with a Swiss notary for review. 03 Notarial deed and capital deposit Typical: 2–4 days Open a consignment account with a Swiss bank, deposit the paid-in capital, and execute the incorporation deed before a Swiss notary. The capital is blocked until Handelsregister confirms incorporation. 04 Handelsregister Zürich filing Typical: 7–21 days File the notarised incorporation documents with Handelsregisteramt des Kantons Zürich (HR Zürich). Cantonal processing falls within the Swiss-federal 7–21 day window. 05 VAT, AHV and KStA-ZH registration Typical: 5–15 days Register for VAT with ESTV if taxable turnover is expected to exceed CHF 100,000 per year (MWSTG art. 10), register for first-pillar AHV, and open the first-filing window with Kantonales Steueramt Zürich (KStA-ZH). 06 Operating bank account Typical: 5–30 days Open an operating bank account separate from the consignment account. Swiss banks run extended CDD for foreign ultimate beneficial owners, which can extend timelines for non-EU shareholders. Resident-signatory requirement — OR art. 718.4 / 814.3 Swiss corporate law requires at least one Swiss-resident signatory in every company, whether AG or GmbH. For an AG, a board member with sole or joint signatory authority must reside in Switzerland ( OR art. 718.4 ). For a GmbH, a managing officer with sole or joint signatory authority must reside in Switzerland ( OR art. 814.3 ). Canton Zurich does not tighten or relax this, and it cannot be waived. Non-resident founders satisfy it by appointing a Swiss-resident officer directly, or through a Swiss-resident director service with a licensed fiduciary. Economic control stays with the foreign owner. End-to-end, a Swiss AG registered in Zurich typically takes 3–6 weeks and a GmbH 2–4 weeks , assuming paperwork is ready and the ultimate beneficial owner clears bank onboarding without delay. For the deeper step-by-step see start your Swiss incorporation . Tax mechanics Zurich cantonal taxes at a glance Effective combined corporate tax rate — 19.61% The headline rate is built from three layers. Federal direct tax is 8.5% statutory, about 7.83% effective, on net profit after tax, and applies identically in every canton. Canton Zurich and the municipality of Zurich-city each levy their own tranche on top, producing the combined 19.61% headline. Rates at municipalities within the canton (Winterthur, Kilchberg, Zollikon, Küsnacht, among others) differ by up to around one percentage point either side of the city rate. We re-verify annually. Capital tax on equity Switzerland levies a cantonal-only capital tax on corporate equity (no federal equivalent). Rates are set by each canton on a basis-points-of-equity basis, and Zurich's rate sits in the mid-band nationally. For most foreign-founder SMEs the capital tax is a small fraction of the CIT line, but for capitalised holding structures or large paid-in-capital AGs the absolute figure becomes material. We price the exact number into the proposal based on the expected balance sheet. VAT, withholding and stamp duty — the federal layer on top The federal layer that applies to a Zurich-domiciled company is the same as elsewhere in Switzerland. VAT is 8.1% standard, 2.6% reduced, and 3.8% for accommodation (facts §2.3), with a CHF 100,000 worldwide-turnover registration threshold under MWSTG art. 10. Withholding tax on outbound dividends is 35% statutory, reduced under double-taxation treaties to 0, 5, 10, or 15% depending on residence and shareholding. Issuance stamp duty is 1% with a CHF 1,000,000 lifetime exemption per company. Double tax treaties — relevance for international groups Switzerland operates one of the broadest double-taxation-treaty networks in Europe. For Zurich-domiciled holding structures, treaty-reduced withholding on outbound dividends is often the decisive international factor (facts §2.4). Royalties are not subject to Swiss withholding at all, which distinguishes Switzerland from most EU states and is often the reason a European group chooses a Zurich IP-holding vehicle. Comparison Zurich vs Zug — an honest comparison The question every foreign founder researching Zurich eventually asks is whether Zug would be the better choice. The answer is conditional, and it is worth stating the delta in exact terms. Tax delta — 7.76 percentage points Zurich at 19.61% against Zug at 11.85% is a 7.76 percentage-point gap on combined effective corporate tax. On taxable profit of CHF 1 million, that is CHF 77,600 per year in absolute difference; on CHF 5 million, CHF 388,000 per year. The gap compounds every year the company retains profits or distributes upward to a parent. For any profit-generating structure, this is the dominant line of the comparison. Ecosystem delta — Zurich wider, Zug specialised Zurich's ecosystem is wider (banking, asset management, SIX, deep-tech talent, international airport), and Zug's is specialised (holding, family office, DLT and crypto, English-comfortable administration, Baarerstrasse notary and auditor cluster). The two are not competitors on the same axis. For a crypto operating vehicle, Zug wins on ecosystem gravity even before the tax arithmetic. For a senior-engineering hiring engine, Zurich wins on ecosystem gravity despite the tax premium. Cost-of-living delta — Zurich higher Rents, salaries, and day-to-day operating costs are materially higher in Zurich than in Zug. We do not quantify this on a public page because authoritative BFS figures move with the market cycle, but the qualitative point is consistent across every commercial study of the two cantons: Zurich is the most expensive place in Switzerland to run a company, and Zug is one of the less expensive. When to still pick Zurich over Zug Three situations where the Zurich premium is rational: when senior engineering hiring at scale is the critical path; when supervised-fintech proximity to FINMA licensed counterparties is operationally decisive; and when international-HQ gravity (airport, counterparty density, English) outweighs the tax line. For almost every other profile, we compare with Zug and the arithmetic favours Zug. Canton Effective CIT (2026) Delta vs Zurich Note Zurich 19.61% — Banking, fintech, international HQs, deepest talent pool Zug 11.85% −7.76 pp Lowest rate in Switzerland, holding and DLT cluster Geneva 14.70% −4.91 pp Private banking, commodities, UN agencies Swiss average ~14.4% −5.21 pp Reference benchmark across 26 cantons Bern 20.54% +0.93 pp Federal capital, highest combined rate nationally Source: facts-switzerland §2.2 (KPMG Clarity on Swiss Taxes 2025, cross-checked against ESTV cantonal data). Re-verified annually. Comparison Zurich vs Geneva — when global reach matters more than cost Tax delta — roughly 4.9 percentage points Zurich at 19.61% against Geneva at 14.70% is a 4.91 percentage-point gap — smaller than the Zug comparison but still material. On CHF 1 million of profit the absolute difference is roughly CHF 49,100 per year. Geneva sits mid-table on the Swiss cantonal rate distribution and is meaningfully cheaper than Zurich without being a low-tax canton in the Zug or Schwyz sense. Ecosystem delta — finance and tech vs private banking, commodities, and NGOs Zurich's ecosystem is banking, asset management, listed-securities infrastructure, and deep engineering talent. Geneva's is private banking, commodity trading, and the dense cluster of international organisations and NGOs in the lakeside international quarter. A Geneva domicile is the right pick when the counterparty network sits on Quai Gustave-Ador rather than Paradeplatz; a Zurich domicile is the right pick when the counterparty network runs through SIX, UBS, and the surrounding institutional banking fabric. Foreign founders Permits and residency for foreign founders setting up in Zurich Owning a Zurich company does not, by itself, grant the owner the right to live or work in Switzerland. The two questions — domiciling a company and obtaining a residence or work permit — are solved separately under federal immigration law. For depth on the permit mechanics see our work permit page . Migrationsamt des Kantons Zürich — the authority you deal with All permit applications for individuals living or working in Canton Zurich are processed through the Migrationsamt des Kantons Zürich, in coordination with the federal State Secretariat for Migration (SEM) where quota allocation applies. Zurich is the canton that processes the largest absolute number of third-country work-permit applications in Switzerland, which in practice means clear processes and predictable timelines rather than faster ones. EU/EFTA nationals — free movement, registration only Nationals of EU and EFTA states operate under the Agreement on the Free Movement of Persons (FZA / AFMP; facts §3.1). No work permit is required to work or open a business. A registration with the Zurich cantonal authority is required for stays above three months. In practice the permit side is a formality for EU/EFTA founders. Non-EU founders — B/C/L permits and the quota reality Third-country nationals fall under the federal quota system (facts §3.2). The annual third-country quota across all cantons was approximately 8,500 B-permits in 2025 , allocated cantonally. Zurich's share of this quota is among the largest but not unlimited; cases are scoped to "economic interest to Switzerland" under FNA art. 19 with SEM coordination. The realistic end-to-end timeline for a non-EU founder seeking a B-permit linked to a new Swiss company is three to six months. Short-term L-permits (up to 12 months) are a faster route when the business model supports it. Ongoing compliance What a Zurich-based company must do each year A Zurich domicile carries the same federal ongoing obligations as any Swiss company, plus the cantonal filings specific to KStA-ZH. The practical compliance calendar, in order of cadence, looks like this. Annual financial statements and audit Every Swiss company prepares annual financial statements under the Swiss Code of Obligations. Ordinary audit is triggered only when a company exceeds two of the three statutory thresholds for two consecutive years: balance-sheet total CHF 20 million, revenue CHF 40 million, or 250 FTEs ( OR art. 727 ; facts §1.1). Most foreign-founder SMEs fall below these and operate on limited review, or opt out entirely when they have ten or fewer FTEs. KStA-ZH corporate tax filing The annual cantonal corporate tax return is filed with Kantonales Steueramt Zürich (KStA-ZH). The schedule follows the canton's standard calendar with extension options on request. Zurich's filing system is fully digital for commercial taxpayers and English-language correspondence is accepted on most routine matters. VAT returns — quarterly or annual VAT returns are filed with the federal ESTV (not cantonally). The default cadence is quarterly; annual returns are available for companies below certain thresholds and on prior approval. VAT registration is required when taxable worldwide turnover exceeds CHF 100,000 per year (MWSTG art. 10; facts §2.3). AHV and occupational-pension registration for employees As soon as the company employs staff in Switzerland, registration for first-pillar AHV and for mandatory second-pillar BVG occupational pension becomes compulsory. Zurich hosts a dense market of BVG providers, which makes plan-selection easier than in smaller cantons. Administrative handling typically sits with the company's accounting function — see ongoing accounting and bookkeeping for the continuity service. FAQ Frequently asked questions — company formation in Zurich What's Zurich's effective corporate tax rate in 2026? The combined effective corporate income tax rate in Zurich city, federal plus cantonal plus municipal layers combined, is approximately 19.61% for 2026. The federal direct tax alone is 8.5% statutory, about 7.83% effective. Rates differ by up to around one percentage point across Zurich-canton municipalities and are re-verified annually. Why is Zurich more expensive than Zug for incorporation? Zurich's combined rate is 19.61% against Zug's 11.85%, a 7.76 percentage-point gap that compounds on profit every year. On CHF 1 million of taxable profit the absolute difference is roughly CHF 77,600 per year. Zurich also carries materially higher office rents and salary benchmarks than Zug, which adds to the operating cost delta beyond the tax line. Is Zurich worth it for a tech startup despite the tax premium? Often yes. The engineering-talent density around ETH Zürich, the University of Zurich, and the Technopark ecosystem shortens time-to-hire for senior roles, and deep customer proximity to Zurich-headquartered banks and insurers is hard to replicate elsewhere. Cost-sensitive bootstrapped teams may prefer Lucerne at about 12.3% or Schwyz at about 14.0% instead. How long does company registration take in Zurich? A GmbH typically takes 2–4 weeks end-to-end and an AG 3–6 weeks end-to-end. Handelsregisteramt des Kantons Zürich processing is typically within the Swiss-federal 7–21 day range once the notarised file is submitted. Timelines compress when the bank consignment account and notarial deed are prepared in parallel. Do I need to live in Zurich or in Switzerland to form a company there? No for ownership, partial yes for signing authority. Any nationality may own a Swiss GmbH or AG. At least one managing officer (GmbH) or board representative (AG) must be domiciled in Switzerland, under OR arts 814.3 and 718.4. Non-resident founders commonly satisfy this by appointing a Swiss-resident officer or using a nominee-director arrangement with a licensed fiduciary. Which banks are best for a Zurich-based company? Zurich hosts the majority of Switzerland's large and boutique commercial banks, so the choice is wider than in any other canton. Account-opening mechanics, KYC expectations, minimum deposits, and UBO review vary by institution and by UBO nationality; we do not endorse a single bank on a public page because the right partner depends on the structure. Is Zurich English-friendly for running a business? Yes. Notaries, banks, tax advisors, commercial lawyers, and FINMA correspondence routinely operate in English. Formal Handelsregister filings and articles of association are usually drafted in German with English translations for internal use, and Zurich-canton authorities accept English supporting documents in most commercial matters. How does Zurich's tax compare to Zug and Geneva? Zurich sits at 19.61%, Zug at 11.85%, and Geneva at 14.70% — 2026 combined effective corporate income tax rates. Zug wins on headline rate, Geneva sits mid-table with a distinct sector fit (private banking, commodity trading, international organisations), and Zurich's premium buys talent density and international airport connectivity. The Swiss average sits around 14.4%. Can I move my Zurich company to Zug later? Yes. A seat change within Switzerland is a registered amendment to the articles of association, filed with the new cantonal Handelsregister. It is administratively straightforward, but continuity of VAT registration, employment contracts, and banking relationships must be managed so that no unintended tax or compliance events are triggered. Why do fintechs still pick Zurich despite the higher tax? Supervisory proximity to FINMA processes, correspondent-banking access through Zurich-headquartered institutions, the SIX Swiss Exchange listings ecosystem, and the densest fintech-talent pool in Switzerland. For certain licensed activities these factors frequently outweigh the tax premium, which is why Zurich remains Switzerland's default for banking, asset management, and supervised fintech. Talk to us Ready to incorporate in Zurich? What to expect after you contact us A 30-minute discovery call in English. Canton, legal form, timeline, substance, residency, licensing — we cover the lot. A written requirements brief recapping what we heard, what we recommend, and what is still open. A custom written proposal with scope, assumptions, and a fee band. We do not publish price lists because every Swiss structure is scoped differently. Prefer to browse first? See the all Swiss cantons we cover before booking a call, or compare Zurich directly against compare with Zug if you are weighing the tax delta. Our office Baarerstrasse 14, 6300 Zug Serving clients across Switzerland, including Zurich-domiciled structures, from our office in Zug. Zurich city is 25 minutes by direct train from Zug. Monday to Friday, 09:00–18:00 CET. Meetings by appointment. Request a proposal Swiss company formation Base your business in Zurich The deepest banking, asset-management and engineering-talent ecosystem in Switzerland, at a 19.61% combined effective corporate tax rate. We scope the work from our Zug office and deliver across the Canton of Zurich. Request a proposal --- ## Contact business-in-switzerland.com — request a proposal URL: https://business-in-switzerland.com/contact Description: Request a Swiss-company-formation proposal or ask a scoping question. Reply within one business day, written proposal in three to five. Baarerstrasse 14, Zug. Contact business-in-switzerland.com — request a proposal STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Contact Request a proposal — or just ask We reply within one business day. No spam, no hard-sell. If you are early in the journey, tell us roughly what you are trying to do, and we will point you to the right next step. Send us your brief Tell us what you are trying to do A few sentences are enough to start. The topic picker is optional. Required fields are Name, Email, and Message. Full name * Email * Company (optional) Topic General enquiry Company formation Canton selection / move FINMA licence Holding structure Family office Crypto company Accounting Other What you need * A few sentences about your structure, residency, timeline (minimum 20 characters). We reply within 1 business day. Website (leave blank) By submitting, you agree to our privacy notice . Send enquiry Office Baarerstrasse 14 6300 Zug Switzerland Visits are by prior appointment. Propose a date in the form and we will confirm within one business day. Hours: Monday–Friday, 09:00–17:00 CET Email info@business-in-switzerland.com One public address for the whole firm. We route your message internally to the right partner after the first read. Confidentiality Enquiries are confidential from the first message. Data is handled under the Swiss nFADP and, where applicable, GDPR. See the privacy policy for the full statement. What happens next What happens after you submit Three steps from first message to signed engagement letter. Timing is a firm-internal commitment, not a marketing promise. 01 Scoping call Within one business day One of us reads your message, checks fit, and replies with a short list of questions plus one or two suggested slots for a 30-minute English call. The call is free and non-binding. 02 Draft proposal Three to five business days after the call For services with published fees we confirm the rate immediately. For multi-step engagements we send a fixed-scope written proposal: canton, legal form, Swiss-resident signatory arrangement, accounting cadence, any permit or licence overlay, and a clear fee band. 03 Engagement letter and start of work After proposal acceptance The signed proposal becomes an engagement letter that codifies the scope, deliverables, and fees. We open the incorporation file the same week, typically notary-ready within two to three further weeks for a GmbH. The scoping call is free. For the full version of the process, including what a written proposal contains and what moves an engagement from proposal to signature, see our fees and process . FAQ Frequently asked questions Ten answers covering response time, confidentiality, industry scope, language, and the call-versus-email question. How quickly will you reply? We respond within one business day (Monday to Friday, Central European Time). Enquiries sent on Friday afternoon or over the weekend are answered on the next business day. Do I have to specify a service to submit the form? No. The topic dropdown is optional. Select General enquiry or Other and describe what you are trying to do in the message. Even a one-line brief, for example "considering a Zug GmbH for a holding", is enough for us to route the enquiry and prepare a useful scoping call. Is the initial call free? Yes. The scoping call is free and non-binding. We use it to understand your situation, confirm whether what you need falls within our scope, and outline the likely next steps. If your case is a fit, we send a written proposal within three to five business days of the call. Do you accept clients in all industries? Most industries. A short exclusion list applies for regulated or high-risk sectors that require licence-specific experience we do not hold, for example clinical-trial pharma, gambling operators outside the ISA-licensed perimeter, and sanctions-exposed trade. We will tell you at the scoping stage if we cannot act. Do you have a physical office I can visit? Yes. Our office is at Baarerstrasse 14, 6300 Zug, Switzerland. Visits are by prior appointment so that a partner is available. Use the form to propose a date and time, and we will confirm within one business day. Walk-ins are not staffed at reception by default. What should I include in the first message? Three things are enough to get started: what you want to set up or solve, rough timing, and where you are resident today. Example first messages: "AG for a crypto token issuer, launching in Q3, founder resident in Germany" or "Swiss VAT registration for my German e-shop". Attachments are not required at this stage. Is my information confidential? Yes. Enquiries are treated as confidential from the first message. Data is handled under the Swiss Federal Act on Data Protection (nFADP) and, where applicable, the EU General Data Protection Regulation (GDPR). It is stored only for as long as needed to process your request or execute an engagement, and is never shared with third parties outside named infrastructure sub-processors such as Cloudflare and Resend. Can I write to you in German or French? You can write in German or French. We will reply in English, and all written client work such as proposals, engagement letters, and memos is delivered in English. If you need a German or French deliverable for a counterparty, tell us at the scoping stage so we can plan translation. Can I call instead of emailing? We do not publish a phone number. The fastest route is the form or an email to info@business-in-switzerland.com. We reply within one business day and are happy to schedule a call from there. This keeps our response queue focused on written briefs and filters out nuisance calls. Do you work with individuals or only companies? Both. Typical engagements are for individual founders setting up a Swiss entity, families setting up an office or holding, and foreign companies opening a Swiss subsidiary or branch. The firm is not licensed as a bank, asset manager, or investment advisor, and does not place investments on behalf of clients. Privacy and compliance Privacy and data handling One paragraph on what we do with the information you send — and where to read the full policy. We collect only what the form asks for, store it only for as long as we need it to process your request or run an engagement, and never share it with third parties outside named infrastructure sub-processors (Cloudflare for request filtering, Resend for transactional email). Submissions are protected by Cloudflare Turnstile, a hidden honeypot field, and a per-IP rate limit of five submissions per ten minutes to keep the queue clean. Our lawful basis is contract performance where an engagement is underway, and legitimate interest for preliminary scoping enquiries. For the full statement, see our privacy policy and the imprint (Impressum) . Related If you landed here by accident Four pages visitors often mean to open before they reach the contact form. Services Browse our services The full menu: company formation, accounting, the Swiss-resident director, domiciliation, and lifecycle closure. Learn more About About the firm Who we are, where we sit among Swiss fiduciary providers, and why foreign founders tend to reach us first. Learn more Team Meet the team The five people who will read your enquiry. Swiss-trained lawyers with eight to twelve years in adjacent work. Learn more Specialised Specialised structures Swiss holding companies, family offices, FINMA-licensed vehicles, and crypto companies under the DLT Act. Learn more --- ## How Engagements Work — Fees & Process URL: https://business-in-switzerland.com/fees-and-process Description: How we scope Swiss engagements — three fee models (fixed-fee, retainer, time-based), the drivers, the proposal timeline, and what you send us before we scope. How Engagements Work — Fees & Process STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Fees & process How engagements work — fees, scope, and the proposal process. Most services have a published fixed fee on the relevant service page. For multi-step engagements (M&A, FINMA licensing, restructuring, large bookkeeping recoveries) we scope on a free 30-minute call and confirm in a written proposal. Three engagement models, six pricing drivers, and the inputs we ask for upfront. Request a proposal Our posture Published fixed fees, plus custom proposals where complexity warrants. The opening question on every fiduciary-services page, answered plainly. Most of our services have a published fixed fee. GmbH formation CHF 990, AG formation CHF 1,490, registered office CHF 1,200/year, monthly payroll from CHF 120, trademark registration CHF 690, debt collection CHF 190, contract review CHF 490, contract drafting CHF 990, EOR CHF 490 per employee per month — see the relevant service page for the published rate. Most peer Swiss fiduciaries hide commercial terms behind a contact form; we publish them upfront because price transparency is a differentiator, not a vulnerability. For multi-step engagements where the work scales with target complexity — M&A advisory, FINMA licensing, full bookkeeping reconstruction, complex restructuring under the Federal Merger Act, patent prosecution — we scope on a free 30-minute call and confirm in a written proposal. The proposal always names a fee band and the milestone events that move it. No surprise invoicing. The three engagement models, the drivers that shape complex scopes, the proposal timeline and the inputs we ask for upfront are all below. Where you want the menu of what we do rather than the commercial shape, start at our services . Engagement models Three ways we scope a Swiss engagement. The first decision in every proposal is which model fits your work. Most engagements use one; some combine two. The distinction is in the engagement letter, not in the invoice. Fixed-fee Defined-scope tasks Scope is known in advance, fee is agreed upfront, no surprises. Suits a single GmbH or AG formation, a clean liquidation of a dormant entity, domiciliation setup, or a FINMA application where the scope has already been specified by client-side pre-work. Does not cover regulatory unknowns or open-ended advisory hours. AG or GmbH formation Retainer Ongoing, predictable-cadence work Monthly or quarterly, steady scope. Suits monthly accounting, quarterly VAT filings, ongoing domiciliation, annual AHV and cantonal tax-return coordination, and ongoing nominee director relationships. Retainer engagements usually start after an initial fixed-fee formation engagement has completed and steady-state operations have begun. monthly accounting Time-based Advisory and ad-hoc For complex structuring, regulatory responses where scope is unknown, group restructuring, FINMA interactions beyond a standard application, cross-border tax structuring, and M&A-adjacent work. Tracked against an engagement-letter budget cap with progress updates, so the meter is never running without your visibility. FINMA licence applications Scoping drivers What drives the fee — six variables, named in every proposal. The variables below determine whether an engagement is fixed, retainer or time-based, and how much work sits inside it. The driver pattern is the first thing we summarise on the scoping call. Entity type AG, GmbH, branch, holding or FINMA licensee. Formation timelines diverge — AG 3–6 weeks versus GmbH 2–4 weeks — and documentation loads differ materially. Canton of incorporation Cantonal Handelsregister and notary fees vary, headline corporate tax runs from roughly 11.85% in Zug to 20.54% in Bern, and cantonal procedural quirks differ for filings and bank onboarding. Regulatory layer FINMA, SRO membership, or none. A FINMA application typically runs 6–18 months to decision depending on licence category and is always scoped time-based rather than fixed-fee. Banking and UBO complexity Single UBO versus multiple, cross-border structures, and complex source-of-funds histories scale KYC depth and bank-onboarding dialogue. This is often the largest scoping variable for foreign founders. Nominee-service involvement Adds an ongoing compliance layer and a separate engagement letter for the nominee relationship, on top of formation and operating scope. Operational complexity Audit thresholds (CHF 20m balance sheet, CHF 40m turnover, 250 FTE per OR art. 727), cross-border VAT, and multi-entity group structures add scope that a single-entity formation does not carry. The driver that moves the commercial shape most often is the second one: canton choice. Headline corporate tax runs from roughly 11.85% in Zug to 20.54% in Bern, cantonal notary practice differs on fees and turnaround, and bank onboarding patterns track the canton's industry base. We walk the trade-offs in the scoping call; for a first overview, start with cantons we work in and use our capital requirements calculator to self-qualify the minimum paid-in capital for AG, GmbH or FINMA-regulated entities before the call. What's included What's always included in every engagement. Four commitments that do not appear as line items in the proposal because they are never optional. Scoping call A 30–45-minute call, video or phone, at no charge. We listen, ask our standard questions, and identify the driver pattern for your engagement before anything is written down. Engagement letter before any billable work Signed before we start. Covers scope, deliverables, fee model, timeline, confidentiality and standard professional-services engagement-termination terms. No billable work begins until the letter is signed. Single English-speaking point of contact Throughout the engagement. Not a rotating roster, not a ticketing queue. The person who scoped the work is the person you speak to when it is in flight. English correspondence end-to-end All engagement correspondence, draft documents, board packs and management reports are in English. Where a cantonal filing must legally be submitted in an official Swiss language, we handle that translation layer transparently. Inputs What you send us before we scope. Five items. The more of them you have ready at the scoping call, the faster we can commit numbers in the written proposal and the tighter the scope bounds. 1. KYC for each individual party Passport or national ID, plus proof of address not older than three months, for every individual who will appear as a shareholder, director, officer or UBO. 2. UBO map for any entity involved Who ultimately owns or controls each corporate party, with ownership percentages and chain of control up to the ultimate beneficial owner. 3. Source-of-funds declaration A short statement of where the paid-in capital and operating funds originate. Bank-grade detail is not required at scoping stage; honesty and completeness are. 4. Business outline A one-pager on what the Swiss entity will actually do: sector, customers, revenue estimate, staffing plan, and which markets you serve. 5. Jurisdiction intent Why Switzerland, and which canton if you already have a preference. If canton is open, we narrow the shortlist in the proposal. If you are early in the thinking stage and do not yet have the UBO map or the business outline drafted, our starting a business in Switzerland guide walks the pre-scoping preparation end-to-end so you arrive at the scoping call with most of the inputs already in shape. Proposal process From first call to engagement letter — six steps. The chain from initial conversation to a signed engagement letter. Every step has a named owner, a named deliverable, and a typical duration. 1. First call — a 30–45-minute call. Video or phone. We listen, ask our standard scoping questions, and identify the driver pattern for your engagement. No pre-work required on your side beyond a rough outline of what you want to build. 2. Internal scope review — 1–2 business days. We confirm the engagement model, shortlist canton options where relevant, and flag any regulatory layer that changes the fee structure. This is the step that most peer firms skip; we do not. 3. Draft proposal — typically 3–5 business days. Delivered in writing. Contains scope, deliverables, fee model, timeline, and named dependencies on client-side inputs. Fixed, retainer and time-based lines are separated so the commercial logic is visible. 4. Revisions round — asynchronous, a few business days. We expect revisions. Swap scope, add or remove lines, shift canton, adjust timeline. The proposal is a working document until it is signed. 5. Engagement letter signed — once terms are aligned. The engagement letter encodes the agreed proposal, confidentiality, the governing-law clause, and standard professional-services termination terms. Billable work begins only from signature. 6. Kickoff and onboarding pack — within one business day of signature. We send the onboarding pack, schedule the kickoff, and confirm the first client-side actions. From this point the operational cadence in the engagement letter takes over. 3 – 6 wks AG end-to-end facts-switzerland §4.2 2 – 4 wks GmbH end-to-end facts-switzerland §4.2 6 – 18 mo FINMA licence decision facts-switzerland §5.2 The AG and GmbH windows above measure end-to-end formation time from signed engagement letter to Handelsregister entry, covering name check on zefix.ch , drafting the articles, bank consignment account, the notarial deed and the cantonal Handelsregister filing. Where all documents are ready on day one, both can land at the lower end of the band. FINMA applications sit on their own timeline (6–18 months to regulator decision depending on licence category), which is why that work is always scoped time-based rather than fixed-fee. Confidentiality and continuity Confidentiality, termination, and what happens after incorporation. Three operational questions that tend to come up in the second half of the scoping call. Written out here so the scoping time can be spent on your scope, not on ours. Confidentiality All engagement correspondence is covered by a confidentiality clause in the engagement letter. We are a Swiss fiduciary, not a bar-admitted law firm, and we are explicit about the distinction rather than trading on ambiguity. That does not make the confidentiality posture weaker in practice: we do not publish client lists, we do not name engagements in marketing, and we decline the kind of "case study" content peer firms sometimes publish with identifying detail. Where you want the full credentialling context, see about our firm . Termination Either party may terminate with standard professional-services notice, on the terms set out in the engagement letter. Where work is in flight at termination, we hand over a clean file (books, draft filings, working papers) so your incoming provider or in-house team is not starting from zero. This is part of the engagement discipline, not an add-on. What happens after incorporation Most foreign-owner engagements transition from a fixed-fee formation into a retainer for the operating phase: monthly accounting, quarterly VAT filings, annual accounts, and cantonal tax return. If nominee director cover is part of the structure, it runs under its own retainer. Transition between phases is handled inside the original engagement letter where both phases are scoped up front; if the retainer phase is scoped later, we issue a supplementary letter. The monthly accounting and nominee director services pages walk each of those retainers in detail. FAQ Frequently asked questions. Thirteen answers to the questions we hear on scoping calls and in written enquiries. Schema emitted in the page head matches every answer byte-for-byte. Why don't you publish prices on the site? Every Swiss engagement is custom because canton choice, entity type, regulatory layer, banking complexity and group structure change the work materially. A flat published rate would misprice the simple and the complex ends of the spectrum. This is standard Swiss fiduciary practice, and it is the discipline we prefer over a headline number that would need caveats on every line. How do you calculate a fixed fee? We map scope against drivers that are fixable at proposal time: entity type, canton, and client-side document readiness. If a driver carries unknowns we cannot bound in a scoping call, we move that line item to time-based so you are not charged for work that does not materialise. The boundary between fixed and time-based is named in the proposal, not hidden in small print. Can I get a ballpark before I share details? Usually yes, after a 30–45-minute scoping call. Before we have heard canton preference, UBO count and regulator status, a ballpark would be guess-work. After the call we can typically give a range and commit to a number in the written proposal, which follows within a few business days. Do you charge for the initial scoping call? This first conversation is at no charge. Billing starts only when the engagement letter is signed. If the call slides into paid-advisory territory such as complex regulatory structuring or FINMA strategy, we flag it live, pause, and continue only if you agree to move to a time-based engagement from that point. What's typical turnaround for a proposal? Typically 3–5 business days after the scoping call for standard AG or GmbH formation in a mainstream canton. FINMA-adjacent or multi-jurisdiction work can take longer because the regulatory layer needs deeper scoping before we can commit numbers. We confirm the turnaround window on the scoping call so your own decision process can plan around it. Are VAT and cantonal fees included in your quote? No. Cantonal notary fees, Handelsregister filing fees and any Swiss VAT on our own services are third-party or statutory costs. The proposal separates our fee from pass-through costs line-by-line, so the distinction between our advisory work and public-fee pass-through is explicit before you sign. Can you bundle multiple services at a discount? We do not discount. We do scope multi-service engagements, for example formation plus accounting plus nominee, as one engagement letter with lower coordination overhead, which can reduce the total relative to separate engagements. The driver is efficiency, not discount. Do you invoice in CHF, EUR, or USD? We invoice in CHF and can accept EUR or USD on request at the rate used on the invoice date. CHF is the Swiss statutory currency and aligns with our own cost base. Bank details and currency conventions are set out in the engagement letter. What happens if scope expands mid-engagement? We pause before any scope-expansion work begins, issue a scope-change note, update the engagement letter if you approve, and then resume. Fixed-fee engagements convert the changed line item to time-based while the rest of the engagement stays fixed. Nothing is billed outside the scope you have already signed off. How do you handle confidentiality? All engagement correspondence is covered by a confidentiality clause in the engagement letter. We are a Swiss fiduciary, not a bar-admitted law firm, and we are explicit about that distinction rather than overstating the legal posture. We do not publish client lists and we do not comment publicly on any engagement. Will you sign an NDA before the scoping call? Yes, on request. Our standard engagement letter already contains a confidentiality clause that binds us once signed, but if you prefer a one-page NDA ahead of the scoping call we are happy to sign one. Send us your template or ask us for ours. Do you accept engagements from US persons? Yes, subject to KYC, source-of-funds review and banking-partner acceptance. FATCA and bank-onboarding expectations add scoping time for US-taxpayer cases, which we factor into the proposal upfront rather than discovering mid-engagement. What if I'm not sure which canton to pick? Canton choice is part of the scoping conversation, not a decision you need to bring to the call. We walk the trade-offs between headline tax, registry cadence, notary practice and banking relationships for your sector, and we narrow to a shortlist in the proposal. Our capital requirements calculator and the cantons hub are useful pre-reading. Next step Ready to scope your engagement? Tell us the entity you want, the canton you prefer (if any), and the open questions on your mind. We come back with a scoped proposal typically within 3–5 business days of the scoping call. No obligation. No price gates before scope. Request a proposal --- ## Switzerland Business Guides for Foreigners | 2026 Playbook URL: https://business-in-switzerland.com/guides Description: The foreigner Switzerland Business Guides for Foreigners | 2026 Playbook STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Swiss business playbook Your Switzerland playbook — guides for foreign founders Five orientation guides for non-Swiss founders setting up a Swiss company. Plain English, grounded in Swiss federal sources (OR, MWSTG, ESTV, SEM, FINMA, zefix), honest about timelines and the practical friction foreign owners actually encounter. Last reviewed: May 2026. Numbers cited below are re-verified against Swiss federal sources (admin.ch, ESTV, SEM, FINMA, zefix, kmu.admin.ch) every January and February. Each figure carries an article reference (OR, MWSTG, FinIA) so you can cross-check. Start here Choose your path Most foreign founders arrive on this page in one of three situations. Pick the closest fit and you will land on the guide or service page that answers your next question. I’m evaluating Switzerland Still comparing jurisdictions or still deciding which canton fits your model. Start with the pre-formation checklist, then review the cantonal comparison and the Zug guide. Read the starting-a-business guide I’m relocating to Switzerland The permit and residency leg of the journey. EU/EFTA free-movement, third-country B permits, cantonal labour-market approvals, realistic 3 to 6 month timelines for non-EU applicants. Open the residence and relocation page I’m forming a specific vehicle You already know the entity, the canton and the rough timeline. Our company-formation team handles notary, consignment account, Handelsregister filing and post-formation registrations end-to-end. Request help with company formation Still unsure? The five guides below cover the foreigner-relevant parts of Swiss company setup in depth. If you would rather speak to someone first, our team takes a 30-minute intake call at no charge to scope structure, canton and timeline, see talk to our team . The numbers to know Three anchors for every Swiss setup Before you read any guide, the three figures below frame the decisions you will spend most of your time on: where you incorporate, what your minimum capital is, and when you cross into the VAT net. 11.85 – 20.54% Effective combined corporate tax range, 26 cantons (2026) ESTV cantonal data / facts-switzerland §2.2 CHF 20,000 Minimum share capital for a GmbH, fully paid-in OR art. 773, 777c / facts-switzerland §1.2 CHF 100,000 VAT registration threshold (worldwide taxable turnover) MWSTG art. 10 / facts-switzerland §2.3 Two other numbers frame every foreigner journey. Federal direct corporate tax sits at 8.5% statutory and roughly 7.83% effective because the tax is itself deductible from taxable profit. The standard Swiss VAT rate is 8.1%, with a 2.6% reduced rate and a 3.8% accommodation rate (MWSTG). Everything else scales from that baseline. Incorporation decisions Legal form, capital and the Swiss-resident signatory rule Foreign ownership of a Swiss AG or GmbH is unrestricted. What the Swiss Code of Obligations does require is that at least one authorised signatory reside in Switzerland (OR art. 718.4 for AG, OR art. 814.3 for GmbH). Combined with the CHF 100,000 AG and CHF 20,000 GmbH minimum-capital floors, that single rule drives most of the practical setup work. The three cards below cover the decisions you will make first. Pre-formation Starting a business in Switzerland — the foreigner’s checklist The end-to-end checklist: pick the entity, confirm the name on zefix, deposit capital into a consignment account, sign the notarial deed, file with the Handelsregister, open the operating account, register for VAT and social insurance. Read the guide AG vs GmbH AG vs GmbH — which legal form fits a foreign founder AG shareholders are private; GmbH partners are listed in the commercial register (OR art. 773). AG minimum capital is CHF 100,000 with CHF 50,000 or 20% paid in (OR art. 621, 632); GmbH minimum is CHF 20,000 fully paid in (OR art. 773, 777c). Our formation team handles both. Request help with company formation Banking Opening a Swiss bank account as a foreign UBO Capital must sit in a blocked consignment account before registration. The operating account is opened post-incorporation and foreign-UBO CDD typically takes 5 to 30 days, occasionally longer if the beneficial owner is in a higher-risk jurisdiction. Read the guide End-to-end formation typically takes 2 to 4 weeks for a GmbH and 3 to 6 weeks for an AG, measured from notary appointment to Handelsregister entry and operating-account opening. Bank CDD for foreign beneficial owners is the variable, not the notary or the registry. If you want to reality-check a structure before you start, our capital requirements calculator models paid-in capital, share structure and year-one overhead for AG and GmbH. Permits and residency How the Swiss permit regime works for non-Swiss founders Forming a Swiss company does not grant you a Swiss residence permit. EU/EFTA nationals have free movement and register with their canton of residence. Non-EU nationals must apply for a B permit under a federal quota of roughly 8,500 third-country places in 2025, and self-employed applicants must additionally prove economic interest to Switzerland under FNA art. 19, that is, Swiss customers, Swiss revenue and measurable local contribution. B, C, L permits Swiss residence permit — B, C, L explained for founders B permits cover initial multi-year residence and are renewable annually. C permits mark permanent residence, granted after 10 years (5 for US and Canadian nationals). L permits cover short stays up to 12 months. Realistic end-to-end timeline for a non-EU founder is 3 to 6 months. Read the guide Work permit Swiss work permit and self-employment Employer-sponsored permits sit inside the annual third-country quota (~8,500 places in 2025). Self-employed non-EU applicants face the FNA art. 19 economic-interest test, administered by the cantonal labour-market authority with SEM federal approval on top. Read the guide For EU/EFTA nationals the path is direct: register with the canton within three months of arrival and your right to work and to open a business follows from the Agreement on the Free Movement of Persons. For third-country nationals, the sequencing usually runs company first, then permit application, then physical relocation, not the other way around. Engaging a Swiss-resident nominee director is a common bridge for the months between incorporation and the founder’s own permit landing. Tax, VAT and compliance Swiss tax for foreign-owned companies Swiss corporate tax stacks three layers: federal direct tax at 8.5% statutory (≈ 7.83% effective because the tax is deductible from its own base), a cantonal layer, and a municipal layer. The combined effective range at 2026 sits between 11.85% in Zug and 20.54% in Bern. VAT registration kicks in at CHF 100,000 worldwide taxable turnover, and foreign businesses making any Swiss supply are in from the first franc once they cross that global threshold. VAT (MWST) Swiss VAT (MWST) for foreign-owned businesses The CHF 100,000 worldwide threshold under MWSTG art. 10, the first-franc rule for foreign businesses making Swiss supplies, the rate ladder (8.1% standard, 2.6% reduced, 3.8% accommodation), and the 2026 platform rule that shifts collection to marketplaces. Read the guide Canton choice Corporate tax by canton, and why Zug is a default Compare the full 26-row cantonal tax matrix. Zug (11.85%), Zurich (19.61%) and Geneva (14.70%) anchor the main trade-offs for foreign founders: tax efficiency, talent depth and international-HQ gravity. Basel, Schwyz, Vaud and Ticino cover sector niches. Compare Swiss cantons for your business Withholding tax (Verrechnungssteuer) sits at 35% on dividends, bond interest and Swiss bank-deposit interest, with treaty reductions typically bringing non-resident holders down to 0, 5, 10 or 15% depending on the shareholding and the treaty country. Ongoing compliance for a foreign-owned Swiss company includes annual financial statements under the Swiss Code of Obligations, cantonal plus federal corporate tax filings, VAT filings if registered, UBO disclosure under the revised GwG, and a statutory audit only once the OR art. 727 ordinary-audit thresholds are crossed (balance-sheet CHF 20m, revenue CHF 40m, 250 FTEs, two of three for two consecutive years). Specialised structures When a generalist guide is not enough Some foreign founders are not starting a standalone operating company. They want a Swiss holding above an international group, a FINMA-regulated asset-management or trust entity under FinIA, a single-family office structure, or a DLT-native company inside the Zug crypto ecosystem. The generalist guides above skim these and point onward. Specialised hub Specialised structures and regulated vehicles Four B-angle structures covered in depth: Swiss holding companies (participation exemption under DBG art. 69–70), FINMA licences under the 2020 FinIA regime, single- and multi-family office setups, and DLT/crypto structures under FINMA’s 2021 DLT Act extension of FMIA. Explore specialised structures Indicators you need the B-angle track You will hold assets, IP or subsidiaries rather than trade operationally. Your activity requires a FINMA licence (portfolio manager, trustee, fund manager, bank). You are structuring around a family’s private wealth, not a corporate P&L. Your business is DLT-native, stablecoin-adjacent or otherwise inside the crypto ecosystem. Tools and quick references Calculate first, then read Two reference pages sit alongside the guides: a capital-requirements calculator that models paid-in capital and founding budget for AG or GmbH, and an engagement-process page that documents how our team runs a Swiss setup end-to-end. Both are free to use and neither asks for prices up front. Interactive tool Capital requirements calculator Plug in entity type, number of founders and expected year-one overhead. The tool produces the federal minimum paid-in capital, a suggested working-capital cushion, and the AG versus GmbH comparison side-by-side. No sign-up, no email gate. Open the calculator Engagement process Timelines and engagement process How we scope work, the published fixed fees on each service page, written proposals for multi-step engagements, document requests, notary coordination, Handelsregister filing, and the post-formation handover to our accounting team. See our process Browse all guides Reference guides by topic Short, source-backed explainers on Swiss tax, employment, relocation and company structures. New guides publish every week. Tax Wealth Tax in Switzerland 2026 Swiss Corporate Tax Rates 2026 Swiss Double Tax Treaties Capital Gains Tax in Switzerland Swiss Withholding Tax (Verrechnungssteuer) Employment & payroll Minimum Wage in Switzerland 2026 Average Salary in Switzerland 2026 Hiring Employees in Switzerland Relocation & residence How to Get Swiss Citizenship Relocating to Switzerland Company structures AG vs GmbH in Switzerland Types of Company in Switzerland FAQ Frequently asked questions Ten short answers to the questions foreign founders ask us most. Each answer points to the statute or the facts-switzerland section so you can verify independently. Can a foreigner living outside Switzerland form and own a Swiss GmbH or AG? Yes. Foreign nationals may be 100% owners of a Swiss AG or GmbH regardless of residency. Swiss law requires at least one authorised signatory to reside in Switzerland (OR art. 718.4 for AG; OR art. 814.3 for GmbH), typically met by a Swiss-resident director or a nominee director. What is the minimum share capital for a GmbH versus an AG? A GmbH requires CHF 20,000 fully paid-in at formation (OR art. 773, 777c). An AG requires CHF 100,000 of share capital, with at least CHF 50,000 or 20% (whichever is higher) paid in at formation (OR art. 621, 632). Which Swiss canton is best for foreign entrepreneurs: Zug, Zurich or Geneva? It depends on sector. Zug has the lowest combined corporate rate (about 11.85% for 2026) and a strong crypto and holding reputation. Zurich (about 19.61%) offers the deepest financial-services ecosystem. Geneva (about 14.70%) suits international HQs and UN-proximate activity. How long does it take to form a Swiss company end-to-end? A GmbH typically completes in 2 to 4 weeks, an AG in 3 to 6 weeks, measured from notary appointment to Handelsregister entry and operating-account opening. Foreign UBO bank CDD may add 5 to 30 days. Do I need a Swiss bank account before registering the company? Yes for AG and GmbH formations. Paid-in capital must be deposited in a Swiss capital-consignment account and blocked until Handelsregister entry. The operating account is opened after registration. When does a foreign-owned Swiss company need to register for VAT? Once worldwide taxable turnover reaches CHF 100,000 per year (MWSTG art. 10). Foreign-based businesses making any Swiss supply are liable from the first franc of Swiss turnover if worldwide turnover exceeds CHF 100,000. Does Swiss law require a Swiss-resident director? Yes. At least one person with sole or joint signature must reside in Switzerland (OR art. 718.4 for AG; OR art. 814.3 for GmbH). The role may be filled by a founder who relocates, a Swiss co-founder, or a professional nominee director. Will forming a Swiss company automatically grant me a residence permit? No. Permit issuance is separate. EU/EFTA nationals rely on free-movement registration. Non-EU nationals must apply for a B permit subject to annual federal quotas, and self-employed applicants must prove economic interest to Switzerland under FNA art. 19. What ongoing obligations does a foreign-owned Swiss company have after formation? AHV/IV/EO social-insurance registration for founder-directors, annual accounts under the Swiss Code of Obligations, cantonal plus federal corporate tax filings, VAT filings if registered, UBO disclosure under the revised GwG, and a statutory audit once ordinary-audit thresholds are exceeded (OR art. 727). Are these guides legal advice? No. The guides are informational orientation based on Swiss federal sources and our team’s experience. They are not a substitute for tailored legal, tax or accounting advice. For a private review of your situation, contact our team. Maintained by our Swiss-law team, verified against federal sources (OR, MWSTG, ESTV, SEM, FINMA, zefix). The guides are orientation, not legal advice. For a private review of your situation, talk to our team . Not sure where to start? Talk through your Swiss setup with us. A 30-minute call to map your entity, canton, permit sequence and realistic timeline. No price-list, no template deck. We scope every engagement on the call. Request a proposal --- ## AG vs GmbH in Switzerland: Which to Choose URL: https://business-in-switzerland.com/guides/ag-vs-gmbh-comparison Description: Compare the Swiss AG and GmbH on capital, liability, privacy, tax and governance, a clear decision guide for founders weighing CHF 20,000 versus CHF 100,000. AG vs GmbH in Switzerland: Which to Choose STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content AG vs GmbH AG vs GmbH in Switzerland: which legal form to choose The AG and the GmbH are the two limited-liability companies that foreign founders actually use in Switzerland. They are taxed the same way and both cap your risk at the money you put in, but they differ on capital, privacy, governance and prestige in ways that matter from day one. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: July 2026 Almost every foreign-owned business in Switzerland is set up as one of two corporate forms: the AG ( Aktiengesellschaft , société anonyme, the stock corporation governed by OR art. 620 ff) or the GmbH ( Gesellschaft mit beschränkter Haftung , Sàrl, the limited liability company governed by OR art. 772 ff). Both are separate legal persons, both limit the owners' liability to their contribution, and both are taxed as ordinary corporations, so the choice is rarely about tax. It is about capital, privacy, governance and how the entity reads to banks, investors and counterparties. This guide sets the two forms side by side using the figures fixed in the Swiss Code of Obligations ( Obligationenrecht , OR), then gives a short decision framework for founders coming from abroad. Where a number is statutory it does not change with the canton or the advisor, so you can plan around it with confidence. For the wider menu of Swiss legal forms, see our overview of all Swiss company types . By the numbers The figures that anchor this topic. CHF 100k AG min capital · OR art. 621 CHF 20k GmbH capital, fully paid · OR art. 773 100% Foreign ownership allowed 11.85% Combined ETR, Zug · same for both At a glance Two limited-liability companies, taxed the same. An AG ( Aktiengesellschaft , SA in French) is a stock corporation under OR art. 620 ff. Its capital is split into shares, the shareholders are not named in the public register, and it is the form investors and large counterparties expect. A GmbH ( Gesellschaft mit beschränkter Haftung , Sàrl in French) is a limited liability company under OR art. 772 ff. Its capital is split into quotas, the members are listed publicly, and it is the lighter, lower-capital choice for owner-run businesses. Both are capital companies with their own legal personality, both cap owner liability at the subscribed capital, and both are taxed identically as corporations. So the short verdict is this: choose a GmbH for the lower entry capital and a simple owner-run structure; choose an AG for owner anonymity, easier share transfer, prestige and outside investment. Tax does not break the tie. The sections below work through each axis, and the comparison block sets them all in one view. Side by side AG vs GmbH compared, point by point. The two forms decompose along the same axes. Tax and audit rows are identical for both, so they are not differentiators; the rows that decide the choice are capital, privacy, transfer and prestige. Governing articles . AG: OR art. 620 ff. GmbH: OR art. 772 ff. Minimum capital . AG: CHF 100,000 (OR art. 621). GmbH: CHF 20,000 (OR art. 773). Paid in at formation . AG: at least CHF 50,000 or 20%, whichever is higher (OR art. 632). GmbH: fully paid in (OR art. 777c). Minimum nominal value . AG: CHF 0.01 per share (OR art. 622.4). GmbH: CHF 100 per quota (OR art. 774). Owner instrument . AG: registered shares ( Aktien ). GmbH: quotas ( Stammanteile ). Liability . Both: limited to the subscribed capital. Owner privacy . AG: shareholders in a private share register, not published. GmbH: members listed by name in the commercial register and Zefix. Governance bodies . AG: general meeting, board of directors, auditor. GmbH: members' meeting, managing officers, auditor. Swiss-resident representative . AG: required (OR art. 718.4). GmbH: required (OR art. 814.3). Ownership transfer . AG: shares assign freely and privately. GmbH: quota transfer in writing, published, members' consent by default. Audit regime . Both: same OR art. 727 thresholds. UBO disclosure . Both: beneficial owner of 25% or more reported to the company (OR art. 697j). Taxation . Both: federal plus cantonal and communal corporate tax, same rates per canton. International prestige . AG: higher. GmbH: simpler, reads as an SME. Capital Minimum capital and paying it in. This is the headline split. An AG requires a minimum share capital of CHF 100,000 (OR art. 621). Of that, at least CHF 50,000, or 20 percent of the share capital where that is higher, must be paid in at formation (OR art. 632). The balance remains a callable obligation of the shareholders. A GmbH requires a minimum capital of CHF 20,000 (OR art. 773), and unlike the AG it must be fully paid in at formation (OR art. 777c), with a minimum quota of CHF 100 (OR art. 774). There is no partial-payment option. In both cases the capital is deposited into a blocked consignment account at a Swiss bank and released once the company is entered in the commercial register. The 2023 corporate-law reform added flexibility competitors often miss: a share's minimum nominal value fell to CHF 0.01 (OR art. 622.4), capital may be denominated in a foreign currency where that is the company's most important currency (OR art. 621.2), and a capital band of plus or minus 50 percent over up to five years became available (OR art. 653s ff). To model the deposit and the figures for your case, you can estimate your capital requirement with our calculator. Liability Liability and ownership instruments. Neither form exposes the owners to personal liability for the company's debts in normal operation. In an AG the shareholder risks only the subscription price of the shares; in a GmbH the member risks only the value of the quota. The company answers for its obligations with its own assets. The practical caveats are identical: directors and managing officers carry statutory duties of care and can be held personally liable for breaches, unpaid social-security contributions or trading while insolvent, and a bank lending to a young company will often ask the owner for a personal guarantee that contracts around the shield voluntarily. The ownership instrument is where the forms part. The AG divides its capital into shares ( Aktien ), which assign by endorsement and entry in the share register, with no notary in an ordinary sale and no trace in the public register. The GmbH divides its capital into quotas ( Stammanteile ), each recorded by name in the commercial register together with the holding. A quota transfer must be in writing, is published, and by default needs the consent of the members' meeting. That friction can be a feature for a tight founder group, but it is a drag in a financing or exit. Privacy Privacy: who is publicly visible. If owner privacy matters, the AG is the stronger form. Its shareholders are not published in the commercial register. The company keeps a share register internally, and a beneficial owner of 25 percent or more must be disclosed to the company under OR art. 697j, but that disclosure is internal, not public. Note the nuance: bearer shares were abolished in 2019 (OR art. 622.1bis), so AG anonymity means a private register rather than secrecy. The GmbH publishes its members. Anyone searching the cantonal commercial register or the federal Zefix portal can see who owns the company and in what proportion, including the member's name, domicile and quota value, and that record updates whenever quotas change hands. For founders who do not want their name searchable as the owner of a Swiss operating company, this often decides the question in favour of the AG even where the higher capital is not otherwise needed. Governance Governance and company bodies. An AG is run by a board of directors ( Verwaltungsrat ), which may be a single person, plus a general meeting of shareholders and an auditor where one is required. The board holds the non-transferable strategic duties set out in OR art. 716a. At least one person with signing authority must be resident in Switzerland (OR art. 718.4). A GmbH is run by one or more managing officers ( Geschäftsführer ), plus a members' meeting and an auditor where required. By default every member has the right to participate in management, though the articles usually concentrate this in named officers. The same Swiss-residence requirement for a signing officer applies (OR art. 814.3). Governance in a GmbH is generally lighter and better suited to a small, closely held venture, while the AG's board structure scales more naturally as ownership widens. Audit Audit obligations are identical. Audit is not a differentiator: both forms follow the same regime under the Code of Obligations. An ordinary audit applies where a company exceeds two of three thresholds in two consecutive years, namely a balance-sheet total of CHF 20 million, revenue of CHF 40 million and 250 full-time employees (OR art. 727). Below those thresholds a lighter limited review applies (OR art. 727a). Smaller companies of either form can opt out of the audit entirely (the so-called Opting-out ) where they have 10 or fewer full-time employees and all members or shareholders agree. Whether you register an AG or a GmbH does not change which tier you fall into; the size of the company does. Tax Taxation: identical treatment. For tax purposes the AG and the GmbH are treated the same. Both are capital companies subject to federal corporate income tax (8.5 percent statutory, around 7.83 percent effective on a pre-tax basis) and to cantonal and communal corporate income and capital taxes, at the same rates for the same canton. Both fall under the same participation-exemption and withholding-tax rules on dividends. There is no tax advantage to either form. What does move the rate is the canton of the seat, not the legal form. A company in low-tax Zug reaches a combined effective rate near 11.85 percent whether it is an AG or a GmbH, while a higher-tax canton charges both forms more. So the AG-versus-GmbH decision should be made on capital, privacy and governance, and the canton chosen separately for tax. For foreigners What changes for a foreign founder. Both forms allow 100 percent foreign ownership . There is no nationality or residency requirement for the shareholders of an AG or the members of a GmbH, and no minimum local shareholding. The one binding constraint is the Swiss-resident representative : at least one director or officer with signing authority must be resident in Switzerland (OR art. 718.4 for the AG, OR art. 814.3 for the GmbH). Foreign founders without a Swiss resident on the team typically appoint a local resident director or managing officer to satisfy this. Two further points apply to both forms equally. A beneficial owner of 25 percent or more must be disclosed to the company within one month (OR art. 697j), and Swiss banks apply real substance and know-your-customer scrutiny when opening the capital and operating accounts, so a credible local footprint helps. None of this favours one form over the other; the resident-representative rule is the single foreigner-specific requirement, and it is identical for the AG and the GmbH. Switching Converting a GmbH into an AG later. The choice is not permanent. The Swiss Merger Act allows a GmbH to be transformed into an AG (FusG art. 53 ff) without liquidating the company or interrupting its legal identity, and the conversion is generally tax-neutral provided the tax-subject identity is maintained. Book values carry over. Many founders deliberately start as a GmbH to keep the capital outlay at CHF 20,000, then convert to an AG once revenue, banking needs or an incoming investor justify the larger structure. The conversion is a notarised process that raises the capital to the AG minimum, restates the articles and re-registers the entity. It is routine but not free, so if you already know an AG is where you will end up, it is usually cheaper to start there. For the steps and the typical timeline either way, see our formation process and timeline . Decision Which should you choose. Reduced to the questions that actually decide it: Choose a GmbH if the CHF 100,000 capital is a constraint, the business is small, closely held or owner-managed, or it is a local subsidiary of a foreign group, and public ownership is acceptable. You can set up a Swiss GmbH at CHF 20,000 fully paid and convert later. Choose an AG if you need owner anonymity, plan to raise venture or institutional capital, want shares that transfer freely, or want the strongest signal to Swiss banks and large counterparties. You can register a Swiss AG at the CHF 100,000 minimum. If you are raising outside capital or building an investment or asset-holding structure, the AG also sits naturally under a Swiss holding company . And if you are still weighing whether to form a Swiss entity at all or operate through a foreign parent, compare the routes in our guide to a branch versus subsidiary in Switzerland . For most foreign founders building a standalone Swiss business, the practical default is a GmbH for cost-sensitive starts and an AG wherever privacy, prestige or outside capital is in play. Either way, our company formation in Switzerland team handles the registration end to end. FAQ Frequently asked questions What is the difference between an AG and a GmbH in Switzerland? Both are limited-liability corporations taxed identically. The AG needs CHF 100,000 capital, keeps shareholders private and transfers shares freely; the GmbH needs CHF 20,000, lists quotaholders publicly in the Commercial Register, and transfers quotas with more formality. What does GmbH stand for? GmbH stands for Gesellschaft mit beschränkter Haftung, a limited liability company (Sàrl in French), governed by Swiss Code of Obligations art. 772 ff. What does AG stand for? AG stands for Aktiengesellschaft, a stock corporation or company limited by shares (SA in French), governed by Swiss Code of Obligations art. 620 ff. How much capital do I need, AG vs GmbH? An AG requires CHF 100,000, with at least CHF 50,000 or 20% paid in at formation (OR art. 621, 632). A GmbH requires CHF 20,000, fully paid in at formation (OR art. 773, 777c). Are GmbH shareholders publicly visible? Yes. GmbH quotaholders’ names, domiciles and quota values are listed in the Commercial Register / Zefix, and every transfer is published. AG shareholders sit in a private share register that is not published. Can a GmbH be converted into an AG later? Yes, under the Merger Act (FusG art. 53 ff). Legal identity and book values are preserved, and the conversion is generally tax-neutral if tax-subject identity is maintained. Do AG and GmbH pay the same tax? Yes. Both are taxed as corporations on the same federal (8.5% statutory, 7.83% effective) plus cantonal and communal basis. The combined effective rate varies by canton, not by legal form. Can a foreigner fully own a Swiss AG or GmbH? Yes, 100% foreign ownership is allowed for both forms. The only binding constraint is that at least one representative must be resident in Switzerland (OR art. 718.4 for the AG, 814.3 for the GmbH). Which is better for a startup raising investment? Usually the AG, because shares transfer freely, shareholders stay anonymous, and investors recognise the form. Is an AG more prestigious than a GmbH? The AG carries higher international recognition, while the GmbH is simpler and lower-capital for owner-run SMEs. What is the minimum nominal value of a share or quota? Since the 2023 reform a share’s minimum nominal value is CHF 0.01 (OR art. 622.4); a GmbH quota’s minimum nominal value is CHF 100 (OR art. 774). Do both forms need an auditor? Both follow the same regime: an ordinary audit applies above the OR art. 727 thresholds (balance sheet CHF 20m, revenue CHF 40m, 250 FTE; 2 of 3 over 2 years), a limited review below, with an opt-out at 10 or fewer full-time employees. Keep reading Related guides and services. Types of Company in Switzerland Swiss Share Capital Requirements Branch vs Subsidiary in Switzerland AG formation GmbH formation Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Average Salary in Switzerland 2026: Sector & Canton URL: https://business-in-switzerland.com/guides/average-salary-switzerland Description: The median gross salary in Switzerland is CHF 7,024/month (2024). See pay by sector, canton, seniority, gross vs net, and the 13th-month convention. Average Salary in Switzerland 2026: Sector & Canton STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Average salary Average Salary in Switzerland 2026: By Sector and Canton The median gross monthly wage in Switzerland is about CHF 7,024 (2024), but the figure swings sharply by sector, canton and seniority. This guide sets out the real numbers, the difference between the surveys that produce them, and what a Swiss hire costs an employer. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: July 2026 The single most-searched number is the headline median. According to the Swiss Federal Statistical Office (FSO) Earnings Structure Survey, the median gross monthly wage is about CHF 7,024 (2024 wave), standardised to a full-time post and covering the private and public sectors combined. That is up from roughly CHF 6,788 in the 2022 wave, a steady upward trend rather than a jump. Be careful which number you quote: a separate survey reports an annual figure on a different basis, and the gross headline is far above the net pay that actually reaches an employee. For a foreign employer, the practical questions are what to budget for a role, how much the sector and canton move it, and the true loaded cost once employer contributions are added. This guide works through each in turn, citing the survey and year on every figure. By the numbers The figures that anchor this topic. CHF 7,024 Median gross / month · FT · 2024 ESS ~CHF 87k Median annual income · 2025 SAKE None Federal statutory minimum wage 8.4% Gender pay gap (median) · 2024 The headline What is the average salary in Switzerland? The canonical figure is the median gross monthly wage of about CHF 7,024 , from the 2024 Federal Statistical Office Earnings Structure Survey (ESS), for a standardised full-time post across the private and public sectors. The prior 2024 reading sits above the 2022 wave of roughly CHF 6,788, so wages are rising modestly year on year. Because the ESS is biennial and published with a lag, treat the latest wave as the current position and expect a small upward revision at each release. Switzerland quotes pay monthly, while many foreign readers think in annual terms. Annualising the monthly median depends on whether a thirteenth payment applies, which gives a band of roughly CHF 84,000 to CHF 91,000 a year. The separate annual figure you may have seen, around CHF 87,000, comes from a different survey on a broader basis, explained further below. Both are expanded in their own sections so the two numbers stop getting mixed. Which metric Median vs average vs mean: why Switzerland reports the median. The headline CHF 7,024 is a median , the midpoint where half of full-time employees earn more and half earn less. It is not the arithmetic mean. A small number of very high earners pull the mean above the median, so the median is the fairer benchmark for a typical job, and it is the metric the FSO publishes. Many competitor blogs conflate the two, which is why their quoted numbers diverge. All headline figures are standardised to a 100 percent full-time equivalent. Switzerland has a high share of part-time work, particularly among women, so an actual part-time wage scales down proportionally from the full-time median. When you compare any salary figure, confirm it is on the same full-time basis before drawing conclusions. Per month or per year Monthly vs annual: the 13th-month salary. Swiss salaries are normally stated as a monthly gross figure. Annualising them turns on the thirteenth-month salary , a near-universal market convention paid as one extra month, usually split between summer and December. It is contract or collective-agreement dependent, not a statutory entitlement, so whether it is owed depends on the individual agreement. Practically, a monthly median of CHF 7,024 becomes about CHF 84,300 on twelve payments or about CHF 91,300 on thirteen. The roughly eight percent swing is why a like-for-like comparison must confirm whether the annual number assumes twelve or thirteen payments. Bonuses in finance, consulting and sales sit on top of this base and are covered separately below. Two surveys Two surveys, two numbers: ESS vs SAKE. The two figures floating around the SERP measure different things and must be kept apart: Earnings Structure Survey (ESS / LSE) : the FSO biennial survey of employer payroll records. It produces the authoritative median gross monthly wage of about CHF 7,024 (2024) . This is the number to cite for "the average Swiss salary". Swiss Labour Force Survey (SAKE / ESPA) : a household survey of individual income on a broader basis, which reports a median annual income of about CHF 87,000 (2025) , up from roughly CHF 81,500 (2024). It is not directly comparable to the monthly ESS figure because the basis differs. Conflating CHF 7,024 per month with CHF 87,000 per year is the exact error that produces the contradictory numbers you see elsewhere. Quote the ESS monthly figure for compensation benchmarking and reserve the SAKE annual figure for broader income context. By sector Average salary by sector. Sector is the single largest driver of Swiss pay. The broad pattern from the ESS looks like this: Highest-paying : pharmaceuticals and life sciences, banking and finance, IT and information and communication, and professional services. Medians here sit well above the national figure, with top sectors paying roughly two to three times the catering and hotel sector. Mid-range : engineering, public administration, insurance and skilled manufacturing, broadly around or somewhat above the national median. Lowest-paying : hospitality and accommodation, retail and personal services, and agriculture, where medians fall below the national figure. For software engineers and IT staff, the right citable benchmark is the ESS "information and communication" sector median, which is among the highest. Role medians quoted by job boards are useful as estimates only and should not be treated as authoritative figures. By canton Average salary by canton and region. Regional differences reflect the local industry mix more than any regional pay rule. On the FSO major-regions basis, the Zürich region is the highest at about CHF 7,502 per month (2024) , Espace Mittelland sits around CHF 6,426, and Ticino is the lowest at roughly CHF 5,708. Treat each as the current-wave position pending the next release. Zurich : banking, finance and technology lift it to the top of the tables. Zug : finance, commodities and digital assets, with low taxes that raise net pay further. Geneva : international organisations, private banking and commodity trading, alongside one of the world's highest statutory minimum wages. Gross figures alone can mislead, because cantonal and municipal tax differences shift net pay materially. A higher gross in a heavily taxed canton can leave less in hand than a lower gross in a low-tax one, an effect covered in our Swiss income tax guide . Keep that as a take-home pointer, not a tax deep-dive. By seniority Salary by seniority and the management premium. Seniority compounds with sector, and any management responsibility carries a marked premium over a non-managing post at the same level. The premium also widens by region. In the Zürich region, upper and middle management medians reach about CHF 12,378 per month (2024), while in Ticino management sits closer to CHF 9,132 and non-management around CHF 5,254. Confirm the exact figures against the latest FSO release before quoting. Pay also rises with age and tenure into the late forties before flattening, and a university or federal higher-vocational qualification adds a clear premium that grows at senior levels. For budgeting a specific hire, a role-and-experience benchmark beats the national median, which blends apprentices and executives into one number. Distribution Wage distribution and the gender pay gap. The median hides a wide spread. In the ESS, the bottom 10 percent of full-time posts earn under about CHF 4,635 per month, while the top 10 percent earn over about CHF 12,526. The low-wage threshold, set at two-thirds of the median, sits near CHF 4,683 per month and covers roughly 10.8 percent of jobs, about one in ten. Around a third of employees receive a bonus, averaging just under CHF 12,000 a year in the relevant wave. The median-based gender pay gap was 8.4 percent in 2024 , down from 9.5 percent in 2022 and 11.5 percent in 2018. It is uneven across the structure: it widens to roughly 14 percent in high-responsibility roles and narrows to about 5.2 percent where there is no management function. Minimum wage Minimum wage in Switzerland. There is no national statutory minimum wage in Switzerland. A 2014 federal referendum to introduce one was rejected. The only binding floors come from individual cantons that have passed minimum-wage laws and from sector-wide collective labour agreements. As of 2026 the cantonal hourly minimums are roughly: Geneva : about CHF 24.59 per hour from 1 January 2026, the highest in the world. Basel-Stadt : about CHF 22.20 per hour, for defined sectors. Jura : about CHF 21.40 per hour. Neuchâtel : about CHF 21.35 per hour. Ticino : roughly CHF 20.00 to CHF 20.50 per hour, varying by sector. These rates are indexed and reviewed each January, so treat them as the current-year position. Our guide to cantonal minimum wages sets out coverage, exceptions and how collective agreements layer on top. Gross to net Gross vs net: what lands in the employee account. A Swiss salary is quoted gross. From it the employer withholds the employee share of mandatory social-security contributions. As of 2026 the main employee deductions are roughly: Old-age, survivors, disability and loss-of-earnings insurance (AHV / IV / EO) : about 5.3 percent of gross. Unemployment insurance (ALV) : about 1.1 percent up to the contribution ceiling. Occupational pension (BVG / LPP) : an age-banded percentage, split with the employer. The cost foreign employees most often miss is mandatory health insurance (KVG) , which is compulsory but paid privately per person, not deducted through payroll. Between payroll deductions, income tax and the separate health-insurance premium, net pay sits well below the gross headline. The contribution mechanics are set out in our guide to AHV/IV/EO and ALV contributions and the occupational pension (BVG) guide. Cost of living Is it a good salary? Cost of living and purchasing power. A Swiss salary should always be read against Swiss living costs. High rent and the fixed monthly health-insurance premium offset a generous-looking gross, and they bite hardest in the same high-pay centres of Zurich and Geneva. So is CHF 100,000 a good salary? It is above the national median, but whether it feels comfortable depends on the canton, household size, rent and the per-person insurance load. For readers converting in their head, the monthly median of CHF 7,024 is roughly USD 8,700, EUR 7,500 or GBP 6,300 at typical 2026 exchange rates, so verify the live rate before relying on a conversion. The figure that matters when weighing an offer is net pay after tax and after the fixed cost of health cover, which is why two cantons with similar gross medians can feel very different in practice. Employer cost What a Swiss employee actually costs an employer. The gross wage is not the full cost of employment. On top of it, the employer pays its own matching share of AHV / IV / EO and ALV, its share of the occupational pension (BVG), occupational accident insurance, and family-allowance fund (FAK) contributions. As a rule of thumb, employer on-costs add roughly 12 to 18 percent to the gross before pension, and the loaded figure runs higher for older employees with larger BVG bands. Budget the total employment cost, not the headline wage. For a foreign company hiring its first Swiss staff, running this correctly means registering with a compensation fund, a pension fund and an accident insurer, then operating monthly payroll with source-tax withholding where it applies. Our Swiss payroll setup handles registration, monthly runs and the year-end salary certificate, and our guide to hiring employees in Switzerland walks through contracts, permits and the employer-of-record option in sequence. FAQ Frequently asked questions What is the average salary in Switzerland? The median gross monthly wage is about CHF 7,024 (2024), full-time, with the private and public sectors combined, per the Federal Statistical Office Earnings Structure Survey. The median is the canonical Swiss metric and is lower than the mean, which a few very high earners pull upward. What is the median salary in Switzerland per year? Annualising the monthly figure gives roughly CHF 84,000 to CHF 91,000 depending on whether a thirteenth-month salary applies. A separate survey (SAKE) reports a median annual income of about CHF 87,000 (2025) on a broader basis, so the two numbers are not directly comparable. Is CHF 100,000 a good salary in Switzerland? It is above the national median. Whether it feels comfortable depends on the canton, household size, rent and mandatory health-insurance premiums, all of which can absorb a large share of a generous-looking gross. What is the average salary in Zurich? The Zürich region median is about CHF 7,502 gross per month (2024), the highest of the Swiss major regions. Figures are on the FSO major-regions basis and are revised at each survey wave. Which sectors pay the most in Switzerland? Pharmaceuticals and life sciences, banking and finance, IT (information and communication) and professional services pay the most, while hospitality, retail and agriculture pay the least. Top sectors pay roughly two to three times the catering and hotel sector. What is the minimum wage in Switzerland? There is no national statutory minimum wage. Several cantons set their own hourly minimums, with Geneva the highest at about CHF 24.59 from 1 January 2026, followed by Basel-Stadt, Jura, Neuchâtel and Ticino. Rates are indexed and reviewed each January. What is the average salary after tax (net) in Switzerland? Gross pay is reduced by AHV/IV/EO, ALV and BVG contributions, plus separate mandatory health-insurance premiums and income tax. Net pay therefore sits well below the gross headline, and the exact amount varies by canton and commune of residence. Is there a 13th-month salary in Switzerland? A thirteenth-month salary is common practice, which makes the annual figure roughly the monthly figure times thirteen, but it is contract or collective-agreement dependent, not legally mandatory. It is usually paid half in summer and half in December. What is the gender pay gap in Switzerland? The median-based gender pay gap was 8.4 percent in 2024, down from 9.5 percent in 2022 and 11.5 percent in 2018. It widens to around 14 percent in high-responsibility roles and narrows to about 5.2 percent where there is no management function. What is the average software engineer salary in Switzerland? IT (information and communication) is among the highest-paying sectors. The Earnings Structure Survey sector median is the authoritative figure to cite, while role medians from job boards such as jobs.ch or levels.fyi are useful estimates rather than official numbers. Why are Swiss salaries high but cost of living offsets them? High rent and mandatory private health insurance, which is paid per person and not through payroll, erode purchasing power, so the headline gross overstates real disposable income. The offset is largest in the high-pay centres of Zurich and Geneva. What does a Swiss employee actually cost an employer? Total cost is the gross wage plus employer-side AHV/IV/EO, ALV, BVG and FAK contributions on top, which add roughly 12 to 18 percent before pension. Employers should budget the total employment cost rather than the gross wage alone. Keep reading Related guides and services. Minimum Wage in Switzerland 2026 Swiss Social Security (AHV/AVS) Personal Income Tax in Switzerland Swiss Occupational Pension (BVG/LPP) Payroll services Zurich Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Branch vs Subsidiary in Switzerland: 2026 Guide URL: https://business-in-switzerland.com/guides/branch-vs-subsidiary-switzerland Description: Swiss branch vs subsidiary: compare legal personality, liability, tax, 35% withholding, setup, and a decision matrix for foreign groups. Branch vs Subsidiary in Switzerland: 2026 Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Branch vs subsidiary Branch vs Subsidiary in Switzerland: Which Entry Mode Fits Your Group A foreign group entering Switzerland can register a branch of the parent or incorporate a separate Swiss subsidiary. A branch extends the parent and leaves it fully liable; a subsidiary is a distinct Swiss company that ring-fences risk and unlocks treaty and participation positioning. The right vehicle follows from liability appetite, tax outcome, repatriation pattern and how permanent the presence needs to be. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: November 2026 When a company based outside Switzerland decides to operate inside it, three entry modes exist, but two dominate the real decision. A branch ( Zweigniederlassung / succursale ) is a Swiss establishment of the foreign parent: registered in the commercial register, but with no separate legal personality of its own. A subsidiary ( Tochtergesellschaft ) is a new Swiss company, almost always a GmbH or an AG, that is a distinct legal person owned by the foreign group. A representative or liaison office is the quieter third option, limited to marketing and contact work. This guide commits to a decision logic rather than a neutral table alone. It cites the primary Swiss law, the Code of Obligations (OR) and the Withholding Tax Act (VStG), rather than competitor cost ranges, and it works through the axes that actually move the choice: legal personality, liability, capital, permanent-establishment taxation, the 35 percent dividend withholding tax, the Swiss-resident representative obligation, setup effort, and a matrix mapping each mode to a group's own facts. By the numbers The figures that anchor this topic. CHF 0 Branch minimum capital CHF 20k GmbH min capital · OR art. 773 35% Dividend withholding tax · VStG 15% Pillar Two floor · groups EUR 750m+ At a glance Branch vs subsidiary in Switzerland at a glance. The one-sentence verdict: a branch extends the foreign parent, so there is no separate entity and the parent carries unlimited liability, while a subsidiary is a separate Swiss company (GmbH or AG) that ring-fences risk and opens up treaty and participation positioning. Everything else follows from that distinction. The table below sets out the decision-relevant attributes side by side. Attribute Branch (Zweigniederlassung) Subsidiary (Tochtergesellschaft) Legal personality None; part of the foreign parent Separate Swiss legal person Liability Parent fully and directly liable, no limit Ring-fenced to the company's assets and capital Minimum capital None GmbH CHF 20,000 (OR art. 773/777c); AG CHF 100,000, min CHF 50,000 paid in (OR art. 621/632) Taxation basis Permanent establishment on Swiss-source profit Resident taxpayer on worldwide profit Withholding tax on profit out Branch remittance: none Dividends: 35% (VStG), treaty-reclaimable Swiss-resident representative Required Required (OR art. 718 IV / 814 III) Commercial-register basis Entry of the foreign company's branch (OR art. 935) Incorporation and entry of a new company Accounting Swiss books, consolidated into parent (OR art. 957 ff) Own statutory accounts (OR art. 957 ff) Setup effort Lighter: no capital deposit, no notarial deed Heavier: notarial deed, blocked capital account The two tables on this page are the highest-value content. This one compares attributes; the decision matrix further down maps each mode to your group's own situation. The branch What is a Swiss branch (Zweigniederlassung / succursale)? A Swiss branch office is a legally dependent establishment of the foreign parent. It is the same legal entity as the head office abroad, just with a registered, ongoing presence in Switzerland. It has no separate legal personality and no own share capital : it is funded by the parent as needed. A branch is still entered in the Swiss commercial register and must appoint a representative resident in Switzerland who can be served on the company's behalf. Despite being dependent, a branch is a real operating presence. It can hire staff, sign contracts, invoice clients and open a bank account, and it is taxed in Switzerland on the profit it earns here. Its books are kept locally and consolidated into the parent's accounts. The constant is that the foreign head office remains legally responsible for everything the branch does. Key features of a branch No legal personality; no minimum capital; books kept locally and consolidated into the parent; taxed on its Swiss branch profit; a Swiss-resident representative entered in the register; and the foreign parent remaining liable without limit. Those features make the branch the lighter vehicle to register but the riskier one to operate. The subsidiary What is a Swiss subsidiary (Tochtergesellschaft)? A Swiss subsidiary is a separate Swiss legal entity that the foreign group owns. To set up a subsidiary in Switzerland you incorporate a new company, almost always a GmbH or an AG, and 100 percent foreign ownership is permitted. The new company owns its own assets, owes its own debts and signs its own contracts; the foreign group simply holds the shares or quotas. That separation is what makes the subsidiary the vehicle of choice where risk, substance or permanence matter. GmbH or AG as the subsidiary vehicle A GmbH needs CHF 20,000 of capital, fully paid in at formation (OR art. 773 and 777c), and is the most common foreign-owned subsidiary form. An AG needs CHF 100,000 of share capital, of which at least CHF 50,000 or 20 percent, whichever is higher, must be paid in at formation (OR art. 621 and 632). You can form a GmbH or form an AG through our team, and model the figure with the capital requirements calculator before committing. Liability Legal personality and liability. Legal personality is the single most decision-relevant difference. A branch has none, so the foreign parent is exposed; a subsidiary has its own, so risk is contained. For a group weighing entry, this axis usually settles the choice before tax even enters the picture. How a branch exposes the foreign parent Because the branch is not a separate legal person, every claim against the Swiss activity reaches the parent's worldwide assets. A contract dispute, an employment claim, a tort liability or a regulatory penalty arising from the branch is, in law, a claim against the parent itself. There is no limit and no separation: a creditor can pursue the parent's entire balance sheet. For a group testing a market, that open-ended exposure is the chief drawback of the branch route. How a subsidiary ring-fences risk A subsidiary, as a GmbH or AG, confines liability in principle to its own assets and share capital. The parent's exposure is its equity investment plus any guarantees it chooses to give, subject to the standard exceptions for piercing the veil or where the parent has given undertakings. A claim against the Swiss operation generally stops at the subsidiary's door rather than reaching the group, which is why activities carrying contractual, regulatory or product risk are usually incorporated. Tax How each is taxed. Both structures pay Swiss tax on the profit attributable to their Swiss activity, so the headline rate is not the dividing line. The differences sit in the taxable base, in how profit leaves Switzerland, and in access to participation relief. This is the highest-value part of the comparison. Branch as a permanent establishment A branch constitutes a permanent establishment ( Betriebsstätte ) under Swiss law and most double-tax treaties, which is the basis for taxing it here. It is taxed on its Swiss-source profit only, while the rest of the parent's worldwide profit remains taxed at home. Federal corporate income tax is layered with the cantonal rate that applies at the branch's location. Subsidiary as a resident taxpayer A subsidiary is a Swiss-resident company taxed in principle on its worldwide profit, with Swiss-source rules and treaties allocating cross-border items. Combined effective rates vary widely by canton, from around 11.85 percent in Zug to roughly 20.54 percent in Bern, with a Swiss average near 14.4 percent. A subsidiary can also access the participation exemption on qualifying dividends and capital gains, which a branch cannot use in its own right. Profit repatriation and withholding tax This is the central tax differentiator. A subsidiary's dividend distributions carry 35 percent Swiss withholding tax ( Verrechnungssteuer , VStG), reclaimable in whole or part under the relevant double-tax treaty or the Switzerland-EU agreement, with qualifying intercompany dividends often reduced to zero. A branch pays no dividend: it simply remits profit to the head office, and that remittance carries no Swiss withholding tax. Groups that repatriate frequently and cannot fully reclaim the 35 percent often find the branch more efficient on this axis alone. Pillar Two for large groups For multinational groups with consolidated revenue of at least EUR 750 million, the OECD Pillar Two rules impose a 15 percent minimum effective tax. Switzerland's domestic top-up tax has applied since 1 January 2024, and it applies to both a branch and a subsidiary. For in-scope groups it neutralises much of the low-canton advantage, so the entry-mode choice for them turns back on liability and repatriation rather than rate. Setup Registration and setup steps. The two routes diverge sharply in formality. A branch avoids incorporation and the capital deposit; a subsidiary involves a notarial deed and a blocked account. Both still require Swiss documents, a register filing and a resident representative. We work on a custom-quote basis and do not publish fixed fees. Registering a branch A branch is entered in the commercial register as the branch of the foreign company (OR art. 935). The filing needs an authenticated, usually apostilled and sworn-translated, extract of the parent's registration and its articles, evidence of the parent's existence, and the appointment of a Swiss-resident representative. There is no own capital to deposit, which keeps the branch the lighter route to register. Incorporating a subsidiary A subsidiary is built from scratch: a name check via Zefix, articles of association, a blocked bank consignment account for the paid-in capital, a notarial deed of incorporation and the Handelsregister filing. A GmbH's capital is fully paid in; an AG needs at least CHF 50,000 paid in at formation. Our Swiss company formation service runs the incorporation end to end. Indicative timeline End to end, a GmbH typically takes around two to four weeks and an AG around three to six weeks, dominated by capital consignment and notarisation. A branch is comparable but lighter because there is no capital deposit to clear. Treat these as planning ranges rather than guarantees; the commercial register processing time is the variable. Representation The Swiss-resident representative requirement. Both vehicles need at least one person domiciled in Switzerland with signing authority, and sourcing that person is a real obstacle for foreign groups. A subsidiary must have a resident signatory: for an AG that duty sits with the board under OR art. 718 IV, and for a GmbH with the managing directors under OR art. 814 III. A branch must likewise appoint a Swiss-resident representative, an obligation that rests on OR art. 935 together with commercial-register practice rather than a single clean article. Who can act as the representative The representative is a natural person domiciled in Switzerland with signing authority, entered in the commercial register. Where a group has no suitable resident individual, the role is filled through a local mandate. Our Swiss-resident representative service provides a qualified signatory for either a branch or a subsidiary, with the governance and compliance safeguards a regulated mandate requires. Third option A third option: the representative or liaison office. Foreign groups sometimes need a Swiss footprint that is neither a branch nor a subsidiary. A representative office in Switzerland is the lightest presence: a contact point for marketing, market research and liaison only. It is distinct from a branch, which carries on the parent's actual business and is a permanent establishment. When a liaison office is enough A liaison office works when the activity is genuinely non-trading: gathering market intelligence, promoting the parent's products, and acting as a local point of contact. It does not contract in its own name and does not invoice. The moment it begins to trade, sign deals or generate Swiss revenue, it risks reclassification as a branch and therefore as a permanent establishment, with the tax and registration consequences that follow. Groups that expect to sell, not just promote, should plan for a branch or a subsidiary from the outset. Decision matrix The tax and decision matrix. The attribute table near the top compares what each vehicle is. This matrix maps each mode against the decision axes that matter to a foreign group, so you can read it against your own facts rather than against a generic rule. Decision axis Branch leans this way Subsidiary leans this way Repatriation pattern Frequent, untaxed remittance to HQ Periodic dividends, 35% WHT then treaty reclaim Parent's treaty position Profit consolidates at home under the PE rules Treaty and participation relief on dividends Participation-exemption need Not available to a branch Available; supports holding positioning Pillar Two status (group EUR 750m+) 15% floor applies; low-canton edge neutralised 15% floor applies; choice turns on liability Risk and liability appetite Parent accepts unlimited exposure Risk ring-fenced to the Swiss company Cantonal siting Limited rate-shopping value Site in a low canton such as Zug for ETR optimisation Horizon Short, market-testing Permanent, substance-building Reading the matrix Run each row against your group's own facts: your home-country treaty with Switzerland, how often you will repatriate, whether your consolidated revenue crosses the EUR 750 million Pillar Two threshold, and how much liability you are willing to leave with the parent. Where most rows point one way, the entry mode is usually clear; where they conflict, the tax and liability axes carry the most weight. The choice Which should you choose? A neutral table is not enough. The decision usually resolves on a short set of questions about risk, repatriation and permanence, and the two blocks below give the committed logic. Choose a branch when... You are testing the Swiss market on a short horizon before committing. The activity carries low operational, contractual or regulatory risk. You want fast, untaxed profit repatriation to the head office. You do not need a distinct local brand or a standalone Swiss entity. The parent is comfortable carrying unlimited liability for the Swiss activity. You want early Swiss losses to flow into the parent's home-country result, where its rules allow. Choose a subsidiary when... You want a permanent Swiss presence with local credibility and easier banking. You need to ring-fence risk away from the group's worldwide balance sheet. You operate in a regulated sector that requires a Swiss entity. You want to optimise cantonal tax by setting up a subsidiary in Switzerland in a low canton such as Zug . You need participation-exemption or group holding structure positioning. You may transfer the Swiss business to a buyer or investor later. Conversion Converting a branch into a subsidiary later. The choice is not permanent. A common pattern is to enter Switzerland through a branch and move to a subsidiary once volumes, headcount or risk justify the separation. One point of legal precision matters here: a branch cannot be statutorily converted into a subsidiary the way a GmbH converts into an AG. The upgrade is a re-incorporation and transfer, not a change of legal identity of the branch itself. How the upgrade typically works In practice the group incorporates a new Swiss GmbH or AG, transfers the branch's assets, contracts and staff into it, and then deregisters the branch from the commercial register. The transfer carries tax and legal consequences, from the treatment of transferred assets to the novation of contracts and the continuity of employment, so it should be planned with advice rather than improvised. The cost of converting later is part of the original entry-mode calculation, which is why a group that is reasonably sure it will stay often incorporates from the start. How we help How we help foreign groups enter Switzerland. Choosing between a Swiss branch and a Swiss subsidiary is a structuring decision, not a form-filling exercise, and it pays to get it right before the first contract is signed. We map the liability, tax and repatriation axes against your group's actual plan, then build the chosen vehicle end to end. For branch-leaning readers, we register a Swiss branch with the apostilled parent documents and a resident representative in place. For subsidiary-leaning readers, our Swiss company formation service handles the GmbH or AG incorporation, the blocked capital account and the register filing. If you are earlier in the journey, the guide to starting a business in Switzerland walks through the steps that come first. We work on a custom-quote basis, so tell us the home jurisdiction, the activity and the repatriation pattern and we will scope the right entry mode with you. FAQ Frequently asked questions What is the main difference between a branch and a subsidiary in Switzerland? A branch is a dependent establishment of the foreign parent with no separate legal personality, so the parent is liable; a subsidiary is a separate Swiss company (GmbH or AG) whose liability is ring-fenced to its share capital. Does a Swiss branch have its own legal personality? No. A branch is a legally dependent extension of the parent, even though it is entered in the Swiss commercial register. Who is liable for the debts of a Swiss branch? The foreign parent company, without limit, because the branch has no separate legal personality. Is there a minimum capital for a Swiss branch? No. A branch has no own share capital. A subsidiary needs CHF 20,000 for a GmbH or CHF 100,000 for an AG. How is a Swiss branch taxed compared with a subsidiary? A branch is taxed as a permanent establishment on its Swiss-source profit; a subsidiary is a resident taxpayer. Subsidiary dividends carry 35% withholding tax (treaty-reclaimable), while branch profit remittance carries no Swiss withholding tax. Does a branch or subsidiary need a Swiss-resident representative? Both need at least one person domiciled in Switzerland with signing authority, registered in the commercial register. Can a foreign company own 100% of a Swiss subsidiary? Yes. 100% foreign ownership of a GmbH or AG is permitted; Swiss-resident representation is still required. Is a Swiss branch a permanent establishment? Yes. A branch constitutes a permanent establishment under Swiss law and most double-tax treaties, which is the basis for taxing it in Switzerland. Which is cheaper and faster to set up, a branch or a subsidiary? A branch is lighter to register because it has no capital deposit; a subsidiary requires a notarial deed and a blocked capital account. We work on a custom-quote basis and do not publish fixed fees. Can a branch be converted into a subsidiary later? Yes. Groups commonly incorporate a subsidiary, transfer the branch’s business to it, and deregister the branch as Swiss operations grow. What is the difference between a branch and a representative office? A representative or liaison office may only conduct marketing and liaison activity, not trade; a branch carries on the parent’s actual business and is a permanent establishment. Does Pillar Two apply to a Swiss branch or subsidiary? The 15% minimum effective tax applies to both forms when the group has consolidated revenue of at least EUR 750m; Switzerland’s domestic top-up tax has applied since 1 January 2024. Keep reading Related guides and services. Types of Company in Switzerland AG vs GmbH in Switzerland Swiss Corporate Tax Rates 2026 Branch registration Company formation Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Can a Foreigner Buy Property in Switzerland? Lex Koller URL: https://business-in-switzerland.com/guides/buying-property-switzerland-foreigner Description: Yes, but Lex Koller limits foreign buyers. See which permit lets you buy, holiday-home and commercial rules, financing and costs in Switzerland. Can a Foreigner Buy Property in Switzerland? Lex Koller STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Buying property Buying Property in Switzerland as a Foreigner: The Lex Koller Rules Whether a foreigner can buy property in Switzerland turns on one federal law, the Lex Koller. It restricts residential purchases by persons abroad, leaves genuine commercial property largely open, and sets out narrow paths for residents and for holiday homes. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: November 2026 Switzerland is one of the few high-income countries that actively limits foreign ownership of housing. The rules sit in the Federal Act on the Acquisition of Real Estate by Persons Abroad (German BewG , French LFAIE , Italian LAFE ), almost always called the Lex Koller after the minister who shaped it. Enacted in 1983 and in force since 1985, the Act treats residential property as a protected asset and requires many foreign buyers to obtain a cantonal authorisation before they can complete a purchase, if they are permitted to buy at all. The practical answer depends on three things: your nationality, your residence status in Switzerland, and what kind of property you want. A settled resident buying a flat to live in is treated very differently from a non-resident investor seeking a second apartment in the Alps. This guide sets out who needs a permit, where the permit-free cases lie, how holiday-home quotas work, why buying through a company does not get around the law, and what the 2025/2026 reform may change. By the numbers The figures that anchor this topic. Lex Koller Federal Act governing foreign buyers C permit Status that buys permit-free 20% Minimum equity for residents (typical) ~17 Cantons that allow holiday homes The short answer Can a foreigner buy property in Switzerland? Yes, but it depends on who you are and what you want to buy. Acquisition of residential property by a person abroad needs an authorisation under the Lex Koller, while residents with the right permit buy much like Swiss citizens. The deciding factor is whether you count as a person abroad under the Act, which turns on residence and nationality rather than on how much you are willing to pay. As a quick self-check by buyer type: a foreign national with a C settlement permit buys residential property freely; an EU or EFTA national resident in Switzerland on a B permit can buy a main home where they live; and a non-resident is generally limited to a holiday home in a designated tourist area, within quota. Commercial and business premises sit largely outside the restriction, which matters for entrepreneurs. The hard limits bite on housing, in particular on second homes and buy-to-let residential property held by people who do not live in Switzerland. The law What is Lex Koller? The Lex Koller is the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG; French LFAIE, Italian LAFE). Enacted in 1983 and in force since 1985, its purpose is to limit foreign acquisition of Swiss residential land and to protect housing stock from speculative foreign demand. Where the Act applies, a purchase of residential property requires a permit, and acquiring restricted property without that permit is void, with the authorities able to order restoration of the original position. Because the consequences are severe, the status check has to happen before any deed is signed. Enforcement is split between the federal level and the cantons. The Federal Office of Justice supervises how the Act is applied, but the cantons run the actual authorisation procedure and issue or refuse the permits. That federal-cantonal split is why outcomes vary from place to place: each canton sets its own holiday-home quota and applies the conditions on the ground. One law is frequently confused with another. Lex Koller is not Lex Weber. Lex Koller controls who, as a foreigner, may acquire property. Lex Weber is the separate second-home initiative that caps second residences at 20 percent of a municipality's housing stock and applies to everyone, Swiss and foreign alike. A purchase can touch both regimes, but they answer different questions. Who qualifies Who can buy without authorisation, and who cannot The core distinction is between buyers who are treated like Swiss citizens and those who count as persons abroad. Buyers who can acquire residential property without a Lex Koller authorisation include: Holders of a C settlement permit , of any nationality, who are treated like Swiss residents for these purposes and can buy a home freely. EU and EFTA nationals resident in Switzerland on a B permit, buying a property to use as their main residence at their actual place of residence. Anyone, for genuine commercial premises used as a permanent business establishment, whatever the buyer's nationality or residence. Buyers who do need authorisation include non-resident foreign nationals, EU or EFTA nationals who are in Switzerland without a permit, and third-country nationals living in Switzerland without a C permit. A non-EU national on a B permit sits in a special position covered in the matrix below: typically one home for their own use only. If you already live and work in Switzerland, your permit category is therefore the first thing to confirm, and our Swiss residence permit guide explains how each status is acquired. The matrix Permit and property-type matrix The cleanest way to read the rules is to cross your status against the type of property. The table below sets out the typical position. Treat it as a planning aid and confirm the cantonal practice before you commit, because the residential cells are where most mistakes happen. Buyer Primary home Holiday home Residential investment Commercial Swiss / C permit Yes Yes Yes Yes EU/EFTA resident, B permit Yes With permit Restricted Yes Non-EU resident, B permit One, live-in only No No Yes Non-resident No With permit, tourist zone No Yes The non-EU B-permit rule, spelled out: a third-country national on a B permit may buy a single primary residence at the place where they actually live, to occupy it themselves. They may not let it out, even in part, and the relief is owner-occupation relief, not an investment route. This is the most-blurred cell in the rules, so it is worth confirming in writing before signing. Can Americans (and other non-EU nationals) buy? Yes, on the same logic. A US, UK or other non-EU national with a C permit buys freely; on a B permit, one live-in home only; and as a non-resident, a holiday home in a tourist canton within quota. Nationality outside the EU/EFTA does not bar ownership, it simply routes you to the stricter rows. Holiday homes Buying a holiday home in a tourist canton The most common route for a non-resident is the holiday home, and it is the most tightly controlled. Purchases are only possible in cantons and municipalities designated as tourist areas , and each canton works within an annual federal quota of authorisations thought to total roughly 1,500 a year nationally. The allocation is split into cantonal sub-quotas, with the larger tourist cantons such as Valais holding a few hundred and smaller cantons only a handful, so popular alpine and lakeside resorts use their allocation quickly. Treat any specific quota figure as indicative and verify the current cantonal allocation before relying on it. Holiday-home permits also come with conditions on the property itself. Cantons typically cap the net living area at around 200 square metres and the plot at around 1,000 square metres, restrict the buyer to one holiday home per household, and forbid using the property as a permanent, year-round let. Resale is often subject to a minimum holding period. Roughly 17 cantons and regions allow foreign holiday-home purchases, among them Valais, Grisons, Ticino, Bern and Vaud. You can see the wider picture in our cantonal overview ; note that low-tax business cantons such as Zug are not tourist-zone cantons, so the holiday-home route does not apply there. Commercial property Commercial and business property: the Lex Koller exemption The Lex Koller is a housing law. Real estate that serves a permanent business establishment, an office, a workshop, a hotel run as a going concern, a retail unit or a logistics site, is in principle freely acquirable by foreign buyers, including foreign-controlled companies, with no authorisation needed . The restriction is aimed at residential stock, not at productive commercial assets. What counts is genuine business use. The exemption covers premises that a business actually operates from or that form part of its permanent establishment. It does not cover residential property dressed up as a commercial holding, and where a building mixes uses, the residential element can still bring the purchase within the Act. The line between a real business establishment and disguised residential investment is exactly where the cantonal authorities look closely, so mixed-use deals need a careful classification before completion. Structuring Buying through a Swiss company or holding structure A frequent assumption is that a foreign investor can sidestep the restriction by having a Swiss company buy the home. The Act anticipates exactly this through an anti-circumvention rule . If a foreign-controlled company acquires residential property, or if foreign persons acquire a controlling interest in a company that owns restricted property, the transaction is treated as an acquisition by a person abroad and needs the same permit. Financing arrangements that put a foreign lender in a dominant position can be caught as well. The law looks through the structure to who really controls the asset, so corporate ownership does not unlock residential property the buyer could not own directly. Where a structure genuinely works is commercial real estate. A Swiss operating company can own the premises it trades from, and a foreign group can hold Swiss business property through a local entity without authorisation. That is a normal reason to form a Swiss company , and investors building a property-holding platform for commercial assets often use a holding structure to consolidate ownership. The key is that the structuring follows the commercial exemption, rather than trying to defeat the residential restriction. Financing Financing: mortgages, equity, and what non-residents pay Swiss lenders are conservative. A residential mortgage is typically capped at around 80 percent of the property value , so a resident buyer must bring at least 20 percent as equity. At least half of that equity, around 10 percent of the price, is usually expected to be genuine cash or pillar 3a savings rather than pledged occupational-pension (pillar 2) assets. Lenders also apply an affordability test: the imputed running costs of the property, calculated at a notional long-term interest rate well above current market rates, should not exceed roughly a third of gross income. Non-resident and foreign buyers face stricter terms. Where a bank will lend at all, the down payment is commonly in the region of 35 to 50 percent of the price, and the exact threshold varies by bank and by canton, so treat that range as typical rather than fixed and confirm it with the specific lender. Pillar 3a savings can count toward a resident's equity. Ongoing ownership costs, taxes and maintenance also feed into the wider budget, which the financing plan should account for from the outset. Costs and process Costs and the purchase process A Swiss property purchase is a formal, public process. The sale contract must be executed as a notarial deed before a notary, and ownership only passes when the transfer is entered in the cantonal land register ( Grundbuch ). Where a Lex Koller permit is required, it has to be in place for the registration to proceed. On top of the price, buyers should budget transaction costs of roughly 3 to 5 percent: a property-transfer tax ( Handänderungssteuer ) in many cantons, notary fees of around 0.2 to 1 percent, and land-register charges. These vary significantly between cantons, with some levying little or no transfer tax and others charging a few percent, so confirm the figure for the specific canton before you commit. The steps run in a predictable sequence: agree terms and sign a reservation; carry out due diligence and arrange financing; obtain the Lex Koller permit if one is needed; sign the notarial deed of sale; and complete with the land-register entry that transfers ownership. From an accepted offer to handover, a clean purchase usually takes around two to three months, longer where an authorisation has to be granted first. Ongoing tax Taxes you will owe as a property owner Owning Swiss property brings recurring tax obligations. Owner-occupiers are taxed on an imputed rental value ( Eigenmietwert ), a notional rent added to taxable income to reflect the benefit of living in your own home, against which mortgage interest and maintenance are generally deductible. The property's net value also enters the cantonal wealth tax base, which runs at roughly 0.1 to 1.0 percent of net wealth depending on the canton. When you sell, a gain is taxed under the cantonal real-estate capital-gains tax ( Grundstückgewinnsteuer ), which is typically tapered by holding period so that short holds are taxed more heavily than long ones. Note an important point of confusion: the Swiss exemption for private capital gains on movable assets such as shares does not extend to real estate, which is always caught by this separate cantonal tax. Our Swiss wealth tax guide explains how property sits in your taxable wealth alongside the rest of your assets. Reform tracker The 2025/2026 Lex Koller revision: what may change Last reviewed November 2026. Verify the current status before relying on any of the items below, because the law is mid-revision and these are proposals, not enacted rules. A revision of the Lex Koller has been under consultation. The proposals discussed would tighten the regime rather than relax it, and have included: requiring an authorisation for non-EU nationals buying a primary home; a duty to resell within roughly two years of leaving Switzerland; reduced cantonal holiday-home quotas; re-subjecting foreign-to-foreign resales to authorisation; and a letting ban on foreign-bought establishment property. None of these is settled law as this guide is published. If you are timing a purchase, treat the reform items as a planning risk and confirm the position with a Swiss adviser at the point of decision. How we help How we help foreign buyers Most problems on a Swiss property purchase come from getting the status and classification wrong at the start, not from the conveyancing itself. We run the Lex Koller analysis up front: confirming whether you count as a person abroad, classifying the property as primary home, holiday home or commercial premises, and identifying whether a cantonal authorisation is needed before any deed is signed. For investors, we structure commercial acquisitions correctly so the exemption holds, and we flag where a residential element would pull a deal back inside the Act. If your move to Switzerland is still being planned, the residence question usually comes first, because the right permit is what unlocks a permit-free purchase. Our relocation and permit support and legal services teams run the permit and Lex Koller checks together, and we work on a custom-quote basis. Tell us your nationality, intended residence status and the type of property, and we will scope it. To get started, talk to a specialist . FAQ Frequently asked questions Can a foreigner buy property in Switzerland? Yes, but acquisition by persons abroad requires authorisation under Lex Koller; residents with a C permit, or EU/EFTA nationals with a B or C permit, buy like Swiss citizens. Non-residents are largely limited to holiday homes in designated tourist areas, and commercial premises are generally unrestricted. What is Lex Koller? Lex Koller is the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG), in force since 1985, which restricts foreign acquisition of Swiss residential land. The Federal Office of Justice supervises it, while the cantons run the authorisation procedure. Can a non-resident buy a home in Switzerland? Generally only a holiday home in a designated tourist canton, within quota and typical size limits of about 200 square metres of net living area and a 1,000 square metre plot. Ordinary residential investment property is barred for non-residents. Does a B permit let me buy a house? A non-EU B-permit holder may buy one primary residence to live in but may not let it, even in part. EU/EFTA B-permit holders buy a main home at their place of residence freely. Confirm the cantonal practice before signing, as this is the most-blurred rule. Do C-permit holders face Lex Koller restrictions? No. C settlement permit holders, of any nationality, buy residential property without Lex Koller authorisation and are treated like Swiss residents for this purpose. Can foreigners buy commercial property in Switzerland? Yes. Commercial and business-establishment real estate is exempt from Lex Koller authorisation, including for foreign-controlled companies, provided the use is genuine business use rather than disguised residential investment. Can I buy Swiss property through a company? A foreign-controlled company is treated as a person abroad for residential land, so the same restrictions and permit apply under an anti-circumvention rule. Commercial property held for genuine business use is generally exempt, which is why company ownership is a normal route for commercial real estate. How much deposit do I need to buy property in Switzerland? Residents need a minimum 20 percent equity, of which at least 10 percent of the price must be hard equity rather than pledged occupational-pension assets. Non-residents typically put down 35 to 50 percent, varying by bank and canton. What does buying property cost beyond the price? Around 3 to 5 percent of the price in transfer tax, notary fees of roughly 0.2 to 1 percent, and land-register charges, varying widely by canton. Some cantons levy little or no transfer tax, so confirm the figure for the specific canton. How long does the purchase take? Usually two to three months from an accepted offer to handover, via a notarised deed and a land-registry entry. It takes longer where a Lex Koller authorisation has to be granted before completion. Which cantons let foreigners buy a holiday home? Around 17 tourist cantons and regions, including Valais, Grisons, Ticino, Bern and Vaud, each working within an annual federal quota of authorisations. Popular resorts use their allocation quickly, so availability varies by year and place. Is Lex Koller changing? A 2025/2026 revision has proposed tighter rules, including authorisation for non-EU home buyers, a two-year resale duty on leaving Switzerland, and reduced quotas. These are proposals, not enacted law, so verify the current status before relying on them. Keep reading Related guides and services. Relocating to Switzerland Cost of Living in Switzerland 2026 Wealth Tax in Switzerland 2026 Migration support Legal services Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Cost of Living in Switzerland 2026: Realistic Breakdown URL: https://business-in-switzerland.com/guides/cost-of-living-switzerland Description: What it really costs to live in Switzerland in 2026: rent, mandatory health insurance, food, transport, city differences, and the salary offset. Cost of Living in Switzerland 2026: Realistic Breakdown STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Cost of living Cost of Living in Switzerland 2026: A Realistic Breakdown Switzerland is genuinely expensive, but the headline prices sit against some of the highest net salaries in the world, and the canton you pick changes the maths as much as any other decision. This guide gives the honest numbers, the system behind them, and what they mean for a move. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: September 2026 Switzerland regularly tops international cost-of-living rankings, and crowdsourced indexes place Zurich and Geneva among the priciest cities anywhere. The figures in this guide are drawn from third-party cost-of-living sources such as Numbeo and Wise, with insurance premiums reported by the Federal Office of Public Health and wages from the Federal Statistical Office (BFS). They are approximate, crowdsourced or illustrative where noted, and quoted as accessed in 2026. Treat every number as an order of magnitude for planning rather than a precise budget line. What the rankings rarely capture is the other side of the ledger. Swiss net salaries are also among the highest anywhere, VAT is low by European standards, and income tax in a canton like Zug is a fraction of what most newcomers expect. The right way to read the cost of living in Switzerland is net, after rent, mandatory insurance and tax, and canton by canton, which is exactly how this breakdown is structured. By the numbers The figures that anchor this topic. ~CHF 1,378 Single person / month · excl. rent · Numbeo 2026 ~CHF 1,661 One-bed city centre / month · Numbeo 2026 ~CHF 465 Adult health premium / month · FOPH 2026 ~CHF 7,024 Median full-time wage / month · BFS 2024 The headline number The headline number, in context How much does it cost to live in Switzerland per month? As a hedged answer, a single person spends roughly CHF 1,378 a month excluding rent, and a family of four roughly CHF 5,067 a month excluding rent, according to Numbeo crowdsourced data accessed in 2026. Rent is added on top of those figures, which is why housing gets its own section below. The average net monthly salary in the same dataset is around CHF 5,913, which is the number that makes the costs bearable. The honest one-liner: Switzerland is expensive, but it is expensive against high net pay, low VAT and, in the right canton, modest income tax. So the answer to "is the cost of living high in Switzerland" is yes in absolute terms, and far more nuanced once salary and canton are in the picture. What the indexes measure (and what they leave out) Most cost-of-living indexes quote an "excluding rent" figure and a separate "with rent" figure. The excluding-rent number covers food, transport, utilities, leisure and the like, but not your largest single cost. If you budget from the excluding-rent figure alone you will badly under-plan, so always add a realistic rent line for your city on top. Because the underlying data is crowdsourced, the figures here are approximate by nature, not guaranteed. Rent Rent: the dominant budget line Rent is the biggest variable in any Swiss budget and the line you most fear before moving. Switzerland is a renter-majority country, with home ownership low, so rent dominates household spending in a way it does not in many neighbouring states. As a hedged national average from Numbeo 2026, a one-bedroom flat runs around CHF 1,661 in the city centre and CHF 1,329 outside it, while a three-bedroom flat runs around CHF 2,885 in the centre and CHF 2,327 outside. City spread matters more than the national average. On Wise 2026 figures, a one-bed in the centre is roughly CHF 1,928 in Zurich and CHF 2,007 in Geneva, but only about CHF 1,190 in Bern. Expect a deposit of up to three months' rent, and budget time for the search because vacancy rates in Zurich and Geneva are very low. Why rent is the line you most control by location Of all the cost categories, rent is the one where your choice of city and canton makes the largest difference. Two people on the same salary can pay 60 percent more or less for an equivalent flat purely by location, which is why the city and canton section below is where most of the budget is actually won or lost. Health insurance Mandatory health insurance: the cost most guides under-explain Switzerland has no employer-provided or general state health cover in the usual sense. Every resident must buy basic health insurance (KVG / LAMal) within three months of arrival, and each adult pays an individual premium. The 2026 average adult premium is approximately CHF 465.30 a month, up about 4.1 percent on 2025, with premiums rising roughly 4.4 percent on average overall, according to Federal Office of Public Health figures reported via swissinfo. Averaged across all insured people, including children, the mean is nearer CHF 393 a month. What basic cover (KVG/LAMal) includes and why it is compulsory Basic cover is a legally defined package every insurer must offer at the same scope: it pays for medically necessary treatment, hospital care in your canton of residence and prescribed medicines. Crucially it is a fixed per-person cost that sits outside your rent and outside the income-tax wedge, and it is not linked to your salary, so a higher wage does not raise it. A family of four insures four people, with children on lower premiums. How premiums vary by canton and by deductible choice Premiums are canton- and age-priced, so the same cover costs noticeably more in some cantons than others, with reported 2026 increases varying widely by region. You also choose an annual deductible (franchise), broadly in the CHF 300 to CHF 2,500 band: a higher deductible lowers your monthly premium in exchange for paying more out of pocket if you actually need care. Choosing canton and deductible together is one of the few real levers you have over this fixed cost. Everyday costs Food, transport, and everyday costs The everyday basket is high but manageable. As hedged Numbeo and Wise 2026 figures, a litre of milk is around CHF 1.81, a 500g loaf of white bread around CHF 3.03, a dozen eggs around CHF 6.19 and a kilo of chicken fillet around CHF 23.01. An inexpensive-restaurant meal is around CHF 25, a monthly public-transport pass around CHF 82, basic utilities for an 85 square-metre flat around CHF 224, and a litre of petrol around CHF 1.91. Groceries: the Migros and Coop duopoly vs discounters The two big retailers, Migros and Coop, dominate, but the discounters Aldi, Lidl and Denner are a real budget lever and can cut a grocery bill noticeably. Residents near a border also shop across into Germany, France or Italy for staples, a saving aggregator pages rarely mention. Getting around: public transport and the travelcard system The SBB network is dense and punctual, which is why many residents do not own a car. A monthly local pass sits around the CHF 80 band, a half-fare Halbtax card for a little over CHF 100 a year halves ticket prices, and a national GA travelcard gives unlimited travel for a higher annual fee. The quality of the network is part of what you are paying for. Utilities and other fixed monthly costs Basic utilities, heating, electricity, water and refuse for an 85 square-metre flat run around CHF 224 a month, with phone, internet and a TV/radio licence on top. These fixed lines round out the household budget alongside rent and insurance. By city and canton Cost of living by city and canton The same country produces very different total costs depending on where you live. Zurich and Geneva are the expensive end; Basel, Bern, Lausanne, Lucerne and Lugano sit in a mid band; and rural cantons and Ticino are cheaper overall. Resort towns such as Zermatt, Grindelwald and Montreux skew high on rent and eating out because of tourism. Because tax, rent and insurance all vary by canton, your choice of canton moves the budget more than any other single decision. The expensive end: Zurich and Geneva On Wise 2026 figures, a one-bed city-centre flat is roughly CHF 1,928 in Zurich and CHF 2,007 in Geneva , the two priciest Swiss cities. Both also carry high everyday and eating-out costs, though Geneva's higher cantonal tax partly offsets its salaries. The mid band: Basel, Bern, Lausanne, Lucerne, Lugano Bern is markedly cheaper than Zurich or Geneva, with a one-bed centre flat near CHF 1,190 on Wise 2026 data. Lausanne and Lucerne sit broadly in this mid band too, offering much of the Swiss quality of life at a lower rent line than the two leaders. Resort and rural: Zermatt, Grindelwald, Montreux, Ticino Alpine resort towns such as Zermatt and Grindelwald, and lakeside Montreux, carry a tourism premium on rent and dining that can outstrip the big cities for those specific lines. Rural cantons and Ticino, by contrast, are generally the cheapest places to live overall. Why so expensive Why Switzerland is so expensive Why is the cost of living so high in Switzerland? It is structural, not accidental. A high wage floor feeds into the price of every service, from a haircut to a restaurant meal. The domestic market is small with limited price competition, a large share of food is imported and protected by tariffs, and quality, infrastructure and labour standards are high and baked into prices. Mandatory per-person health insurance adds a large fixed cost on top. The wage floor and the strong franc The two structural drivers are wages and the currency. High pay across the economy raises the cost of anything labour-intensive. The Swiss franc is a strong safe-haven currency managed by the SNB, which makes Swiss prices look even higher when converted into US dollars or pounds and raises the cost of imports. Much of the "Switzerland is shockingly expensive" reaction abroad is partly a currency effect. A small, protected market with high standards Switzerland is a small market that relies on imports for a large share of its food, with protective tariffs limiting cheap competition. Combine that with high quality and infrastructure standards and a population willing to pay for them, and prices settle well above neighbouring countries. These are qualitative drivers; the precise import share varies by category. Vs the UK Switzerland vs the UK The most-searched comparison is the cost of living in Switzerland vs the UK, and the honest version has nuance. On Numbeo-style deltas, hedged, consumer prices run roughly 38 percent higher than the UK excluding rent, restaurants around 33 percent higher and groceries around 41 percent higher. But this sits against higher Swiss median wages, so the comparison cannot be read on prices alone. Where Switzerland costs more (and by how much) Across most everyday baskets Switzerland is dearer than the UK: groceries, restaurants and general consumer goods all carry a premium of roughly a third or more on crowdsourced data. Eating out in particular is markedly more expensive, with a restaurant lunch for two in Zurich around CHF 120 against roughly CHF 73 in London. Where Switzerland is not actually worse than London The credibility point most pages miss is that against London specifically, Switzerland is sometimes cheaper. A one-bed in central Zurich at around CHF 1,928 undercuts central London at roughly CHF 2,192, and a monthly transit pass in Zurich near CHF 90 is well below London's roughly CHF 170. So "more expensive than the UK" is true on average but not on every line, and the purchasing-power direction depends on salary. Salary offset Do the high salaries cancel out the high costs? This is the real decision question. The 2024 gross median full-time wage was about CHF 7,024 a month according to the BFS, up from roughly CHF 6,788 in 2022. There is no national statutory minimum wage, though some cantons set their own, as covered in our minimum wage guide . Net take-home pay is high, mandatory employee social deductions are comparatively modest, and disposable income after the bills is often greater than in lower-cost European countries, especially in a low-tax canton. The median wage and what "good salary" means A useful anchor for "what is a good salary in Switzerland" is that CHF 7,024 gross median. What counts as comfortable depends on household size, canton and rent after insurance is deducted. A single professional on the median in a mid-band canton lives comfortably; the same salary stretches less in central Zurich or Geneva. Can you live on 5,000 CHF a month? Can you live on 5,000 CHF a month in Switzerland? It is tight for a single person in Zurich or Geneva once rent of roughly CHF 1,900 and an insurance premium of around CHF 465 are deducted, leaving a modest balance for everything else. In a cheaper canton, with rent nearer CHF 1,300, the same CHF 5,000 is workable. The honest answer is canton-dependent. Low VAT and low inflation soften the picture Two things cut against the expensive reputation. The standard VAT rate is just 8.1 percent, low by European standards, so the tax component of consumer prices is smaller than in most of the EU. And 2025 inflation was about plus 0.2 percent on BFS figures, so prices are stable rather than spiralling. Both support purchasing power once you are earning in francs. Your relocation Cost of living and your relocation decision Cost of living is one input into a larger move that also covers permits, registration, banking and housing. Our relocating to Switzerland guide sets out the full sequence, and the companion average Swiss salary guide powers the net-income side of the maths. Run your rent and tax comparison early, because those two lines dominate the budget. How canton choice changes your total cost Tax, insurance and rent all move together by canton, so the location decision is really a total-cost decision. A low-tax base such as Zug can leave you materially better off than a higher-tax canton on the same gross salary, which is why so many international firms and individuals settle there. Compare cities after cantonal tax, not on gross pay, and see our personal income tax by canton guide for how the brackets work. The relocation sequence: permit, residence, banking Budgeting connects directly to the practical move. The work permit step decides whether you can be hired and on what basis, residence registration follows, and you will need to open a Swiss bank account to pay rent and receive salary. For founders moving a business as well as a household, the canton decision ties the personal and corporate sides together. Get the location right and Switzerland is expensive on paper but comfortable in practice. We work on a custom-quote basis, so tell us the canton and household and we will scope the move. FAQ Frequently asked questions How much does it cost to live in Switzerland per month? A single person spends roughly CHF 1,378 per month excluding rent and a family of four roughly CHF 5,067 excluding rent, according to Numbeo crowdsourced data accessed in 2026. Rent is added on top. These are approximate planning figures, not quotes. What is the average rent in Switzerland? A one-bedroom flat costs roughly CHF 1,300 to CHF 2,000 per month depending on the city, lower outside the centre, near CHF 1,661 in the city centre nationally, and higher in Zurich and Geneva, based on Numbeo and Wise 2026 figures. Is health insurance mandatory in Switzerland and how much is it? Yes. KVG or LAMal basic health insurance is compulsory and priced per person. The 2026 average adult premium is approximately CHF 465 per month and varies by canton, age and deductible, per Federal Office of Public Health figures. Why is Switzerland so expensive? High wages feed into service prices, the strong safe-haven franc raises the foreign-currency view and import costs, the domestic market is small with limited price competition, food is protected, quality standards are high, and per-person health insurance is a large fixed cost. Is Switzerland more expensive than the UK? Consumer prices are roughly 30 to 40 percent higher than the UK according to Numbeo, but this is offset by higher median wages, and rent and transport are not always worse than in London while eating out is higher. What is the cheapest city to live in Switzerland? Bern and the canton of Ticino tend to be cheaper, while Zurich and Geneva are the most expensive. Rural cantons generally cost less overall. How much does it cost to live in Zurich per month? Zurich is the most expensive Swiss city. A one-bedroom city-centre flat is around CHF 1,928 per month per Wise 2026 data, with living costs on top. What is a good salary to live comfortably in Switzerland? A useful anchor is the 2024 gross median full-time wage of CHF 7,024 reported by the Federal Statistical Office. What counts as comfortable depends on household size, canton, and rent once health insurance is deducted. Can you live on 5,000 CHF a month in Switzerland? It is tight for a single person in Zurich or Geneva once rent and insurance are deducted, but workable in cheaper cantons. How much do groceries and transport cost in Switzerland? An inexpensive-restaurant meal is around CHF 25, a monthly public-transport pass around CHF 82, and basic utilities for an 85 square-metre flat around CHF 224, based on Numbeo and Wise 2026 figures. Does Switzerland have a minimum wage? There is no national statutory minimum wage in Switzerland, although some cantons set their own. How much is the cost of living for international students in Switzerland? University welcome-center budgets estimate student living costs, with rent and health insurance the dominant lines; student insurance options can reduce the premium. Keep reading Related guides and services. Average Salary in Switzerland 2026 Relocating to Switzerland Personal Income Tax in Switzerland Zug Zurich Geneva Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## How to Hire Employees in Switzerland: 2026 Employer Guide URL: https://business-in-switzerland.com/guides/hiring-employees-switzerland Description: Hire employees in Switzerland step by step: contract, employer registration, social insurances, permits, payroll and source tax, plus EOR vs entity. How to Hire Employees in Switzerland: 2026 Employer Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Hiring and employment Hiring Employees in Switzerland: An Employer's Guide (2026) There are two ways a foreign company puts a Swiss employee on payroll: form your own entity and become the registered employer, or hire through an Employer of Record. This guide walks the full seven-step sequence behind both, with the 2026 figures and office names you need. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: August 2026 Hiring your first employee in Switzerland is less about a single decision and more about a sequence of registrations, deadlines and statutory minimums that have to line up. A written contract, an employer affiliation with a compensation office, five separate social insurances, a work permit calibrated to the employee's nationality, payroll with the right wage-source tax, and a clean first-day onboarding all have to be in place before the first salary run. The figures and the office names are specific, and they are year-stamped, so this guide carries the 2026 position rather than a generic checklist. Before any of that, there is a fork. You can form a Swiss AG or GmbH and be the employer yourself , or you can hire through an Employer of Record that becomes the legal employer with no Swiss entity of your own. We run company formation, payroll, source tax and permits, so we have no product to push at that fork and can stay neutral on it. The seven-step sequence below applies once you have chosen a route, and a decision framework at the foot helps you choose. By the numbers The figures that anchor this topic. 7 steps Contract to first-day onboarding ~13 – 20% Employer cost on top of gross · 2026 10.6% AHV/IV/EO · split 50/50 · 2026 4 weeks Minimum paid holiday · OR art. 329a The fork Two routes to hiring in Switzerland: your own entity vs. an Employer of Record Almost every credible guide to hiring in Switzerland starts at the same fork, because it shapes everything that follows. There are two legitimate routes, and the right one depends on how many people you plan to hire, how permanent the presence is, and how fast you need to move. Route A: form a Swiss entity and be the employer. You incorporate an AG or GmbH, register it as an employer, and take on the contracts, payroll and social-insurance obligations directly. This is the route when control, permanence, multiple hires or a genuine local presence matter, and it is the foundation for most foreign-owned operations. Our company formation service sets up the entity that then becomes the registered employer. Route B: hire through an Employer of Record (EOR). An EOR is already a Swiss employer; it puts your worker on its own payroll and contract, handles all the registrations, and invoices you. You get a compliant Swiss hire in days to weeks without forming anything. This is the route for a single or short-term hire, a market test, or speed before you commit to an entity. An employer of record arrangement is distinct from a PEO, a difference we return to in the decision framework below. The steps that follow describe Route A, because that is where the registration sequence, the offices and the deadlines live. Under Route B the EOR performs these steps for you, but it helps to understand what it is doing on your behalf. At a glance The hiring sequence at a glance: the 7 steps The end-to-end sequence for putting a first Swiss employee on payroll runs as follows. Each step expands into its own section below. Written employment contract agreed under the Code of Obligations (OR/CO art. 319 ff.). Register as an employer with a compensation office (Ausgleichskasse / Caisse de compensation), commonly within 30 days. Enrol the employee in the social insurances : AHV/IV/EO, ALV, BVG occupational pension, UVG accident and cantonal family allowances (FAK). Arrange the work permit or authorisation , which differs for EU/EFTA and non-EU/EFTA nationals. Set up payroll and source tax (Quellensteuer) and run the first monthly deduction. Complete first-day onboarding : signed contract, AHV number, permit copy, bank details and pension enrolment. Maintain ongoing compliance : monthly contributions, annual salary declarations and any source-tax reconciliation. The order matters. The contract defines the relationship, employer registration unlocks the social-insurance affiliations, and the permit and source-tax steps depend on the employee's nationality and salary. Below, each step carries the offices, deadlines and 2026 figures. Step 1 Step 1: The written employment contract Swiss law does not, in general, require an employment contract to be in writing. The Code of Obligations (OR/CO art. 319 ff.) recognises oral and even implied contracts. In practice a written contract is strongly recommended for any serious hire, because it fixes salary, role, hours, notice and holiday, and because some clauses are only valid if written down. A non-compete clause, an extended notice period and any variation of the default probation period must be in writing to take effect. Individual contract vs. collective bargaining agreement (GAV/CCT). Many Swiss sectors are covered by a collective labour agreement (Gesamtarbeitsvertrag / convention collective de travail). Where a sector agreement has been declared generally binding, its minimum pay, working hours, holiday and notice terms override a less favourable individual contract, even for a foreign-owned employer that never signed it. Construction, hospitality, cleaning, security and temporary staffing are typical examples. Checking whether a GAV applies is therefore the first content step before drafting. What should be in writing. Beyond the statutory must-write clauses, a sound Swiss contract states the gross salary and any thirteenth-month arrangement, weekly hours, probation length, notice periods, holiday entitlement, and the place of work. For the deeper rules on contract types, hours and termination, the dedicated Swiss employment-law guide in this series goes further than the summary here. Step 2 Step 2: Register as an employer with the compensation office Before you can run payroll you must affiliate as an employer with a compensation office, the Ausgleichskasse in German-speaking cantons or the Caisse de compensation in French-speaking ones. This single affiliation administers the first-pillar contributions (AHV/IV/EO), unemployment insurance (ALV) and, in most cantons, the family-allowance fund (FAK). It is the administrative hub of the whole social-insurance setup. Which office and how affiliation works. An employer joins either the cantonal compensation office or an association-based fund linked to its industry. One affiliation covers the first pillar, ALV and family allowances together; the occupational pension (BVG) and accident insurance (UVG) are arranged separately with their own providers, covered in Step 3. Deadlines and the AHV number. An employer is commonly expected to register a new employee within 30 days of the start date. Treat that as the working rule and confirm the precise statutory trigger for your canton, since the wording varies. Each employee needs an AHV social-security number; existing Swiss residents already have one, and a first-time worker is issued one through the registration. The Swiss social-security system guide in this series explains the three-pillar architecture that sits behind this registration. Step 3 Step 3: Enrol the employee in the social insurances Five mandatory schemes attach to a Swiss salary. The figures below are the 2026 position; verify the current year's thresholds before locking payroll, because several index annually. First pillar: AHV/IV/EO and ALV. Old-age, disability and loss-of-earnings insurance (AHV/IV/EO) is charged at 10.6% of gross salary in 2026 , split evenly so the employer and the employee each pay 5.3%. Unemployment insurance (ALV) adds 2.2% on salary up to a ceiling of CHF 148,200 per year , again split 50/50 at 1.1% each; there is no ALV above the ceiling. Second pillar: BVG/LPP occupational pension. The mandatory occupational pension kicks in once annual salary exceeds the entry threshold of CHF 22,680 in 2026. A coordination deduction of CHF 26,460 is subtracted to give the coordinated salary, which is insured up to CHF 64,260 . Contributions are age-graded, running from roughly 7% to 18% of the coordinated salary by age band, and the employer must pay at least half. The minimum BVG interest rate is 1.25%. The dedicated BVG occupational-pension guide explains fund choice and the credits in detail. UVG/LAA accident insurance. Occupational accident cover (BU) is paid in full by the employer. Non-occupational cover (NBU) is mandatory for anyone working more than eight hours a week and is usually deducted from the employee. Premiums vary by industry risk class, and insured earnings are capped at CHF 148,200 per year. Family allowances (FAK). Family allowances are cantonal. The federal minimum is at least CHF 200 per month per child and CHF 250 per month for the education allowance, and several cantons pay more, which is one reason where you register changes the cost. Step 4 Step 4: Work permits and authorisation Whether your hire needs a permit, and which one, turns entirely on nationality. This is the layer most generic guides thin out, and it is where foreign employers most often stumble. EU/EFTA nationals: free movement and notification. Citizens of EU and EFTA states are quota-free under the free-movement agreement. For short assignments no permit is needed, and an online registration is required once the employment exceeds three months. The administrative burden here is light. Non-EU/EFTA nationals: quotas and the labour-market test. Third-country nationals need a quota-based permit, typically an L permit for short-term work or a B permit for longer stays, and the employer must usually pass a labour-market test showing the role could not be filled from the resident or EU/EFTA pool. The 2026 federal quota for third-country workers is in the region of 4,000 L permits and 4,500 B permits, so timing matters when quotas tighten late in the year. For the permit categories and the application path, see our Swiss work permit guide and the related residence permit guide, and our migration support service handles the filings. Step 5 Step 5: Payroll and source tax (Quellensteuer) Once registered and insured, the employee goes on a monthly payroll run that deducts the employee social-insurance shares and, for many foreign workers, wage-source tax. Switzerland calls this Quellensteuer in German and impot a la source in French. Who is subject to source tax. The employer withholds source tax for B, L and G permit holders who do not hold a C settlement permit, and for cross-border G commuters, deducting it monthly at the tariff set by the canton of work or residence. Swiss nationals and C-permit holders are taxed by ordinary assessment instead, not at source. The CHF 120,000 ordinary-assessment trigger. Where a source-taxed employee's gross annual income reaches CHF 120,000 , a mandatory subsequent ordinary assessment is triggered. The employee still has source tax withheld during the year, but then files an ordinary return, and the source tax already paid is credited against the final bill. Getting the tariff and the reconciliation right is fiddly, which is why our payroll and accounting services run it; the Swiss payroll-taxes guide in this series covers the mechanics. Step 6 Step 6: First-day onboarding checklist By the employee's first day, a short, repeatable set of documents and registrations should be in place. Use this as a reusable checklist for every Swiss hire: Signed written employment contract (or GAV-compliant terms where a sector agreement applies). The employee's AHV social-security number. A copy of the work permit or residence permit, and an ID document. Bank account details (IBAN) for salary payment. Pension-fund (BVG) enrolment form completed and submitted. Source-tax registration where the employee is subject to withholding. Emergency contact and personal data for payroll master records. Confirmation of accident-insurance (UVG) cover, including NBU where hours exceed eight per week. Working through this list before day one avoids the common failure modes: a missing AHV number that stalls the first payroll, or an un-enrolled pension that has to be backdated. The numbers What it costs an employer on top of salary Beyond the gross wage, an employer in Switzerland carries a stack of mandatory on-costs. Taken together they add roughly 13% to 20% on top of gross salary , often summarised at around 15%, but the honest answer is a range rather than a single number, because three of the components vary by plan, industry and canton. The employer on-cost stack (illustrative 2026 range). AHV/IV/EO: 5.3% of gross (the employer half of 10.6%). ALV: 1.1% of gross up to the CHF 148,200 ceiling (the employer half of 2.2%). BVG occupational pension: age-graded, employer pays at least half, so commonly several percent of the coordinated salary. UVG-BU occupational accident: employer-paid, varying by industry risk class. FAK family allowances: cantonal employer contribution, differing by canton. Administration: compensation-office and payroll-administration costs. Mandatory vs. customary. The list above is the statutory minimum. On top, many Swiss employers add customary, non-mandatory items: daily-sickness insurance (KTG) to bridge salary during illness, and a thirteenth-month salary, which is widespread but not required by federal law. Budget these separately, because they are negotiated rather than fixed. The minimums Employment-law essentials: probation, notice, hours, holiday A handful of statutory minimums from the Code of Obligations and the Labour Act apply to every Swiss employment relationship and cannot be undercut. Probation and notice. Probation defaults to one month and can be extended in writing to a maximum of three (OR/CO art. 335b), with seven days' notice during probation. After probation, statutory notice is one month in the first year of service, two months in years two to nine, and three months from the tenth year (art. 335c). Notice must be equal for both parties and, outside probation, cannot drop below one month. Working hours, holiday and leave. The Labour Act caps weekly working time at 45 hours for industrial workers, office staff, technical employees and large retail, and at 50 hours for other categories. Paid holiday is at least four weeks a year (OR/CO art. 329a), rising to five weeks for employees under 20. Maternity leave is 14 weeks at 80% of salary through the loss-of-earnings scheme. A thirteenth-month salary is customary in many sectors but is not a statutory requirement. The Swiss employment-law guide in this series details unfair-dismissal protection and the finer points. Wage floor Minimum wage in Switzerland Switzerland has no statutory federal minimum wage . A 2014 national vote on one was rejected, and pay is left to the market and to collective bargaining. A handful of cantons, including Geneva, Neuchatel, Ticino, Jura and Basel-Stadt, have since legislated their own cantonal minimum, and where a generally-binding sector agreement applies it can set a floor well above any cantonal rate. Because cantonal figures are indexed and adjusted, usually each January, this guide does not pin a specific franc amount here. Name the canton where the work is performed, then read the current rate. Our dedicated minimum-wage guide in this series carries the 2026 cantonal figures and the rules behind them. Decision framework Employer of Record vs. forming your own entity With the mechanics covered, the route choice from the top of the page becomes concrete. Weigh the two options on time-to-hire, setup cost, ongoing compliance, control and scale. When an EOR is the right answer. Choose an Employer of Record for a single or short-term hire, a market test, or when you need someone working in weeks without a local entity. Onboarding through an EOR is commonly cited at days to a few weeks. The trade-off is less direct control and a per-employee fee that scales with headcount. When forming your own entity wins. Choose your own AG or GmbH when you plan multiple hires, want a permanent local presence and substance, or need full control over contracts, data and IP. Vendor sources commonly cite entity setup at three to six months and roughly CHF 20,000 to CHF 50,000 plus ongoing compliance; treat those as market estimates, not a quote. Beyond a few employees, the per-head economics usually tip toward owning the entity, and a foreign group may anchor it under a Zug structure. If you are at the planning stage, starting a business in Switzerland walks through incorporation before your first hire. EOR vs. PEO. The two are often confused. An Employer of Record is the sole legal employer of your staff and needs no entity of yours. A Professional Employer Organisation (PEO) is a co-employment model that requires you to already have your own Swiss entity, so it is not an entity-free route. The cantonal angle Where you register changes the detail, and how we help One point the global hiring platforms rarely make: the detail is cantonal. Which compensation office you affiliate with, the family-allowance (FAK) rate you pay, the source-tax tariff applied to a foreign hire, and any cantonal minimum wage all depend on where the work is performed. The same gross salary carries a slightly different employer cost in Zug , Zurich and Geneva , and the registration offices differ too. We help foreign employers across that whole sequence. We form the AG or GmbH that becomes your registered employer, run payroll and source tax, enrol the social insurances, and handle the work permits, or we route you to an Employer of Record where that fits better. We work on a custom-quote basis, so tell us the canton, the role and the employee's nationality and we will scope the right route and the real cost. FAQ Frequently asked questions Can a foreign company hire an employee in Switzerland without setting up a company? Yes. You can hire via an Employer of Record (the EOR is the legal employer and no Swiss entity is required), or form an AG or GmbH to become the registered employer yourself. The trade-off is speed and simplicity versus control and permanence. What are the steps to hire your first employee in Switzerland? Put the employment contract in writing, register as an employer with the compensation office, enrol the employee in the social insurances (AHV/IV/EO, ALV, BVG, UVG and family allowances), arrange the work permit, set up payroll and source tax, and complete first-day onboarding. How much does it cost an employer to hire in Switzerland on top of salary? Roughly 13 to 20 percent of gross salary, commonly summarised at about 15 percent. It is made up of AHV/IV/EO, ALV, BVG pension, occupational accident insurance, family-allowance contributions and administration. The exact figure varies by pension plan, industry risk class and canton. Which social insurances must an employer register a new hire for? AHV/IV/EO (old-age, disability and loss-of-earnings), ALV (unemployment), BVG (occupational pension), UVG (occupational and non-occupational accident) and cantonal family allowances (FAK). The compensation office handles the first pillar, ALV and family allowances; BVG and UVG are arranged with separate insurers. Does an employment contract have to be in writing in Switzerland? Not in general. The Swiss Code of Obligations (art. 319 ff.) allows oral employment contracts, but a written contract is strongly recommended, and certain terms such as a non-compete clause, an extended notice period or a varied probation period must be in writing to be valid. What is the probation and notice period in Switzerland? Probation defaults to one month and can be extended to a maximum of three (art. 335b), with seven days notice during probation. After probation, notice is one month in the first year, two months in years two to nine and three months from year ten (art. 335c), and must be equal for both parties. Do EU/EFTA citizens need a work permit to work in Switzerland? EU/EFTA nationals are quota-free and only need to register if the employment exceeds three months. Non-EU/EFTA nationals require quota-based B or L permits and pass a labour-market test; the 2026 federal quota is in the region of 4,000 L permits and 4,500 B permits. What is source tax (Quellensteuer) and who deducts it? Source tax is monthly withholding tax the employer deducts at the cantonal tariff for B, L and G permit holders who do not hold a C permit. Gross employment income of at least CHF 120,000 per year triggers a mandatory subsequent ordinary assessment, with the source tax already paid credited against the final bill. How long does it take to onboard a first Swiss hire? Setting up payroll, social insurances and a permit for a first entity hire is commonly cited at four to eight weeks, while hiring through an Employer of Record can take days to a few weeks. These timeframes are market estimates that depend on the canton and the employee nationality. What is the difference between an EOR and a PEO in Switzerland? An Employer of Record is the sole legal employer of your staff and needs no local entity. A Professional Employer Organisation is a co-employment model that requires you to already have your own Swiss entity. Is there a minimum wage in Switzerland? There is no statutory federal minimum wage. Some cantons, including Geneva, Neuchatel, Ticino, Jura and Basel-Stadt, set their own cantonal minimum wages, so check the current figure for the canton where you employ. What is the minimum holiday entitlement? Employees are entitled to at least four weeks of paid holiday per year under the Swiss Code of Obligations (art. 329a), rising to five weeks for employees under the age of 20. Keep reading Related guides and services. Swiss Employment Law Basics Swiss Social Security (AHV/AVS) Swiss Payroll Taxes Minimum Wage in Switzerland 2026 Employer of record Payroll services Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Lump-Sum Taxation in Switzerland: Forfait Regime Guide URL: https://business-in-switzerland.com/guides/lump-sum-taxation-switzerland Description: How Swiss lump-sum (forfait) taxation works: eligibility, the 7x rent rule, federal minimum base, cantonal minimums and the residence-permit route. Lump-Sum Taxation in Switzerland: Forfait Regime Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Lump-sum tax Lump-Sum Taxation in Switzerland: The Forfait Regime Explained Switzerland lets certain wealthy foreigners be taxed on their living expenditure rather than their worldwide income and wealth. The regime is real, legal and widely used, but it is open only to first-time residents who do not work in Switzerland, and several cantons have abolished it. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: January 2027 Lump-sum taxation is an expenditure-based way of being taxed in Switzerland. Instead of declaring worldwide income and assets, an eligible foreign resident is taxed on an agreed figure that reflects their annual cost of living. The same regime carries four names: the forfait fiscal in French, Pauschalbesteuerung or Besteuerung nach dem Aufwand in German, imposizione secondo il dispendio in Italian, and expenditure-based taxation in English. It rests on federal law (DBG art. 14) and cantonal law (StHG art. 6), and is negotiated with the cantonal tax authority before arrival. It is often described loosely as a tax break for the rich, but the eligibility rules are strict and several cantons have removed it. Only foreign nationals taking up Swiss residence for the first time, who carry on no gainful activity inside Switzerland, can elect it. This guide explains who qualifies, how the tax base is built, how the control calculation works, which cantons retain the regime and which abolished it, the residence-permit route, the social-security obligation, when ordinary taxation is cheaper, the abolition risk, and how the application is filed. By the numbers The figures that anchor this topic. ~CHF 434,700 Federal minimum base · as of 2026 7x Rent rule · base vs annual rent 5 Cantons that abolished it 4,557 Forfait taxpayers · end-2018 The concept What lump-sum (expenditure-based) taxation is Under ordinary Swiss rules, a resident is taxed on worldwide income and worldwide wealth. Lump-sum taxation replaces that with a tax base built on the taxpayer's annual living expenditure, including the cost of housing, food, travel, staff and lifestyle for the household. The agreed expenditure figure is then taxed at normal federal, cantonal and communal income-tax rates, and a parallel wealth-tax base is set at cantonal level. The four names all describe one regime: forfait fiscal (FR), Pauschalbesteuerung or Besteuerung nach dem Aufwand (DE), imposizione secondo il dispendio (IT) and expenditure-based taxation (EN). The legal basis is DBG art. 14 for federal direct tax and StHG art. 6 for the cantonal layer. A reform that took effect on 1 January 2016 tightened the rules: it raised the housing multiplier from five to seven times rent, introduced a statutory federal minimum base, and gave existing taxpayers a transition period to roughly 2021. The point of the regime is administrative as much as fiscal: a person with complex foreign holdings does not file a full worldwide return, and Switzerland collects a predictable amount each year. Eligibility Who qualifies: the eligibility conditions The conditions are cumulative and they are checked carefully. As of 2026 an applicant must: be a foreign national (Swiss citizens cannot use it, except in the single tax period of their arrival from abroad); be taking up Swiss tax residence for the first time, or after an absence of at least ten years ; carry on no gainful activity in Switzerland . The no-work condition is the one that surprises most people. Managing your own private wealth and drawing income from businesses abroad is permitted, but taking a salaried Swiss job or running a Swiss trade or self-employment is not, and it disqualifies you. A spouse living in the household must meet the conditions too. Two events end an existing arrangement: acquiring Swiss citizenship, and taking up Swiss employment. The regime is durable when the conditions are genuinely met and fragile when they are stretched, so the discipline is to set it up correctly and then live within its terms. The tax base How the tax base is calculated The taxable base is not simply whatever the taxpayer claims to spend. Federal and cantonal law impose minimums, and the authority applies the highest of several reference figures. As of 2026 the base is the greater of: the taxpayer's actual worldwide annual living expenditure; seven times the annual rent or rental value of the home the taxpayer occupies (a lower multiple of housing cost can apply in hotel or lodging cases); the federal minimum base : a CHF 400,000 statutory floor, which firms commonly cite at around CHF 434,700 as the current indexed minimum for federal direct tax. The exact figure is adjusted periodically by the federal tax administration, so treat it as the 2026 position and confirm it with ESTV before relying on a single number. Cantons then set their own minimum on top, which is frequently higher than the federal floor. Because the housing multiple drives the base for many applicants, the rent or rental value of the chosen home is the single biggest variable in the calculation. Control calculation The control calculation (Kontrollrechnung), with a worked example Alongside the expenditure base sits a separate floor test, the control calculation or Kontrollrechnung . The tax due under the forfait must be at least as high as the ordinary tax that would fall on the taxpayer's Swiss-source income, on Swiss-source wealth income, and on any foreign income for which Swiss double-tax treaty relief is claimed. It is a floor, not a cap: it raises the bill where Swiss-connected income is significant, but it never reduces the expenditure base. A simplified, illustrative example shows how the "higher of" logic resolves. Suppose a couple rents a home for CHF 60,000 a year. Seven times that rent is CHF 420,000. The federal minimum base sits at around CHF 434,700 as of 2026, which is higher, so it governs the federal portion. If their Swiss-source income, run through the control calculation, would produce ordinary tax on, say, CHF 300,000, that is below the forfait result, so the forfait still applies. The figures here are illustrative only, not a quoted case, and every franc amount must be confirmed with the relevant canton, because the federal minimum is indexed and cantonal minimums vary. Minimums Federal and cantonal minimums The federal minimum base governs the federal direct tax even where a canton's own income base would be lower. Each canton then sets its own minimum, usually higher than the federal floor, and adds a wealth-tax component derived from the expenditure figure (commonly a multiple of it). In practice the cantonal layer is where most of the bill is paid. Indicative cantonal positions circulate widely, for example an elevated minimum plus a wealth uplift in Geneva and competitive low-tax terms in central-Switzerland cantons such as Zug . Treat any specific cantonal figure as indicative and subject to confirmation by the cantonal tax administration, because these numbers are not centrally published in a single current table and move year to year. The facts-backed point is the structure: federal floor for the federal portion, a higher cantonal minimum, and a parallel wealth base on top. Cantonal map Which cantons offer lump-sum taxation (and which abolished it) Switzerland's 26 cantons set their own line on lump-sum taxation. As of 2026 it has been abolished by cantonal vote in five cantons: Zurich (2010), Schaffhausen (2012), Basel-Stadt , Basel-Landschaft and Appenzell Ausserrhoden . A resident of those cantons cannot elect the regime at cantonal level even though federal law still permits it. The majority of cantons continue to offer it, including Vaud, Valais, Geneva, Ticino, Graubünden, Bern, Lucerne and the central-Switzerland cantons Zug, Uri, Obwalden, Nidwalden and Schwyz . The regime is genuinely niche: at the end of 2018 about 4,557 individuals were taxed this way, paying roughly CHF 821 million collectively, well under 0.1% of all taxpayers (efd.admin.ch; verify against a more recent ESTV figure before quoting as current). Because the canton is where the bulk of the tax is paid, choosing the right canton is the single most important planning decision. Residence EU/EFTA vs non-EU/EFTA: the residence-permit route The tax mechanics of the forfait are identical whatever your nationality. What differs is the immigration path that gets you to Swiss residence in the first place. For EU and EFTA nationals, residence as a non-working person of independent means is comparatively straightforward. For non-EU/EFTA nationals, the route is narrower and discretionary. In both cases the regime supports a residence permit rather than guaranteeing one. A canton may grant a discretionary B permit where there is a predominant cantonal fiscal interest in the applicant relocating, with a retiree-style residence basis available under the foreign nationals act (FNIA/FNIG art. 28). There is no automatic entitlement, and the no-work residence basis must stay consistent with the no-gainful-activity tax condition. Our Swiss residence permit guide sets out the permit categories in detail. Social security Social security still applies A point most explainers omit is that lump-sum taxpayers are not outside the Swiss social-security system. As residents who are not gainfully employed, they owe old-age and survivors' insurance contributions (OASI / AHV) as non-active persons, up to retirement age. The contribution is means-tested against wealth and pension income rather than salary. The maximum non-active contribution is frequently quoted at roughly CHF 26,500 a year. Treat that as an indicative ceiling and verify it against the current AHV maximum before budgeting, because the figure is set by the federal social-security schedule and is reviewed periodically. It is a recurring cost that sits on top of the tax bill, not inside it. Break-even Lump-sum vs ordinary taxation: when it is worth it The forfait is not automatically cheaper than ordinary taxation. It caps the income and wealth side at the agreed expenditure base, so it pays off when the taxpayer's worldwide income and assets would otherwise generate a far larger ordinary bill. People with substantial untaxed or lightly taxed foreign income, large diversified portfolios, or significant offshore business income are the classic winners. For someone with modest worldwide income, ordinary taxation can be cheaper, because the forfait sets a high minimum base regardless of actual income. To weigh the alternative, compare our guides to ordinary income taxation and Swiss wealth tax , which set out the rates a non-forfait resident would face. The honest test is arithmetic: model the ordinary bill on your real worldwide position against the forfait base in your target canton, and elect the regime only when it wins clearly. Risk Political and abolition risk Lump-sum taxation is politically contested, and an honest assessment has to account for that. A nationwide popular initiative to abolish the regime at federal level was put to voters in 2014 and rejected , which settled the federal position for the foreseeable future. That national vote is the reason the regime survives across most of the country. The risk that remains is cantonal. Several cantons have abolished it by their own vote, and any retaining canton could in principle do the same. For a long-horizon relocation, the practical hedge is to choose a canton with a stable, repeatedly affirmed commitment to the regime, and to accept that the arrangement depends on cantonal politics as well as on meeting the conditions. The process How to apply: the ruling and annual filing Lump-sum taxation is not claimed on a normal tax return. It is agreed in advance through a tax ruling negotiated with the cantonal tax administration before, or shortly after, taking up residence. The taxpayer submits details of the household, the intended home, expected expenditure and the absence of Swiss gainful activity, and the canton confirms the agreed annual base, ideally before relocation so there are no surprises. After that the obligation is an annual return on the agreed base, which the canton can review, with practice varying from canton to canton. The steps run in parallel with the residence-permit application, since the no-work residence basis and the tax election support each other. For families building a longer-term Swiss presence around investment and succession, the forfait often sits alongside a Swiss family-office structure , which handles the worldwide assets the tax base is designed to keep outside the Swiss return. We work on a custom-quote basis, so speak to our team with your target canton and household position and we will scope the ruling and the relocation together. FAQ Frequently asked questions What is lump-sum taxation in Switzerland? A regime where qualifying foreigners are taxed on their living expenses rather than their actual worldwide income and wealth. It is also called forfait fiscal, Pauschalbesteuerung or expenditure-based taxation, and rests on DBG art. 14 and StHG art. 6. The agreed expenditure base is taxed at normal Swiss rates and is settled with the canton in advance. Who is eligible for lump-sum taxation? Non-Swiss nationals taking up Swiss tax residence for the first time, or after at least ten years abroad, who do not carry on any gainful activity in Switzerland. Swiss citizens generally cannot use it except in the tax period of their arrival, and a spouse in the household must also meet the conditions. What is the minimum lump-sum tax base? At least seven times the annual rent or rental value of your home, and at least the federal minimum base. The federal minimum is a CHF 400,000 statutory floor that firms commonly cite at around CHF 434,700 as the current indexed figure as of 2026, subject to periodic adjustment. Cantons set their own, often higher, minimums on top. Which Swiss cantons offer lump-sum taxation? Most cantons, including Vaud, Valais, Ticino, Geneva, Bern, Graubünden, Lucerne and the central-Switzerland cantons such as Zug, Uri, Obwalden, Nidwalden and Schwyz. Because the bulk of the tax is paid at cantonal level, the choice of canton is the most important planning decision. Which cantons abolished lump-sum taxation? Zurich (2010), Schaffhausen (2012), Basel-Stadt, Basel-Landschaft and Appenzell Ausserrhoden no longer offer it at cantonal level. Residents of those cantons cannot elect the regime even though federal law still permits it. Can you work in Switzerland under lump-sum taxation? No. Any Swiss gainful activity, whether employment or self-employment, ends eligibility. Managing your own private investments and drawing income from businesses abroad is permitted, but taking a Swiss job or running a Swiss trade is not. What is the control calculation (Kontrollrechnung)? A floor test: the tax due under the forfait must be at least the ordinary tax on your Swiss-source income, Swiss-source wealth income, and any foreign income for which Swiss double-tax treaty relief is claimed. It can raise the bill where Swiss-connected income is significant, but it never lowers the expenditure base. Does lump-sum taxation give you a residence permit? It supports a discretionary B residence permit granted on predominant cantonal fiscal interest, not an automatic entitlement. The tax mechanics are the same for everyone; the immigration route differs for EU/EFTA versus non-EU/EFTA nationals, and a retiree-style basis is available under FNIA art. 28. Do lump-sum taxpayers still pay social security? Yes. As non-active persons they owe OASI/AHV contributions up to retirement age, assessed on wealth and pension income rather than salary. The maximum is often quoted at roughly CHF 26,500 a year; treat that as indicative and verify it against the current AHV maximum before budgeting. Is the forfait cheaper than ordinary taxation? Not always. It pays off when your worldwide income and assets would otherwise produce a far larger ordinary bill, which is why it suits people with substantial foreign income. For modest worldwide income, ordinary taxation can be cheaper, so model both on your real position before electing it. How do you apply for lump-sum taxation? You agree it in advance through a tax ruling with the cantonal tax administration, not on a normal return. You submit details of the household, the intended home, expected expenditure and the absence of Swiss gainful activity, the canton confirms the annual base, and you then file an annual return on that base. It usually runs in parallel with the residence-permit application. Keep reading Related guides and services. Wealth Tax in Switzerland 2026 Personal Income Tax in Switzerland Relocating to Switzerland Crypto Tax in Switzerland Family office Geneva Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Open a Swiss Bank Account for Foreigners: 2026 Guide URL: https://business-in-switzerland.com/guides/opening-swiss-bank-account Description: Neutral 2026 guide for non-residents opening a Swiss bank account: four bank-type options, documents, AMLA checks, corporate vs personal, rejection reasons. Open a Swiss Bank Account for Foreigners: 2026 Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Guide How to open a Swiss bank account as a foreigner (2026 edition) Yes, a foreigner can open a Swiss bank account, but not every bank welcomes non-resident beneficial owners and enhanced customer due diligence keeps tightening. This guide maps your four realistic options, the documents you actually need, the rejection reasons no one publishes, and when banking belongs inside a Swiss company formation. No rankings, no affiliate links. Request a proposal Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: May 2026 At a glance Four numbers every non-resident founder wants upfront. Minimum paid-in capital that has to sit in a Swiss bank before the register will accept your company, plus the withholding rate that drives the currency choice for your account balances. 50k CHF minimum paid-in AG capital (of 100k) OR art. 621 / 632 20k CHF GmbH capital, fully paid-in OR art. 773 / 777c 35% Swiss withholding on CHF interest and dividends VStG / DBG 2 – 6 wk End-to-end formation envelope (GmbH / AG) Handelsregister timelines Reality check Can a foreigner really open a Swiss bank account? A short answer and a longer one. The short answer is yes. The longer answer depends on who you are on paper, how your capital was built, and which bank category you are knocking on. You will find forum threads insisting it is nearly impossible for a non-resident to open a Swiss bank account in 2026. That is an overstatement, but it captures a real shift. Since the 2017 launch of OECD automatic information exchange and the steady tightening of enhanced customer due diligence under the Swiss Anti-Money Laundering Act (AMLA / GwG), the days of walking in with a passport and leaving with an IBAN are over. The bank takes on regulatory risk with every non-resident account, and it must price that risk. Whether the account opens depends on five variables: the passport, the tax residence, the documented source of wealth, the bank category, and whether this is a personal or corporate account. Passport versus residence, the two axes banks actually check Search queries like swiss bank account for non-residents collapse two distinct realities into one phrase. An EU national living in Zurich on a B permit is not a non-resident for Swiss bank onboarding, even though they may still be a foreign citizen for tax purposes. A German living in Frankfurt is a classic non-resident. A US citizen living in Geneva on a C permit is a Swiss resident who also triggers FATCA. Banks run their decisioning against residence , with passport as a secondary overlay. Our Swiss residence permit B, C, or L page walks the residency axis in full; this page assumes you know which side you are on. What changed in 2023–2026: AMLA, FATCA, and CRS maturity Three regulatory movements shape the current onboarding environment. First, the 2021 AMLA revision, in force since 1 January 2023, extended explicit verification of the UBO via CDB 20 Forms A / K / T, reduced the one-off cash-transaction threshold triggering full KYC to CHF 15,000, and imposed a continuous duty to update UBO data. Second, an upcoming FATCA transition is moving Switzerland from a Model 2 to a Model 1 agreement with the United States, with the Federal Council targeting entry into force around 1 January 2027 (ratification timing still TBD); Model 1 shifts reporting flow from direct bank-to-IRS channels to a Swiss-authority-mediated route, aligning FATCA with CRS. Third, the OECD Common Reporting Standard has been in force in Switzerland since 1 January 2017 (first exchanges 2018, over 100 partner jurisdictions); this is the baseline, not a new development. For a non-US foreign tax resident the practical effect is simple: your Swiss bank account balance and income are reported annually to your home tax authority. Decision map Your four realistic options: a neutral comparison. Four categories of Swiss bank, four very different onboarding paths. Use this as a decision frame, not a ranking. Which category fits you depends on your profile. Every Swiss bank falls into one of four buckets for foreign account-opening purposes: a traditional retail big bank, a cantonal bank, a digital or neobank, and a private bank. Each targets a different client archetype, charges a different fee shape, and runs a different onboarding process. There is no single winner, and any page that declares a best Swiss bank for expats is either selling something or ignoring the question of fit. Dimension Retail big bank Cantonal bank Digital / neobank Private bank Examples UBS, Raiffeisen, PostFinance ZKB, BCGE, BEKB, LUKB Alpian, Neon, Yuh, Zak, Swissquote Julius Baer, Pictet, Vontobel, Lombard Odier, UBP Non-residents Case-by-case Case-by-case Usually CH residence Above threshold Minimum deposit Five-figure CHF typical Similar to retail Often none Seven-figure threshold Online opening Limited Limited Yes, video KYC Rarely English service Yes Yes at larger cantonals Yes Yes US persons Case-by-case Case-by-case; BCGE with extra docs Generally no at Swissquote Case-by-case Non-resident surcharge Annual surcharge common Annual surcharge common Often none Bundled in mandate fees Some major Swiss banks impose annual surcharges on non-resident accounts to price the compliance overhead; the precise amount varies by bank and by year and should be read directly from each bank's current fee schedule before deciding. Minimum-deposit figures above are typical tier thresholds rather than published minimums. Option 1. A traditional big bank (UBS, Raiffeisen, PostFinance) The three large Swiss retail banks are the default starting point for mass-affluent clients with Swiss residency. For a non-resident foreigner, UBS runs the most documented non-resident programme and will take clients on a case-by-case basis with a structured relationship-manager introduction; Raiffeisen and PostFinance are more domestically focused. Expect a five-figure CHF minimum deposit for an account to be fee-efficient, and expect an annual non-resident surcharge on top. The English-language service is reliable across all three. Option 2. A cantonal bank (ZKB, BCGE, BEKB, LUKB) Switzerland has 24 cantonal banks, each with a regional bias and a legal relationship to its canton. Zürcher Kantonalbank (ZKB) is the largest and runs a documented non-resident programme with English capability. Banque Cantonale de Genève (BCGE) is the cantonal bank of Geneva and accepts US persons with extra documentation. Berner Kantonalbank (BEKB) and Luzerner Kantonalbank (LUKB) are smaller but approachable for local-nexus clients. Cantonal banks are a natural fit when you intend to live or incorporate in that canton, especially alongside a Zug strategy for crypto and holding structures or a Geneva-based private-banking footprint . Option 3. A Swiss digital bank (Alpian, Neon, Yuh, Zak, Swissquote) Digital banks own the open swiss bank account online query. Alpian holds a full FINMA banking licence; Neon, Yuh, and Zak operate as Swiss-licensed card and account offerings; Swissquote is a Swiss online broker-bank with a non-resident-friendly multi-currency proposition. The catch is residency: most Swiss digital banks still require a B, C, or L permit and a Swiss address. Swissquote is the notable exception for non-residents interested primarily in securities. Onboarding is fast, fees are low, and English is first-class; but the compliance envelope is narrower than at a traditional bank. Option 4. Private banking (Julius Baer, Pictet, Vontobel, Lombard Odier, UBP) Private banking is a different product, not a premium retail account. You are buying a discretionary or advisory investment mandate and a relationship, with banking attached. Entry thresholds sit well into seven figures in CHF or USD; service is explicitly cross-border and English-speaking; US-person acceptance is case-by-case. If you are evaluating a private bank in parallel with a private-banking threshold relationship or other wealth-structure vehicles , the banking mandate is usually selected last, after the structure is in place. Documents What banks ask for: the document checklist. Every Swiss bank starts from the same universal set, then layers on extras by residency, by nationality, and by account type. Preparing the pack in advance compresses onboarding by weeks. Core documents every bank asks for Certified or notarised passport copy. Proof of address (recent utility bill, rental contract, municipal registration). Source-of-funds (SoF) declaration for the incoming transaction. Source-of-wealth (SoW) narrative covering how the capital was accumulated. Tax-residence self-certification for CRS. Occupation or profession documentation. Extra documents non-residents usually face Apostille or consular legalisation of home-country documents. A curriculum vitae covering the past decade. A bank reference letter from an existing primary relationship. A written explanation of the Swiss connection, why Switzerland, why now. Extra documents for US persons IRS Form W-9 with current taxpayer identification number. FATCA consent to bank-to-tax-authority reporting. Awareness of FBAR (FinCEN Form 114) filing at USD 10,000 aggregate. Awareness of IRS Form 8938 filed with the individual's tax return. Extra documents for corporate accounts Handelsregister extract for the Swiss legal entity. Articles of association (Statuten / Statuts). Board resolution authorising the account opening. UBO declaration for every ultimate beneficial owner at 25% or more. Signature specimens for every authorised signatory. Scrutiny What banks really look at, beyond paperwork. Swiss banks run enhanced customer due diligence under AMLA on every non-resident UBO. The scrutiny is less about the documents on the table and more about the story they tell together. Source of wealth: the scrutiny nobody talks about The single most underweighted variable in public content on Swiss bank onboarding is the source-of-wealth narrative. Source of funds (SoF) covers the specific transaction that seeds the account. Source of wealth (SoW) covers the cumulative story of how the capital was built: business proceeds, inherited assets, employment compensation, liquidity events, investment returns, real-estate disposals, a three- to five-year timeline with documented milestones. Gaps in the narrative, unexplained round numbers, and jumps without a tax-filing anchor are the most common triggers for enhanced due diligence. Good practice is to arrive with a dated timeline and the corroborating documents for each entry. Your connection to Switzerland Banks expect an answer to an unwritten question: why Switzerland, and why now. Strong answers include an inbound move with a Swiss residence permit in hand, a Swiss-incorporated business that needs an operating account, a long-standing commercial relationship with Swiss counterparties, or substantial Swiss real-estate holdings. Weak answers, like a general belief that Swiss banking is safe, invite further questions rather than close them. If banking is part of a broader relocating to Switzerland project, the move itself is the connection. Sanctioned-country exposure and politically exposed persons Two flags sit above everything else in the compliance model. Sanctioned-country residence or citizenship generally results in a decline at most Swiss banks; exceptions require a specialised compliance desk. Politically exposed person (PEP) status does not prevent an account from being opened, but it does trigger enhanced due diligence with senior-management approval, ongoing monitoring, and more detailed SoW documentation. PEP-adjacent status (immediate family, close business associates) is treated similarly. Personal vs corporate Business account versus personal account: different rules. A personal account is opened by an individual; a corporate account begins life as a blocked capital-deposit account tied to the formation of the entity itself. The processes are not comparable. The capital deposit account (Einzahlungskonto), a mandatory pre-registration step Before a Swiss GmbH or AG can be entered in the Handelsregister, the founders must deposit the paid-in share capital into a Swiss bank consignment account known as an Einzahlungskonto. For a GmbH that is CHF 20,000 fully paid-in under OR art. 773 and 777c; for an AG it is the greater of CHF 50,000 or 20% of the subscribed CHF 100,000 share capital under OR art. 621 and 632. The money is blocked in the consignment account until the Handelsregister entry is issued, at which point the bank releases the funds into the new corporate operating account. The capital deposit account is effectively the only Swiss bank account that a non-resident founder is guaranteed to be able to open, because it is a formation requirement rather than a commercial onboarding decision. From capital deposit to operating corporate account The conversion from capital-deposit to operating account is not automatic at every bank. Some banks treat it as a full onboarding, requiring UBO re-verification, separate KYC for every director and for every UBO holding 25% or more, a board resolution authorising the account, and signature specimens for each authorised signatory. At smaller cantonal and digital banks the process is faster if the founders are already Swiss residents; at large retail banks for non-resident founders it can stretch into the upper end of the pair this with a Swiss company formation timeline. Holding companies, family offices, and crypto AGs: narrower paths Corporate banking for specialised structures follows narrower paths than generic operating accounts. Swiss holding companies attract detailed UBO-chain documentation and disclosure of intercompany loans and participations; single-family and multi-family offices are onboarded differently because the latter touches FINMA's FinIA asset-management perimeter; a banking for a Zug-based crypto AG typically requires FINMA licensing or SRO affiliation plus demonstrated local substance, and many traditional banks still decline crypto clients who cannot show both. For all three categories the bank will ask where the structure sits in the larger ownership graph, not just where the operating account sits. Timeline How long does it really take? Opening times are a function of bank category and profile complexity. A clean digital onboarding can close in days; a flagged traditional file can stretch into months. Milestone-by-milestone timeline Document preparation. 1 to 3 weeks, depending on apostille and legalisation turnaround in the home country. Bank selection and initial contact. 3 to 7 days, including a first call with a relationship manager. KYC submission. 1 day (digital) to 1 to 2 weeks (traditional in-branch). Compliance review. 1 to 3 days (digital) to 1 to 4 weeks (traditional). Enhanced due diligence if flagged. additional 2 to 6 weeks. Account activation. 1 to 3 days once cleared. In round numbers, digital bank onboarding runs days to two weeks; traditional and cantonal accounts run four to eight weeks for non-residents; private banking runs four to twelve weeks. Corporate accounts tied to AG or GmbH formation sit inside the three- to six-week AG or two- to four-week GmbH end-to-end envelope, because the formation gates the bank and not the other way around. What if What if you get rejected, and how to fix it. Rejections are common at the first bank, uncommon across all banks. The SERP is quiet about this; the reality is that a rejected file can be reworked and re-submitted. Common rejection reasons Weak or unverifiable source of wealth. Sanctioned-country exposure (residence, citizenship, or recent business ties). PEP status without EDD readiness. An insufficient or unexplained Swiss connection. High-risk business activity, such as crypto without substance, cash-intensive trade, adult, or weapons. Incomplete documentation, missing apostille or legalisation. US-person status at a bank without an active US-compliance programme. How to remediate Rework the source-of-wealth narrative with third-party evidence and a clean timeline. Close documentation gaps with apostille or consular legalisation. Engage a fiduciary to mediate the presentation and introduce the file into the bank's non-resident desk. Switch bank category: from a retail bank to a digital bank, from a digital bank to a cantonal bank, or up to private banking if assets allow. Where time-sensitive, open a parallel EU-adjacent account (for example in Liechtenstein or Luxembourg) while the Swiss file is reworked. The primary goal remains the Swiss account. Cross-border Cross-border tax reporting: CRS, FATCA, FBAR. The 1934 Swiss Banking Act's confidentiality regime does not override modern treaty obligations. If you have a Swiss bank account and tax residence elsewhere, your account will be reported annually. CRS (OECD automatic exchange of information) The OECD Common Reporting Standard applies to non-US foreign tax residents with a Swiss bank account. The Swiss bank reports your account balance and investment income annually to the Swiss Federal Tax Administration, which forwards the report to the tax authority in your country of tax residence. This has been in force in Switzerland since 1 January 2017, with first exchanges in 2018 and over 100 partner jurisdictions; it is the baseline expectation, not an edge case. FATCA (US persons) US persons trigger FATCA reporting at every Swiss bank that opens their account. Switzerland currently operates under a Model 2 IGA : the bank reports directly to the IRS with account-holder consent, and the IRS may issue group requests for undisclosed accounts. Transition to a reciprocal Model 1 IGA , announced by the Swiss Federal Council, targets entry into force around 1 January 2027 per Federal Council communications of 2024; Model 1 shifts reporting flow so Swiss banks report to the Swiss authority, which forwards to the IRS, aligning FATCA with CRS. Confirm the effective date from the Swiss State Secretariat for International Finance (SIF) before relying on it in a cross-border filing decision. FBAR and Form 8938 (filed by the US account holder, not by the bank) FATCA reporting is what the bank does. FBAR and Form 8938 are what the US account holder does. FBAR (FinCEN Form 114) is filed annually when the aggregate value of foreign financial accounts crosses USD 10,000 at any point in the year. Form 8938 is filed with the US individual income-tax return when thresholds are met. Both regimes carry statutory penalties that apply to US persons who fail to file; the civil-penalty structure is inflation-adjusted annually and should be read from the current-year FinCEN and IRS tables before planning around it. Swiss withholding tax at 35% on CHF interest and dividends Separately from cross-border reporting, Switzerland levies a 35% federal withholding tax on interest and dividends paid from Swiss sources, including on CHF-denominated bank deposits and Swiss securities. Swiss residents recover the tax via the annual return if the income is declared; treaty residents recover via the applicable DTA claim (often to 15%, 10%, 5%, or 0%). One practical consequence of the withholding regime, and of the currency of your tax residence, is that many non-resident account holders keep the bulk of their balances in EUR or USD rather than in CHF. When to engage When to layer this into a Swiss company setup. Bank account opening as a standalone service for a personal account is not something we resell. Bundled with company formation, banking is part of a single engagement that we scope end-to-end. Path 1. Standalone personal banking If you only need a personal Swiss bank account and already hold, or are moving to hold, a Swiss residence permit, the most efficient path is direct. Pick a digital bank for speed, a retail bank for relationship, or a private bank for scale. We do not resell personal account introductions. Path 2. Banking bundled with company formation If the Swiss bank account is actually the capital deposit account for a new AG or GmbH and the subsequent corporate operating account, our engagement handles end-to-end: bank pre-introductions, KYC package curation, UBO declarations, and Handelsregister filing timing. The bank work sits inside the formation timeline rather than after it. For broader context, the other foreigner guides cover adjacent moving parts, such as work permits, residence permits, VAT registration, and a foreigner's checklist for starting a Swiss business. The banking guide is a sibling, not a standalone. FAQ Frequently asked questions Twelve questions mapped to the top People Also Ask and long-tail queries on Swiss bank account opening for foreigners. The FAQPage schema emitted above matches every answer byte-for-byte. Can a foreigner open a Swiss bank account? Yes, in principle. Most Swiss banks apply enhanced due diligence to non-residents, and some retail banks decline outright. Digital banks, UBS, and ZKB publish documented non-resident programmes; private banks accept above wealth thresholds. Your passport, tax residency, source of wealth, bank category, and whether the account is personal or corporate all shape the answer. Which Swiss banks accept non-resident clients? UBS and ZKB have among the most documented mainstream non-resident programmes. BCGE in Geneva accepts US persons with extra documentation. Swissquote accepts non-residents for trading and multi-currency accounts. Alpian offers FINMA-licensed digital onboarding but usually depends on a permit B, C, or L. Private banks such as Julius Baer, Pictet, Vontobel, Lombard Odier, and UBP accept clients above wealth thresholds. What documents do I need to open a Swiss bank account as a foreigner? At minimum, a certified or notarised passport copy, proof of address, a source-of-funds declaration, and profession documentation. Corporate accounts add an ultimate beneficial owner (UBO) declaration, a Handelsregister extract, articles of association, and a board resolution. Non-residents often need apostille or consular legalisation. US persons add a W-9 and a FATCA consent. Can I open a Swiss bank account online? Digital banks such as Alpian, Neon, Yuh, Zak, and Swissquote offer fully remote onboarding via live video KYC, but most require a Swiss residence permit. Traditional retail, cantonal, and private banks rarely complete end-to-end online opening for non-residents; they typically accept electronic document submission but still expect an in-person or branch-video step. What is the minimum deposit for a Swiss bank account? It depends on the tier. Digital banks often require no minimum deposit. Traditional retail and cantonal accounts typically sit in a five-figure CHF range before annual fees become punitive for non-residents. Private banking relationships start in the low seven-figure bracket measured in CHF or USD. These are typical tier thresholds; each bank publishes its own fee schedule and threshold, which is worth checking for the current year. Can a US citizen open a Swiss bank account? Yes, at selected institutions. UBS accepts US persons on a case-by-case basis; BCGE accepts US persons with extra documentation; Swissquote generally does not accept US residents. FATCA compliance (W-9, FATCA consent), FBAR, and Form 8938 filings apply regardless of the bank. How long does it take to open a Swiss bank account? Digital banks are typically days to two weeks. Traditional and cantonal banks generally take four to eight weeks for non-residents. Private banking onboarding runs four to twelve weeks. Corporate accounts tied to AG or GmbH formation sit inside the three- to six-week AG or two- to four-week GmbH end-to-end envelope. Why do Swiss banks ask about source of wealth? Under the Swiss Anti-Money Laundering Act (AMLA / GwG) Swiss banks run enhanced customer due diligence on non-resident ultimate beneficial owners. They separate source of funds, which is the recent transaction, from source of wealth, which is the cumulative story of how the capital was built. Gaps and unexplained round numbers are red flags; documented liquidity events and matching tax filings are strong signals. Can I be rejected, and what are the common reasons? Yes. Common reasons include an unverifiable source of wealth, sanctioned-country exposure, politically exposed person status without EDD readiness, an insufficient Swiss connection, high-risk activity such as crypto without demonstrated local substance, documentation gaps, and US-person status at a bank without an active US-compliance programme. Remediation usually involves reworking the source-of-wealth file, closing documentation gaps, engaging a fiduciary to mediate, or selecting a different bank category. Do I need a Swiss address to open a Swiss bank account? Not always. Swissquote and certain private banks accept non-residents with a foreign address. Most retail and cantonal banks require a Swiss residence permit B, C, or L and a Swiss address. Digital banks usually require Swiss residency. What is the difference between a personal and a corporate Swiss bank account? A personal account is opened by an individual against their own ID and residence. A corporate account requires a registered Swiss legal entity (AG or GmbH) and separate KYC for the company, each director, and each ultimate beneficial owner at 25% or more. For a new AG or GmbH the corporate account begins life as a capital deposit account (Einzahlungskonto) and converts into an operating account after Handelsregister entry. Do Swiss banks report to foreign tax authorities? Yes. Switzerland participates in the OECD Common Reporting Standard (CRS) for automatic information exchange on non-US foreign tax residents, in force since 2017, and in FATCA for US persons. Account balances, interest, and dividend income are reported annually to the account holder’s tax-residence jurisdiction. The 1934 Banking Act’s confidentiality regime does not override these treaty obligations. Next step Need help structuring banking alongside a Swiss company setup? We pair bank introductions with AG or GmbH formation, so the capital deposit account, the Handelsregister filing, and the operating account line up on a single timeline. Tell us what you are building and we come back with a scoped proposal. Request a proposal --- ## Relocating to Switzerland: A Founder's Guide URL: https://business-in-switzerland.com/guides/relocating-to-switzerland-guide Description: Relocating to Switzerland? A deadline-driven checklist for foreigners and founders: permits, 14-day registration, health insurance, housing, tax and banking. Relocating to Switzerland: A Founder's Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Relocation Relocating to Switzerland: A Founder’s Practical Guide Relocating to Switzerland runs on a fixed sequence gated by your nationality. EU and EFTA citizens move under free movement; third-country nationals, including UK, US and Nigerian movers, need a permit and a quota place first. This pillar guide sets out the order, the two hard deadlines, and where each step has its own detailed guide. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: September 2026 Relocating to Switzerland is less a single application than a set of steps that must happen in the right order and within fixed deadlines. The first fork is nationality. If you hold the passport of an EU or EFTA member state, free movement applies and the process is registration-based. If you come from a third country, and since 1 January 2021 that includes the United Kingdom, residence and work are granted only within annual federal quotas after a labour-market check. Get that gate right and the rest of the move, registration, health insurance, housing, banking and tax, follows a predictable path. This guide is the overview for foreigners and founders. It walks the sequence end to end, flags the two deadlines that catch newcomers out, the fourteen days to register at your commune and the three months to take out health insurance, and links down to the deeper guides where each topic has its own rules. Permit quotas and tax thresholds are year-stamped and move, so treat costs and numbers here as orientation and confirm the current position before you commit. By the numbers The figures that anchor this topic. 14 days To register at your commune after arrival 3 months To take out mandatory health insurance 90 / 180 Days you may stay visa-free under Schengen CHF 120,000 Salary above which you file a return The eligibility gate Who can relocate to Switzerland: EU/EFTA vs third-country Almost everything about your move depends on your nationality, so settle this question first. Citizens of an EU or EFTA member state benefit from the Agreement on the Free Movement of Persons. They may enter Switzerland, live there and take up employment or self-employment, and need only register with the cantonal authorities once they intend to stay longer than three months. The permit they receive largely confirms a right they already hold. Third-country nationals, including UK, US and Nigerian movers, face a different regime. Residence and work are granted only within annual federal quotas, and an employer or self-employed founder must show a genuine economic interest to Switzerland. Approval involves both the cantonal labour-market authority and the State Secretariat for Migration (SEM), and the realistic timeline is several months. For short visits before any move, the Schengen short-stay rule lets most non-residents spend 90 days in any 180-day period without a permit, counting entry and exit days. Our guide to the Swiss residence permit types (L, B, C, G) breaks the categories down in full. The permit ladder The Swiss permit ladder at a glance: L, B, C and G Swiss residence permits come in four headline categories, and knowing which one fits decides your timeline and your renewal duties. L permit , short-term residence, is tied to short assignments and contracts; work expected to exceed a few months usually needs a longer permit. B permit , initial renewable residence, is the standard annual permit tied to work, renewed yearly and, for third-country nationals, subject to the federal quota. C permit , settlement, generally follows about ten years of continuous legal residence, reduced to five for US and Canadian nationals under bilateral agreements, and frees you from most work-permit ties. G permit , cross-border commuter (Grenzgänger), is for people who live in a neighbouring country and return regularly, not for movers. Family reunification rights attach to most of these categories on conditions. If your permit file is complex, our migration support service handles the application and the economic-interest test, and the dedicated residence permit guide covers the documents a cantonal migration office expects. Founder vs employee Relocating as a founder vs as an employee Most relocation advice assumes you arrive with a job offer, where the employer applies for the permit and carries the labour-market case. That is the majority path and the simplest one. Founders and self-employed movers take a different route, and it is the one few pages explain. Owning or founding a Swiss company does not by itself grant a right to live there. A self-employed third-country national must demonstrate, under the self-employment provisions of the Foreign Nationals and Integration Act, that the business serves a lasting economic interest to Switzerland: local revenue, Swiss customers, jobs created. Incorporating an AG needs CHF 100,000 of share capital and a GmbH CHF 20,000, but capital alone is not the test. Physically relocating to run the company also strengthens its substance, the real management and decision-making in Switzerland that tax authorities look for. If setting up the entity is part of your move, our company formation service runs the incorporation in parallel with the permit file. The checklist Your first 90 days: the relocation checklist Once your permit is approved, the first three months are a sequence of deadlines. A clean arrival runs roughly in this order: Days 1 to 14 : register in person at your commune (Anmeldung), before your first day of work. Within the first weeks : collect your residence-permit card once the migration office issues it. Within 3 months : take out compulsory KVG/LAMal health insurance, which then backdates to your arrival date. In parallel : secure housing, open a bank account, set up utilities, and arrange school places for children. The housing, banking and registration steps interlock, and the order is not always obvious, which is why newcomers stall on the banking and address loop described below. Treat the fourteen-day and three-month deadlines as firm; everything else flexes around them. Step: registration Registering at your commune (Anmeldung) within 14 days You must register at your commune within fourteen days of arriving, and before you start work. This is the deadline newcomers most often miss. You register in person at the residents’ registration office of your commune, the Einwohnerkontrolle, Contrôle des habitants or Controllo abitanti depending on the language region, which records your residence, activates your permit and notifies the tax and social-security systems. Bring your passport or ID, your employment contract or proof of self-employment, your tenancy agreement or proof of address, passport photos and, where relevant, your visa approval and family certificates. It helps to keep the three authority layers straight: the commune (Gemeinde) handles local registration, the cantonal migration office (Migrationsamt) issues the permit card, and the federal SEM sets the overarching rules and quotas. If you later move to a new address, even within Switzerland, you de-register and re-register within the same short window. Step: insurance Health insurance: the 3-month compulsory deadline Basic health insurance is compulsory and must be arranged within three months of taking up residence. Switzerland has no state health service. Cover under the Federal Health Insurance Act, KVG in German and LAMal in French, is mandatory for everyone resident in the country, and if you sign up on time it backdates to your arrival date, so a late start does not save you the premiums for the intervening weeks. Basic cover is sold by private insurers, but the benefit catalogue is fixed by law, so insurers compete on premium and service rather than on what is covered. Supplementary insurance, for private hospital rooms or wider treatment choice, is optional and individually underwritten. Premiums vary by canton, age and the deductible you choose, and they are paid per person, including children, so each family member needs their own policy. Miss the three-month window and the canton can auto-assign an insurer and add a surcharge, while cover still backdates to your residence start. Step: housing Finding housing and the rental deposit Switzerland is a nation of renters, and the rental market in the economic centres is tight. To win a flat you assemble a tenant dossier: a debt-collection register extract, references, pay slips or proof of income, and a copy of your permit. Scarcity, not affordability alone, is the recurring frustration newcomers describe, so apply quickly and present a complete file. On signing, landlords ask for a security deposit of at most three months’ net rent under Article 257e of the Code of Obligations. The money goes into a blocked tenant-deposit account, a Sperrkonto, opened in your name; it earns interest and is returned at the end of the tenancy, and the landlord has a limited window to raise any claim against it. Many newcomers rent before they buy, partly because of these hurdles and partly because purchase is constrained for non-residents under the Lex Koller; our guide to buying property in Switzerland as a foreigner covers that route. Step: banking Opening a Swiss bank account A local account makes salary, rent, premiums and everyday spending workable. Most banks open a personal account once you are 18, hold a residence permit and have a Swiss address, and they will ask for your passport, your permit, proof of address and, under banking due-diligence rules, an explanation of the source of your funds. Founders relocating alongside a company will usually need a personal account, a corporate account, and the capital-deposit account used to pay in share capital at incorporation. The catch is a chicken-and-egg loop: your permit needs an address, your address needs a tenancy deposit, and the deposit account needs banking, all while some banks want the permit card before they open anything. The usual workaround is to register at your commune first, use that confirmation and your passport to open a basic account, then complete the housing deposit. Our guide to opening a Swiss bank account sets out the documents and the sequencing in detail. Step: tax Tax registration: source tax vs filing a return Switzerland taxes at three levels, federal, cantonal and communal, and your position is set by where you live. Most foreign residents who do not yet hold a C settlement permit are taxed at source: the employer withholds wage tax, Quellensteuer or impôt à la source, from each salary payment and remits it to the canton, with the tariff varying by canton. There is no separate filing for income below the ordinary-assessment threshold. Once your gross salary exceeds roughly CHF 120,000 a year, or you hold a C permit, you file an ordinary return like a Swiss citizen. You are generally a Swiss tax resident after 30 days if gainfully employed, or 90 days if not, and a 35 percent anticipatory tax applies to Swiss investment income, reclaimable on filing. Self-employed founders file in the ordinary way. Non-working wealthy movers can in some cantons negotiate expenditure-based taxation; our guide to lump-sum (expenditure-based) taxation explains where it is still offered. For complex cross-border cases, an advance tax ruling confirms the treatment before you commit. Canton choice Choosing your canton: tax and lifestyle trade-offs Because cantonal and communal rates differ widely, the choice of canton, and even commune, materially affects your tax bill and your daily life. Three cantons dominate the relocation conversation, each for a different reason. Zug carries one of the lowest combined corporate tax burdens in Switzerland, around an 11.85 percent effective rate, and is the anchor for holding and crypto structures relocating their substance. Zurich is the largest economy, with the deepest job market, the best international connectivity and a wide choice of schools, which suits employees relocating to Zurich, Switzerland for work. Geneva is French-speaking and international, home to NGOs and global bodies, and a natural base for those relocating to Geneva, Switzerland who want an international, English-friendly environment. Weigh tax against jobs, language, schools and commute rather than chasing the headline rate alone, because the cheapest canton on paper is not always the right place to live and work. Step: schooling Schooling for relocating families If you are relocating with a family, schooling deserves early attention because it shapes where you choose to live. Schooling is compulsory from about age four to fifteen, and state schools are free for all residents regardless of nationality, well regarded, and organised by canton and commune. The catch is the language of instruction, which follows the local region, German, French or Italian, so the move is also a fast route to integration for younger children but a steeper change for teenagers. International and bilingual private schools cluster in the larger cities and the expatriate hubs, offering English-medium and international-baccalaureate pathways at fees that can reach around CHF 35,000 a year. They suit families who move frequently or want continuity in an English curriculum. Because admission, waiting lists and catchment areas vary by commune, line up school places in parallel with your housing search rather than after it. Cost reality Cost of living: a realistic picture The honest part of any relocation is the cost. Switzerland is among the most expensive countries in the world to live in: rent, health-insurance premiums, food and services all sit well above the UK or US equivalents. A one-bedroom city-centre flat can run materially higher than in a comparable British city, premiums are charged per person, and groceries and eating out feel steep at first. These figures are approximate and move, so treat them as a directional signal rather than a budget. The counterweight is salary. Swiss gross pay is high, social charges are comparatively low, and a roughly 8.9 million population that is about a quarter foreign residents has built a deep, well-paid labour market, so net purchasing power is more balanced than the headline prices suggest. Switzerland is not cheap, but for many movers the numbers work. For a fuller breakdown of rent, insurance and everyday costs, see our guide to the real cost of living in Switzerland . Origin-specific Relocating from the UK, US or Nigeria: third-country specifics Three origins illustrate how the third-country route plays out in practice. From the UK , British citizens have been third-country nationals since 1 January 2021, so a move now means an employer-sponsored permit and a place within the annual quota rather than the free movement that applied before Brexit; the numbers are capped and worth checking against the current-year SEM allocation. From the US , the route is also employer-sponsored or via your own entity, with the helpful nuance that US and Canadian nationals can obtain a C settlement permit after five years rather than ten, while the US worldwide-taxation system and the Switzerland-US tax treaty need coordinating. From Nigeria and other non-treaty third countries, the standard quota route applies: an employer-sponsored permit or a self-employed founder case, plus a national visa step at a Swiss representation before travel. In every third-country case the economic-interest test and the quota are the real gatekeepers, so a strong file and early timing matter more than nationality alone. Where naturalisation is the long-term goal, our guide to becoming a Swiss citizen shows how residence years convert into a C permit and, in time, citizenship. FAQ Frequently asked questions How long do I have to register at my commune after moving to Switzerland? Within fourteen days of arrival, and before your first day of work, you must register in person at your commune (Gemeinde). You bring your passport, employment contract or proof of self-employment, tenancy agreement or proof of address, photos and any visa approval. Registration activates your permit and notifies the tax and social-security systems. When must I take out Swiss health insurance? Within three months of taking up residence. If you sign up on time, basic KVG/LAMal cover backdates to your arrival date, so you are insured from day one. If you miss the deadline, the canton can auto-assign an insurer and add a possible surcharge, while cover still backdates to your residence start. Each person needs their own policy, including children. Can a UK citizen move to Switzerland after Brexit? Yes, but as a third-country national since 1 January 2021. A British mover now needs a residence and work permit and, as a non-EU national, a place within the annual federal quota, usually through an employer-sponsored application or a self-employed founder case. The free movement that applied before Brexit no longer covers UK citizens. What is the difference between a B and a C permit? A B permit is renewable residence tied to work, renewed annually and, for third-country nationals, subject to the federal quota. A C permit is settlement, generally granted after about ten years of continuous legal residence, reduced to five years for US and Canadian nationals under bilateral agreements, and it frees you from most work-permit ties. How much can a landlord charge as a deposit? A maximum of three months’ net rent, held in a blocked tenant-deposit account (Sperrkonto) opened in your name under Article 257e of the Code of Obligations. The deposit earns interest and is returned at the end of the tenancy, and the landlord has only a limited window to raise any claim against it. Do I pay tax at source or file a return? Most foreign residents without a C permit are taxed at source: the employer withholds wage tax (Quellensteuer) from each salary payment. Once your gross salary exceeds roughly CHF 120,000 a year, or you hold a C permit, you file an ordinary annual return. Self-employed founders always file in the ordinary way and pay tax on assessed income. Is public school free for foreign children? Yes. State school is compulsory from about age four to fifteen and is free for all residents regardless of nationality. Teaching follows the local cantonal language, German, French or Italian, which aids integration but can be a steeper change for teenagers. English-medium international schools exist in the cities and can cost up to around CHF 35,000 a year. How long can I stay in Switzerland without a permit? For most non-residents, 90 days in any 180-day period under the Schengen short-stay rule, counting entry and exit days. That allows house-hunting, interviews and planning trips, but living or working in Switzerland requires the appropriate residence and, for third-country nationals, work permit. Do I need a job offer to relocate? Third-country nationals usually need an employer-sponsored permit, with the employer carrying the labour-market case. Founders and the self-employed instead relocate through their own entity or the self-employment route, demonstrating a lasting economic interest to Switzerland. EU and EFTA citizens need neither, as free movement lets them register and look for work. Can I open a Swiss bank account before I arrive? Often not fully: many banks want a residence permit or a local address before opening an account. A passport and evidence of the source of your funds are always required under due-diligence rules. The common approach is to register at your commune first, open a basic account on that confirmation, then complete your housing deposit and any corporate accounts. How much money do I need to move to Switzerland? Plan for up to three months’ net rent as a deposit, your first health-insurance premiums, and proof of funds for the permit and tenancy. Cost of living is materially higher than the UK or US, though high Swiss salaries offset much of it. Treat any figure as approximate and budget a buffer for the first months while accounts and salary settle. Can I become a Swiss citizen after relocating? Yes, in time. After the required years of residence and a C settlement permit, you can apply for naturalisation through the ordinary route, subject to integration and language conditions set at federal, cantonal and communal level. Our Swiss citizenship guide sets out how residence years convert into a C permit and eventually citizenship. Keep reading Related guides and services. How to Get Swiss Citizenship Swiss Residence Permit Types Cost of Living in Switzerland 2026 Buying Property in Switzerland as a Foreigner Migration support Residence permit guide Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Residence Permit Guide — B, C, L, G & Lump-Sum URL: https://business-in-switzerland.com/guides/residence-permit Description: Swiss residence permit guide for foreigners: B, C, L and G categories, EU/EFTA vs non-EU rules, lump-sum taxation, and the path to Swiss permanent residency. Swiss Residence Permit Guide — B, C, L, G & Lump-Sum STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Foreigner guide Swiss residence permit — categories, pathways, and permanent residency for foreign nationals. Switzerland issues residence rights under two parallel regimes, one for EU/EFTA nationals and one for everyone else. This guide walks the full taxonomy of permits (B, C, L, G and Ci), the two pathways, the lump-sum route for residence without employment, and the progression from first arrival to a C permit and, eventually, citizenship. Figures come from Swiss federal sources; prose avoids pricing because we scope every engagement on a call. Discuss your residence and structure together Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: May 2026 At a glance The numbers that frame the Swiss permit system. Four orientation figures before the detail: the 90-day threshold that triggers a permit obligation, the annual third-country quota, and the qualifying periods for permanent residency. >90d Stay length that triggers a permit AFMP / FNIA ~8.5k Third-country permits per year (SEM quota) SEM 2025 ordinance 5 yr EU/EFTA qualifying period for C permit AFMP / SEM 10 yr Third-country qualifying period for C permit FNIA / SEM Orientation Who needs a Swiss residence permit, and why the system is split in two. Switzerland is not part of the EU, so its free-movement regime with the EU/EFTA is treaty-based, while third-country admission runs under a separate federal statute. The practical consequence is two different application journeys under the same roof. The 90-day threshold and why registration comes first Foreign nationals who plan to stay in Switzerland beyond roughly 90 days generally fall within the scope of the permit system. Short stays under that threshold are covered by Schengen visa rules for nationals who require a visa, or by visa-free entry for those who do not. Once the intended stay crosses into medium or long-term territory, registration with the cantonal migration authority and a residence permit become the correct instruments. This is a different instrument from a work permit, though the two overlap whenever the purpose of stay is employment or self-employment. Two regimes in one country — EU/EFTA vs non-EU/EFTA For EU/EFTA nationals, admission and residence run under the Agreement on the Free Movement of Persons (AFMP, German FZA), a bilateral between Switzerland and the EU. The regime is privileged: no federal quota, no labour-market pre-test for most employment cases, longer permit validity, and automatic renewal as long as the underlying basis for residence persists. For third-country nationals (everyone else), admission runs under the Federal Act on Foreign Nationals and Integration (FNIA, German AIG/LEI). The FNIA adds an economic-interest test, a cantonal labour-market pre-approval, and a federal quota. Federal plus cantonal — who decides what The architecture is a dual one. The State Secretariat for Migration (SEM) administers the federal layer, including quota allocation and final endorsement of third-country files. Each of the 26 cantonal migration authorities receives and processes individual applications, conducts the economic-interest and integration reviews, and ultimately issues the permit card. In the bigger cantons you will encounter bodies like Migrationsamt Zürich or the Office Cantonal de la Population in Geneva; in smaller cantons the equivalent office may sit inside a broader security department. Permit taxonomy The full Swiss permit taxonomy — B, C, L, G, Ci, and humanitarian categories. Five letters cover nearly every business-relevant case (B, C, L, G, Ci). Three more (F, N, S) exist for humanitarian contexts and are not a route for voluntary business immigration. Permit B — temporary residence (the common starting permit) The B permit is the standard medium-term residence permit. For third-country nationals it is issued for one year at a time, renewable annually, and tied to a specific purpose of stay (employment, self-employment, family reunification, studies, or non-gainful residence). For EU/EFTA nationals it runs for five years at a time, also renewable, and is effectively automatic as long as the underlying basis for residence (a job, self-employment, sufficient means, or studies) continues. Permit C — permanent residence (Niederlassungsbewilligung) The C permit is Swiss permanent residence: indefinite, unrestricted work rights across all cantons and sectors, no quota, and no renewal in the B-permit sense (it carries a ten-year ID-card validity that is renewed as a formality rather than as a substantive review). In German it is the Niederlassungs­bewilligung and is the closest Swiss equivalent of what English speakers call "permanent residence" or "PR". It is also the prerequisite for ordinary naturalisation. Permit L — short-term residence (up to 24 months) The L permit is for genuinely short assignments and is typically issued for up to 12 months, renewable once to a total of 24 months. Common uses are project-based assignments, short-term secondments, and trainee positions. It is not a permit that progresses on its own to a C permit; it is transitional. Permit G — cross-border commuter permit The G (Grenzgänger) permit covers people who live in a neighbouring country (Germany, France, Austria, Italy, or Liechtenstein) and work in Switzerland, with a weekly return obligation to the country of residence. It is a work-focused instrument rather than a residence one: the holder remains tax-resident in the country of residence for most purposes and earns in Switzerland. Permit Ci — diplomats and international officials' families The Ci permit is issued to family members of diplomats and staff of international organisations headquartered in Switzerland, and is administered by the Federal Department of Foreign Affairs rather than SEM. It grants unusual gainful-activity rights to spouses and older children of accredited staff. Permits F, N, S — humanitarian categories (context only) F (provisionally admitted), N (asylum seekers), and S (temporary protection for people displaced by armed conflict, used most recently for Ukraine) round out the taxonomy for completeness. None of these is accessible as a voluntary business-immigration route. If your question is framed around business relocation, the relevant letters are B, C, L, G and, in narrow diplomatic cases, Ci. Permit Duration Renewable Quota-bound Work rights Typical use B 1 yr (non-EU) / 5 yr (EU/EFTA) Yes Yes (non-EU) Tied to purpose of stay Standard medium-term residence C Indefinite ID-card renewal only No Unrestricted, all cantons / sectors Permanent residence; path to citizenship L Up to 12 mo, renewable once to 24 mo Once Yes Tied to assignment Short-term project / secondment G Tied to contract (EU 5 yr) Yes Very limited Work only; weekly return home Cross-border commuter EU / EFTA pathway EU/EFTA nationals — the free-movement pathway. The AFMP makes Switzerland effectively part of the European labour market for EU and EFTA nationals. For most founders and employees, the process is registration rather than admission. Rights under the AFMP / FZA Under the Agreement on the Free Movement of Persons, EU/EFTA nationals do not require a work permit to take up employment or open a business in Switzerland, and do not compete against a quota for residence. Registration with the canton of residence is required when the intended stay exceeds three months, and a B permit is issued on the basis of proof of purpose: a work contract, proof of self-employment, enrolment at a Swiss university, or evidence of sufficient financial means and Swiss health insurance for non-gainful residence. B permit for EU/EFTA employees and self-employed An EU/EFTA B permit is issued for five years when the underlying contract or activity runs for at least twelve months. It is renewable on presentation of continued basis. Self-employment simply requires proof that the activity is genuine, registered, and producing income. Fast-track to C permit — 5 years EU/EFTA nationals qualify for a C permit after five years of uninterrupted legal residence in Switzerland, subject to the standard integration and financial self-sufficiency criteria. This is half the qualifying period imposed on most third-country nationals. Non-EU / EFTA pathway Non-EU/EFTA nationals — the economic-interest pathway. Third-country admission is a substantive review, not a registration. You need to demonstrate economic interest to Switzerland, and the federal quota must have availability. B permit for third-country nationals — 1-year, renewable, quota-bound The third-country B permit is issued for twelve months at a time, renewable annually. It is subject to the federal SEM quota ordinance, which sets an annual country-wide allocation for long-term work permits and splits it across the 26 cantons. As of the 2025 ordinance, approximately 8,500 permits per year were available to third-country nationals in aggregate; the 2026 figure is issued annually by SEM and should be confirmed before an application. "Economic interest" — what it actually means FNA art. 19 requires a third-country self-employed applicant (and, through parallel provisions, employed applicants) to prove economic interest to Switzerland: the activity should create Swiss jobs, bring Swiss revenue, fill a genuine market need, or bring expertise and capital that the Swiss labour market cannot readily supply itself. In practice, the cantonal labour-market authority and SEM will want to see a business plan, projected Swiss revenues, office space, staff plan, and capital. A one-line "I will consult" is rarely enough. 10-year qualifying period for C permit (5 years for US and Canadian nationals) Third-country nationals reach the C permit after ten years of uninterrupted legal residence. US and Canadian nationals benefit from a treaty-based shorter five-year qualifying period, in line with longstanding bilateral arrangements. Applicants from other third countries should plan for ten years and budget for integration milestones along the way. What counts as interrupted residence Uninterrupted does not mean never-leaving. Short stays abroad for work, family, or holiday do not reset the clock, but continuous absences exceeding roughly six months often do, and absences during probation or early years of a permit invite particular scrutiny. Deregistering the canton of residence (abmelden / se dépêcher) will typically reset the clock outright. The wedge — no-work route Residence without employment — retirees, investors, and lump-sum taxation. Switzerland does not operate a golden visa, but it does offer three distinct routes to residence for people who do not intend to work in Switzerland. Each has its own profile. Retirees with sufficient means Non-gainful residence for retirees is a recognised route under the FNIA. In broad terms, the applicant must be at least 55 years of age (beyond working age), have demonstrated personal ties to Switzerland, prove sufficient financial means to cover living costs without drawing on public funds, have adequate housing, and subscribe to Swiss mandatory health insurance under FNIA art. 28. The permit issued is a B permit with a clear prohibition on Swiss-source gainful activity. Investors and independent means — owning a Swiss company without managing it Passive ownership of a Swiss AG or GmbH does not, by itself, entitle the shareholder to a residence permit. The economic-interest test looks at what the applicant contributes to Switzerland: active board participation, job creation, Swiss-directed capital, and local substance all strengthen the case. An investor who appoints management, holds shares, and reports results from abroad will usually not clear the FNIA bar on their own merits. An investor who takes a board seat, relocates, hires Swiss staff, and engages with the business makes a materially different case. Lump-sum taxation (Pauschalbesteuerung / forfait fiscal) — the HNWI route Lump-sum taxation is a cantonal and federal regime for non-Swiss nationals who take up Swiss residency for the first time (or after a 10-year absence) and who do not carry on gainful activity in Switzerland (DBG art. 14 federal; StHG art. 6 cantonal). Instead of ordinary income tax on worldwide income, the tax base is a notional living-expense figure, calibrated to the applicant's actual cost of life in Switzerland. The federal minimum expense floor sits at CHF 434,700 (2016-indexed under DBG art. 14), with cantons required to apply at least seven times the annual rental value of the taxpayer's housing or three times the annual pension-style housing cost. Cantonal minimums on top vary, and several cantons set their own higher floors. When lump-sum taxation is (and isn't) right for you The regime rewards applicants whose worldwide income exceeds the expense base several times over and whose activities are genuinely elsewhere. It penalises applicants whose economic life has moved to Switzerland in substance. Anyone contemplating it should also consider mandatory Swiss health insurance (KVG/LAMal), residence integration, and the implications of creating a Swiss tax-residence relationship that will persist even if the lump-sum regime ends. Cantonal dimension The cantonal dimension — why Zug, Zurich, Geneva and others are not interchangeable. The 26 cantons set their own tax bases, run their own migration offices, and offer (or do not offer) lump-sum taxation. Choosing wrong at the cantonal level costs real money. Zug — lowest-tax canton, crypto and holding hub Zug combines a combined effective corporate tax rate around 11.85% with an ecosystem of holding companies, family offices, and crypto/DLT operators clustered around Baar, Zug-city, and Cham. For a founder weighing residence-plus-structure, Zug is often the default starting point. Our Zug canton guide covers tax detail, Handelsregister routing, and substance requirements. Zurich — financial centre and FINMA ecosystem Zurich carries a higher combined corporate rate (around 19.61%) but compensates with the depth of its banking, asset-management, and FINMA-supervised talent pool. The Migrationsamt Zürich is high-volume and familiar with complex business files, which matters for founders with unusual corporate structures or high-volume hiring needs. Geneva — international organisations and private wealth Geneva hosts dozens of international organisations and remains a heavyweight in private wealth and commodity trading. Its Office Cantonal de la Population is experienced in high-net-worth and diplomatic residence cases. Geneva tightened its lump-sum regime in 2016 with a minimum expense base plus a minimum wealth requirement, but the regime is retained at the cantonal level. Five cantons have abolished lump-sum taxation at cantonal level by referendum: Zurich (2010), Schaffhausen (2012), Basel-Stadt, Basel-Landschaft and Appenzell Ausserrhoden. Vaud, Ticino, Valais, Graubünden — cantons still offering lump-sum taxation The regime continues to be offered in the majority of Swiss cantons, with Zug, Nidwalden, Obwalden, Schwyz, Bern, Vaud, Valais, Geneva, Ticino, and Graubünden the most prominent destinations for HNWI residence of this kind. Minimum expense bases vary, and each canton sets its own review rhythm and documentation expectations. The cantonal list has moved in the past through referendums, so confirm before committing. Settlement pathway From B permit to C permit — the settlement pathway. The C permit is earned by staying, integrating, and avoiding the three things that break the clock: welfare dependence, criminal record, and long absence. Year-by-year checklist — what renewal looks like For third-country nationals, the B permit comes up for renewal every twelve months; for EU/EFTA nationals, every five years. Renewal reviews focus on continuing basis (job, self-employment, sufficient means), address in the canton, absence of criminal record, and absence of welfare dependency. Integration credits (language proficiency, community involvement, civic understanding) accumulate and matter most when the C permit is finally requested. Integration criteria for the C permit application The C permit application typically requires proof of language proficiency at A2 oral and A1 written level in the local cantonal language (German, French, Italian, or Romansh, with cantonal variation), respect for public order and Swiss constitutional values, economic self-sufficiency, and participation in economic life or education. Cantons may require higher language levels in their own practice, and some require formal civic-knowledge modules. How the C permit application is filed and assessed The C permit is requested at the cantonal migration authority. For third-country applicants, SEM remains involved; for EU/EFTA applicants, the cantonal decision is usually final. Expect a document pack covering permit history, proof of uninterrupted residence, language-proficiency certificate, tax and social insurance clean record, criminal record extract, and financial self-sufficiency evidence. Citizenship The path to Swiss citizenship. Ordinary naturalisation is a decision at three levels: federal, cantonal, and communal. Each layer applies its own standard, and any one of them can block the file. 10 years total residence + 3 preceding the application Ordinary naturalisation requires at least ten years of total legal residence in Switzerland, with at least three of those years immediately preceding the application. A C permit must be in place at the time of filing. Years spent between ages 8 and 18 count double for the aggregate, a rule that benefits long-time residents who moved as children. For the full route, including facilitated and reacquisition naturalisation and the cantonal/communal steps, see our Swiss citizenship guide . Federal + cantonal + communal layers The federal layer tests integration, respect for constitutional values, and absence of security risk. The cantonal layer adds its own residence requirement, typically two to five years inside the specific canton. The communal layer, often the decisive one, reviews language, local knowledge, and community connection, and can include an interview with the commune's naturalisation commission. Language, civic knowledge, successful integration Language requirements for naturalisation are stricter than for the C permit (typically B1 oral and A2 written, with cantonal variation). Civic-knowledge tests cover Swiss political institutions, federalism, and cantonal specifics. Successful integration is assessed through work history, community participation, absence of social-assistance dependency, and absence of criminal or tax arrears. Retention Keeping your Swiss permit — absences, tax residence, and welfare rules. The rules that grant a permit are also the rules that take it away. The three red flags are long absence, welfare dependency, and criminal record. Days in Switzerland and when absences reset the clock The federal rules do not impose a fixed per-year "days in Switzerland" count, but continuous absences exceeding roughly six consecutive months can reset the qualifying period and, for B permit holders, risk non-renewal. C permits are more resilient but not immune: permit-holders who relocate their centre of life abroad for an extended period can lose the C status by operation of law. Notifying the canton of temporary absences and maintaining a genuine Swiss address buffers this risk. Swiss tax residence — what the permit triggers automatically Obtaining a Swiss B or C permit generally triggers Swiss tax residence under the domicile test in the Federal Direct Tax Act (DBG). The main exceptions are cross-border G permits (tax-resident abroad) and narrow treaty cases. Lump-sum residents are Swiss tax-residents under a special regime. Tax-residence implications should be planned before filing, not after. Welfare dependency and ongoing financial self-sufficiency Drawing on social assistance is one of the most reliable ways to lose a B permit and to be refused a C permit. Even lawful drawdowns on cantonal welfare benefits (aide sociale) weigh heavily in the review. Mandatory health insurance premiums, AHV/AVS contributions, and cantonal tax returns kept current are the minimum baseline for renewal and upgrade. Family reunification Family reunification — who can come with you. Spouses and minor children travel with the main permit holder. Adult dependents and ascendants are a narrower class. Spouse and registered partner A spouse or registered partner of a B or C permit holder typically qualifies for a dependent permit of the same category. The permit is tied to the marital relationship and to the main holder's continued status. Independent right to remain after divorce is limited and subject to specific criteria (length of marriage, integration evidence, dependent children). Minor children Minor children of B or C permit holders generally receive dependent permits of the same category, with integration expectations adjusted to age. At the C permit stage, language proficiency in the local cantonal language is an explicit criterion even for teenagers. Adult dependents and ascendants The rules for adult children and for parents/grandparents are materially stricter. EU/EFTA family reunification rules under the AFMP are relatively broad and include ascendants who can prove dependency; third-country rules are narrower and typically require demonstrated care needs and financial support. Specialised scenarios Specialised scenarios for foreign business structures. Permits and structures travel together. A well-designed holding, family office, or FINMA-regulated operating company can materially strengthen the economic-interest argument. Holding companies and family offices Being a shareholder of a Swiss holding, on its own, does not create a permit entitlement; being an active director of a Swiss holding with genuine local substance typically does. For family offices, the residence-plus-structure combination is usually the foundation of the relocation plan. See our Swiss holding structure and family office setup in Zug pages for the companion structuring work. FINMA-licensed entities — banks, asset managers, FinTech A founder relocating to run a FINMA-authorised operating company (a portfolio manager, trustee, asset manager of collective investment schemes, a bank, or a FinTech licence-holder) has a strong economic-interest argument: the entity itself is a regulated footprint that demonstrably anchors economic activity to Switzerland. Our FINMA-regulated entity setup page covers the licence perimeter. Crypto and digital-asset businesses Zug's Crypto Valley is the most visible cluster for digital-asset businesses. The permit route for crypto founders runs through the same B-permit-for-self-employment path as other entrepreneurs, with the cantonal labour-market authority testing economic interest. A FINMA interaction (FinTech licence, portfolio-manager licence, or DLT-trading-facility authorisation) typically strengthens the case. Cross-border entrepreneurs (G permit) and the tax question Founders who live in Germany, France, Austria, Italy, or Liechtenstein and travel weekly to a Swiss operating company can structure around a G permit. They remain tax-resident abroad for personal income purposes, while the Swiss company and its employees are taxed in Switzerland. Cross-border income allocation and social-security coverage under the EU/EFTA coordination rules need explicit planning. Application process The application process — steps, timelines, and documents. A third-country file takes roughly three to six months end-to-end when documentation is ready and the economic-interest case is clean. EU/EFTA registration is faster, often weeks rather than months. Step 1 — Cantonal pre-assessment (non-EU/EFTA) The process typically begins with an informal dossier submitted to the cantonal migration authority or labour-market office. Community observations suggest cantonal turnaround for an initial readiness indication varies by canton and file quality; treat the reply as a gate on the economic-interest case rather than a formal decision. Step 2 — Federal quota check Before a formal file advances, the canton confirms that a slot is available within the federal SEM quota for the relevant year and category. Quota availability is not uniform across the year; filings in the second half of the year sometimes wait for the next ordinance cycle. Step 3 — Cantonal labour-market pre-approval Community observations place this step in the order of a few weeks for well-prepared files, though cantonal practice varies materially and complex cases can run longer. Formal SEM service-level expectations should be verified directly with the cantonal authority at the time of filing. Step 4 — SEM federal review The federal review adds further weeks on top of the cantonal step, again with material variation across cantons and case types. SEM endorsement completes the substantive review; at this point the permit is approved in principle. Step 5 — Cantonal issuance and communal registration Once approved, the applicant enters Switzerland (or completes arrival if already present), registers at the commune (Einwohnerkontrolle / Contrôle des habitants) within the statutory deadline, and collects the permit card from the cantonal migration office. Step 6 — Social insurance, health insurance, commercial register Post-arrival, the holder registers for mandatory health insurance (KVG/LAMal) within three months, enrols in the cantonal AHV/AVS compensation fund (especially if self-employed), and, if running an operating company, completes the Handelsregister and tax registrations. Documents you will need and translation / apostille rules Typical dossier elements include a valid passport, biometric photos, certified copies of educational and professional qualifications, criminal-record extract from the country of last residence, proof of health insurance, housing evidence, business plan and financials for self-employed applicants, and employment contract for employed applicants. Cantonal authorities expect documents in German, French, or Italian depending on the canton; apostille or legalisation is routine for foreign civil-status papers. Working with us How business-in-switzerland.com supports a residence-permit application. Residence is not a standalone product. We build the permit case on top of the structure the founder actually needs, and we coordinate the file end-to-end. Residence plan aligned with your structure (AG / GmbH / holding / family office) We begin from the end state: directorship, shareholding, substance, and cantonal home. The permit case is then built on that foundation, not bolted on afterwards. For founders, this usually means pairing the residence file with Swiss company formation services and, where relevant, starting a business in Switzerland as the companion guide. Cantonal placement advice The right canton depends on tax, timing, available lump-sum status, cluster fit, and the cantonal migration authority's familiarity with the applicant's profile. We do not treat canton choice as a one-line exercise. Coordination with cantonal authorities and SEM Dossier preparation, translation and legalisation, filing timing, response to queries, and renewal calendaring are all part of the brief. For applicants whose work category overlaps with regulated finance, we coordinate with FINMA-adjacent workstreams in parallel rather than sequentially. If your profile is residence-only (retirement, lump-sum, passive investor), we size the engagement accordingly. Considering the related work-permit angle? Read our Swiss work permit page to see where the two regimes converge and where they diverge. FAQ Frequently asked questions. The questions we hear most often from prospective residents. Answers mirror the FAQ schema above byte-for-byte. Can I get a Swiss residence permit without working? Yes. Two main routes apply: non-gainful residence for retirees and individuals with sufficient independent means, and the lump-sum taxation route for HNWIs. Both pathways issue a B permit first and progress to a C permit after the standard qualifying period. What is lump-sum taxation and who qualifies? An expenditure-based tax regime for non-Swiss nationals who take up Swiss residence, do not engage in Swiss-source gainful activity, and have not been Swiss tax-resident previously (or are returning after a prolonged absence). Tax is levied on a notional living-expense base with a federal minimum floor around CHF 434,700, subject to annual ESTV update. Which cantons offer lump-sum taxation in 2026? The regime remains available in most cantons, including Zug, Nidwalden, Obwalden, Schwyz, Bern, Vaud, Valais, Geneva (tightened in 2016 with a minimum base plus minimum wealth requirement), Ticino and Graubünden. Five cantons abolished it by referendum: Zurich (2010), Schaffhausen (2012), Basel-Stadt, Basel-Landschaft and Appenzell Ausserrhoden. Cantonal minimum expense thresholds can exceed the federal floor. How long until I can apply for permanent residence (the C permit)? EU/EFTA nationals: 5 years of uninterrupted legal residence. US and Canadian nationals: 5 years under treaty-based bilateral provisions. All other third-country nationals: 10 years. What's the difference between a B and a C permit? The B permit is temporary and must be renewed (annually for non-EU; every 5 years for EU/EFTA). The C permit is indefinite, confers unrestricted work rights across all cantons and sectors, is not quota-bound, and is the prerequisite for Swiss naturalisation. Can wealthy retirees easily move to Switzerland? Yes, via the non-gainful residence route for retirees with sufficient means, or the lump-sum taxation permit. Both require proof of financial self-sufficiency, adequate housing, and Swiss health insurance; neither permits Swiss-source gainful activity. Can I get a Swiss permit by investing? Switzerland does not operate a golden visa. Investors who take an active directorship role in a Swiss company, create jobs, bring capital, or satisfy the economic-interest test can qualify for a B permit; passive shareholders without management involvement typically do not. Does my family get residence too? Yes, under family reunification. Spouses and minor children of B/C permit holders generally receive a dependent permit. For non-EU/EFTA adult dependents and ascendants, the criteria are significantly stricter. Do I need to speak a Swiss national language? Yes, progressively. The C permit application typically requires at least A2 oral and A1 written proficiency in the local language (German, French, Italian, or Romansh by canton). Naturalisation requires stronger integration evidence. How many days a year must I live in Switzerland to keep my permit? There is no fixed annual day count in the federal rules, but continuous absences exceeding roughly 6 consecutive months can reset the qualifying residence period and risk non-renewal of a B permit. Lump-sum taxation holders must maintain Switzerland as their true centre of life. Can I keep my foreign citizenship when I become Swiss? Yes. Switzerland permits multiple citizenship; naturalisation does not require renunciation of a prior nationality. Applicants should confirm the rules of their country of origin, as some require renunciation. What's the path to Swiss citizenship? Ordinary naturalisation requires at least 10 years of total legal residence in Switzerland (with at least 3 of those immediately preceding the application), a C permit, integration evidence, and positive decisions at the federal, cantonal, and communal levels. Next steps Related reading. Paired guides and specialised structures that most residence applicants consult in the same planning cycle. Swiss work permit — disambiguates residence from work where employment is the purpose of stay. Starting a business in Switzerland — the founder-path companion for relocating entrepreneurs. Swiss company formation services — for the entity-plus-permit pairing. Swiss holding structure — for the shareholder-director permit pathway. Family office setup in Zug — pairs with lump-sum taxation and HNWI residence planning. FINMA-regulated entity setup — strengthens the economic-interest argument for finance-sector founders. Zug canton guide — flagship destination for lump-sum, holding, and crypto residence. External authorities referenced throughout this guide: State Secretariat for Migration (SEM) , Federal Tax Administration (ESTV) , FINMA . Discuss your residence and structure together Plan your Swiss move Residence and structure, mapped together on one call. Whether you need a B permit by employment, a lump-sum arrangement, or a directorship anchored to a Swiss holding, we scope the file and the entity on the same call. No price-list; no guess-work. Request a proposal --- ## Starting a Business in Switzerland: Foreigner Playbook URL: https://business-in-switzerland.com/guides/starting-a-business Description: Non-resident founder Starting a Business in Switzerland: Foreigner Playbook STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Guide Starting a business in Switzerland — the foreigner's end-to-end playbook. A non-resident founder's walkthrough to starting a business in Switzerland: legal form, canton choice, documents, bank account, notary and Handelsregister, VAT, work permits, and year-one compliance. Every figure cited to Swiss federal sources. No prices, no fluff. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: May 2026 At a glance The Swiss formation stack in four numbers CHF 20,000 GmbH minimum share capital, fully paid in at formation OR art. 773 and 777c, facts-switzerland §1.2 CHF 100,000 AG minimum share capital, with at least CHF 50,000 or 20% paid in OR art. 621 and 632, facts-switzerland §1.1 11.85% Lowest combined corporate tax rate — canton of Zug ESTV cantonal tables 2026, facts-switzerland §2.2 2 – 6 weeks End-to-end formation timeline, GmbH or AG, through Handelsregister facts-switzerland §4.2 (formation timeline) Before you start Before you start — is Switzerland right for you? This section does the work the rest of the guide presumes. If Switzerland is the wrong jurisdiction for your model, none of the downstream steps will rescue it. The honest framing: Switzerland gives you a small number of specific advantages and asks for specific compromises in return. What Switzerland actually gives you (and what it does not) Switzerland offers a predictable rule-of-law environment, a deeply engineered banking system, a federal corporate tax of 8.5 percent statutory (roughly 7.83 percent effective), and cantonal combined rates running from 11.85 percent in Zug to 20.54 percent in Bern, with a national average around 14.4 percent. Switzerland is also often ranked among the world's most innovative economies on international innovation indices, which the banking and venture-investor community takes seriously when pricing Swiss-resident entities. What Switzerland does not give you: access to the EU single market on equal terms, a low-capital shell (the CHF 20,000 GmbH floor is the lowest honest number you will see), or frictionless bank onboarding for foreign-owned entities. The CHF is a currency you will run exposure on, labour is expensive, and Swiss bank KYC on a foreign UBO is the single longest leg of the formation cycle in most mandates. Who this guide is for Foreign founders, any nationality, who want to operate a Swiss entity: investors, SaaS founders, holding-structure architects, family-office principals, DLT and crypto founders. It is not a guide to freelance sole-proprietorship on a tourist visa, nor a residence-by- investment brochure. For permits specifically see our Swiss work-permit pathway for non-EU founders . What you should have decided before reading further Four variables drive every downstream step: a rough business model (regulated versus unregulated; Swiss customers or foreign customers or both), a rough capital envelope (whether you are comfortable with the CHF 100,000 AG floor or need to start lean at CHF 20,000), a rough cantonal preference (tax rate, ecosystem, language of administration), and whether you are an EU or EFTA national or a third-country national. Every decision tree in sections 1 through 11 hinges on one of those four. Step 1 Step 1 — Choose the legal form Four entity forms matter for a foreign founder: the AG, the GmbH, the sole proprietorship, and the branch office. Partnerships, associations and foundations exist but rarely fit a first-time foreign incorporation. The choice turns on capital, liability, the public disclosure of owners, and the Swiss-resident-signatory rule. AG at a glance — CHF 100,000, OR art. 621, registered shares The Aktiengesellschaft (AG) is the default for operations with serious capital, future rounds, or regulated activity. Minimum share capital is CHF 100,000, with at least CHF 50,000 or 20 percent, whichever is higher, paid in at formation. Since 2019 only registered shares are permitted; bearer shares have been abolished. The board must include at least one member with sole or joint signing authority domiciled in Switzerland (OR art. 718 para. 4). Ordinary audit kicks in only above the OR art. 727 thresholds. Full guide: AG guide . GmbH at a glance — CHF 20,000, OR art. 773, public partner register The GmbH (Gesellschaft mit beschränkter Haftung) is the SME default. Minimum share capital is CHF 20,000, fully paid in at formation, in cash or in-kind under OR art. 773 and 777c. The trade-off: partners and their holdings appear on the public Commercial Register, which some founders accept and some do not. At least one managing officer must reside in Switzerland (OR art. 814 para. 3). Full guide: GmbH guide . Sole proprietorship, branch and partnerships — when they beat AG or GmbH A sole proprietorship (Einzelfirma) carries no minimum capital but imposes unlimited personal liability; Handelsregister entry is only mandatory above CHF 100,000 annual turnover. It fits a narrow audience: a freelancer already holding a Swiss work permit and operating under CHF 100,000 turnover. A branch office (Zweigniederlassung) lets a foreign parent establish a taxable Swiss presence without a new legal entity; no capital is required but a Swiss-resident representative must be appointed. Partnerships (Kollektivgesellschaft, Kommanditgesellschaft) suit professional-services teams with natural-person general partners — a rarely-used form for international founders. Decision table Attribute AG GmbH Sole proprietorship Branch office Minimum capital CHF 100,000 CHF 20,000 None None Paid-in at formation CHF 50,000 or 20% Fully paid in n/a n/a Liability Limited to company assets Limited to company assets Unlimited, personal Parent remains liable Swiss-resident signatory art. 718 para. 4 OR art. 814 para. 3 OR Owner resident if registering Swiss-resident representative Owner in public register No (shareholders private) Yes (partners public) Yes (owner public) Parent public Typical foreign-founder fit Capital raising, regulated activity, brand signal SME default, capital-light operations Narrow — existing permit + CHF under 100,000 turnover Foreign parent wanting Swiss presence If you need a Swiss-resident signatory and none of your founders is resident, you can appoint a resident director through our team . For a capital-scenario walkthrough before you commit to AG or GmbH, use our capital-requirements calculator . Step 2 Step 2 — Pick a canton (tax, speed, language, ecosystem) Switzerland is a federation of 26 cantons, each with its own combined corporate tax rate, its own Handelsregister office, its own notarial culture, and its own ecosystem specialisation. The canton you choose is a structural decision, not a cosmetic one. The one variable that matters most — effective combined tax rate Federal direct tax on corporate profit is uniform at 8.5 percent statutory or roughly 7.83 percent effective. Cantonal and municipal surcharges then produce the combined rate. The 2026 range runs from 11.85 percent in Zug to 20.54 percent in Bern, with a national average around 14.4 percent. Two points worth noting: Zurich at 19.61 percent is high for an economic powerhouse, and Ticino cut its rate by 3.11 percentage points and Basel-Land by 2.45 percentage points for 2025, a reminder that the table moves year to year. For the full Swiss-wide comparison, compare all 26 cantons . Canton Combined rate Language Ecosystem fit Zug 11.85% German (English routine) Crypto Valley, holding, family office Schwyz ~14.0% German Low-tax alternative to Zug Basel-Stadt ~13.0% German Pharma, life sciences Geneva 14.70% French (English routine) International, UN, wealth Vaud 14.72% French EPFL, life sciences, tech Zurich 19.61% German (English routine) Finance, tech, institutional Speed of registration varies by canton Handelsregister processing typically runs 7 to 21 days, which feeds into the overall formation window of 2 to 4 weeks for a GmbH or 3 to 6 weeks for an AG. Canton workload varies seasonally, notary availability is local, and some cantons offer expedited filing. The Zug flagship canton sits on the fast end of the range; read the Zug canton page for the full treatment. Language of administration — why it matters for notary and filings Cantons administer business in German, French or Italian depending on region, with Romansh as a fourth national language used in parts of Graubünden. The Handelsregister accepts filings in the cantonal official language; articles of association and the notarial deed are drafted accordingly. For foreign founders without the relevant language, certified translations and bilingual drafting are routine and manageable; the practical point is that your working-day interactions with the cantonal tax office, the register and your notary will all run in the cantonal language. Ecosystem fit — where your peers already are Zug hosts the highest density of crypto, blockchain and holding structures; Geneva is the international-organisation and wealth-management capital; Zurich is the finance-and-tech anchor; Vaud concentrates life sciences and the EPFL spillover; Basel is the pharma heartland; Ticino is the Italy-facing trade gateway. Many founders overweight the tax number and underweight the ecosystem effect. A regulated financial entity in Zurich often outperforms the same entity in a cheaper canton because of proximity to auditors, counterparties and the supervisor. Step 3 Step 3 — Get your paperwork ready This is the step peers routinely skim and where foreign founders routinely lose two weeks. The documents the Swiss notary, the Handelsregister and the bank will demand are specific, certified, and sometimes translated. Personal documents (passport, proof of address, clean background) Expect to produce: current passport copies for every founder and Swiss-resident signatory, recent proof of address (utility bill or bank statement under three months old), and, for the bank KYC pack, a criminal-record extract or equivalent from your country of residence. For non-EU founders, the bank will ask for a source-of-wealth narrative supported by documents (tax returns, sale-of-business proceeds, employment history). Apostille and legalisation — when you actually need it If you are from a signatory to the Hague Apostille Convention, foreign documents need an apostille from your home-country authority to be recognised in Switzerland. From a non-signatory country the longer chain of legalisation through the Swiss consulate applies. Certified translations into German, French or Italian are then produced in Switzerland by a sworn translator. Foreign founders who skip this step arrive at the notary with documents the notary cannot use. The rule of thumb: start apostille and translation two to three weeks before the notarial deed date. Company documents if your parent is a legal person A foreign-parent incorporation adds documents: a current commercial-register extract of the parent (apostilled and translated), a board resolution authorising the Swiss subsidiary and naming the signatories, and a ultimate-beneficial-owner declaration (Formular K or equivalent bank form) tracing ownership to the natural persons behind the structure. Drafting the articles of association (Statuten) The articles are the company's constitution: corporate purpose, share structure, board composition, signature rules, and, for AGs, share-transfer restrictions where chosen. Standard articles work for the large majority of incorporations; bespoke drafting is warranted for bilateral investment structures, founder vesting, preferred share classes and substantive governance arrangements. The notary reviews the draft before the signature date. For execution work with our company-formation team . Step 4 Step 4 — Open a consignment bank account and deposit capital The consignment account is a capital-blocked deposit at a Swiss bank, used exclusively to hold the share capital until the Handelsregister confirms the company exists. It is not your operating account and, critically, not every Swiss bank will open it for a foreign-owned entity. This is often the first real gate in the formation cycle. What a consignment account is (and why it is not your operating account) The bank confirms, by signed attestation to the notary, that the capital is in place and blocked. On Handelsregister entry the block is released: depending on the bank, the same account converts into an operating account, or a separate operating account is opened in parallel. Mixing these two categories is one of the common foreign-founder mistakes. Which banks will open a consignment for foreign-owned companies Swiss cantonal banks will generally open a consignment account for a foreign-owned GmbH or AG provided the UBO documentation is clean. Swiss private banks are more selective, and their appetite depends on the mandate size and the founder's overall banking relationship with them. Swiss FINMA-licensed electronic money institutions (EMIs) will generally not hold share-capital consignments. The practical sequence: contact the consignment bank during the articles-drafting phase, submit the KYC pack, and align the notary date with the bank's confirmation letter. Capital deposit — cash, in-kind, or mix Swiss law permits non-cash contributions (Sacheinlage) at formation for both AG and GmbH, subject to OR art. 773 and 777c for the GmbH and the parallel AG rules. In-kind contributions require a share-valuation report by a licensed auditor and a Sacheinlagevertrag, and the notarial deed records the contribution specifically. Cash is the simpler path for a first-time incorporation. What to expect from the KYC / CDD pack A realistic bank pack: notarised passport copies, current proof of address, UBO declaration naming natural persons down to the 25 percent threshold, a business plan or investment rationale, a source-of-funds narrative supported by documents, and, where the founder's background warrants it, explicit reputation references. The tighter the pack before submission, the faster the bank decisions. Full treatment in our full guide to opening a Swiss bank account as a foreigner . Step 5 Step 5 — Notarise and file with the Handelsregister The notarial deed is the formation event. Once the deed is signed and the Handelsregister accepts the filing, the company legally exists. This is the step where the structural choices in steps 1 and 2 become binding. The notarial deed — what gets signed The deed bundles: the articles of association, the subscription of shares by the founders (with the bank's consignment confirmation annexed), the appointment of directors or managing officers, and the Stampa declaration (a sworn statement on contributions in kind or special privileges). The notary verifies identities, signature authority and the completeness of the pack, and executes the deed in person or by authorised representative. Remote-incorporation feasibility — power of attorney and video notarisation Most foreign founders incorporate through a notarised power of attorney executed in their home country and apostilled or legalised, so that a Swiss representative signs on their behalf. Some cantons permit video notarisation subject to legal review of the current digital-notary framework; the practical position differs canton by canton and evolves as federal notarial law is updated. For a first-time incorporation it is safer to assume power-of-attorney signature and treat video notarisation as a bonus where the canton and the notary confirm it is available. Handelsregister processing (typically 7 to 21 days) The notary submits the deed and the required annexes to the cantonal Handelsregisteramt, which publishes the entry on zefix.ch (the federal unified register). Processing typically takes 7 to 21 days; some cantons offer expedited paid filing. The Handelsregister extract is the document every counterparty (bank, landlord, tax office) will ask for. When you officially become a legal entity The date on the Handelsregister extract, not the notary date, is the date of legal existence. Contracts entered into before that date are legally attributable to the founders personally and are novated to the company after registration — a technicality worth understanding before you sign a lease or a supplier contract in the gap. Step 6 Step 6 — Convert to an operating bank account Operating banking is the step where most foreign-founder timelines overrun. The consignment account is released on Handelsregister entry, but the operating account that follows goes through its own customer-due-diligence cycle. What changes once the Handelsregister extract lands The capital block is lifted, the company can access its own funds, signatory cards are registered, and e-banking is activated. If the consignment bank is willing to hold the operating relationship, the transition is clean; if not, a fresh KYC application is filed at a second bank while the funds stay at the consignment bank in the interim. Realistic timelines for foreign-UBO accounts The operating-account leg runs 5 to 30 days for a clean domestic file and commonly pushes to the longer end for foreign UBOs. Private-bank onboarding carries its own variance driven by the bank's acceptance calendar and the mandate size. The single largest lever to compress this window is a prepared KYC pack: clean UBO documentation, clean source-of-funds narrative, clean business-plan document, upfront. Cantonal banks, private banks, and EMI alternatives Cantonal banks give broad operational banking for the domestic franc, accept foreign-owned SMEs under the right due diligence, and carry predictable fee schedules. Private banks offer the relationship overlay for entities with a wealth-management axis but are selective on SME accounts below their mandate floor. Swiss and European FINMA-licensed EMIs (digital-only payment-service operators) work well as bridge accounts for payroll and outgoing payments during the first months, but they are not a Swiss-bank substitute for receiving Swiss-franc institutional payments. Full treatment in our full guide to opening a Swiss bank account as a foreigner . Step 7 Step 7 — Register for VAT (if the threshold applies) Swiss VAT (MWST / TVA / IVA) is a federal tax administered by the Federal Tax Administration (ESTV). The standard rate is 8.1 percent, with reduced rates of 2.6 percent on essentials and 3.8 percent on accommodation. Registration turns on a single turnover threshold with one important carve-out for foreign businesses. The CHF 100,000 worldwide-turnover threshold Any entity with CHF 100,000 or more in annual worldwide taxable turnover must register under MWSTG art. 10. "Worldwide" is the operative word: VAT liability is triggered by the global turnover of the entity, not by the Swiss slice. A newly formed Swiss GmbH with a French sister company generating material turnover elsewhere will often cross the threshold from day one. Foreign-business rule — from the first franc If your foreign (non-Swiss) business supplies into Switzerland and its worldwide turnover exceeds CHF 100,000, Swiss VAT applies from the first franc of Swiss turnover. Fiscal representation in Switzerland is typically required. This catches foreign platform businesses, foreign consultancies with Swiss clients, and any cross-border seller whose global turnover already clears the threshold. Voluntary early registration and when it helps A founder operating below CHF 100,000 can register voluntarily. The common reasons: reclaiming input VAT on significant start-up costs (office fit-out, professional fees), a credibility signal to Swiss B2B counterparties who expect to be invoiced with VAT, and avoiding a mid-year threshold crossing that would otherwise require late registration. 2026 platform rule and its implications From 2026, marketplace and platform operators collect and remit Swiss VAT on sales flowing through them even when the underlying seller sits below the threshold. Platform-native sellers should re-read the chain: the platform becomes the VAT collector, and the underlying seller's turnover analysis shifts accordingly. Full rules in our Swiss VAT for foreigners — the full rules . Step 8 Step 8 — Register with AHV / AVS and set up payroll AHV / AVS — the Swiss old-age and survivors' insurance, the first-pillar social insurance — is the social-security register every Swiss-resident working director or employee must be enrolled in. Foreign founders often miss this step in year one. Managing-director remuneration triggers AHV contribution From the moment the company pays a salary to a Swiss-resident managing director or employee, AHV contributions and the accompanying IV (disability) and EO (income compensation) contributions apply. The company registers with the cantonal compensation office (Ausgleichskasse / Caisse de compensation) and files periodic contributions. The founder who is tax-resident abroad and who takes no Swiss-sourced salary has a narrower exposure, but the Swiss-resident director does need enrolment. Hiring your first employee — what else triggers Adding the first employee above the threshold triggers enrolment in the second-pillar occupational pension (BVG / LPP), accident insurance (UVG), unemployment insurance (ALV) and, depending on sector and canton, supplementary schemes. Family allowances and withholding tax on foreign-resident employees add further filings. The right time to set this up is at the point of signing the first employment contract, not after the first payroll run. Full ongoing treatment on our accounting services page. Step 9 Step 9 — Start your bookkeeping and statutory accounts Swiss statutory accounting rules (OR art. 957 ff) apply from the moment of formation. The first statutory year-end lands at month 12 and the tax filing follows. The accounting framework and the audit obligation are separate questions. Swiss statutory accounts, Swiss GAAP FER and IFRS Most SMEs file statutory accounts under the Swiss Code of Obligations framework; Swiss GAAP FER is a national standard used by listed and larger private companies; IFRS is the international comparator used by cross-listed groups. For a new Swiss subsidiary with a foreign parent the reporting package usually maps OR-based Swiss accounts into the parent's IFRS or US-GAAP consolidation. Audit — when it is required An ordinary audit is required where two of three OR art. 727 thresholds are exceeded in two consecutive financial years: balance-sheet total CHF 20 million, revenue CHF 40 million, or 250 full-time equivalents. Below that, a limited-scope review (OR art. 727a) applies by default, with an opt-out available at 10 FTEs or fewer subject to shareholder consent. The audit firm is elected by the shareholders and registered with the Handelsregister. First-year deadlines (statutory accounts, tax, VAT, AHV) The statutory year-end produces: financial statements (balance sheet, income statement, notes), a cantonal and federal tax return, the annual VAT declaration if registered, the AHV / BVG annual reconciliation, and the shareholder meeting approving the accounts. Section 13 lays out the month-by-month sequence. For the full-service setup, work with our company-formation team to scope accounting, payroll and tax on one track. Step 10 Step 10 — File your first tax returns Corporate tax in Switzerland is a three-layer stack: federal direct tax, cantonal corporate tax, and municipal corporate tax. The first tax filing after year-end pulls the three together. Federal direct tax on profit The statutory federal rate is 8.5 percent, effectively around 7.83 percent because the tax is deductible from the taxable profit base. A Swiss-resident company is taxed on worldwide profit, subject to treaty-based relief where applicable; a branch is taxed on branch profit only. The participation exemption effectively removes qualifying dividend income from the tax base, which is the core architecture that makes Swiss holding structures work. Cantonal and municipal corporate tax The cantonal-and-municipal overlay produces the combined rate shown in step 2: 11.85 percent in Zug, 20.54 percent in Bern, with a national average around 14.4 percent. The filing itself is made to the cantonal tax office of the company's registered seat; most cantons now accept electronic filing and many run on a calendar-year deadline with extensions available on request. Dividends and withholding tax Swiss withholding tax is 35 percent on dividends paid out of Swiss retained earnings. Swiss-resident shareholders recover the full amount via their annual tax return. Non-resident shareholders apply the relevant double-tax-treaty rate, typically reducing to 0 percent, 5 percent, 10 percent or 15 percent depending on shareholding and residence country. Notably, royalties are not subject to Swiss withholding, which distinguishes Switzerland from many EU jurisdictions. For a capital scenario before dividends are planned, use our capital-requirements calculator . In parallel In parallel — your work permit and residency Forming a Swiss company and getting a Swiss work permit are two separate legal processes. They can run in parallel, and for non-EU founders they usually must be sequenced with care. Founding a Swiss company does not, on its own, grant a permit. If you are an EU or EFTA national The Agreement on the Free Movement of Persons applies. No work permit is required to work in Switzerland; registration with the canton of residence is required if the stay exceeds three months. EU founders routinely form the company, relocate, and register in parallel with limited friction. If you are a non-EU / third-country national The B permit is the initial residence-and-work permit, renewable annually, and tied to a specific employment or self-employment purpose. B permits are subject to annual quotas set by the Federal Council; the 2025 ordinance set the third-country quota at around 8,500 across all cantons. Self-employment as a non-EU founder requires the "economic interest to Switzerland" test under FNA art. 19, assessed jointly by the cantonal labour-market authority and the State Secretariat for Migration (SEM). The typical cycle is 3 to 6 months. Can forming a Swiss company get me a permit? No. Ownership of a Swiss company is not a permit basis. The quota and the economic- interest test apply independently, and ownership of a newly formed entity weighs only as part of a broader economic-contribution file. Founders who expect automatic permit eligibility on incorporation are disappointed; founders who plan the permit track in parallel typically succeed. Full walk-through: Swiss work-permit pathway for non-EU founders . Living in Switzerland vs operating a Swiss company from abroad Many foreign-owned Swiss companies are legitimately operated from abroad, with a Swiss- resident signatory, Swiss bookkeeping, Swiss tax registration, and the founder visiting on short-stay Schengen terms. This is a valid operating model and is used routinely by holding-structure architects, family-office principals, and cross-border investors who do not intend to relocate. Operating on-site in Switzerland, by contrast, requires the permit pathway above. Year-1 cost Year-1 cost of ownership — what is statutory versus what is discretionary Foreign founders routinely ask "how much does this cost". The honest answer splits into government-set fees (which are public and fixed by law or cantonal schedule) and professional-service fees (which we quote individually after the first call). This page publishes the first category only. Government fees — notary, Handelsregister, stamp duty Notarial fees vary by canton and by share capital size, published on each cantonal notary-fee schedule. Handelsregister filing fees are cantonal and published on each cantonal register's site. Stamp duty on share-capital issuance is 1 percent, with a CHF 1,000,000 lifetime exemption per company under StG art. 5 and 6. The exemption means most first-round formations pay no stamp duty at all; the duty typically appears later when a mature entity raises significant additional capital above the exemption. Statutory capital you must park The minimum paid-in capital is not a fee but a working-capital consideration: CHF 20,000 for a GmbH (fully paid in) or CHF 50,000 — or 20 percent — for an AG. The capital is the company's, not spent; but it is blocked until Handelsregister entry and should be planned in the cashflow model for the opening weeks. Annual recurring — accounting, audit, bank fees Ongoing obligations: statutory bookkeeping and annual accounts, a limited-scope audit or ordinary audit depending on OR art. 727 thresholds, VAT filing if registered, AHV / BVG reconciliations, and annual cantonal bank fees (published on each cantonal-bank schedule). For scope discussions, work with our company-formation team or use our capital-requirements calculator for an early-stage cashflow view. Discretionary — resident director, office rent, outsourced accounting Where no founder is Swiss-resident, appoint a resident director through our team is the standard response. Office rent runs the full range from a cantonal registered-seat address to a full-floor Zurich lease and is a canton-by-canton decision. Outsourced accounting is priced individually based on volume and complexity and is discussed on the first engagement call. Year-1 calendar Your year-1 and year-2 compliance calendar The compliance rhythm becomes predictable once year one is mapped. Month-by-month, here is the sequence that follows Handelsregister entry. Month 1 — Register, register, register Secure the Handelsregister extract, register with the cantonal tax office, monitor VAT threshold (register immediately if already above CHF 100,000), register with the cantonal AHV compensation office, and complete any pending bank-onboarding items. The compliance foundations land in month 1 or not at all. Months 2 to 6 — Operating rhythm Open the operating account if not already, run the first AHV declaration, register for VAT if the threshold is crossed, and put month-end bookkeeping into a regular cadence. Foreign founders often underestimate how quickly monthly bookkeeping becomes the anchor that prevents year-end scramble. Month 12 — Statutory year-end and accounting close Close the books under OR art. 957 ff, prepare balance sheet and income statement, reconcile AHV and BVG, reconcile VAT, and convene the ordinary shareholder meeting to approve the accounts. The audit opinion, limited-scope or ordinary, is drafted at this stage. Months 13 to 14 — Tax return filing File the federal and cantonal corporate tax returns, settle provisional payments against the final assessment, and confirm audit release. Most cantons grant deadline extensions on request; treating the default deadline as soft is common and rarely penalised. Year 2 — Shareholder meetings, dividends, DTA refunds The second annual shareholder meeting, dividend declarations where planned (triggering the 35 percent withholding tax filing and DTA refund applications for foreign shareholders), and the cadence of ordinary governance filings settle in. The compliance calendar stops being a year-1 project and becomes standing operating discipline. Pitfalls Common pitfalls foreign founders hit Picking the wrong canton for your model A high-tax canton for a low-margin business is an ongoing drag; a low-notary-density canton when you need fast filing is a hidden timeline cost; a canton in the wrong language for your working team adds friction every week. The decision belongs early, not after the articles are drafted. Under-capitalising the GmbH at formation CHF 20,000 is a statutory floor, not a target. Companies capitalised at the minimum hit working-capital shortfalls inside the first year, which forces either shareholder loans at unfavourable tax optics or a capital increase with fresh notarial costs. Forgetting the Swiss-resident-signatory rule OR art. 718 para. 4 (AG) and OR art. 814 para. 3 (GmbH) are non-negotiable. Sourcing the resident signatory at the notary table, rather than during planning, typically costs 2 to 4 weeks and a suboptimal appointment. Misreading the VAT threshold The CHF 100,000 threshold is worldwide taxable turnover, not Swiss-only. Founders with material turnover in other jurisdictions often trip the threshold on day one of the Swiss entity and only discover it at the first VAT filing review. Bank-account underestimation Assuming the consignment bank will automatically open the operating account, assuming a Swiss or European EMI is a full substitute, or assuming bank onboarding is a one-week exercise — all three are common and all three compound into launch delays. Non-EU founder skipping the permit plan A non-EU founder who incorporates without a permit plan can end up owning a Swiss company they cannot legally work in on-site. The fix is to plan the B-permit application in parallel with formation, or to accept a resident-director operational model. Cross-border How Switzerland compares to Germany, the Netherlands and the UK Foreign founders rarely evaluate Switzerland in isolation. The shortlist typically includes Germany, the Netherlands, the UK and, increasingly, Ireland and Singapore. Against the first three, here is the honest comparative frame. Speed and capital A Swiss GmbH closes in 2 to 4 weeks, comparable to a German GmbH in a similar window. A Dutch BV is faster at 1 to 2 weeks, and a UK Ltd is same-day for straightforward incorporations. Capital floors run the other direction: CHF 20,000 in Switzerland for a GmbH (or CHF 100,000 for an AG) is materially higher than the GBP 1 floor for a UK Ltd or the EUR 0.01 floor for a Dutch BV. Germany's EUR 25,000 GmbH sits between. Tax Effective combined corporate tax typically runs lower in Switzerland once canton is factored in, with the range from 11.85 percent in Zug to 20.54 percent in Bern. Germany's combined effective rate sits in the high 20s for most Länder, the Netherlands runs an innovation-box regime that lowers the headline, and the UK main corporate rate is 25 percent. The participation-exemption architecture in Switzerland is advantageous for holding structures with qualifying subsidiary dividends. Banking The honest comparative: Swiss banking KYC on foreign UBOs is the single hardest step in a Swiss formation. EU incorporation in Germany, the Netherlands or the UK typically delivers banking faster. The reverse comparison: once the Swiss bank is open, the infrastructure is exceptionally stable and treaty-rich. Foreign founders often under-estimate the banking leg of Swiss formation and over-estimate the tax advantage; the right frame is that Switzerland is a slower-to-open, easier-to-run jurisdiction, not a plug-and-play alternative to a Dutch BV or a UK Ltd. FAQ Frequently asked questions Can a non-Swiss resident start a business in Switzerland? Yes. Swiss law places no nationality restriction on AG or GmbH shareholders or partners. The only residency condition is that at least one member of the board or management with signing authority resides in Switzerland (OR art. 718 para. 4 for AG, OR art. 814 para. 3 for GmbH). A foreigner without Swiss residency can own 100 percent of the company and appoint a Swiss-resident director to satisfy the statutory signatory rule. Do I need to be in Switzerland to incorporate? No, in most cantons. The notarial deed can be executed by a representative holding a notarised power of attorney, and some cantons permit video notarisation subject to legal review of the current digital-notary framework. Bank KYC onboarding usually benefits from at least one in-person visit. End-to-end timeline runs 2 to 6 weeks depending on legal form and canton. How long does the whole process take? A GmbH typically takes 2 to 4 weeks end to end; an AG typically takes 3 to 6 weeks. Foreign UBOs often extend the bank-account leg toward the longer end of the range. Canton workload and notary availability are the main speed variables. Which legal form should I pick — AG or GmbH? GmbH suits SMEs or capital-light operations: minimum CHF 20,000, fully paid in, with partner names in the public register. AG suits larger capital raises, shareholder privacy and brand signal: minimum CHF 100,000 with at least CHF 50,000 or 20 percent paid in. Sole proprietorship is only useful for CHF under 100,000 turnover self-employment; a branch office fits foreign parents wanting a Swiss presence without a new Swiss entity. What is the minimum capital? GmbH: CHF 20,000, fully paid in at formation (OR art. 773 and 777c). AG: CHF 100,000 with at least CHF 50,000 or 20 percent, whichever is higher, paid in at formation (OR art. 621 and 632). Capital is held in a consignment bank account until the Handelsregister entry is confirmed. Do I need a Swiss-resident director? Yes. At least one person with sole or joint signing authority must reside in Switzerland — OR art. 718 para. 4 for an AG, OR art. 814 para. 3 for a GmbH. The person does not have to be a Swiss national; Swiss residency is sufficient. If no founder qualifies, a professional resident director can be appointed. When should I register for VAT? When annual worldwide taxable turnover reaches CHF 100,000 (MWSTG art. 10). A foreign business supplying into Switzerland becomes VAT-liable from the first franc of Swiss turnover once that CHF 100,000 worldwide threshold is crossed. Voluntary early registration is available and often helpful where input-VAT recovery matters. When should I open the operating bank account? After the Handelsregister extract confirms the entity is registered. The consignment account used to deposit capital is separate; some banks convert it into the operating account once registration lands, others require a fresh KYC cycle. Expect 5 to 30 days for the operating account, longer for foreign UBOs. Do I need an accountant from day one? Practically yes, even where the entity is exempt from audit. Swiss statutory accounting rules apply from the moment of formation, the first statutory year-end lands at month 12, and the tax return follows. An ordinary audit is required only where two of three OR art. 727 thresholds are exceeded: balance-sheet CHF 20 million, revenue CHF 40 million, 250 FTEs. Below that a limited-scope review applies, with an opt-out available at 10 FTEs or fewer. Will starting a company get me a residence permit? No. Owning or founding a Swiss company is not a permit basis. EU and EFTA nationals benefit from free movement and register with the canton after 3 months. Non-EU founders need a B permit subject to annual quotas set by the Federal Council (around 8,500 in the 2025 ordinance) and must prove economic interest to Switzerland under FNA art. 19 for self-employment. Can I work in the business as a non-EU citizen? Only with a work permit. Founding the company does not authorise you to work on-site; the B-permit application runs in parallel to, or before, formation, and the economic-interest test is applied with real scrutiny at early stages. Many non-EU founders use a Swiss-resident director for day-to-day signatory work and commute on short-stay Schengen terms until the permit lands. What does the canton choice really change? Primarily the effective combined corporate-tax rate, which ranges from 11.85 percent in Zug to 20.54 percent in Bern. Secondarily: registration speed, language of administration (German, French, Italian), notary density, and sector ecosystem fit. It does not change your federal corporate tax, which is 8.5 percent statutory or roughly 7.83 percent effective nationwide. How much are government fees (notary and register)? Notary fees vary by canton and by capital size. Handelsregister filing fees are cantonal and published on each cantonal register site. Stamp duty on issuance is 1 percent of paid-in capital with a CHF 1,000,000 lifetime exemption per company (StG art. 5 and 6), which means most first-round formations sit below the exemption and pay no stamp at all. What are the most common mistakes foreign founders make? Picking a high-tax canton for a low-margin model, under-capitalising the GmbH at CHF 20,000 with no working-capital buffer, sourcing the Swiss-resident director at the notary table rather than during planning, misreading the VAT threshold as Swiss-only turnover when it is worldwide, assuming the consignment bank automatically becomes the operating bank, and starting formation before the non-EU founder has a realistic permit pathway. How does Switzerland compare to Germany, the Netherlands, or the UK for incorporation? Switzerland is comparable to Germany on timing (GmbH in 2 to 4 weeks vs a German GmbH in a similar window), slower than a Dutch BV (1 to 2 weeks), and slower than a UK Ltd (same-day). Capital floors are higher in Switzerland (CHF 20,000 to CHF 100,000) than in the UK (GBP 1) or the Netherlands (EUR 0.01). Effective corporate tax is typically lower in Switzerland once canton is factored in. The Swiss banking leg is the hardest relative step for foreign-owned entities. Figures quoted above cite research/facts-switzerland.md. Cantonal tax tables and permit quotas are reviewed annually in January and February; we confirm the live position at the start of every engagement. Next step Ready to start a Swiss business? We read your structure, canton preference, permit pathway and banking profile on the first call, then put a scoped proposal in front of you. No price list, no off-the-shelf fee. Every mandate is individually underwritten. Request a proposal --- ## Swiss Accounting Standards: CO, GAAP FER & IFRS URL: https://business-in-switzerland.com/guides/swiss-accounting-standards Description: How Swiss accounting standards work for a foreign founder: the Code of Obligations baseline, recognised standards (GAAP FER, IFRS) and audit tiers. Swiss Accounting Standards: CO, GAAP FER & IFRS STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Accounting standards Swiss Accounting Standards: Code of Obligations, GAAP FER and IFRS Explained Swiss accounting standards are not one thing but two layers. Every undertaking keeps statutory books under the Code of Obligations, and groups, listed and larger entities add a recognised standard such as Swiss GAAP FER or IFRS on top. This guide explains both, in plain English, for a foreign founder running a Swiss AG or GmbH. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: December 2026 When founders search for Swiss accounting standards they usually expect a single rulebook. There is no single rulebook. Switzerland runs a two-layer system: a statutory bookkeeping duty in the Code of Obligations (CO, in German Obligationenrecht), articles 957 and following , that binds every business, and an optional or mandatory recognised accounting standard (Swiss GAAP FER, IFRS and others) that layers on top for groups, listed and larger companies. Get that distinction right and the rest of the topic falls into place. The CO baseline decides what books you keep and what statements you file; the recognised-standards layer decides whether you also report a true-and-fair view for investors or a stock exchange; and the audit regime, driven by the same size thresholds, decides whether someone independent checks the result. This guide walks the full stack, with the CHF figures and the exact CO articles behind each rule, so you know precisely what applies to your entity before you hire a bookkeeper. By the numbers The figures that anchor this topic. CHF 500k SIMPLIFIED-ACCOUNTING THRESHOLD · OR ART. 957 5 RECOGNISED STANDARDS · OR ART. 962A 10 years RECORD RETENTION · OR ART. 958F 4 BOOKKEEPING LANGUAGES · INCL. ENGLISH The mental model The two-layer system: statutory CO baseline plus recognised standards The single most useful idea on this topic is that "accounting standard" in Switzerland means two different things stacked on each other. Hold that model and every later section has a slot to sit in. Layer one is the Code of Obligations duty (art. 957 and following). This is the statutory minimum that binds every undertaking entered in the commercial register, or above a turnover threshold. It sets who keeps books, in what form, and which financial statements they file. There is no opting out of it. Layer two is a recognised accounting standard on top. For groups, listed companies and certain larger entities, the CO requires, or allows, a second set of financial statements under a recognised standard such as Swiss GAAP FER, IFRS, IFRS for SMEs, US GAAP or IPSAS. The recognised-standards framework was introduced by the 2013 accounting-law reform and the Ordinance on Recognised Accounting Standards (VASR, in French ORAS), in force since 1 January 2013. The recognised layer never replaces the CO layer; it sits beside it. Who and at what level Who must keep accounts, and at what level Switzerland scales the bookkeeping duty in three tiers under article 957. The dividing line is turnover, and crucially the legal form. Simplified cash accounting (Milchbüchlein): available only to sole proprietorships and partnerships with prior-year revenue below CHF 500,000 . They record income, expenditure and asset position, nothing more. Ordinary double-entry accounting: required for all legal entities (AG, GmbH, cooperative, association, foundation) and for any sole proprietorship or partnership at or above CHF 500,000 turnover. This produces a full set of financial statements. Larger-undertaking add-ons (art. 961): companies that exceed the ordinary-audit size test file extra statements on top, covered further down. So the obligation by legal form is straightforward: sole proprietorships and partnerships may qualify for the light regime below CHF 500,000, while every company keeps full books from incorporation. Milchbüchlein , literally the "milk-book" calculation, is simply the colloquial name for that simplified income, expenditure and asset record. It is a genuine relief for a freelancer, and never available to an AG or GmbH. The founder correction Why your AG or GmbH always keeps full books This is the point most competitor pages bury, and the one that matters most to a foreign founder: the CHF 500,000 carve-out does not apply to legal entities. An AG, a GmbH, a cooperative, an association or a foundation keeps full double-entry accounts and prepares a balance sheet, income statement and notes regardless of turnover, even in a dormant first year with no revenue at all (art. 957). In practice this means you should budget for a bookkeeper or an accounting provider from day one of a new Swiss subsidiary, not from the moment you cross a sales threshold. The full-books duty is tied to the form you chose at incorporation, so it is worth understanding the alternatives before you register: see our overview of Swiss company types , the entity-specific routes to set up a Swiss AG or complete a Swiss GmbH formation , and the capital requirements calculator for sizing the entity itself. The deliverables What financial statements you must prepare Where double-entry accounting applies, the annual financial statements under articles 958 and 959 have three core components: Balance sheet (Bilanz): assets, liabilities and equity at the reporting date. Income statement (Erfolgsrechnung, profit and loss): income and expense for the period. Notes (Anhang): explanation of the figures, accounting choices and required disclosures. These three are the complete set for a small or mid-sized company. The statutory CO accounts are also the starting point for the corporate tax return, so the figures that satisfy commercial law feed straight into the tax computation. Most foreign owners outsource the work: our Swiss accounting services handle statutory bookkeeping and year-end statements for foreign-owned entities. The principles Principles of orderly accounting Beyond the components, the CO imposes principles of orderly accounting that govern how the figures are produced (articles 957a and 958c). They read as common sense but carry legal weight. Clarity and completeness: the records capture every transaction and present it understandably. Prudence: values are assessed conservatively rather than optimistically. Going concern: the accounts assume the business continues, unless that is no longer realistic. Consistency: the same methods and presentation are applied from one year to the next, so periods compare. Article 958c adds two specifics competitor pages tend to omit: a no-netting rule, so assets are not offset against liabilities nor income against expense unless the law allows it, and a requirement that the assessment of items be reliable . Together these principles are why CO accounts are trusted as the legal record even though, on the conservative end, they can hold hidden reserves. The recognised menu Recognised accounting standards: Swiss GAAP FER, IFRS, IFRS for SMEs, US GAAP, IPSAS This is what the head term "Swiss accounting standards" is most often read as. The CO recognises a defined menu of standards under article 962a, framed by the VASR (ORAS) ordinance in force since 1 January 2013. Naming all five matters, because a page that only mentions FER and IFRS is incomplete. Swiss GAAP FER: the domestic true-and-fair standard, principles-based and modular. The common choice for Swiss SMEs and domestically focused groups. IFRS: the international standard, deeper disclosure, used by multinationals and for capital-market access. IFRS for SMEs: a lighter IFRS variant for smaller entities. US GAAP: applied mainly where a US-headquartered group consolidates a Swiss entity. IPSAS: the public-sector standard, for government and public bodies rather than commercial companies. On the SIX Swiss Exchange the choice narrows to an International Reporting Standard (IFRS or US GAAP) or the Swiss Reporting Standard (Swiss GAAP FER), depending on the listing segment. IFRS dominates among internationally listed groups, while Swiss GAAP FER is common in the domestic segment. For a non-listed, foreign-owned company none of this is compulsory; the statutory CO accounts alone usually suffice. The domestic standard Swiss GAAP FER explained Swiss GAAP FER (Fachempfehlungen zur Rechnungslegung) is the cost-efficient domestic alternative to IFRS. It gives a true-and-fair view with materially lighter disclosure, which is why Swiss banks, pension funds, cooperatives and the domestic exchange segment widely accept it. Its defining feature is a modular structure . A smaller entity applies the Framework plus the core recommendations (FER 1 to 6); larger entities add further standards; FER 30 governs consolidated financial statements for groups; and FER 31 adds the complementary requirements for listed companies. An entity therefore takes on only the modules its size and situation demand, which keeps the standard proportionate. Swiss GAAP FER is set by the Foundation for Accounting and Reporting Recommendations (Stiftung für Fachempfehlungen zur Rechnungslegung), an independent standard-setter founded in 1984. Its neutral, non-state authorship is part of why the standard is trusted across Swiss business. The decision Swiss GAAP FER vs IFRS: which to choose For a founder picking a standard for a new Swiss subsidiary or holding, the Swiss GAAP FER vs IFRS choice comes down to who reads the accounts and how far the company reaches internationally. Factor Swiss GAAP FER IFRS Complexity Lower, principles-based, modular Higher, rule-dense Disclosure depth Lighter Extensive International comparability Mainly Swiss recognition Globally comparable Cost to maintain Lower Higher Typically required for Domestic SMEs, Swiss groups, domestic listing segment International listings, multinational groups, IFRS parents The rule of thumb: Swiss GAAP FER fits a domestically focused SME or group that needs true-and-fair reporting without the cost of IFRS. IFRS fits a company seeking international capital-market access or one that must roll up into an IFRS-reporting parent. There is no prestige in choosing the heavier standard; pick the one your readers actually need. Mandatory triggers When a recognised standard becomes mandatory Is Swiss GAAP FER mandatory? On its own, no. The CO accounts are the legal minimum, and a recognised standard becomes compulsory only in defined cases under article 962. A recognised standard is required for: companies whose equity or debt securities are listed on a stock exchange, where the exchange so requires; large cooperatives with at least 2,000 members, and foundations subject to an ordinary audit; any company where a qualifying minority of shareholders or members so requests. The critical trap sits underneath this: a recognised standard is always presented in addition to , never instead of, the statutory CO accounts. Even when a group reports under IFRS or Swiss GAAP FER, each Swiss entity still produces standalone CO financial statements, because those are the figures that govern dividend distribution and the tax return. Reporting under a recognised standard never discharges the CO duty. The audit bridge How accounting connects to the audit requirement The same size test that decides the larger-undertaking add-ons also decides whether the accounts are audited. A company is subject to an ordinary audit if it exceeds two of three thresholds in two consecutive years: a balance-sheet total of CHF 20,000,000 , revenue of CHF 40,000,000 , or 250 full-time equivalents (article 727). Below that, the default is a lighter limited statutory examination , and the smallest companies can opt out of audit altogether where they have 10 or fewer full-time equivalents and all shareholders agree (article 727a). Because this shares the accounting topic's size logic but is a regime of its own, we keep the detail in a dedicated guide: see Swiss audit requirements for the ordinary, limited and opt-out tiers and how the thresholds are counted. Practical operation Practical bookkeeping rules: language, currency, retention, deadlines Four operational rules turn the law into a workable routine, and they are where Switzerland is unusually founder-friendly. Language (art. 957a para. 5): the books and financial statements may be kept in German, French, Italian or English . The English option, available since the 2013 reform, lets a foreign-owned group keep its statutory accounts in its working language rather than translating them. Currency (art. 957a para. 4): accounts may be kept in Swiss francs or in the functional currency essential to the business. If a functional currency other than the franc is used, the values are also shown in francs at disclosed exchange rates. Since 1 January 2023 share capital itself can be denominated in a relevant foreign currency. Retention (art. 958f): accounting records, vouchers, the annual report and the audit report are kept for ten years , on paper or electronically, as long as integrity and readability are preserved. Deadline (art. 958): the annual financial statements are prepared within six months of the financial year-end and submitted to the competent body for approval. Where historical books have gaps, rebuilding them is a specialist exercise, and our bookkeeping restoration service reconstructs incomplete ledgers to bring an entity back into compliance. Accounting also feeds VAT reporting, so if you are registering at the same time, our Swiss VAT guide explains how the two duties connect. FAQ Frequently asked questions What accounting standards apply in Switzerland? Every undertaking keeps books under the Swiss Code of Obligations (art. 957 ff.). On top of that, groups, listed and larger entities may or must apply a recognised standard: Swiss GAAP FER, IFRS, IFRS for SMEs, US GAAP or IPSAS. Does my Swiss AG or GmbH have to keep full accounts? Yes. All legal entities keep full double-entry books and prepare a balance sheet, income statement and notes regardless of turnover. The CHF 500,000 simplified-accounting carve-out only applies to sole proprietorships and partnerships. What is the CHF 500,000 accounting threshold? Sole proprietorships and partnerships with prior-year revenue below CHF 500,000 may keep simplified cash records (income, expenses, asset position) instead of double-entry books. At or above it, full double-entry applies. Swiss GAAP FER vs IFRS, which should I use? Swiss GAAP FER is principles-based, lighter on disclosure and cheaper to maintain, suited to Swiss SMEs and domestically focused groups. IFRS gives international comparability and deeper disclosure, suited to multinationals and international capital-market access. Is Swiss GAAP FER mandatory? No. It is one of several recognised standards. CO accounts are the legal minimum; a recognised standard becomes mandatory only for listed companies, large cooperatives, foundations under ordinary audit, and certain groups. When does a Swiss company need an audit? An ordinary audit applies if it exceeds two of three thresholds (CHF 20,000,000 balance-sheet total, CHF 40,000,000 revenue, 250 FTE) in two consecutive years; otherwise a limited-scope review, with an opt-out for companies of 10 or fewer FTE with unanimous shareholder consent. Can I keep my Swiss books and financial statements in English? Yes. Since the 2013 reform the Code of Obligations allows bookkeeping and reporting in German, French, Italian or English (art. 957a para. 5). How long must I keep accounting records in Switzerland? Ten years, including the annual business report and accounting vouchers (CO art. 958f). When must annual financial statements be prepared? Within six months of the financial year-end, then submitted to the competent body for approval (CO art. 958). Do I still need CO statements if my group reports under IFRS or Swiss GAAP FER? Yes. Standalone statutory CO financial statements are still required for dividend distribution and tax, even where the group reports under a recognised standard. What financial statements must a Swiss company prepare? A balance sheet, an income statement and notes (CO art. 958/959). Larger undertakings subject to ordinary audit additionally prepare a cash-flow statement and a management report (CO art. 961). What is Milchbüchlein (cash-book) accounting? It is the simplified record of income, expenses and asset position that sole proprietorships and partnerships below CHF 500,000 turnover may keep instead of full double-entry books. Keep reading Related guides and services. Swiss Audit Requirements Swiss VAT Number (UID/MWST) Accounting services Bookkeeping restoration Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Audit Requirements: Ordinary vs Limited Audit URL: https://business-in-switzerland.com/guides/swiss-audit-requirements Description: When a Swiss AG or GmbH needs an ordinary or limited audit, the CHF 20m / 40m / 250 FTE thresholds, opting-out rules, and the 2025 change. Swiss Audit Requirements: Ordinary vs Limited Audit STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Audit Swiss Audit Requirements: Ordinary vs Limited Audit Every Swiss AG and GmbH starts from a limited audit by default. An ordinary audit is the escalation for large or specially triggered companies, and the smallest firms can opt out entirely. Most foreign-owned start-ups land in the limited-audit or opt-out tier. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: December 2026 Swiss audit law is built around company size rather than legal form. The same rules in the Code of Obligations ( Obligationenrecht , OR, articles 727 and 727a) apply to a stock corporation (AG) and a limited liability company (GmbH) alike, sorting every company into one of three tiers: those that need an ordinary audit , those that need a limited audit , and those small enough to opt out of any statutory audit. The default for an ordinary AG or GmbH is the limited audit; the ordinary audit is the size or trigger escalation; and the opt-out is the de-escalation for very small companies. One distinction first, because the word "audit" is overloaded. This guide is about the statutory financial-statement audit under the Code of Obligations, performed by a company's Revisionsstelle (statutory auditor). It is not a tax audit by the cantonal authorities, not a FINMA prudential audit, and not a VAT control. For a foreign founder the practical question is simple: will my new Swiss company need an auditor, which kind, and can it opt out. This guide gives the decision path, the thresholds, the opting-out mechanics including the 1 January 2025 change, and who can be appointed. By the numbers The figures that anchor this topic. CHF 20m Balance-sheet total · ordinary audit · OR art. 727 CHF 40m Revenue · ordinary audit · OR art. 727 250 FTE · ordinary audit threshold < 10 FTE Opt-out ceiling · OR art. 727a para. 2 At a glance The three audit tiers at a glance. Swiss audit obligations come in exactly three forms. Knowing which one applies is the whole question, so here is the spine before the detail: Ordinary audit (ordentliche Revision) : the most thorough form, mandatory for large companies and a few special cases. Limited audit (limited statutory examination) : the default lighter review for companies below the ordinary thresholds. No audit (opting-out) : small companies whose shareholders all agree can waive the statutory audit entirely. Most foreign-owned start-ups land in the limited-audit tier or opt out, because a newly formed company is nowhere near the large-company thresholds. The legal form is largely irrelevant here: an AG and a GmbH are treated the same, and what moves a company between tiers is its size and a short list of triggers. The sections below walk down the ladder. Ordinary Ordinary audit (ordentliche Revision). The ordinary audit under OR article 727 is the full audit. It is reserved for large companies and a handful of triggered situations, and it delivers reasonable (positive) assurance that the financial statements comply with the law and the articles of association. A company that exceeds the size thresholds, lists its shares, issues bonds, or has to consolidate a group sits here. The next section sets out exactly when it bites. Limited Limited audit (limited statutory examination). The limited audit, or limited statutory examination ( eingeschränkte Revision ), is the default regime under OR article 727a for every AG and GmbH that stays below the ordinary thresholds and does not opt out. It is a lighter review based mainly on inquiries and analytical procedures, and it produces negative assurance : the auditor confirms that nothing has come to their attention suggesting the statements do not comply. This is the tier the great majority of Swiss companies live in. Opting out No audit (opting-out). The smallest companies can skip the statutory audit altogether. Under OR article 727a paragraph 2, a company with fewer than 10 full-time-equivalent positions on annual average may waive the limited audit, provided all shareholders consent . The consent must be unanimous, and the absence of a statutory auditor is recorded in the commercial register. The detailed conditions, the single-shareholder safeguard, and the at-incorporation route are covered further down. Decision path Do you need an audit? A decision path. The cleanest way to find your tier is to run the tests in order. Each step either lands you in a tier or sends you to the next test: Size test. Does the company exceed two of the three large-company thresholds (balance-sheet total CHF 20 million, revenue CHF 40 million, 250 FTE) in two consecutive financial years? If yes, you need an ordinary audit . Special triggers. Are the shares listed, are bonds outstanding, does the company contribute heavily to a listed group's consolidated accounts, or must it prepare consolidated accounts of its own? If yes, an ordinary audit applies regardless of size. Opting-up. Do shareholders representing 10% or more of the share capital demand an ordinary audit? If yes, the company moves up to an ordinary audit . Opt-out test. Are there fewer than 10 FTE on annual average and do all shareholders consent? If yes, the company can opt out and have no statutory audit. Otherwise. If none of the above applies, the default limited audit is mandatory. A company forming today can also make this choice at the moment of incorporation, which is usually where the decision is taken in practice. Our overview of Swiss company types sets out the AG and GmbH structures these tests attach to. Ordinary trigger When an ordinary audit is required. An ordinary audit under OR article 727 is required when a company exceeds at least two of the following three thresholds in two consecutive financial years : Balance-sheet total of CHF 20 million. Revenue of CHF 40 million. 250 full-time-equivalent positions on annual average. Exceeding two of the three once is not enough. The company must cross them in two successive years before the obligation bites, which gives a fast-growing firm a year of warning. The same logic works in reverse: a shrinking company stays in the ordinary regime until it falls below the thresholds for two consecutive years. Beyond size, two further situations pull a company into the ordinary tier no matter how small it is. The first is public exposure: companies whose shares are listed, that have outstanding bonds, or that contribute 20% or more to a listed group's consolidated accounts (OR art. 727 para. 1 no. 1). The second is group reporting: companies legally obliged to prepare consolidated accounts. Finally, an opting-up demand counts too: shareholders representing 10% or more of the share capital can require an ordinary audit (OR art. 727 para. 2). Limited audit The limited audit (limited statutory examination). A company that does not meet the ordinary criteria, and does not opt out, falls under the limited audit in OR article 727a. This is the default for the typical owner-managed Swiss AG or GmbH, and it is sometimes called a review because that is what it is: a lighter examination than a full audit. In a limited audit the auditor mainly conducts inquiries, analytical procedures and selected checks, then confirms that nothing has come to their attention suggesting the financial statements fail to comply with the law and the articles of association. There is no audit of the internal control system and no detailed substantive testing of the kind an ordinary audit involves. The effort, and therefore the cost, is driven by the size and tidiness of the books rather than by a fixed scope, so a clean set of accounts keeps a limited audit fast. The reporting framework the auditor checks against is set out in our companion guide to Swiss accounting standards . Compared Ordinary vs limited audit: scope compared. The two regimes differ in depth, not just in name. The table sets the scope side by side: Feature Ordinary audit Limited audit Assurance level Reasonable (positive) assurance Negative assurance Internal control system (ICS) Examined Not examined Fraud-risk procedures Required Not required Third-party confirmations Obtained Generally not Inventory observation Performed Generally not Main procedures Substantive testing Inquiries and analytical review Lead-auditor rotation Maximum 7 years, then a 3-year interruption No rotation rule In short, the ordinary audit verifies; the limited audit reviews. That difference in depth is why the ordinary tier is reserved for large companies and public-interest cases, while the limited audit suits the smaller company whose accounts are less complex. Opting out Opting out: when small companies can skip the audit entirely. Who qualifies and what consent is needed. Under OR article 727a paragraph 2, a company with fewer than 10 full-time-equivalent positions on annual average may waive the limited audit, provided all shareholders consent . The consent must be unanimous, not a simple majority, and the waiver is recorded in the commercial register where the absence of a statutory auditor is visible. Opting out is widely used by newly formed and small companies because it removes an annual cost and an administrative step. The single-shareholder safeguard. The opt-out is never locked in against a dissenting owner. Any single shareholder can request a limited audit, and that request can be made up to 10 days before the general meeting. If it is, the company must appoint an auditor for the year in question. The waiver is therefore revocable in substance, which protects a minority who later wants assurance. One thing the opt-out does not remove is the duty to keep proper books. A company that has opted out still has to maintain accounts and produce annual financial statements. If the bookkeeping has fallen behind, our bookkeeping restoration service brings the ledgers back to a compliant state. 2025 change What changed on 1 January 2025. The opt-out used to be applied loosely, sometimes retroactively for a year that had already closed. That changed on 1 January 2025 . Since then, the opt-out declaration must be filed before the financial year begins , and retroactive waivers for the current or prior year are no longer allowed. The practical consequence is a calendar discipline. To waive the audit for the 2026 financial year, a company has to declare the opt-out by 31 December 2025 . Miss that window and the company carries a limited audit for the whole of 2026, with no way to undo it after the fact. Most evergreen pages still describe the old, looser practice, so this is the point worth getting right: decide and file before the year starts, not at the next annual meeting. At formation Opting out at incorporation. For a foreign founder this is the relevant moment. The audit waiver can be put in place from day one: the founders declare the opt-out at incorporation, it is recorded in the notarised formation deed , and it is filed with the commercial register together with the rest of the formation documents. There is no need to form the company first and waive the audit later. Deciding at incorporation is cleaner because the deed and the register entry then reflect the chosen position from the start, and it dovetails with the 2025 timing rule, since a company founded mid-year still needs the waiver in place before its first full financial year. If the plan is to raise external capital, admit minority investors, or issue bonds, it is worth modelling the audit position alongside the share capital. Our guides to forming a Swiss AG and a Swiss GmbH set the entity context, and the share-capital requirements at formation guide covers the figures that sit alongside this choice. Entity scope Which entities are in scope. Audit obligations attach to the legal forms that have shareholders or members and limited liability. In scope, subject to the thresholds above, are the stock corporation (AG), the limited liability company (GmbH), the cooperative ( Genossenschaft ), the partnership limited by shares, and associations and foundations that meet the relevant size tests. Out of scope are the sole proprietorship and the general and limited partnerships: these are not required to appoint a statutory auditor at all. So the recurring question "does my GmbH or AG need an auditor" has a clear default answer: yes, a limited audit, unless the company qualifies for and validly declares an opt-out. A sole trader, by contrast, never appoints one. The auditor Choosing and appointing the auditor (Revisionsstelle). Whoever performs the audit must be independent of the company, in fact and in appearance. They cannot keep the books they examine, cannot sit on the board, and cannot hold a financial interest that compromises objectivity. Independence is a legal condition of a valid audit, not a matter of courtesy, and the appointed Revisionsstelle is itself entered in the commercial register. The required licence scales with the audit type. The auditor or audit firm must be admitted and supervised by the Federal Audit Oversight Authority (RAB / ASR) . A limited audit must be carried out by a registered auditor; an ordinary audit must be carried out by a registered audit expert; and for a public-interest entity the audit firm must be state-supervised. For an ordinary audit there is also a rotation rule: the lead auditor may stay on for a maximum of 7 years , then must step back for a 3-year interruption before resuming. In practice Practical mistakes and how we help. A few failure modes come up repeatedly. The most common is the late opt-out filing: a declaration made after the financial year has started is rejected by the register under the 2025 rule, leaving the company with a limited audit for the whole year. Another is silently crossing the large-company thresholds and missing the move to an ordinary audit, which can expose directors to liability. And a structural one catches holding setups: a small Swiss parent that has to prepare consolidated accounts is pulled into the ordinary tier purely because it heads a group, so anyone building a Swiss holding company should factor the group audit in early. Financial intermediaries are a category of their own: a FINMA-licensed entity is always under an ordinary audit regardless of size. If you are setting up from abroad and want the audit position handled alongside formation and the books, our Swiss accounting and financial-statement preparation team can scope the right tier, keep the underlying figures audit-ready, and make sure any waiver is filed on time. We work on a custom-quote basis, so contact us with your entity and headcount and we will set out the audit obligation and the next step. FAQ Frequently asked questions When does a Swiss company need an audit? Exceeding 2 of 3 thresholds (CHF 20,000,000 balance sheet, CHF 40,000,000 revenue, 250 full-time positions) in two consecutive financial years triggers an ordinary audit; otherwise a limited audit applies, and with fewer than 10 full-time positions plus unanimous shareholder consent the company may opt out entirely. What is the difference between an ordinary and a limited audit? An ordinary audit gives reasonable (positive) assurance and checks the internal control system, fraud risk and third-party confirmations; a limited audit gives negative assurance via inquiries and analytical review only. What are the Swiss audit thresholds? Balance-sheet total CHF 20,000,000; sales revenue CHF 40,000,000; 250 full-time positions on annual average. A company must exceed two of the three in two consecutive financial years (Code of Obligations art. 727). Does my GmbH or AG need an auditor? Yes by default (a limited audit) unless it qualifies for and validly declares an opting-out. What is opting-out? A full audit waiver for companies with fewer than 10 full-time positions on annual average where all shareholders consent (Code of Obligations art. 727a para. 2). Can a newly founded company opt out of the audit at incorporation? Yes; the waiver is recorded in the notarised formation deed and filed with the Commercial Register. What changed for audit opt-out on 1 January 2025? The opt-out declaration must now be filed before the financial year starts; retroactive waivers for the current or prior year are no longer allowed. To waive for FY2026, declare by 31 December 2025. Can a minority shareholder force an audit? Yes; shareholders representing 10% or more of share capital can demand an ordinary audit (opting-up), and any shareholder can request a limited audit up to 10 days before the general meeting. Do sole proprietorships and partnerships need an audit? No; only AG, GmbH, cooperatives, partnerships limited by shares, associations and foundations fall in scope under the thresholds. What is a limited statutory examination? The Swiss limited audit defined in Code of Obligations art. 727a, producing a negative-assurance report. Must the auditor be licensed? Yes; the auditor or audit firm must be admitted and supervised by the Federal Audit Oversight Authority (RAB / ASR) and be independent in fact and appearance. How long can the same lead auditor stay on an ordinary audit? A maximum 7-year engagement, with a 3-year interruption before resuming. Keep reading Related guides and services. Swiss Accounting Standards Types of Company in Switzerland Accounting services Bookkeeping restoration Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Capital Gains Tax in Switzerland: The Complete Guide URL: https://business-in-switzerland.com/guides/swiss-capital-gains-tax Description: Switzerland has no capital gains tax on private movable assets, but real estate, professional traders and companies are taxed. The law explained. Capital Gains Tax in Switzerland: The Complete Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Capital gains Capital Gains Tax in Switzerland: Private Gains, Business Gains, and the Exceptions Switzerland is one of the few advanced economies where a private investor pays no income tax on gains from shares, funds or privately held crypto. The exemption is real, but it has firm edges: real estate, professional trading and company-level gains are each taxed differently. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: August 2026 For private individuals, Switzerland generally does not tax capital gains on movable assets . A profit from selling listed shares, fund units, bonds or cryptocurrency held in a personal portfolio is, as a rule, free of income tax. The rule is written into federal law at article 16 paragraph 3 of the Federal Direct Tax Act (DBG art. 16 para. 3) and mirrored in every cantonal code through the tax-harmonisation law (StHG art. 7 para. 4 lit. b). It is one of the country's most cited attractions for investors and relocating families. The exemption is not unconditional. It covers private wealth held as a passive investment. It does not extend to real estate, which is caught by a separate cantonal property-gains tax, to anyone the authorities classify as a professional securities dealer, or to gains realised inside a company, where a profit is ordinary taxable income. This guide sets out exactly where the line falls: asset by asset, for residents and non-residents, for individuals and companies, and it separates capital gains from the two taxes most often confused with it, wealth tax and the 35% withholding tax. By the numbers The figures that anchor this topic. 0% Private movable-asset gains · DBG art. 16.3 35% Withholding tax on dividends · VStG art. 13 26 Cantonal real-estate gains regimes · StHG art. 12 ≥ 10% Participation exemption threshold · DBG art. 69-70 The short answer Does Switzerland have a capital gains tax? No, Switzerland levies no general capital gains tax on private movable assets. A private investor who sells listed shares, fund units, bonds or privately held cryptocurrency at a profit owes no income tax on that gain, under DBG art. 16 para. 3. The relief is automatic: there is no annual exemption to track and no minimum holding period to earn it. Two exceptions sit on top of that headline. First, real estate is always taxed, through a dedicated cantonal property-gains tax. Second, if you trade as a profession, the authorities can reclassify your gains as taxable self-employment income. A third boundary applies to companies, whose gains are ordinary taxable profit. Everything else in this guide is detail on those three lines. Because the exemption is conditional rather than absolute, "tax-free" is true only for a private investor holding movable wealth who is not a real-estate seller, not a professional dealer, and not transacting through a company. A page that states those conditions plainly is more reliable than one that asserts a flat "no capital gains tax". The matrix The three-way split: how Swiss law treats different assets The whole answer turns on a matrix of person type by asset type . The same gain can be exempt or fully taxed depending on who holds the asset and what the asset is. Three asset families behave differently: Movable private wealth , meaning shares, ETFs, bonds and private crypto held by an individual, is exempt . Basis: DBG art. 16 para. 3 and StHG art. 7 para. 4 lit. b. Real estate is always taxed , through the cantonal property-gains tax (Grundstückgewinnsteuer), regardless of whether the seller is a private individual. Basis: StHG art. 12. Business and company assets are taxed as ordinary income or corporate profit , with no exemption. Basis: DBG art. 18 for the self-employed and ordinary corporate profit tax for companies. Person type matters as much as asset type. The very same parcel of shares is exempt in a salaried investor's private portfolio but fully taxable once it is treated as part of a business activity, and it then also attracts social-security contributions (AHV/AVS). The grey zone between private and business holding is where the professional-trader test below does its work. The main exception When private becomes professional: the safe-harbour test If the Federal Tax Administration reclassifies you as a professional or commercial securities dealer ( gewerbsmässiger Wertschriftenhändler ), your gains stop being tax-free. They are recharacterised as self-employment income, taxed at your ordinary rate, and become subject to AHV/AVS contributions. The framework comes from federal court practice and the FTA's Circular No. 36 (KS 36, dated 27 July 2012), which sets out a safe harbour. Under that safe harbour, an individual is treated as a private investor when all five of the following hold: Securities have been held for an average of at least six months . Annual transaction volume is no more than five times the portfolio value at the start of the tax period. Realised capital gains make up less than half of net income , so gains are not needed to cover living costs. Positions are not debt-financed beyond a limited margin. Derivatives are used only to hedge the taxpayer's own holdings, not to speculate. This is a safe harbour, not a hard rule: meeting every condition gives strong comfort that gains stay exempt, while missing one does not automatically make you a dealer, it returns the question to a full weighing of indicators. If you are reclassified, the gains are taxed as ordinary self-employment income plus AHV/AVS, which can be materially higher than zero. To stay inside the harbour, the practical recipe is to buy and hold, avoid leverage and limit speculative derivatives. Where the position is genuinely borderline, an advance tax ruling confirms the treatment before you trade at scale. Securities Capital gains on shares, ETFs and bonds For an ordinary investor, listed securities are the default exempt case. A gain on selling shares, ETF units or bonds from a private portfolio is free of income tax under DBG art. 16 para. 3, provided you remain on the private-investor side of the safe-harbour test above. There is no separate capital gains schedule and no holding-period requirement. Two adjacent charges are easy to confuse with a capital gain and should be kept separate. Dividends are different : the price gain on a share is exempt, but the dividend it pays while you hold it is taxable investment income, and Swiss dividends carry a 35% withholding tax (VStG art. 13) that you reclaim through your return. Our guide to Swiss dividend taxation covers the partial-taxation relief for qualifying holdings. There is also a small transaction duty , not a capital gains tax: Swiss transfer stamp duty of 0.15% on Swiss securities and 0.30% on foreign securities applies when you trade through a Swiss securities dealer (StG art. 13 ff). It is charged on the transaction, win or lose, and has nothing to do with whether you made a gain. Crypto Crypto capital gains tax Privately held cryptocurrency is treated as movable private wealth , so a gain on selling Bitcoin, Ether or similar payment tokens from a personal holding is, as a rule, tax-free under the same article 16 paragraph 3 principle that covers shares. The same five-criterion safe harbour applies: high-frequency or leveraged crypto trading can tip you into professional-dealer status, at which point the gains become taxable. Two things are taxed even when the disposal gain is not. First, the tokens themselves are subject to the annual wealth tax , valued at the FTA's year-end rates, not on disposal. Second, rewards from staking, mining, lending and airdrops are income , taxed at fair market value when received, rather than exempt capital gains. To avoid accidentally becoming a professional crypto trader, the same discipline applies as for securities: hold rather than churn, avoid leverage, and keep derivatives to genuine hedging. The cantonal valuation rates, wallet reporting and the income-versus-gain split are set out in our dedicated Swiss crypto tax guide . Founders running token operations as a business, rather than holding privately, should look at the crypto company route, where the analysis is corporate rather than personal. Real estate Real-estate gains tax (Grundstückgewinnsteuer) The movable-asset exemption does not apply to real estate. Gains on selling Swiss immovable property are caught by a dedicated cantonal property-gains tax ( Grundstückgewinnsteuer ), levied by the canton or municipality where the property sits under StHG art. 12. It applies to private owners as well as businesses, so the tax-free principle for movable wealth has no equivalent here. Cantons run either monistic systems (a single special tax for all sellers) or dualistic ones (private gains under the special tax, business gains in ordinary income). The defining feature is that the tax is degressive with the holding period : the longer you have owned the property, the lower the rate on the gain, with surcharges on very short ownership to discourage speculation. A deferral mechanism ( Ersatzbeschaffung ) can postpone the tax when you reinvest the proceeds of an owner-occupied primary residence into a replacement home, usually within about two years. Because each of the 26 cantons sets its own schedule, the burden on an identical gain varies widely. The figures below are illustrative ranges only and must be checked against the relevant cantonal tax administration and estv.admin.ch before relying on them: Zurich : roughly 10% to 40% of the gain, with surcharges of about +50% within one year and +25% within two, and reductions of around 50% after 20 or more years of ownership. Geneva : about 50% on a sale within two years, declining toward 0% after roughly 25 years. Ticino : around 31% on a sale within one year, falling to about 4% at 30 years or more. Lucerne : taxed at ordinary income-tax rates, with a modest first slice of the gain exempt. A family consolidating Swiss property inside a structured vehicle, for example through a family office , should model the property-gains tax canton by canton before any transfer. Non-residents Capital gains for non-residents and expats The treatment for non-residents tracks the asset, not the residence. A non-resident's gain on Swiss securities held as private wealth is exempt, exactly as it is for a resident, unless the activity amounts to professional trading. Switzerland does not reach across the border to tax a foreign investor's portfolio gains. Swiss real-estate gains are different . They are taxed by the canton where the property sits, under limited tax liability ( beschränkte Steuerpflicht ) based on economic affiliation. A non-resident selling Swiss property owes the cantonal property-gains tax regardless of where they live, and some cantons require a security deposit or withholding at the point of sale to secure the tax. A note for US citizens : the Swiss exemption does not remove your US tax exposure. Under the saving clause in the Switzerland-US tax treaty, the United States continues to tax its citizens on worldwide gains, so a US person can be tax-free in Switzerland yet still owe US capital gains tax. This is a cross-border situation that warrants specialist advice rather than a general rule. Company level Company-level treatment: AG and GmbH The personal exemption is exactly that, personal. There is no article 16(3) relief at company level . When a Swiss AG or GmbH sells an asset at a profit, the gain is ordinary taxable profit and feeds into the corporate income tax base like any other earning, at roughly 11.85% to 21% effective depending on the canton, with the federal element at 8.5% statutory and a combined effective burden near 14.6% on average and about 11.85% in low-tax Zug . This matters whenever an investment is held through an operating company or a holding rather than personally. The important relief at company level is the participation exemption ( Beteiligungsabzug ). A capital gain on a qualifying shareholding, broadly a stake of at least 10% of another company's capital or profit rights, or a holding worth at least CHF 1,000,000, held for at least one year, is effectively relieved from corporate income tax through a participation reduction (DBG art. 69-70). This is the mechanism that lets a Swiss holding company sell a subsidiary largely free of tax, and it is why the choice between holding investments privately or through a company is a deliberate tax decision. Getting the corporate tax position and reporting right is what our Swiss tax and accounting service handles. Edge cases Anti-abuse traps when selling a company stake Two doctrines turn what looks like a tax-free private share sale into taxable income, and both catch owner-managers selling a closely held company. They exist precisely to stop the capital gains exemption being used to extract company reserves tax-free. Indirect partial liquidation ( indirekte Teilliquidation ) applies when you sell shares from private wealth to a buyer who then funds the purchase price out of the company's distributable, non-operating reserves. What you booked as a tax-free gain is recharacterised, in part, as a taxable dividend in your hands. Transposition applies when you sell your own private shareholding to a company you also control, above nominal value, converting taxable substance into a gain that would otherwise escape tax. Because both rules hinge on transaction structure rather than intent, you cannot rely on the headline exemption when selling a company stake. The safe course before any sale of a closely held company is to map the buyer's financing and the reserve position, and where the amounts are material, to secure an advance tax ruling . These are areas where a specialist should confirm the precise statutory references for your facts. What it is not What capital gains tax is NOT: wealth tax and withholding tax Two other taxes are routinely mistaken for a capital gains tax. Neither is. Keeping them separate is the single biggest source of confusion this guide resolves. Wealth tax ( Vermögenssteuer ) is an annual tax on your net assets, levied only by cantons and municipalities, with no federal equivalent. It is progressive and modest, running from roughly 0.1% in low-tax cantons such as Nidwalden to around 1.0% in Geneva. It applies to the value of what you hold, including shares and crypto, not to any gain on selling it. The annual mechanics are set out in our Swiss wealth tax guide. Withholding tax ( Verrechnungssteuer ) is a 35% anticipatory tax on dividends and Swiss-source interest (VStG art. 13). It is deducted at source from income and is refundable, or reduced under a tax treaty, when you declare the underlying income. It bites on the cash an asset throws off, not on the gain when you sell the asset, which usually remains exempt. In practice Getting certainty: tax rulings and the cantonal angle For most private investors the conclusion is the headline one: the gain is tax-free. The value in the detail is catching the minority of cases where it is not, and the cleanest way to remove doubt is an advance ruling. A Swiss tax ruling ( Steuervorbescheid ) is a written confirmation from the cantonal authority of how a specific transaction will be taxed, binding so long as you carry it out as described. It is the right tool for a company-stake sale exposed to the anti-abuse rules, a borderline professional-trader profile, or a non-resident property disposal. The cantonal dimension cuts across everything above. Corporate effective rates, wealth-tax bands and property-gains schedules all differ by canton, which is why low-tax cantons such as Zug , at roughly 11.85% effective corporate tax, feature so heavily in structuring decisions. If your situation runs beyond the simple private-investor case, the practical next step is to talk to a specialist who can confirm the treatment and, where it helps, arrange a ruling before you transact. For the wider tax picture, our Swiss VAT guide and the rest of the tax series sit alongside this one. We work on a custom-quote basis. FAQ Frequently asked questions Does Switzerland have a capital gains tax? No general capital gains tax applies to private movable assets such as shares, ETFs, bonds and privately held crypto for private investors; real estate and professional-trader gains are taxed. The legal basis for the exemption is article 16 paragraph 3 of the Federal Direct Tax Act (DBG art. 16 para. 3). How much is capital gains tax in Switzerland? 0% on qualifying private movable gains. For real estate the cantonal property-gains tax (Grundstückgewinnsteuer) ranges widely, up to roughly 50% on very short holds and falling near 0% on long holds. The exact rate depends on the canton and the holding period. Is Switzerland really tax-free on capital gains? For private investors who pass the safe-harbour test for movable assets, yes. The exemption does not cover real estate, which is taxed by the canton, professional securities dealing, or gains realised inside a company. When do I become a professional securities dealer? When you fail the safe-harbour test from FTA Circular No. 36: an average holding period of at least six months, annual turnover no more than five times portfolio value, gains under half of net income, no significant leverage, and derivatives used only for hedging. If reclassified, your gains are taxed as self-employment income plus AHV/AVS social contributions. Are crypto gains taxed in Switzerland? Private crypto capital gains are tax-free under the same safe-harbour test that covers shares. Crypto is, however, subject to the annual wealth tax at year-end value, and staking, mining, lending and airdrop rewards are taxed as income at receipt rather than as exempt gains. Do I pay capital gains tax on shares or stocks in Switzerland? No, if you remain a private investor under the five safe-harbour criteria. Dividends are different: Swiss dividends carry a 35% withholding tax (VStG art. 13) that is refundable or treaty-reduced when you declare the income. Do non-residents pay capital gains tax in Switzerland? There is no Swiss tax on private securities gains for non-residents. Swiss real-estate gains are taxed by the canton where the property sits, under limited tax liability, and some cantons require a security deposit or withholding at the point of sale. Is there capital gains tax when selling property in Switzerland? Yes, the cantonal property-gains tax (Grundstückgewinnsteuer, StHG art. 12). The holding period and the canton set the rate, and a deferral exists when you reinvest the proceeds of an owner-occupied primary residence into a replacement home. How is real-estate gains tax calculated? On the gain, meaning sale price minus adjusted cost, with a surcharge for very short holds and a degressive reduction for long holds. Rates and schedules are set by each canton, so the figure must be checked against the relevant cantonal tax administration. Do Swiss companies pay capital gains tax? Yes. An AG or GmbH gain is ordinary corporate profit with no article 16(3) exemption, taxed at roughly 11.85% to 21% effective depending on the canton. The participation exemption can relieve a gain on a qualifying shareholding, broadly at least 10% held for at least one year (DBG art. 69-70). What is the difference between capital gains tax and wealth tax in Switzerland? Wealth tax is an annual cantonal tax on net assets of roughly 0.1% to 1.0%, charged on the value of what you hold. A tax on private movable capital gains does not exist. They are separate concepts: one taxes holding, the other would tax disposal. Is the 35% withholding tax a capital gains tax? No. It is anticipatory tax on dividends and Swiss-source interest (VStG art. 13), refundable or treaty-reduced when you declare the income. Gains on selling the underlying shares are a separate matter and are usually exempt. Keep reading Related guides and services. Wealth Tax in Switzerland 2026 Dividend Taxation in Switzerland Crypto Tax in Switzerland Family office Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## How to Get Swiss Citizenship: Routes & Requirements URL: https://business-in-switzerland.com/guides/swiss-citizenship-guide Description: How foreigners become Swiss: ordinary naturalisation How to Get Swiss Citizenship: Routes & Requirements STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Citizenship How to Get Swiss Citizenship: Routes and Requirements Most foreign nationals become Swiss through ordinary naturalisation after about ten years of residence, but marriage and descent open shorter paths. There is no citizenship by investment. This is the sourced map for non-Swiss nationals. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: August 2026 Becoming Swiss is not a single application to a single authority. Switzerland is a federal state, so a successful naturalisation means being accepted as a citizen of a commune , a canton and the Confederation at the same time. The federal State Secretariat for Migration (SEM) sets the national baseline, while the canton and commune add their own residence requirements and run much of the assessment, which is why the experience differs from one municipality to the next. There are broadly four routes: by descent if a parent is Swiss, ordinary naturalisation after long residence, facilitated naturalisation for spouses and the third generation, and reacquisition for former citizens. One thing this guide states plainly up front: Switzerland has no citizenship by investment and no golden passport. Money can buy residence through lump-sum taxation, but nationality still has to be earned through the naturalisation clock. Everything below is written for foreign nationals and points at official sources where the figures come from. By the numbers The figures that anchor this topic. 10 years Residence · ordinary route C permit Settlement status required B1 / A2 Language · spoken / written 11 – 13 yrs Typical total · estimate Overview The four ways to become Swiss Before the detail, here is the whole map in one scan. Four routes lead to Swiss nationality, and which one applies to you depends mostly on your family ties, not your passport. Nationality does not change the residence-year requirements: an American and an EU citizen on the ordinary route face the same clock. Only descent and marriage shorten the path. Route Who it is for Core requirement Typical timeline Descent (ius sanguinis) Children of a Swiss parent A Swiss parent at birth From birth Ordinary naturalisation Long-term foreign residents About 10 years residence + C permit ~11–13 years Facilitated (marriage) Spouses of Swiss citizens 5 years residence + 3 years marriage ~5–6 years Facilitated (third generation) Grandchildren of immigrants, born in CH Born in Switzerland, generally under 25 On application Citizenship is not the same as a C permit. A common confusion is to treat the settlement (C) permit as the finish line. It is not. The C permit is permanent residence , and it is a prerequisite for ordinary naturalisation, but it confers no nationality, no Swiss passport and no vote in federal matters. If your goal is the permit rather than the passport, our guide to Swiss residence permit types covers the permit ladder from B to C that feeds this clock. Ordinary route Ordinary naturalisation: the 10-year route Ordinary naturalisation is the standard route for foreign nationals with no Swiss spouse or Swiss ancestry, and it carries the highest search demand because it covers the most people. The federal conditions are a valid settlement (C) permit and at least ten years of residence in Switzerland . A recent-residence sub-rule applies too: you must have lived in the country for three of the last five years before filing, so a long gap abroad shortly before applying can break eligibility even if your total exceeds ten years. Do childhood years count? Yes, with a twist. Time spent living in Switzerland between the ages of 8 and 18 counts double toward the ten years. As a worked example, someone who lived here from age 10 to 18 has 8 actual years, which double-count for those eligible years, but the rule still sets a floor of at least six actual years of physical residence. So the double-count reduces the wait, it does not erase the minimum time on the ground. Absences of more than six months in a stretch can interrupt the residence count, which is why a settled, continuous base matters. The three-tier decision. Swiss nationality is granted by the Confederation, the canton and the commune together, concurrently. You apply through your commune, SEM confirms the federal conditions are met, and the canton and commune apply their own additional requirements. On top of the federal ten years, the cantonal and communal residence minimums are usually in the range of two to five years each, and they vary by jurisdiction. Do not treat any single figure as universal: confirm the rule for your specific canton and commune. Low-tax cantons such as Zug are common bases for foreign founders, but the residence years that count toward naturalisation are the same wherever you settle, so staying put in one place is the real lever on your timeline. Requirements The requirements checklist: integration, language, finances, record Meeting the residence clock is necessary but not sufficient. Beyond the years, SEM and the cantons assess four things, and a weakness in any one can stall or block an application. Integration and respect for the constitution. Respect for public safety and order and for the values of the Federal Constitution, participation in economic life or in education, and encouragement of family members in their own integration. Language. Spoken B1 and written A2 on the Common European Framework, covered in its own section below. Financial independence. You should not be reliant on social assistance in the relevant years before applying, subject to defined exceptions. Welfare dependency is a frequent reason for refusal. A clean record. Both a clean criminal record (an extract from the criminal register) and a clean debt-collection record (an extract from the debt-enforcement register, the Betreibungsregister). Open enforcement proceedings or recent unpaid debts can prevent naturalisation. In practice the integration and financial tests reward continuity: stable employment, clean tax filings, no welfare and no enforcement proceedings build the record that the commune and canton review. Keeping costs sustainable feeds directly into that, which is where our cost of living in Switzerland guide helps you pick a base you can hold for the long haul. Language Language requirements explained (CEFR B1 / A2) The language bar is set at spoken level B1 and written level A2 on the Common European Framework of Reference. It is a high-intent question for many applicants, so it is worth stating precisely: the relevant language is the official national language of your place of residence , not a language of your choosing. That means German, French, Italian or Romansh depending on the canton and commune where you live. Proof is normally a recognised language certificate at the required level, though some applicants can satisfy the test through prior schooling in the national language. Because the threshold and accepted evidence can vary at communal level, reaching B1 spoken comfortably before you apply, rather than just scraping the minimum, is the safer position and removes a common point of delay. Marriage Citizenship through marriage (facilitated naturalisation) Marriage to a Swiss citizen opens facilitated naturalisation, a quicker federal procedure handled mainly by SEM rather than the commune. Many pages blur the conditions, so here is the clean split. Married and living in Switzerland: a foreign spouse can generally apply after five years of residence in Switzerland combined with three years of marriage to the Swiss citizen, while still meeting the integration and language conditions. Married and living abroad: a separate provision allows a spouse living outside Switzerland to apply after six years of marriage to a Swiss citizen, provided they can show close ties to Switzerland. The qualifying periods differ by situation, so confirm the exact figures against the current SEM rules for your case. Facilitated naturalisation reduces the residence years but does not waive integration, language or the requirement to live in a stable marital union. Descent Citizenship by descent and the third generation By descent (ius sanguinis). A child acquires Swiss nationality at birth if a parent is Swiss. This is the principle Switzerland follows, and it answers the "how do I qualify as an American or an EU citizen" question for many people with a Swiss parent or grandparent. The important negation: Switzerland does not apply ius soli. Being born on Swiss soil alone confers no nationality if neither parent is Swiss. The third-generation route. A young foreigner who was born in Switzerland, whose grandparent already had a connection to the country and whose parent grew up here, may apply through a facilitated procedure, generally before the age of 25 and subject to conditions. Anyone who believes a parent or grandparent was once Swiss should also check whether reacquisition of a lapsed citizenship, rather than ordinary naturalisation, is the more direct route for them. The investment myth Is there Swiss citizenship by investment? (No) This is the question that draws the most confusion, so the answer is blunt: Switzerland has no citizenship-by-investment programme and no golden passport. You cannot buy Swiss nationality, and no amount of capital, property or business activity shortens the naturalisation clock by itself. What does exist is lump-sum taxation (the forfait fiscal), under which certain wealthy foreigners who do not work in Switzerland are taxed on their expenditure rather than worldwide income. That arrangement can support a residence permit, but it buys residence , not nationality. A lump-sum resident still has to serve the ten-year ordinary-naturalisation clock and meet every integration, language and record requirement like any other applicant. If a relocation and residence plan is what you are really after, our migration support service maps the permit and residence timeline that naturalisation is later built on. Timeline How long does it take? A realistic timeline The honest answer is that it is a long road. Add the residence clock to the administrative processing and the ordinary route typically runs to about 11 to 13 years from arrival to passport. The processing figure is an estimate from secondary sources rather than a statutory number, so treat it as indicative. Stage Indicative duration Arrival and B residence permit Years 0 onward Settlement (C) permit granted Around year 5 to 10, depending on nationality and agreements Ten-year residence mark reached Year 10 (three of last five years in CH) Application filed and assessed Roughly 12 to 36 months of processing Citizenship granted About year 11 to 13 total Timelines vary widely by commune and canton, and a well-documented file at the outset reduces the risk of delay or a request for further evidence. The residence years are fixed by law; the processing months are where preparation makes the difference. Cost What it costs: federal, cantonal and communal fees The fees here are the cost of the application and process, not a service price, and they sit on top of the documents you have to gather. They come largely from secondary reporting (thelocal.ch, 2025) rather than a single government schedule, so treat them as typical figures to verify against your cantonal fee table, and expect them to vary. Federal fee (SEM): roughly CHF 100 for a single applicant, about CHF 150 for a couple, and around CHF 50 for a single minor. Cantonal and communal fees: charged separately at each level and varying widely by jurisdiction. All in, totals are commonly in the region of CHF 500 to 3,000 . Document costs: a criminal-record extract (around CHF 17), a debt-collection extract (around CHF 17), residence confirmations (roughly CHF 10 to 30) and civil-status documents (around CHF 30). Because cantonal and communal fees are the largest and most variable part of the stack, confirm the exact charges with your commune before you budget. The figures above are a guide to the order of magnitude, not a fixed price. Dual nationality Dual citizenship and keeping your passport Reassuring news for American and EU applicants: Switzerland allows dual, and multiple, citizenship . From the Swiss side you are not required to renounce your existing nationality in order to naturalise, and a Swiss citizen who later acquires another nationality does not lose the Swiss one. This has been the position in Swiss law since 1 January 1992 . The constraint, where one exists, comes from your other country. Some states do not permit their nationals to hold a second citizenship and may require renunciation. Whether you can keep both passports is therefore a question of the other jurisdiction's law, not Swiss law, and should be checked with that country before you apply. Founder path The foreign-founder path: from company to C permit to citizenship For entrepreneurs the naturalisation clock is the last link in a longer chain. The journey usually runs: set up a Swiss company, obtain a B residence permit tied to that activity, build a continuous residence record, upgrade to a C settlement permit, reach the ten-year mark, then apply for ordinary naturalisation. Each step has its own conditions, and the residence years for citizenship only start counting once you are lawfully resident. That is why the planning pays off early. Our company formation service handles the entry point, our residence permit guide covers the status you must hold and renew toward a C permit, and the relocating to Switzerland guide walks through the registration steps that build the residence record naturalisation later depends on. If you are coordinating company, residence, work and family status alongside a citizenship plan, talk to our specialists and we will scope the timeline with you. FAQ Frequently asked questions How long does it take to get Swiss citizenship? About 11 to 13 years in total: roughly ten years of lawful residence plus an estimated 12 to 36 months of administrative processing. The residence figure is fixed by law; the processing time is an estimate that varies by commune and canton, so treat the total as indicative rather than guaranteed. What are the requirements for ordinary naturalisation? About ten years of residence in Switzerland (with three of the last five years before filing), a settlement (C) permit, spoken B1 and written A2 language ability, demonstrated integration and financial independence, and a clean criminal and debt-collection record. The canton and commune add their own residence requirements on top. Can I get Swiss citizenship through marriage, and how long does it take? Yes, through facilitated naturalisation. If you live in Switzerland you can generally apply after five years of residence plus three years of marriage to a Swiss citizen. If you live abroad, you can apply after six years of marriage with demonstrated close ties to Switzerland. Integration and language conditions still apply. Do years I lived in Switzerland as a child count? Yes. For ordinary naturalisation, time spent living in Switzerland between the ages of 8 and 18 counts double toward the ten-year requirement. However, the actual physical residence must still total at least six real years, so the double-counting reduces but does not eliminate the minimum time on the ground. Does Switzerland allow dual citizenship? Yes. Swiss law has permitted dual and multiple citizenship since 1 January 1992. You are not required to give up your existing nationality to naturalise, and Swiss citizens do not lose their passport by acquiring another. Any restriction would come from your other country, not from Switzerland, so check that country’s rules before applying. Is there Swiss citizenship by investment or a golden passport? No. Switzerland has no citizenship-by-investment programme and no golden passport. Lump-sum taxation can support a residence permit, but it buys residence, not nationality. A lump-sum resident still has to serve the ten-year naturalisation clock and meet every other requirement. What language level do I need for Swiss citizenship? Spoken level B1 and written level A2 on the Common European Framework, in the official national language of your place of residence. Depending on the canton and commune, that means German, French, Italian or Romansh. Proof is normally a recognised language certificate, though prior schooling in the language can sometimes suffice. How much does Swiss naturalisation cost? Federal fees are around CHF 100 for a single applicant and about CHF 150 for a couple, plus separate cantonal and communal fees that vary widely. Total costs are commonly in the region of CHF 500 to 3,000, with document extracts on top. These are typical 2025 figures from secondary sources, so verify them against your cantonal fee schedule. Can I become Swiss by descent or ancestry? Yes, if a parent is Swiss, since Switzerland follows ius sanguinis (citizenship through descent). Being born on Swiss soil alone does not grant citizenship if neither parent is Swiss, because Switzerland does not apply ius soli. A separate facilitated route exists for the third generation born in Switzerland. What is the difference between ordinary and simplified naturalisation? Ordinary naturalisation is the ten-year route assessed by the commune, canton and Confederation together. Simplified, or facilitated, naturalisation is a quicker federal procedure run mainly by SEM for specific cases, chiefly the spouse of a Swiss citizen and the third generation, with reduced residence years but the same integration and language conditions. Do EU citizens or Americans get a faster route to citizenship? No. The residence-year requirements are the same regardless of nationality. Only descent (a Swiss parent) and marriage to a Swiss citizen change the path and shorten it. An American and an EU citizen on the ordinary route face the same ten-year clock. Is a C permit the same as Swiss citizenship? No. The settlement (C) permit is permanent residence and a prerequisite for ordinary naturalisation, but it is not citizenship. It confers no Swiss passport and no vote in federal matters. Naturalisation is a separate process that follows once you hold the C permit and meet the residence and integration conditions. Keep reading Related guides and services. Relocating to Switzerland Swiss Residence Permit Types Cost of Living in Switzerland 2026 Buying Property in Switzerland as a Foreigner Migration support Residence permit guide Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Types of Company in Switzerland: A Complete Guide URL: https://business-in-switzerland.com/guides/swiss-company-types-overview Description: Compare every Swiss legal form: sole proprietorship, GmbH, AG, partnerships, cooperative, foundation and branch, with capital, liability and decision framework. Types of Company in Switzerland: A Complete Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Company types Types of Company in Switzerland: A Complete Overview Switzerland recognises ten legal forms, from the one-person sole proprietorship to the capital-backed AG. Ownership is open to any nationality, provided at least one person who can sign for the company is resident in Switzerland, so the real question for a foreign founder is which form fits the goal. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: September 2026 Switzerland recognises a defined list of legal forms, set out mainly in the Code of Obligations ( Obligationenrecht , OR) and, for non-commercial bodies, the Civil Code (ZGB). They divide into two families: personal forms , where one or more individuals are personally and often unlimitedly liable, and capital companies , where a separate legal entity carries the liability and the founders risk only their invested capital. For a foreign founder the realistic shortlist is short. Almost every cross-border business in Switzerland ends up as a GmbH or an AG , sometimes as a branch of an existing group. The other forms exist for specific situations: solo professionals, family ventures, clubs, cooperatives and endowed foundations. This guide maps all of them, then ties the choice to the canton where you incorporate. Ownership is open to any nationality, but at least one signatory must be Swiss-resident (OR art. 718.4 for an AG, OR art. 814.3 for a GmbH). By the numbers The figures that anchor this topic. 10 Swiss legal forms CHF 20,000 GmbH min capital · OR art. 773 CHF 100,000 AG min capital · OR art. 621 CHF 0 Sole proprietorship capital Decision framework How to choose a Swiss legal form: the five criteria Before comparing individual forms, it helps to use the same lens the Swiss SME portal (kmu.admin.ch, under the SECO framework) applies: five practical criteria that decide which legal form fits. Work through them in order and the shortlist narrows quickly. Capital you can commit. The forms split into three tiers: nothing for a sole proprietorship or partnership, CHF 20,000 for a GmbH (OR art. 773), and CHF 100,000 for an AG (OR art. 621). If capital is tight, that alone rules forms in or out. Risk and liability you can accept. Personal forms expose your private assets to business debt without limit; capital companies cap your downside at the money you invest. This is usually the deciding factor for a foreign founder. Independence and control. A GmbH or AG can be formed by a single person, a general partnership needs at least two, and a cooperative needs at least seven members. The headcount you have shapes the options. Taxation: single or double. Sole proprietorships and partnerships are taxed transparently, so profit is added to the owner's personal income. A GmbH or AG is a separate taxpayer, taxed first at company level and again on dividends, which is where the canton you pick starts to matter. Social security and your status. Run a sole proprietorship and you are self-employed for AHV; run your own GmbH or AG and you are its employee, which changes both your contributions and your unemployment cover. The sections below take each legal form in turn, with capital, liability and the foreigner angle, before a closing decision guide ties the choice to your goal and to the canton where you incorporate. At a glance The complete comparison table: all Swiss legal forms The list below maps every Swiss legal form against the figures that decide the choice: minimum capital, who carries the liability, the people needed to form it, and what it is typically used for. Capital amounts are statutory minimums under the Code of Obligations and the Civil Code. Sole proprietorship (Einzelfirma): no minimum capital; unlimited personal liability; one owner; register entry mandatory above CHF 100,000 turnover; best for low-risk solo work. Simple partnership (einfache Gesellschaft): no capital; unlimited personal liability; two or more partners; not a registrable company; a default contractual relationship, not a legal entity. General partnership (Kollektivgesellschaft): no entity capital; unlimited joint and several liability; two or more individuals; register entry mandatory; best for jointly run professional practices. Limited partnership (Kommanditgesellschaft): no entity capital; general partner unlimited, limited partner capped at the registered contribution; best for a financing partner alongside an active one. GmbH (Sàrl): CHF 20,000, fully paid in; liability limited to capital; one or more quotaholders, publicly listed; best for small and mid-sized owner-run business. AG (SA): CHF 100,000, at least CHF 50,000 or 20% paid in; liability limited to capital; shareholders anonymous; best for larger ventures, holdings and raising capital. Cooperative (Genossenschaft): no fixed minimum capital; members' liability limited unless statutes say otherwise; at least 7 members; best for mutual and self-help ventures. Association (Verein): no capital; the association's own assets answer for its debts; written statutes; best for clubs, NGOs and member bodies. Foundation (Stiftung): no statutory minimum, though supervisors expect a meaningful endowment; the dedicated assets carry liability; no members; best for philanthropy and succession planning. Branch (Zweigniederlassung): no separate capital; the foreign parent stays fully liable; needs a Swiss-resident representative; best for an existing group entering the market. The paid-in rules, contributions in kind, the blocked capital account and later increases are set out in full in our Swiss share capital requirements guide. Sole proprietorship Sole proprietorship (Einzelfirma / Raison individuelle) The sole proprietorship ( Einzelfirma , raison individuelle ) is the most common legal form in Switzerland and the simplest to start: a single individual trades in their own name. There is no minimum capital and no formal incorporation. You begin trading, and the business and the person are legally one and the same. The cost of that simplicity is unlimited personal liability : your private assets stand behind every business debt. Entry in the commercial register is mandatory once annual turnover reaches CHF 100,000 and voluntary below that (Commercial Register Ordinance, HRegV art. 36). For a non-resident founder it is rarely the right tool, because self-employment in Switzerland presupposes a residence and work basis and the form cannot host a foreign group. Most cross-border businesses skip it and form a GmbH from day one; if you are mapping the first steps, our guide to starting a business in Switzerland walks through them. GmbH / Sàrl GmbH / Sàrl (limited liability company) The limited liability company ( Gesellschaft mit beschränkter Haftung , GmbH; Sàrl in French) is the workhorse of the Swiss SME economy and the usual entry point for foreign owners. Minimum share capital is CHF 20,000 , which must be fully paid in at formation (OR art. 773, 777c), divided into quotas of at least CHF 100 each (OR art. 774). Liability is limited to that capital: the company, not the quotaholders, answers for its debts. The GmbH needs at least one managing officer ( Geschäftsführer ) and at least one person resident in Switzerland who can sign for the company (OR art. 814.3); ownership itself is open to any nationality. Quotaholders are named in the public commercial register, so the form offers less ownership privacy than the AG. It is quick to form, modest to run, and convertible into an AG later without losing legal identity. For a deeper look at when the GmbH wins and when the higher-capital AG is worth it, see our AG vs GmbH compared in detail ; when you are ready, our team can form a GmbH for you. AG / SA AG / SA (stock corporation) The stock corporation ( Aktiengesellschaft , AG; Société Anonyme , SA) is the form for larger ventures, holding structures and anything that may raise outside capital. Minimum share capital is CHF 100,000 (OR art. 621), of which at least CHF 50,000 or 20% , whichever is higher, must be paid in at formation (OR art. 632). Liability is limited to the share capital. Its signature advantage is privacy: shareholders are not listed in the commercial register, only the board and authorised signatories, and bearer shares were abolished in 2019. Since the 2023 company-law reform the nominal share value can be as little as CHF 0.01, capital can be denominated in a foreign operating currency, and a capital band (OR art. 653s and following) lets the board flex registered capital by up to half over five years without a fresh shareholder vote. The AG needs at least one Swiss-resident signatory (OR art. 718.4), while ownership stays open to any nationality. It is the standard vehicle for a Swiss holding company and for groups expecting investors; we can form an AG end to end. General partnership General partnership (Kollektivgesellschaft / société en nom collectif) The general partnership ( Kollektivgesellschaft , société en nom collectif ) joins two or more natural persons in a jointly run commercial business under a shared name. There is no entity-level capital , and registration in the commercial register is mandatory once a commercial activity is carried on (OR art. 552 and following). The catch is liability: every partner carries unlimited joint and several liability for the firm's debts, so a creditor can pursue any one partner for the whole. That, plus the residence implications for foreign partners, is why a general partnership is rarely chosen over a GmbH for a cross-border venture. In practice it appears mainly where Swiss professionals pool a practice and accept the personal exposure. Limited partnership Limited partnership (Kommanditgesellschaft / société en commandite) The limited partnership ( Kommanditgesellschaft , KG; société en commandite ) is a variant of the general partnership with two classes of partner. At least one general partner carries unlimited liability and must be an individual, while at least one limited partner is liable only up to a contribution registered in the commercial register (OR art. 594 and following). The structure suits a setup where one person runs the business and another simply finances it without taking on full exposure. A specialised cousin, the limited partnership for collective capital investments (KkK), serves regulated venture-capital and private-equity vehicles under the Collective Investment Schemes Act and is open only to qualified investors. For an ordinary operating business, the limited partnership is a niche choice next to the GmbH. Simple partnership Simple partnership (einfache Gesellschaft / société simple) The simple partnership ( einfache Gesellschaft , société simple ) is included here mainly so you know what it is not. It is a purely contractual relationship between two or more people pursuing a common goal, not a separate legal entity, and it is not entered in the commercial register (OR art. 530 and following). It is the default the law applies whenever people cooperate economically without choosing a formal structure: a consortium bidding for a project, joint owners of an asset, founders before they incorporate. Because it has no legal personality, it cannot own assets or contract in its own name, and the partners are personally liable. The moment a venture runs a real commercial business under a common name, it becomes a general partnership and must register. Cooperative Cooperative (Genossenschaft / société coopérative) The cooperative ( Genossenschaft , société coopérative ) is a member-owned body formed to promote or safeguard the economic interests of its members, with an open and variable membership. It needs at least 7 members and has no fixed minimum capital ; members' liability is limited unless the statutes expressly add to it. Governance runs on a one-member-one-vote logic rather than capital share, which makes the cooperative well suited to mutual, agricultural and housing ventures and ill suited to an investor-led business. It carries real weight in Switzerland, where two of the largest retailers are cooperatives, but a foreign founder building a conventional company will almost never choose it. It is worth recognising when local partners propose it. Association Association (Verein / association) The association ( Verein , association ) is the standard non-profit vehicle for clubs, industry bodies, NGOs and member-driven causes (Civil Code, ZGB art. 60 to 79). It is created simply by adopting written statutes and a stated non-commercial purpose, with no minimum capital . An association acquires legal personality as soon as its statutes show the intent to be organised as a body, and it only needs to enter the commercial register if it runs a commercial business or is subject to audit. Its own assets, not the members, answer for its debts. For a business founder it is relevant only as the membership or non-profit layer alongside an operating company, never as the trading entity itself. Foundation Foundation (Stiftung / fondation) The foundation ( Stiftung , fondation ) is an endowment of assets dedicated irrevocably to a defined purpose set in its deed (ZGB art. 80 and following). It is unique among Swiss forms in having no members and no owners : once established, the assets serve the purpose, and a supervisory authority oversees that they do. There is no statutory minimum endowment, but in practice the supervisory authority expects enough capital to pursue the purpose credibly, commonly in the region of CHF 50,000 for a charitable foundation, so treat that as a supervisory expectation rather than a fixed legal figure. Foundations are used for philanthropy and for wealth and succession planning, where they often pair with a family office . Like the association, a foundation is not a trading company and sits alongside, not instead of, an operating GmbH or AG. Branch office Branch office (Zweigniederlassung / succursale) A foreign company that wants a Swiss presence without forming a separate subsidiary can register a branch ( Zweigniederlassung , succursale ). The branch is legally part of the parent, not a distinct legal person, so it has no share capital of its own and the foreign head office remains fully liable for its obligations. It is entered in the Swiss commercial register and must have at least one representative resident in Switzerland who is authorised to act for it. A branch is taxed in Switzerland on the profit attributable to it, while the legal liability stays with the parent. Whether a branch or a full subsidiary is the better market-entry mode turns on liability appetite, tax, the substance you need on the ground and how permanent the Swiss presence will be. We weigh the two routes in detail in our branch vs subsidiary in Switzerland guide. Choosing Which form is right for you, and where? For most cross-border businesses the answer is one of three forms. Choose a GmbH for limited liability at the lowest capital outlay when you run a small to mid-sized operation and are comfortable with quotaholders appearing in the register. Choose an AG when you need shareholder anonymity, plan to raise outside capital or are building a holding structure. Choose a branch when an existing foreign group wants a lighter footprint and will keep liability at the parent. Owner-operators testing an idea may start as a sole proprietorship, and non-profit or estate-planning needs point to an association or foundation. Form and canton work together. Switzerland's 26 cantons set their own tax rates, so the same GmbH or AG faces an effective corporate tax of roughly 11.85% in low-tax cantons like Zug and into the high teens or low twenties elsewhere. The VAT registration threshold of CHF 100,000 in turnover (MWSTG art. 10) applies whatever form you pick. As the business grows you can convert up the ladder, from sole proprietorship to GmbH to AG, under the Merger Act without interrupting legal identity, and the capital requirements calculator helps you size the move. A GmbH takes roughly two to four weeks to form and an AG roughly three to six; statutory notarial and register fees apply, while advisory work is quoted individually. If you want the form mapped to your own tax, liability and substance needs before you commit, our company formation in Switzerland team can scope it. FAQ Frequently asked questions What are the main types of company in Switzerland? Switzerland has ten legal forms: the sole proprietorship, the simple, general and limited partnerships, the GmbH, the AG, the cooperative, the association, the foundation, and the branch office of a foreign parent. For a foreign-owned trading business, the GmbH, the AG and the branch are by far the most common. What is the most common company type in Switzerland? The sole proprietorship is the most common form overall, because it is the simplest way for an individual to trade. Among capital companies the GmbH is the most common, followed by the AG for larger ventures and holdings. What is the difference between a GmbH and an AG? A GmbH needs CHF 20,000 of capital and lists its quotaholders publicly in the commercial register; an AG needs CHF 100,000, with at least CHF 50,000 paid in, and keeps its shareholders anonymous. The AG suits larger ventures and outside investment, while the GmbH suits smaller businesses wanting the lowest capital entry. How much capital do I need to start a company in Switzerland? None for a sole proprietorship or partnership; CHF 20,000 fully paid in for a GmbH (OR art. 773); CHF 100,000 for an AG, of which at least CHF 50,000 or 20%, whichever is higher, must be paid in at formation (OR art. 621, 632). The personal forms carry unlimited liability instead of a capital shield. Can a foreigner own a Swiss company? Yes. There is no nationality bar on ownership, so any nationality or residency may own shares or quotas. The one requirement is that at least one signatory be resident in Switzerland, under OR art. 718.4 for an AG and OR art. 814.3 for a GmbH. Do I need a Swiss-resident director to form a company? Yes. At least one authorised signatory must be resident in Switzerland: OR art. 814.3 for a GmbH and OR art. 718.4 for an AG. That person can be a managing officer, a board member or another authorised representative. Which legal form is best for a holding company? The AG is the usual choice for a holding company, because it suits capital raising, keeps shareholders anonymous and offers the flexibility added by the 2023 company-law reform. It is the standard vehicle for groups expecting outside investment. How many people are needed to start a cooperative? A cooperative (Genossenschaft) needs at least 7 members. It has no fixed minimum capital and runs on one-member-one-vote governance, which suits mutual and self-help ventures rather than investor-led businesses. Does a sole proprietorship need to register in the Commercial Register? Only when annual turnover reaches CHF 100,000 or more; below that, registration is voluntary (HRegV art. 36). A sole proprietorship has no minimum capital, but the owner carries unlimited personal liability for the business. Can I convert a sole proprietorship into a GmbH or AG later? Yes. As the business grows you can convert it under the Merger Act (FusG art. 53 and following), which preserves the legal identity and book value. Many founders start lean and move up the ladder from sole proprietorship to GmbH to AG. What is a branch office and when does it make sense? A branch office (Zweigniederlassung) is an extension of a foreign parent rather than a separate legal entity. It allows faster market entry without forming a new Swiss company and needs a Swiss-resident representative, while the parent remains fully liable and the branch is taxed on its Swiss-attributable profit. How long does it take and what does it cost to form a company? A GmbH takes roughly 2 to 4 weeks and an AG roughly 3 to 6 weeks. Statutory notarial and commercial-register fees apply in defined bands, while advisory fees are quoted individually on a custom-quote basis. Keep reading Related guides and services. AG vs GmbH in Switzerland Branch vs Subsidiary in Switzerland Swiss Share Capital Requirements Swiss Accounting Standards Swiss Audit Requirements Company formation AG formation GmbH formation Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Corporate Tax Rates 2026: Federal & Cantonal Guide URL: https://business-in-switzerland.com/guides/swiss-corporate-tax-rates Description: Swiss corporate tax in 2026: federal 8.5% (7.83% effective) plus cantonal tax, a by-canton comparison table, and what the OECD 15% minimum tax means. Swiss Corporate Tax Rates 2026: Federal & Cantonal Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Corporate tax Swiss corporate tax rates Switzerland taxes company profit at three levels: federal, cantonal and communal. The federal rate is fixed, but the cantonal and communal layers vary widely, so the combined effective rate a company actually pays depends on where it is based. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: July 2026 There is no single "Swiss corporate tax rate". Profit is taxed by the Confederation, the canton and the municipality, and only the federal layer is uniform across the country. The headline number that matters for planning is the combined effective rate , which folds all three together. As of 2026 that figure runs from roughly 11.8% in the lowest cantons to around 20.5% in the highest, with a national average near 14.4%. This guide gives the short answer up top, then explains how the three layers fit together, why the effective federal rate is 7.83% rather than 8.5%, and how the combined rate varies canton by canton. It also covers the OECD Pillar Two minimum tax, the TRAF reform that abolished the old holding regimes, and the participation exemption. It is the pillar of our tax series; the detailed mechanics of withholding, dividends, the participation exemption and treaty relief sit in the linked child guides. Figures are verified for 2026 and re-checked each January, because cantonal rates reprice. By the numbers The figures that anchor this topic. 8.5% FEDERAL CIT · STATUTORY ~11.8% ZUG COMBINED ETR · 2026 ~14.4% SWISS AVERAGE ETR · 2026 EUR 750m PILLAR TWO THRESHOLD · MNE The short answer Swiss corporate tax at a glance. A company resident in Switzerland pays a flat federal direct tax of 8.5% on profit, which works out to about 7.83% on a pre-tax basis, plus a cantonal and communal tax that depends entirely on where it is registered. Put the three layers together and the combined effective rate ranges from roughly 11.8% in the cheapest cantons to about 20.5% in the most expensive, with a Swiss average near 14.4% as of 2026. For a foreign founder the practical takeaway is simple: an AG or a GmbH is taxed identically, and the canton you choose is the single largest lever on the bill. The lowest-tax canton is Zug at around 11.8%; the highest is Bern at around 20.5%. These figures are verified for 2026, but cantonal rates move with each fiscal year, so confirm the current-year number for the exact municipality before relying on it. The structure How the three-layer system works. A Swiss company's profit is taxed three times over, by three different authorities. The Confederation levies a flat federal direct tax that is the same everywhere. The canton levies its own profit tax at a rate it sets itself, and this is where almost all of the variation comes from. The municipality then applies a communal multiplier (the Steuerfuss) to the cantonal base, which is why two companies in the same canton can pay slightly different amounts depending on their town. There are 26 cantons and thousands of municipalities, each with the power to set its own rate. When people quote a single percentage for a location, they almost always mean the combined effective rate: federal plus cantonal plus communal, expressed as a share of pre-tax profit. That is the number to use when comparing cantons, and the one this guide tabulates below. Federal layer Why the effective federal rate is 7.83%, not 8.5%. The federal direct tax on company profit is a flat 8.5% under the Federal Direct Tax Act (DBG). The subtlety is the base: the 8.5% is charged on net profit after tax, because the tax itself is a deductible expense. Recalculated on a pre-tax basis, that tax-on-tax deductibility brings the effective federal rate down to around 7.83% . This is the single most confused fact about Swiss corporate tax, and it is worth getting right before comparing cantons. The federal rate is the same in every canton and does not change by municipality. There is no progressive bracket for companies, so a small startup and a large corporate pay the same rate on each franc of profit. For a Swiss-resident company the base is worldwide profit; for a branch or a non-resident company it is Swiss-source profit only. Three numbers Statutory, effective and combined rates. Three different rates circulate in writing about Swiss tax, and conflating them is the usual source of error. The statutory rate is the headline legal rate before any adjustment: federal 8.5%, with each canton setting its own statutory cantonal figure. The effective rate is the actual burden once the tax-on-tax deduction is applied, which is how 8.5% becomes about 7.83% at federal level. The combined effective rate is the one a founder should plan around. It adds the federal, cantonal and communal layers together and expresses the total as a percentage of pre-tax profit. When this guide says Zug is around 11.8% or Zurich around 19.6%, it means the combined effective rate at the cantonal main city. That basis is held constant throughout the comparison below so the cantons are genuinely like for like. By canton Corporate tax rate by canton: 2026 comparison. The figures below combine the federal, cantonal and communal layers at each canton's main city, lowest to highest. For non-capital municipalities the rate can differ by roughly one percentage point either way. These are 2026 combined effective rates and they move: Ticino cut its rate by more than three points for 2025, and Basel-Land by close to two and a half, so always confirm the current year before relying on a number. Several small-canton figures are shown with "around" because their precise rate was not confirmed against the federal tax administration in this pass. Appenzell Innerrhoden : around 11.5%, the lowest headline rate nationally. Zug : around 11.8%, the best-known low-tax canton for holdings, crypto and headquarters. Nidwalden : around 11.9%, a low-tax small canton that is often overlooked. Lucerne : around 12.3%; Glarus : around 12.4%; Uri : around 12.6%; Obwalden : around 12.7%. Basel-Stadt : around 13.0% to 14.5%, the pharma and chemical cluster, rising for large groups from 2026. Schwyz : around 14.0%, with some municipalities such as Freienbach lower. St. Gallen : around 14.3%; Fribourg, Thurgau, Graubünden, Neuchâtel : roughly 13% to 14%. Geneva : around 14.7%; Vaud : around 14.7%. Aargau : around 15.1%; Solothurn : around 15.3%; Jura : around 16.0%; Valais : around 17.1%. Zurich : around 19.6%, high for an economic powerhouse. Bern : around 20.5%, the highest in the country. One word of caution on blog figures: Geneva is around 14.7%, not the 13.99% that older pages still quote, and Zurich is around 19.6%, not 19.7%. The practical spread is roughly 11.8% to 20.5%, with a Swiss average near 14.4%. Our wider canton comparison sets out the trade-offs beyond the headline rate, including talent, banking and registry speed. Spotlight Zug, Zurich and Geneva. Three cantons account for most foreign-founder enquiries, and they sit at very different points on the scale. Zug , at around 11.8% combined effective, is the lowest of the well-known cantons and the natural home for holdings, crypto ventures and regional headquarters; the detail sits on our Zug page. Geneva , at around 14.7%, raised its rate from 14% partly in response to the global minimum tax, and offers an international and finance ecosystem that is covered on our Geneva page. Zurich , at around 19.6%, is the highest of the three and high relative to its economic weight, but it buys access to the deepest talent pool, the largest banking market and the busiest commercial registry in the country; weigh that on our Zurich page. The point of the spotlight is that the cheapest canton is not automatically the right one. The rate is one input, and for many operating companies proximity to clients, banks and staff outranks a two-point saving on profit tax. Pillar Two The OECD 15% global minimum tax: does it affect you? Because several Swiss cantons tax below 15%, the OECD Pillar Two global minimum tax (the GloBE rules) has a direct effect here. Switzerland implements it through a Federal Council ordinance, backed by a 2023 referendum that approved the enabling constitutional article. A domestic top-up tax (the Qualified Domestic Minimum Top-up Tax) applied from 1 January 2024 , with the income inclusion rule following for fiscal years from 2025. The undertaxed-profits rule has been more cautious in its timing, so we do not state a firm date for it; verify the current position before relying on it. The decision for most readers is straightforward: Pillar Two only bites for large multinational groups with consolidated annual revenue of at least EUR 750 million . If your group is below that threshold, which the vast majority of founders and SMEs are, you continue to pay the ordinary cantonal effective rate and nothing changes. For in-scope groups, if the effective rate in a Swiss canton falls below 15%, a top-up is collected to reach 15% and Switzerland keeps that revenue domestically. This is why some low-tax cantons (Geneva, Vaud, Basel-Stadt) have nudged ordinary rates upward for large groups, while staying attractive for everyone below the threshold. Reform What replaced the holding company tax privilege. Until 2020, Switzerland offered special cantonal regimes that taxed holding, domicile and mixed companies very lightly. International pressure ended them. The Federal Act on Tax Reform and AHV Financing (TRAF, the successor to the rejected STAF proposal) came into force on 1 January 2020 and abolished those regimes for every canton. Any advice that still relies on the old "holding privilege" is obsolete. In their place, TRAF introduced internationally accepted measures available in all 26 cantons: a patent box that can exempt a large share of qualifying intellectual-property income at cantonal level, an optional research-and-development super-deduction, and, in high-tax cantons, a notional interest deduction. A cantonal relief cap limits the cumulative benefit of these instruments to 70% of taxable profit, so the floor is real. Many cantons cut their ordinary rates to stay competitive once the special regimes disappeared, which is part of why the comparison above is as low as it is. Participation relief The participation exemption for holding structures. Switzerland protects against the double taxation of corporate groups through the participation exemption (Beteiligungsabzug). Where a company holds a qualifying stake in another company, dividends received and capital gains on that stake are effectively relieved through a proportional reduction of the tax due. It is the modern substitute for the abolished holding privilege, and it is what makes Switzerland efficient for group structures. The thresholds, in force since the 2020 reform, are ownership of at least 10% of capital, or at least 10% of profit-and-reserve rights, or a holding with a fair market value of at least CHF 1,000,000. For capital gains an additional minimum holding period of one year applies. The mechanics are covered in depth in our participation exemption guide , and the structuring side on our Swiss holding company page. Other charges Other company taxes: capital tax and withholding tax. Profit tax is not the only levy on a Swiss company. Cantons charge an annual capital tax on equity, at low rates that range roughly from 0.001% to 0.5% of equity depending on canton; Zug is around 0.07% effective, and some cantons such as Zurich and Geneva allow the capital tax to be offset against profit tax. Minimum capital and the capital-tax base for an AG or GmbH can be estimated with our capital requirements calculator . Separately, Switzerland levies a federal withholding tax of 35% on dividends a company distributes. It is a security mechanism, not a final cost for compliant taxpayers: Swiss residents reclaim it in full through their tax return, and non-residents reduce it under a double tax treaty, commonly to 0%, 5%, 10% or 15%. The refund and notification mechanics are in our withholding tax guide , the shareholder side in our dividend taxation guide , and the treaty network in our double tax treaties guide . Entity choice AG vs GmbH: same corporate tax, different capital. A common founder misconception is that an AG and a GmbH are taxed differently. They are not. Both are capital companies (Kapitalgesellschaften), and both are subject to exactly the same corporate income tax on profit, at the same federal, cantonal and communal rates. Choosing one form over the other has no effect on the tax rate at all. The real difference is the minimum share capital: an AG requires CHF 100,000 (of which at least CHF 50,000 must be paid in), while a GmbH requires CHF 20,000, fully paid. That, plus governance and the visibility of ownership, is what usually drives the decision, not tax. Our capital requirements calculator sets the two side by side. A related point A note on personal income tax for founders. Corporate tax and personal income tax are separate systems with separate rates. Where corporate profit tax is flat at federal level, cantonal personal income tax is progressive and generally higher at the margin, so the two should never be compared directly. For an owner-manager, the live question is usually how to split remuneration between salary and dividend, since each is taxed on a different path. That trade-off is its own topic and turns on the canton, the dividend privilege for qualifying shareholdings, and social-security contributions. We keep it brief here on purpose; the full treatment is in our personal income tax guide and, for the distribution side, the dividend taxation guide . The close Choosing a canton and getting a tax ruling. The combined effective rate is the single biggest tax variable in choosing where to incorporate, but it is not the only one. A canton two points cheaper on profit tax may be further from your talent pool, your bank or your clients, and those costs can outweigh the saving. The disciplined approach is to shortlist on effective rate, weigh the non-tax factors, and confirm the figure for the specific municipality rather than the cantonal capital. If you are starting from scratch, our guide to starting a business in Switzerland sequences the whole process. Where the treatment of a planned structure is material, a pre-clearance via an advance tax ruling turns the estimate into a binding position from the cantonal administration before you commit. When you are ready to incorporate, our company formation service handles the AG or GmbH setup in the canton you choose. From here, the child guides go deeper on withholding, dividends, the participation exemption and the treaty network; for a cross-border structure, start with the canton choice and the treaty position together. FAQ Frequently asked questions What is the corporate tax rate in Switzerland? Federal direct tax is 8.5% statutory (about 7.83% effective) plus cantonal and communal tax. The combined effective rate is about 11.8% to 20.5% depending on canton, with a Swiss average of about 14.4% as of 2026. Which Swiss canton has the lowest corporate tax? Zug, at about 11.8% combined effective as of 2026. Appenzell Innerrhoden and Nidwalden are comparable or marginally lower at the headline level. Because rates reprice each year and vary by municipality, confirm the ranking for the current year. Why is the effective federal rate 7.83% and not 8.5%? The federal direct tax of 8.5% is charged on net profit after tax, because the tax itself is a deductible expense. Recalculated on a pre-tax basis, that tax-on-tax deductibility brings the effective burden down to about 7.83%. How is Swiss corporate tax calculated? Three layers (federal, cantonal and communal) apply to the same net profit. The federal layer is fixed everywhere, while the canton and commune of registration drive most of the variation in the combined effective rate. Does the OECD 15% minimum tax affect my company? Only if your group has consolidated annual revenue of at least EUR 750 million. Smaller companies keep their ordinary cantonal rate. For in-scope groups, Switzerland tops up the rate to 15% where a canton taxes below it, and several low-tax cantons have nudged rates up for those groups. What is the corporate tax rate in Zug, Zurich and Geneva? Roughly Zug 11.8%, Geneva 14.7% and Zurich 19.6% combined effective as of 2026. Each figure is the combined federal, cantonal and communal rate at the cantonal main city and can differ by about one point in other municipalities. Is there still a Swiss holding company tax privilege? No. The special cantonal holding, domicile and mixed company regimes were abolished by the TRAF reform with effect from 1 January 2020. Holdings now rely on the ordinary rules together with the participation exemption and the patent box. What is the participation exemption? Relief on qualifying dividends and capital gains where the holding is at least 10% of capital, at least 10% of profit-and-reserve rights, or has a fair market value of at least CHF 1,000,000. For capital gains, a minimum holding period of one year also applies. What other company taxes apply? A cantonal capital tax on company equity at low rates, and a federal withholding tax of 35% on dividends that is reclaimed by residents and reduced by treaty for non-residents. Operating companies also register for VAT at 8.1% once worldwide taxable turnover reaches CHF 100,000. Is Switzerland a tax haven for companies? No. After the TRAF reform and OECD Pillar Two, special low-tax regimes are gone. Rates are ordinary, transparent and competitive rather than nil, and large groups face a 15% minimum. How much tax does a GmbH or AG pay? The same. Both are capital companies taxed identically on profit at the federal, cantonal and communal rates. Only the minimum share capital differs: AG CHF 100,000 and GmbH CHF 20,000. What is the capital tax in Switzerland? A cantonal-only tax on company equity, roughly 0.001% to 0.5% depending on canton. Some cantons such as Zurich and Geneva allow it to be offset against corporate income tax. Keep reading Related guides and services. Swiss Withholding Tax (Verrechnungssteuer) Swiss Participation Exemption Dividend Taxation in Switzerland Crypto Tax in Switzerland Tax ruling Swiss cantons Holding company Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Crypto Tax in Switzerland: How It Works (2027) URL: https://business-in-switzerland.com/guides/swiss-crypto-tax Description: How Switzerland taxes crypto: private capital gains are generally exempt, but wealth tax, staking income and the professional-trader test still apply. Crypto Tax in Switzerland: How It Works (2027) STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Crypto tax Crypto Tax in Switzerland: How Digital Assets Are Taxed Private capital gains on cryptocurrency are generally exempt under DBG art. 16.3, which is why Switzerland reads as crypto-friendly. The conditions are wealth tax on what you hold, income tax on what crypto pays you, and reclassification as a professional trader. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: January 2027 Switzerland has a reputation as a crypto-friendly jurisdiction, anchored by the "Crypto Valley" cluster in the canton of Zug. That reputation rests less on special tax breaks and more on a clear, predictable application of existing tax law. The Federal Tax Administration (ESTV) treats cryptocurrencies as assets, so they slot into the same framework that governs bank balances, securities and other movable property rather than into a bespoke crypto regime. For a private individual the headline is favourable: tokens are declared as wealth and taxed at their year-end value, while a gain on selling them is generally tax-free. The picture changes once the activity starts to look commercial, once tokens generate rewards, or once they sit on a company balance sheet. This guide sets out how each situation is taxed as of 2026 and 2027, where the lines are drawn, and which decisions matter most for a foreign founder weighing whether to hold personally or through a Swiss company. By the numbers The figures that anchor this topic. Tax-free Private capital gains · DBG art. 16.3 Annual Wealth tax on year-end holdings Income Mining and staking rewards 11.85% Zug effective corporate rate · 2026 The short answer Is crypto tax-free in Switzerland? Partly. Capital gains on privately held cryptocurrency are generally exempt from income tax under DBG art. 16.3, the same exemption that makes a profit on private shares tax-free. That is the genuine attraction. It is not a blanket exemption, and three conditions sit underneath it. First, you still pay an annual cantonal wealth tax on the tokens you hold. Second, anything crypto pays you, such as mining or staking rewards, an airdrop or a crypto salary, is taxable income at the moment you receive it. Third, if the tax authority classifies you as a professional or commercial trader, the capital-gains exemption falls away and your gains become taxable income. A buy-and-hold private investor keeps the exemption; an active, leveraged, high-volume trader risks losing it. The spine The three ways crypto is actually taxed Strip away the detail and Swiss crypto taxation reduces to three exposures, in roughly this order of likelihood: Wealth tax on what you hold. Every canton levies an annual wealth tax. Privately held crypto is part of your taxable net wealth, valued at its 31 December price. This is the one almost every holder pays. Income tax on what crypto pays you. New tokens that flow to you as a reward, an airdrop or a salary are income at their franc value on receipt. This is the trap that catches stakers and miners who assume everything crypto is tax-free. Reclassification as a professional trader. If your trading looks like a business, the gains stop being exempt capital gains and become taxable self-employment income, with social-security contributions attached. The rest of this guide takes each exposure in turn, then covers token classification, how to declare holdings, the company-level path, the cantonal picture and the reporting and VAT questions. Wealth tax Wealth tax on your crypto holdings Cantons and municipalities levy an annual wealth tax on a person's net worth. There is no federal wealth tax, but every canton imposes its own, with progressive rates that broadly run from around 0.1% to 1.0% of net assets depending on the canton and the size of the estate. Privately held cryptocurrency is part of that taxable net wealth. Tokens are valued at their market price on 31 December of the tax year. To keep this consistent, the ESTV publishes an official year-end price list (the Kursliste) giving conversion rates in Swiss francs for the major cryptocurrencies. Where a token is not on the list, the taxpayer uses the year-end price from a representative exchange, or the original cost where no reliable market price exists. The result is added to the securities and assets schedule alongside bank and securities holdings. Per-canton wealth rates vary widely and are adjusted over time, so our guide to Swiss wealth tax covers the cantonal rate structure, and you should confirm the current rate with the cantonal tax office rather than assume a single figure. Capital gains When private trading stays tax-free, and when it doesn't The exemption in DBG art. 16.3 covers capital gains on private movable wealth, and cryptocurrency held by a private investor falls within it. Buy a token, hold it, sell it later at a higher price, and the gain is in principle not taxed. The mirror image also holds: a capital loss on private crypto cannot be deducted from your other income. The exemption has an outer limit. It applies only while you are treated as a private investor managing your own wealth. Frequent, leveraged or systematic trading can tip you over the line into professional-trader status, at which point the gains become taxable. Our guide to Swiss capital gains tax sets out the exemption and its boundaries across asset classes; the next section explains the test that decides which side of the line you sit on. The test The professional-trader test: SFTA Circular No. 36 Switzerland does not have a crypto-specific professional-trader statute. Instead, the authorities apply the criteria developed for securities dealing, set out in SFTA Circular No. 36, to crypto by analogy. It is important to read them that way: these are securities-law safe-harbour conditions applied to digital assets, not black-letter crypto law. A taxpayer who meets all of the conditions is, as a rule, treated as a private investor: Tokens have been held for at least six months before sale. Total transaction volume in a year is less than roughly five times the portfolio value at the start of the year. Realised gains make up less than around 50% of net taxable income. Positions are not financed with debt or leverage. Derivatives are used only to hedge existing positions, not to speculate. These thresholds are guidance, and the cantonal authority ultimately weighs the facts in the round. Where the conditions are not met, the gains can be reclassified as self-employment income, subject to ordinary income tax and to AHV/AVS social-security contributions, with the offset that related losses then become deductible. Anyone trading actively, with leverage, or in large volumes should consider an advance ruling rather than assume the exemption survives. Income events Income events: mining, staking, lending, airdrops and salary The capital-gains exemption covers appreciation of an asset you already hold. It does not cover new tokens that accrue to you. Those are income, valued in Swiss francs at the market price on the date of receipt and added to that year's taxable income. Once received, the tokens then enter your wealth and are taxed at year-end value going forward. Mining and staking rewards are taxable income on receipt. Where mining is carried out on a business-like scale it can be treated as self-employment, with the associated deductions and social-security treatment. Some cantons apply informal turnover thresholds in deciding when activity becomes self-employment; these are cantonal practice rather than statute, so treat any figure as illustrative and confirm it locally. Lending and DeFi yield, airdrops and hard-fork tokens are generally income at fair-market value when you receive or gain control of them. Treatment can vary where a token has no liquid market and therefore no reliable value at receipt. Salary paid in crypto is earned employment income at its franc value on the payment date, and it triggers AHV/AVS contributions and payroll obligations exactly as cash salary does. For employers paying staff or contractors in tokens, the wage statement must show the franc value and contributions are calculated on it. Our accounting and payroll support handles the valuation and reporting where crypto compensation is involved. Classification Token types and how classification changes treatment Not every token is taxed identically. The ESTV working paper on cryptocurrencies distinguishes three broad categories, and the category can affect income, withholding and stamp-duty treatment: Payment tokens such as Bitcoin and Ether have no issuer obligation behind them. They are the classic case: wealth tax on holdings, tax-free private gains, income on rewards. Utility tokens grant access to a digital service or platform. Their tax treatment generally follows the payment-token pattern, though the underlying contractual right can matter. Asset or security tokens represent a claim against the issuer, such as a debt or an equity-like participation. These look more like securities, and depending on their structure they can carry withholding-tax or securities-transfer-stamp consequences that payment tokens do not. Because asset-backed structures can pull in rules that pure payment tokens escape, the classification of a new token is worth settling, ideally through a ruling, before issuance or large-scale dealing. Filing How to declare crypto on a Swiss tax return Crypto is declared on the same securities and assets schedule as the rest of your portfolio. The mechanics are straightforward once you keep good records: List each holding at its 31 December value , per token, using the official ESTV year-end rate where one is published and a representative exchange price otherwise. Report income receipts separately , mining, staking, airdrop and salary, at their franc value on the date received. Keep your transaction records , including wallet and exchange statements, acquisition dates, quantities and costs. Filing deadlines are canton-dependent, and an extension can usually be requested. It is worth keeping clear what the record-retention duty actually requires. The statutory ten-year retention of business books applies to companies, not to private taxpayers; the practical case for a private holder keeping several years of transaction history is evidential rather than statutory. Where the position is large or the trader-status question is live, an advance ruling locks in treatment before a disposal. At company level Crypto inside a Swiss company (AG or GmbH) The private investor's privileges do not extend to companies. Cryptocurrency held by a Swiss AG or GmbH is a business asset, recorded on the balance sheet and taxed under ordinary corporate income and capital tax. Realised and accounting gains flow through the company's profit and are taxed at the canton's effective corporate rate; there is no business-asset equivalent of the private DBG art. 16.3 exemption. Crypto on the balance sheet also feeds into the cantonal capital tax on equity. Switzerland's "DLT Act" gave the sector a clearer legal footing, introducing ledger-based securities under OR art. 973d to 973i and bankruptcy segregation of custodied crypto-assets under SchKG art. 242a to 242b, so client tokens held in custody can be separated from a custodian's estate. The decision between holding personally and operating through a company is therefore a real trade-off: a personal HODL keeps the capital-gains exemption but offers no operating vehicle, banking relationship or hiring base, whereas a company pays corporate tax but provides substance and structure. For a token treasury, an issuance vehicle or an operating business, our set up a Swiss crypto company page covers formation and licensing, while larger holders can hold crypto inside a holding structure or manage it through a family-office arrangement. Cantons Which canton is best for crypto: Zug and the low-wealth-tax cantons There is no special crypto tax rate anywhere in Switzerland, so the cantonal question is really about the ordinary corporate rate, the wealth-tax burden and the surrounding ecosystem. Zug, the Crypto Valley canton , is the headline: an effective corporate rate of around 11.85% in 2026, a pragmatic administration that engaged early with token projects, a dense network of foundations and service providers, and the distinction of having accepted tax payments in Bitcoin and Ether, subject to the cantonal arrangements in force. The draw is the combination of a low ordinary rate, legal certainty and proximity to talent, not a crypto-specific break. Zug is not the only option. Nidwalden, Obwalden and Schwyz also sit at the low end of the wealth-tax scale, while higher-tax cantons such as Geneva and Vaud cost more on both corporate and wealth tax. Because per-canton wealth rates are not uniform and move over time, treat any ranking as directional and confirm the current rate with the relevant cantonal tax office before committing. For relocating founders, the canton choice also interacts with residence and lump-sum arrangements, which our guide to relocating to Switzerland sets out. Transparency and VAT Reporting, transparency and VAT Two questions tend to close out a crypto-tax review: will Switzerland share my data, and is crypto subject to VAT. On transparency, Switzerland already operates the automatic exchange of financial-account information (AEOI) and is moving to adopt the OECD Crypto-Asset Reporting Framework (CARF), which extends automatic exchange to crypto-asset data held through reporting service providers. The in-force timing is expected around 2026 to 2027, but it has been subject to legislative steps, so treat it as under implementation rather than a settled date and check the current status before relying on it. On VAT, the exchange of payment tokens is generally treated as VAT-exempt because the tokens function as a means of payment, so a straightforward buy or sell of Bitcoin or Ether does not carry Swiss VAT, although services around crypto can. Our Swiss VAT guide covers registration and the wider VAT framework. FAQ Frequently asked questions Is crypto tax-free in Switzerland? Partly. Private capital gains on crypto are generally exempt under DBG art. 16.3, but you still pay annual wealth tax on holdings, income tax on crypto income such as staking and mining, and you lose the exemption if you are reclassified as a professional trader. Do I pay wealth tax on my crypto in Switzerland? Yes. Wealth tax is cantonal and municipal only, with no federal wealth tax. Privately held crypto is valued at its 31 December year-end price, using the official ESTV price list where available, and declared in your securities and assets schedule. Cantonal rates broadly run from around 0.1% to 1.0% of net wealth. When does Switzerland treat me as a professional crypto trader? When you fall outside the SFTA Circular No. 36 safe-harbour criteria on holding period, transaction volume, gains-to-income ratio, debt financing and derivatives use. Those are securities rules applied to crypto by analogy. If your activity looks systematic and business-like, gains become self-employment income subject to income tax and AHV/AVS contributions. Are staking and mining rewards taxed in Switzerland? Yes, as income at fair-market value on the date you receive them, added to that year’s taxable income. Mining or staking carried out on a business-like scale can be treated as self-employment in some cantons under informal, facts-based thresholds. Once received, the tokens then enter your taxable wealth. Are airdrops and hard-fork tokens taxable? Generally yes. Tokens received without a corresponding purchase, such as airdrops or coins from a chain fork, are usually treated as income at their Swiss-franc market value when you receive or gain control of them, after which they enter your wealth-tax base. Treatment can vary where there is no liquid market and therefore no reliable value. Is salary paid in crypto taxed in Switzerland? Yes. Being paid in cryptocurrency does not change the character of the payment. Crypto salary is earned employment income at its franc value on the payment date and triggers AHV/AVS social contributions and payroll obligations exactly like cash salary. How are cryptocurrencies classified for Swiss tax purposes? The ESTV working paper distinguishes payment tokens such as Bitcoin and Ether, utility tokens granting access to a service, and asset or security tokens representing a claim against an issuer. The category can change income, withholding and stamp-duty treatment, with asset tokens most likely to attract securities-style consequences. How do I declare crypto on a Swiss tax return? List each holding in the securities and assets schedule at its 31 December value, using the official ESTV price list where one is published, and report any income receipts separately at their franc value on the date received. Keep your transaction history and exchange statements. Filing deadlines are canton-dependent. How is crypto taxed inside a Swiss company (AG or GmbH)? Crypto held by a Swiss company is a business asset on the balance sheet, taxed under ordinary corporate income and capital tax, with gains forming part of taxable profit and no private capital-gains exemption equivalent. The DLT Act applies, with ledger-based securities under OR art. 973d to 973i and bankruptcy segregation under SchKG art. 242a to 242b. In a low-tax canton the burden can be modest; Zug is around 11.85% effective in 2026. Which canton is best for crypto tax? There is no special crypto rate anywhere, so it comes down to the ordinary corporate and wealth-tax picture. Zug, the Crypto Valley canton, is the headline with an effective corporate rate of around 11.85% in 2026, low wealth tax and a record of accepting tax payment in Bitcoin and Ether. Nidwalden, Obwalden and Schwyz also have low wealth tax. Confirm current rates with the cantonal tax office. Will Switzerland report my crypto holdings to my home country? Switzerland already operates automatic exchange of financial-account information and is moving to adopt the OECD Crypto-Asset Reporting Framework (CARF) for crypto-asset data. The in-force timing is expected around 2026 to 2027, but it has been subject to legislative steps, so treat it as under implementation rather than a settled date. Is crypto exchange subject to Swiss VAT? The exchange of payment tokens is generally VAT-exempt because the tokens function as a means of payment, so a straightforward buy or sell of Bitcoin or Ether does not carry Swiss VAT. Services provided around crypto can still fall within the VAT rules depending on what is supplied. Keep reading Related guides and services. Capital Gains Tax in Switzerland Wealth Tax in Switzerland 2026 Crypto company Zug Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Dividend Tax in Switzerland: A Shareholder’s Guide URL: https://business-in-switzerland.com/guides/swiss-dividend-taxation Description: How dividends are taxed in Switzerland: 35% withholding tax, resident refunds, partial taxation, treaty relief for non-residents, participation exemption. Dividend Tax in Switzerland: A Shareholder’s Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Dividends Dividend Taxation in Switzerland: A Shareholder’s Guide A Swiss dividend is taxed twice in economic terms: once as company profit, then again in the shareholder’s hands. The 35% withheld at source is a refundable security tax, not a final cost, and the real burden depends on who the shareholder is and how large the holding is. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: September 2026 How much is dividend tax in Switzerland? The headline figure most people meet first is 35% , but that number is widely misunderstood. It is a federal withholding tax deducted the moment a dividend is paid, and for a Swiss resident it is fully refundable. The dividend itself is then taxed as personal income, and that income tax, softened by partial taxation for qualifying holders, is the figure that actually matters. Treating the 35% as the cost is the single most common error on this topic. Profits distributed by a Swiss AG or GmbH come out of money that has already borne corporate income tax, so when they reach the shareholder they are taxed a second time. Tax theory calls this economic double taxation , and Switzerland grants relief from it in layers that depend on the reader: a private investor reclaiming the withholding, an owner-manager weighing salary against dividends and partial taxation, or a non-resident shareholder claiming treaty relief. This guide takes each of those readers in turn. By the numbers The figures that anchor this topic. 35% Federal withholding · VStG art. 13 70% Federal taxable share · qualifying dividend ≥10% Qualifying participation threshold 0 – 15% Typical treaty residual rate The two levels How dividends are taxed in Switzerland: the two levels. A Swiss company pays corporate income tax on its profit. What is left after that tax is the pool from which dividends are declared. When the company distributes part of that after-tax pool to a shareholder, the shareholder is taxed again, this time on the dividend as personal income. The same economic profit therefore meets the tax authority twice: once at the company level and once at the shareholder level. That is economic double taxation , and it is the reason every relief described below exists. This is not a Swiss quirk; it is the standard consequence of taxing companies and individuals as separate persons. The policy question each system faces is how much relief to grant so that entrepreneurs are not discouraged from incorporating. Switzerland answers that question differently for three kinds of shareholder, so the right place to start is to identify which one you are. A private investor who owns shares as personal wealth wants to understand the 35% withholding and how to reclaim it. An owner-manager who runs and owns the company wants partial taxation and the salary-versus-dividend trade-off. A non-resident shareholder wants treaty relief, the refund forms, and the residual rate that applies to their country. Withholding The 35% withholding tax (Verrechnungssteuer) explained. When a Swiss company distributes a dividend, it must withhold 35% at source and pay it to the Federal Tax Administration (Verrechnungssteuer, VStG art. 13). The shareholder receives only 65% in cash. The crucial point is that this is not a final tax. It is a security or anticipatory tax: a deposit the Confederation holds to make sure the income is actually declared. For a resident who reports the dividend correctly, the economic cost of the withholding is zero, because the full 35% comes back. The anticipatory tax exists to combat evasion. By collecting tax at the point of distribution, the Confederation gives every shareholder a strong incentive to declare the income, since declaring is the only way to recover the deduction. It applies to dividends, to interest on bonds and bank deposits, and to lottery winnings. Notably, it does not apply to royalties: Switzerland levies no withholding tax on royalty payments, which distinguishes it from many other European states and is a point worth knowing when comparing jurisdictions. Resident refund How Swiss residents reclaim the full 35%. For a Swiss-resident shareholder the refund mechanic is simple: declare the dividend as income on the annual tax return, and the 35% withholding is credited against your tax bill or refunded outright. The deduction is a cash-flow timing matter, not a tax cost. The 35% leaves your account the moment the dividend is paid, and it returns once the return is assessed, but over the cycle a properly declared dividend bears no withholding burden at all. The flip side is that the safeguard has teeth. If a resident fails to declare the dividend, the right to a refund can be forfeited, and the 35% becomes a permanent cost on top of any income tax later assessed. That is the whole purpose of the anticipatory tax: it makes non-declaration expensive. The lesson is straightforward, declare every distribution in the year it falls due, and the withholding is simply money that passes through your hands. Income vs gains Dividends as income vs tax-free capital gains. Switzerland draws a sharp line between income and capital gains for private individuals. A private capital gain on movable wealth, the profit you make when you sell shares for more than you paid, is generally tax-free (DBG art. 16 para. 3). A dividend , by contrast, is taxed as income. Two shareholders can extract value from the same company, one by selling shares at a gain and one by receiving a dividend, and face very different tax outcomes. The distinction turns on whether the wealth is held privately or as business assets, and on not crossing into professional securities-dealing territory. This contrast is the one most commentary leads with, but it is best understood as context rather than the headline: it explains why dividends attract relief in the first place, and it sets up the salary-versus-dividend question that owner-managers face, where the choice is effectively between taxed income today and value that may be realised differently later. Private holders Partial taxation for qualified participations (Teilbesteuerung). For an individual holding shares as private wealth, the dividend is ordinary taxable income, but Switzerland softens the double burden through partial taxation (Teilbesteuerung). The relief applies to dividends from a qualified participation , defined as a holding of at least 10% of the company’s share capital. Holdings of a spouse and of children are aggregated when testing the 10% threshold, so family ownership counts together. A holding below 10% gets no partial relief and the dividend is fully taxable as income. At federal level, since the STAF / TRAF reform took effect on 1 January 2020, only 70% of a qualifying dividend is taxable and 30% is exempt (DBG art. 20 para. 1bis), under the partial-income method that the reform made mandatory. The cantons grant their own partial relief, with a taxable share that the law floors at a minimum of 50% and that commonly sits in a band of roughly 50% to 80% as of 2026. Because the exact cantonal percentage drives the effective rate, the canton of residence matters: a low-tax canton such as Zug can leave materially less tax on the same dividend than a high-tax one. A worked illustration makes it concrete. Take a CHF 100,000 qualifying dividend. At distribution, 35% (CHF 35,000) is withheld and the holder receives CHF 65,000 in cash. Because the holding exceeds 10%, partial taxation applies and only CHF 70,000 is added to federal taxable income, with the cantonal taxable share set by the canton. When the holder files their return, the CHF 35,000 withholding is credited back, so the only lasting tax is the income tax on the partially-taxed CHF 70,000. Owner-managers Salary vs dividends for owner-managers. An owner who both runs and owns the company can usually choose how to extract value: as salary, as dividend, or as a mix. The two routes are taxed very differently. A salary is deductible at company level, so it is not caught by corporate income tax, but it bears the employee and employer shares of AHV and other social charges , and it builds pension and benefit entitlements. A dividend avoids social charges entirely, but it is paid out of after-tax profit and so carries the economic double taxation that partial taxation only softens. There is no single right answer, because the optimum moves with the canton, the income level, the owner’s AHV contribution record, and their pension goals. A higher salary builds retirement entitlement and can fund occupational-pension buy-ins; a higher dividend can be cheaper in pure tax terms once social charges are weighed in. Because the variables interact, this is a case-by-case modelling exercise rather than a rule of thumb. An advance tax ruling can confirm the treatment of a chosen split with the cantonal authority before it is implemented, and ongoing accounting support keeps the salary, dividend and social-charge figures aligned year to year. Non-residents Non-resident shareholders: claiming treaty relief. A non-resident shareholder also faces the 35% withholding at source, but cannot reclaim it through a Swiss tax return, because they file no Swiss return on the dividend. Relief instead comes through Switzerland’s double tax treaty network , which spans more than 100 agreements. A treaty reduces the Swiss withholding to a residual rate , and the shareholder reclaims the difference between 35% and that residual from the Federal Tax Administration. Typical residual rates are 0%, 5%, 10% or 15% , depending on the treaty and the size of the holding. A common pattern under the Switzerland-United States treaty is 5% on substantial intercompany holdings and 15% on portfolio holdings. For qualifying intercompany dividends between a Swiss subsidiary and an EU parent, the Switzerland-EU agreement can reduce the withholding to an effective 0% . To claim the refund, the shareholder files a country-specific FTA reclaim form, supported by a certificate of residence from their home tax authority, and must be the beneficial owner of the dividend rather than a conduit. The deadline is firm: the claim must be made within three years of the end of the calendar year in which the dividend fell due (VStG art. 32). As a worked example, a US-resident portfolio holder bears the 35% at source, and where the treaty residual is 15% reclaims the 20-point difference, recovering CHF 20 on every CHF 100 of gross dividend. Corporate holders The participation exemption for companies (Beteiligungsabzug). When the shareholder is itself a company, a different and far more generous relief applies: the participation exemption (Beteiligungsabzug, DBG art. 69-70). Rather than taxing the dividend and then giving relief, the system reduces the recipient company’s tax in proportion to the share of its net profit that comes from qualifying participations. The reduction is computed as the ratio of net participation income to total net profit, which in practice frees a qualifying intercompany dividend from corporate income tax almost entirely. A participation qualifies if the company holds at least 10% of the share capital, or at least 10% of the profit-and-reserve rights, or a stake with a fair market value of at least CHF 1,000,000 . Capital gains on qualifying participations benefit too, provided the stake has been held for at least one year. This relief, harmonised at these thresholds by the STAF reform from 1 January 2020, is distinct from the partial taxation that individuals receive: it is computed at company level and can reduce the tax to nearly nothing. For a foreign parent that holds a Swiss subsidiary, the exemption is the engine that lets dividends flow up through a group with little leakage at each tier. It is why a Swiss holding company is an efficient place to sit operating subsidiaries, and it sets up the notification procedure described next, which removes the cash drag that the 35% withholding would otherwise create inside the group. Groups The notification procedure (Meldeverfahren) for groups. Deducting 35% and reclaiming it later ties up real cash, which is awkward inside a group where the dividend ultimately bears little or no tax anyway. For qualifying intra-group dividends, Switzerland allows a notification procedure (Meldeverfahren) in place of the cash deduction and refund. You can notify rather than withhold where the recipient holds a direct participation of at least 20% . Instead of remitting 35% and waiting for it to come back, the paying company reports the dividend on the prescribed form, and where the conditions are met no cash withholding flows at all. For domestic groups the notification certificate now runs for five years , extended from three with effect from 1 January 2023, so a single approval can cover a run of distributions. For cross-border cases the procedure operates alongside the applicable treaty residual rate. The benefit is purely cash-flow, but inside a group it is significant, and it depends on filing the right forms within the deadline; missing the formal steps can turn an avoidable deduction into a real one plus late-payment interest. Capital reserves Tax-free distributions: capital contribution reserves (KER). Not every payment to a shareholder is a taxable dividend. Under the capital contribution principle (Kapitaleinlageprinzip), in force since 1 January 2011, a repayment of formally booked capital contribution reserves (Kapitaleinlagereserven, KER, also called agio or share premium), and a repayment of share capital itself, is exempt from both withholding tax and income tax (VStG art. 5 para. 1bis). Economically the shareholder is getting back capital they paid in, not a share of profit, so it is not treated as income. What counts as a KER is money contributed by shareholders, such as share premium paid in above nominal capital, that has been booked in a separate reserve and recognised as a capital contribution reserve by the Federal Tax Administration. Recognition is not automatic: the reserve must be declared and accepted, and ordering rules govern when KER can be returned ahead of retained earnings. Done correctly, KER is a clean route to repatriate capital without the 35% withholding , which is high-value for foreign owners who funded a Swiss company generously at incorporation. A distribution from retained earnings, by contrast, is a fully taxable dividend bearing the full 35%. Putting it together Worked example and how we can help. Trace a single franc of profit through the system. A Swiss GmbH owned 100% by one individual earns profit and pays corporate income tax on it. It then declares a CHF 100,000 dividend from the after-tax remainder. At distribution, 35% (CHF 35,000) is withheld under VStG art. 13 and the owner receives CHF 65,000 in cash. Because the holding exceeds 10%, partial taxation applies: only CHF 70,000 enters federal taxable income (DBG art. 20 para. 1bis), with the cantonal taxable share set by the canton. On filing, the CHF 35,000 withholding is credited back, leaving the income tax on the partially-taxed dividend as the only lasting cost. Now insert a holding company between the owner and the GmbH. The dividend from the GmbH up to the holding is shielded by the participation exemption (DBG art. 69-70), so it arrives almost untaxed at the holding tier; tax bites only when the holding finally distributes to the individual. That single structural change, not the headline 35%, is usually the decisive factor in the effective burden, which is why ownership structure is where planning concentrates. A specialist earns their fee on exactly these decisions: modelling salary versus dividends, securing an advance ruling, designing the holding structure, and handling the declaration and refund paperwork. We work on a custom-quote basis. Tell us the canton, the shareholder type, and the holding size, and we will scope it; the quickest route is to talk to a specialist , or to confirm a planned distribution in advance with a tax ruling . FAQ Frequently asked questions How much tax do I pay on dividends in Switzerland? 35% is withheld upfront as a security tax (VStG art. 13), but that is not the final cost. The dividend is then taxed as income; the net effective burden depends on partial taxation for qualified holders and on your canton. Is the 35% Swiss withholding tax refundable? Yes. Residents who declare the dividend receive a full refund; non-residents recover part or all of it via the applicable double tax treaty. How do I reclaim Swiss dividend withholding tax? Residents declare the dividend as income on the annual tax return. Non-residents file a country-specific Federal Tax Administration refund form within three years of the end of the calendar year the dividend fell due (VStG art. 32). Are dividends taxed as income in Switzerland? Yes. Unlike private capital gains on movable wealth, which are tax-free under DBG art. 16.3, dividends are taxed as income. What is partial taxation of dividends? For qualified participations of at least 10%, only 70% of the dividend is taxable at federal level and 50 to 80% at cantonal level, under the partial-income method mandatory since the STAF reform of 2020. What counts as a qualified participation? A holding of at least 10% of a company’s share capital. Holdings of a spouse and children are aggregated for the threshold. Can a foreign shareholder reclaim Swiss dividend tax? Yes, via the relevant double tax treaty. Typical residual rates are 0, 5, 10 or 15% depending on the size of the holding and the residence country. What is the participation exemption for companies? The Beteiligungsabzug gives near-tax-free intercompany dividends for corporate shareholders holding at least 10% of capital, at least 10% of profit and reserve rights, or a participation with a fair-market value of at least CHF 1,000,000 (DBG art. 69 to 70). Is it better to take salary or dividends in Switzerland? Dividends avoid AHV and social charges but face economic double taxation softened by partial taxation; salary is deductible at company level but bears social charges and builds pension entitlement. The optimum is case-by-case. Are repayments of capital contribution reserves taxed? No. Repayments of share capital and booked capital-contribution reserves are withholding-tax-free under the capital contribution principle (VStG art. 5.1bis, in force since 2011). How long do I have to claim a withholding-tax refund? Three years from the end of the calendar year the dividend fell due (VStG art. 32). Are Pillar 3a dividends taxed? No. Dividends inside a Pillar 3a account are tax-free and are not declared. Keep reading Related guides and services. Swiss Withholding Tax (Verrechnungssteuer) Swiss Double Tax Treaties Swiss Participation Exemption Transfer Pricing in Switzerland Holding company Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Double Tax Treaties: How the DTA Network Works URL: https://business-in-switzerland.com/guides/swiss-double-tax-treaties Description: How Switzerland Swiss Double Tax Treaties: How the DTA Network Works STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Double tax treaties Swiss double tax treaties: how the DTA network works for foreign owners Switzerland runs one of the densest treaty networks in the world. For a foreign owner, a double taxation agreement decides whether a Swiss dividend leaves the country taxed at 35 percent or at a fraction of that, and exactly how the difference is reclaimed. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: August 2026 A double taxation agreement (DTA), also called a tax treaty or in German a Doppelbesteuerungsabkommen , is a bilateral contract between two states that decides which of them may tax a given item of cross-border income. Switzerland has concluded more than 100 such income-tax agreements , most of them built on the OECD Model Convention. The State Secretariat for International Finance (SIF) keeps the canonical list of treaties in force, and the Federal Tax Administration (ESTV) administers the relief that flows from them. For an investor or group using a Swiss company, the treaties matter for two everyday reasons. They allocate taxing rights so that the same profit is not taxed in full in two countries, and they reduce the Swiss withholding tax that would otherwise apply to dividends and certain interest leaving the country. This guide explains how the network is structured, the two methods of relief, the rates a treaty can deliver, and the step-by-step procedure to reclaim the 35 percent Swiss withholding tax. By the numbers The figures that anchor this topic. 100+ Income-tax DTAs in force · SIF registry 35% Domestic withholding tax · VStG art. 13 0 / 5 / 10 / 15% Typical treaty dividend rates 3 years Deadline to file a refund claim The starting point What a double tax treaty is, and why the network matters. Double taxation happens when two countries tax the same income under their own rules: the country where the income arises (the source state) and the country where the recipient is resident (the residence state). A double taxation agreement prevents that overlap. It assigns the primary right to tax each category of income to one state, limits what the other may take, and sets out a method for the residence state to relieve any remaining double charge. Switzerland has built one of the largest networks in the world: over 100 income-tax DTAs in force , alongside a smaller set of around eight separate estate and inheritance-tax treaties. Because most agreements follow the OECD Model Convention, they share a common architecture: definitions of residence and permanent establishment, distributive rules for each income type, a method article, and procedural articles on mutual agreement and exchange of information. The network is aimed squarely at foreign owners and investors with cross-border flows: a UK-resident shareholder of a Swiss company, a group routing dividends through Switzerland, or a non-resident receiving Swiss interest or royalties. Exemption vs credit How a treaty stops you being taxed twice. Every treaty relieves double taxation in one of two ways, and Switzerland uses both depending on the income. The default for treaty income is exemption with progression : foreign income that the treaty allocates to the other state is exempt in Switzerland, but it is still counted when setting the tax rate that applies to the taxpayer's remaining Swiss income. The income escapes Swiss tax; it does not escape the progression calculation. The second method is the credit method . Where a foreign state has levied an irrecoverable withholding tax on investment income such as dividends, interest or royalties, Switzerland credits that foreign tax against the Swiss tax due on the same income, up to the Swiss amount. Which method applies turns on the specific treaty article and the type of income, so the routing question (exemption or credit) should be settled per income stream rather than assumed. Where the amounts are material, an advance tax ruling can confirm the treatment before money moves. The 35 percent Swiss withholding tax on dividends, interest and royalties. The relief only makes sense once you see what is being relieved. Switzerland levies a flat 35 percent federal anticipatory tax (Verrechnungssteuer) on dividends paid by a Swiss company, under article 13 of the Withholding Tax Act. That is the headline charge a treaty brings down for a qualifying foreign recipient. Interest is treated more narrowly. There is no Swiss withholding tax on ordinary commercial loans ; the 35 percent applies only to interest on bonds and bond-like collective debt, and to bank interest paid to non-banks. Royalties are different again: Switzerland levies no domestic withholding tax on royalties at all , which distinguishes it from many EU states, so no treaty reduction is needed for royalties paid out of Switzerland. Keep the two directions of flow separate: this section is about Switzerland as the source state, not about foreign withholding tax credited back in Switzerland. Reclaiming the tax How treaty residents reclaim Swiss withholding tax. The single most misunderstood point is that Swiss treaty relief on dividends is given by refund, not at source . The Swiss company first withholds the full 35 percent and pays it to the ESTV; the foreign recipient then reclaims the excess over the treaty rate afterwards. You receive the net 35 percent first and claim the difference back later. The procedure runs as a short sequence: Identify the treaty rate that applies to your dividend or interest. Obtain the country-specific refund form prescribed by the ESTV for your state of residence. Get a tax voucher showing the deduction; your bank or custodian usually issues it, which is one reason a Swiss banking relationship matters. Our guide to opening a Swiss bank account covers that step. Prove residence in the treaty state, certified by your home tax authority. Confirm you are the beneficial owner of the income. File the claim with the ESTV. The deadline is firm: a claim must be filed by 31 December of the third year following the year in which the income fell due. Miss it and the right to the refund lapses. The beneficial-owner condition is the anti-conduit gate: the treaty rate is available only to the true economic owner of the income, not to an interposed pass-through, which links directly to the principal-purpose test below. Filing and ongoing compliance can be handled with Swiss accounting and tax compliance support. Worked examples Treaty-reduced rates: UK, US, Germany and France. Rather than reproduce a hundred-row table that ages badly, the figures below are worked examples for qualifying companies , drawn from published treaty summaries. Always read the dividend and interest articles of the actual treaty before relying on a rate, because the qualifying shareholding, holding period and conditions differ from one agreement to the next. Treaty partner Dividends Interest Royalties United Kingdom 0% 0% 0% United States 5% 5% 10% Germany 0% 0% 10% Portfolio investor (typical range) 10 to 15% 0 to 10% often 0% The split between the two tiers is driven by the shareholding threshold and beneficial-owner status . A company holding a substantial participation that meets the treaty's minimum percentage and holding period reaches the lowest rate, often 0 or 5 percent; a portfolio investor with a small stake falls into the higher band. The same logic explains why holding structures, rather than individuals, capture the best outcomes. United Kingdom The Swiss-UK double tax treaty in detail. The agreement between the United Kingdom and Switzerland is one of the most frequently queried, because so many investors and groups straddle the two. The original 1977 convention has been amended several times, most recently by the 2017 protocol , which was signed on 30 November 2017 and entered into force on 19 July 2019. It is an OECD-model income and capital gains treaty that operates independently of EU membership, so Brexit did not remove it. For a UK shareholder, the headline outcome is strong: dividends, interest and royalties between qualifying companies fall to 0 percent , claimed back through the ESTV refund procedure on the UK-specific form. The treaty also carries a high-value detail that few pages explain: UK pension schemes are exempt from Swiss withholding tax on dividends , so a qualifying UK pension investor can recover the full 35 percent. Because the precise rate is fact-dependent, confirm it against the current treaty text before relying on a figure. BEPS The MLI and BEPS: how treaties are being updated. Treaty benefits are no longer automatic for arrangements that lack commercial purpose. Switzerland signed the OECD's Multilateral Instrument (MLI), the BEPS Convention, in 2017 and ratified it in 2019. The MLI modifies many bilateral DTAs at once rather than renegotiating each separately, importing the BEPS minimum standards across the network in a single step. Its most important addition is the principal-purpose test (PPT): a treaty benefit can be denied where obtaining that benefit was one of the principal purposes of an arrangement, unless granting it would accord with the object and purpose of the treaty. The practical consequence is that treaty shopping through a letterbox entity fails. A Swiss company claiming relief should have genuine management, decision-making and economic activity in Switzerland, which connects the PPT back to the beneficial-owner condition on the refund claim. PE and residence Permanent establishment and residence tie-breaker rules. A foreign enterprise is taxable in Switzerland on business profits only to the extent it operates through a permanent establishment (PE) here, such as a fixed place of business or a dependent agent. Under the OECD-model rule, business profits are taxed in the host state only to the extent they are attributable to the PE located there, which makes the PE question central to any cross-border structure. Where both states would treat the same person as resident, the treaty resolves the conflict with the Article 4 tie-breaker ladder , applied in order: permanent home available to the person; centre of vital interests, where personal and economic ties are closer; habitual abode; nationality; mutual agreement between the two competent authorities. For companies, many treaties amended under BEPS now resolve dual residence by mutual agreement rather than by the older place-of-effective-management test. The structuring case DTAs and Swiss holding companies. The treaty network is one of the main reasons holding structures locate in Switzerland. Combine over 100 DTAs with the domestic participation exemption (Beteiligungsabzug), under which a Swiss company's income from qualifying shareholdings, broadly a stake of at least 10 percent or a market value of at least CHF 1,000,000, is effectively relieved at the corporate level, and inbound and outbound dividend flows can be managed at very low effective rates. For qualifying intra-group dividends there is a cash-flow advantage on top: the notification or declaration procedure lets the paying company report the dividend and remit only the residual treaty rate, or nothing, rather than paying the full 35 percent and reclaiming it later. That removes the refund delay entirely for groups that meet the conditions. This is where the network becomes a structuring tool. Most such structures are set up through a Swiss holding company , frequently in Zug for its low combined tax rate, with the entity itself created via standard company formation . Neighbouring instruments DTA vs TIEA, AEOI and estate-tax treaties. A double taxation agreement is easily confused with the instruments around it, so it is worth drawing the lines clearly. A DTA allocates taxing rights and reduces withholding tax . A tax information exchange agreement (TIEA) does neither: it only provides for the exchange of tax information between authorities and does not reduce anyone's tax. The automatic exchange of information (AEOI) under the Common Reporting Standard, in force in Switzerland since 1 January 2017, is also a reporting regime, not a relief one: it reports account data, it does not lower a rate. Finally, Switzerland's roughly eight estate and inheritance-tax treaties form a separate and much smaller network from the income-tax DTAs; do not assume a country with an income-tax treaty also has an estate-tax one. For the wider operating-tax picture once a company is running, see our Swiss VAT guide . The official source Where to find the current treaty list. Treaty counts and rates change, so the safest reference is always the official source rather than a transcribed table. SIF publishes the canonical list of Swiss DTAs in force as a maintained overview, updated as treaties are added, renegotiated or amended by protocol. That overview, not a third-party summary, is the authority on whether a treaty with a given country exists and what its status is. Alongside it, the ESTV runs per-country pages for the United Kingdom, France, Germany and the rest, which hold the treaty text and the country-specific refund forms you need to file a reclaim. Use the SIF overview to confirm a treaty exists, then the ESTV country page to find the form and the operative rate before acting on any distribution. FAQ Frequently asked questions How many double tax treaties does Switzerland have? Over 100 income-tax double tax treaties are in force, plus around eight separate estate-tax agreements, and the network keeps expanding. The State Secretariat for International Finance (SIF) maintains the official list, which changes as treaties are added, renegotiated or amended by protocol, so the dated SIF overview is the authority on the current count. Does Switzerland have a tax treaty with the UK? Yes. The 1977 convention, as amended by the 2017 protocol that entered into force on 19 July 2019, is an income and capital gains treaty. Qualifying dividends, interest and royalties between companies fall to 0 percent, and UK pension schemes are exempt from Swiss withholding tax on dividends. It operates independently of EU membership, so it was unaffected by Brexit. What is the Swiss withholding tax, and can I get it back? Switzerland levies a flat 35 percent federal anticipatory tax (Verrechnungssteuer) on dividends paid by a Swiss company. A treaty resident reclaims the excess over the treaty rate by filing a country-specific refund claim with the Federal Tax Administration, supported by proof of residence and a tax voucher showing the deduction. How do I reclaim Swiss withholding tax under a treaty? File the country form with the Federal Tax Administration, attaching proof of residence certified by your home tax authority and a tax voucher showing the deduction. You must be the beneficial owner of the income. Relief is granted by refund, not at source, so the full 35 percent is withheld first and the difference down to the treaty rate is reclaimed afterwards. What is the deadline to claim a withholding-tax refund? A claim must be filed by 31 December of the third year following the calendar year in which the income fell due. If the deadline passes, the right to the refund lapses, so reclaim documentation should be prepared well before that date. Does Switzerland avoid double taxation by exemption or credit? It uses both. For treaty income Switzerland generally applies exemption with progression, where foreign income is exempt but still counted to set the rate on remaining Swiss income. Irrecoverable foreign withholding tax on investment income such as dividends, interest and royalties is instead relieved by the credit method, up to the Swiss tax on the same income. Has Switzerland signed the MLI / BEPS Convention? Yes. Switzerland signed the Multilateral Instrument in 2017 and ratified it in 2019. Many of its treaties are being updated through the MLI, which adds an anti-abuse principal-purpose test under which a treaty benefit can be denied if obtaining it was a principal purpose of an arrangement. That makes genuine substance in Switzerland important for treaty relief. What are the residence tie-breaker rules in a Swiss treaty? Where both states would treat a person as resident, residence is decided in order by permanent home, then centre of vital interests, then habitual abode, then nationality, and finally mutual agreement between the two competent authorities, following Article 4 of the OECD Model Convention. Do Swiss treaties cover permanent establishments? Yes. A permanent establishment is a fixed place of business, or a dependent agent, through which a foreign enterprise carries on business in Switzerland. Under a treaty, business profits are taxed in the other state only to the extent they are attributable to a permanent establishment located there. Does a treaty reduce tax on a Swiss holding company's dividends? Yes. Combined with treaty rates and the domestic participation exemption, a Swiss holding company can manage inbound and outbound dividends at very low effective rates. For qualifying intra-group dividends, a notification or declaration procedure lets the company remit only the residual rate, or nothing, so qualifying flows can move at 0 percent without the refund delay. What is the difference between a DTA and a TIEA? A double taxation agreement allocates taxing rights between two states and reduces withholding tax. A tax information exchange agreement only provides for the exchange of tax information between authorities and does not reduce anyone's tax. The automatic exchange of information under the Common Reporting Standard is likewise a reporting regime, not a relief one. What treaty rate applies to US-Switzerland dividends? Under the standard provisions, 5 percent applies to dividends for qualifying corporate holders, alongside 5 percent on interest and 10 percent on royalties. These are worked examples; the operative rate depends on the shareholding and the qualifying conditions, so confirm it against the current treaty text before relying on a figure. Keep reading Related guides and services. Swiss Withholding Tax (Verrechnungssteuer) Dividend Taxation in Switzerland Swiss Corporate Tax Rates 2026 Holding company Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Employment Law Basics: Contracts, Hours, Termination URL: https://business-in-switzerland.com/guides/swiss-employment-law-basics Description: A plain-English guide to Swiss employment law for foreign employers: Code of Obligations vs Labour Act, contracts, hours, notice periods, termination. Swiss Employment Law Basics: Contracts, Hours, Termination STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Employment law Swiss Employment Law Basics: Contracts, Hours, and Termination Swiss employment law runs on two statutes: the Code of Obligations governs the individual contract, while the Labour Act sets mandatory limits on working time and rest. Code of Obligations defaults can be improved by contract or collective agreement; Labour Act protections cannot be waived. This primer maps both for employers hiring in Switzerland. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: November 2026 Two laws govern every employment relationship in Switzerland, and the most common mistake foreign employers make is treating them as one. The Code of Obligations ( Obligationenrecht , OR, arts. 319 to 362) is the private-law contract framework: it defines the employment contract, pay, holidays, notice periods and protection against unfair dismissal. The Labour Act ( Arbeitsgesetz , ArG / LTr, SR 822.11) is the public-law layer that fixes maximum working hours, rest, breaks and health protection, enforced by SECO and the cantonal labour inspectorates. The same framework applies to all employees working in Switzerland, regardless of nationality. The practical rule to carry through this guide is the variable-versus-mandatory split: Code of Obligations defaults can always be improved on by an individual contract or by a generally binding collective labour agreement ( Gesamtarbeitsvertrag , GAV), but never reduced below the floor, while Labour Act protections are a non-waivable minimum. Switzerland also has no employment-at-will, so an employer cannot simply dismiss a worker on the spot. The sections below walk the employment lifecycle, from contract to exit, with the article number behind each rule. By the numbers The figures that anchor this topic. 45 / 50 h MAX WEEKLY HOURS · ARG 4 weeks MIN PAID VACATION · OR 329A 1 to 3 mo NOTICE BY SENIORITY · OR 335C 3 months MAX PROBATION · OR 335B The framework The two laws that govern Swiss employment (OR vs ArG) Swiss employment law is best understood as a fork. The Code of Obligations (OR) regulates the bilateral relationship between employer and employee: formation of the contract (OR 319), pay, holiday, notice and dismissal. Its defaults can be varied by the contract or a collective agreement, as long as the variation stays above the statutory floor. The Labour Act (ArG) is different in kind: it is public-law protection that imposes a mandatory ceiling on working time and a floor on rest, breaks, health and the treatment of young and pregnant workers. It is enforced by the state, not by the parties, and cannot be contracted away. Which one wins where they meet is simple to remember: the Labour Act sets the non-negotiable minimum, and the Code of Obligations or an individual contract can only improve on it. So a contract can grant more holiday than the law requires or a longer notice period, but it can never push weekly hours above the ArG cap or strip an employee of a protected rest period. When you read any clause in a Swiss contract, the first question is which of these two laws it touches, because that decides whether the term is freely negotiable or locked by statute. The contract Employment contract types The default arrangement is the individual employment contract ( Einzelarbeitsvertrag , OR 319). It can be open-ended ( unbefristet ) or fixed-term ( befristet ). A fixed-term contract ends automatically on its expiry date with no notice required; an open-ended contract runs until one side gives notice. Chaining successive fixed-term contracts to dodge dismissal protection is treated by the courts as a single open-ended relationship. Above the individual contract sit two collective instruments. A standard employment contract ( Normalarbeitsvertrag , NAV) is a cantonal or federal model that sets mandatory minima in specific sectors. A collective bargaining agreement ( Gesamtarbeitsvertrag , GAV) negotiated by social partners can override Code of Obligations defaults and fix sector minimum wages, holiday and notice; where it is declared generally binding it applies to every employer in the field, including foreign-owned firms. Checking sector GAV coverage is therefore a first compliance step. A contract can be oral, but key terms such as an extended probation period, a non-compete or a deviation from the default overtime treatment are only enforceable if they are in writing. The employer entity must of course exist first, which is where setting up the employing Swiss entity comes in before any hiring. Probation Probation period (Probezeit) An open-ended contract begins with a probation period ( Probezeit ). The statutory default is one month . The parties may shorten, waive or extend it in writing, but never beyond a maximum of three months . Any extension above the default must be agreed in writing to take effect. During probation the relationship is easier to end on either side: notice is just seven days , effective on any working day, rather than the post-probation ladder of one to three months. If actual work is interrupted during probation by illness, accident or military service, the probation period is extended by the missed days so the trial genuinely lasts its agreed length. The strong protection against dismissal at the wrong time does not yet apply in the same way during probation, which is why the trial window matters. Working hours Working hours, overtime and rest (Labour Act) The Labour Act caps the working week. The maximum is 45 hours for employees in industrial undertakings, for office staff, technical and other salaried employees, and for sales staff in large retail businesses; for all other workers the ceiling is 50 hours . These are statutory maxima, not the normal week: contractual hours in Switzerland typically sit between 40 and 42. Short peak-period extensions are allowed subject to averaging rules. Swiss law then distinguishes two kinds of extra work, and conflating them is a frequent error. Overtime ( Überstunden ) is work beyond the contractually agreed hours but within the legal maximum; under the Code of Obligations it is compensated by time off in lieu or, failing agreement, by a wage supplement of at least 25 percent , and a written contract can vary or exclude that supplement for many salaried roles. Excess hours ( Überzeit ) is work beyond the ArG weekly cap; it is public-law controlled, subject to annual limits, and the 25 percent supplement for office and technical staff cannot be contracted away in the same manner. On top of this the Labour Act mandates daily rest, a weekly rest period, and paid or unpaid breaks scaled to shift length. Accurate time tracking is both a compliance and a payroll obligation, which is why employers usually fold it into their Swiss payroll and social-insurance compliance . Leave Holidays, public holidays and family leave Every employee is entitled to a minimum of four weeks of paid annual holiday under the Code of Obligations (OR 329a), rising to five weeks for employees and apprentices under the age of 20, with at least two weeks taken consecutively. Many employers and collective agreements grant five or six weeks, but four weeks is the floor that cannot be reduced, and holiday should as a rule be taken as actual time off rather than paid out. Public holidays are set cantonally, not federally: only 1 August, the national day, is fixed across the whole country, while each canton designates the rest, typically between eight and fifteen days a year. Family leave is funded through the federal income-compensation scheme (EO): maternity leave is 14 weeks at 80 percent of salary, capped, with an eight-week ban on work after birth, and paternity leave is two weeks at 80 percent. An employer hiring foreign staff also has to line up the worker's status in parallel, which our work permit for foreign staff and residence permits in Switzerland guides cover. Notice Notice periods after probation After probation, the Code of Obligations sets statutory notice periods that scale with seniority (OR 335c), each running to the end of a calendar month: First year of service : 1 month, to the end of a month. Second to ninth year : 2 months, to the end of a month. From the tenth year onward : 3 months, to the end of a month. These are defaults, not fixed limits. A written contract or a collective agreement can set different periods, but only if the same period applies to both employer and employee and, after probation, it is not shorter than one month. The end-of-month timing can also be altered by agreement, so the ladder should never be presented as immutable. Termination does not need a stated reason to be valid, but the reason still matters, because an unfair motive can make the dismissal abusive even though the contract still ends. Dismissal protection Protection against unfair dismissal Switzerland has freedom of termination, so either party may end the contract with notice and without stating a reason. That freedom has two hard limits. The first is the protected, or blocking, period ( Sperrfrist , OR 336c): the employer may not give notice while the employee is incapacitated by illness or accident, for 30, 90 or 180 days depending on length of service, during pregnancy and the 16 weeks after birth, or during military or civil service. The rule is counter-intuitive and worth stating plainly: notice served during a protected period is void , and a notice period already running is suspended until the protection ends. The second limit is abusive dismissal ( missbräuchliche Kündigung , OR 336 / 336a). A dismissal is abusive if given for a prohibited reason, such as personal characteristics or discrimination, the exercise of a constitutional or legal right, or union membership and lawful union activity. The contract still ends, but a court can award compensation of up to six months' salary . Because the line between a lawful and an abusive dismissal turns on motive and process, a structured exit is the safe approach. Founders without a Swiss entity can have these obligations carried for them by routing a hire through company formation and payroll first, rather than improvising the exit later. Summary dismissal Immediate termination for good cause (OR 337) Separate from notice-based termination, either party may end the contract with immediate effect for good cause ( fristlose Kündigung , OR 337). The bar is high: only a serious breach that makes continuing the relationship unreasonable qualifies, such as fraud, theft, an outright refusal to work, or competing against the employer. Mere underperformance, a single mistake or a personality clash does not meet the standard. Getting this wrong is expensive. An unjustified summary dismissal does not just fail; it exposes the employer to the salary that would have run over the proper notice period plus compensation of up to six months' salary. The practical discipline is to document the misconduct and, where possible, to warn before acting, so that a later challenge can be met with a clear record rather than a contested recollection. Severance and sick pay Severance and salary continuation Readers routinely conflate two different entitlements, so it is worth separating them. Statutory severance (OR 339b) is mandatory only in a narrow case: employees aged 50 or over with at least 20 years of service , who receive between two and eight months' salary on departure. Outside that band there is no general statutory severance in Switzerland, although a contract or collective agreement can provide one voluntarily. Salary continuation , by contrast, is sick pay. If an employee is prevented from working through no fault of their own, by illness, accident, pregnancy or a legal duty, the employer must continue to pay salary for a limited period once the relationship has lasted, or was agreed for, more than three months (OR 324a). The first-year minimum is three weeks; for longer service the duration follows one of the recognised cantonal scales (the Bern, Basel or Zurich scales), which lengthen continued pay with seniority. Most employers discharge this through daily-sickness-benefit insurance ( Krankentaggeld ), which typically pays 80 percent of salary, so the interaction between the statutory minimum and the policy terms should be spelled out in the contract. Redundancy Collective (mass) dismissal When dismissals reach a certain scale for reasons unrelated to the individual employees, the collective dismissal rules apply (OR 335d to 335g). The thresholds are measured over a 30-day window and depend on company size: At least 10 dismissals in firms of 21 to 99 employees. At least 10 percent of the workforce in firms of 100 to 299 employees. At least 30 dismissals in firms of 300 or more employees. Once a threshold is crossed, the employer must consult the affected employees or their representatives first, giving them a genuine chance to propose ways to avoid or reduce the layoffs, and then notify the cantonal labour office (the mass-redundancy channel reachable via arbeit.swiss). Notice cannot take effect before the consultation is complete. Larger employers may additionally have to negotiate a social plan where statutory size and redundancy thresholds are met. Because the process is procedural and time-sensitive, the sequencing matters as much as the headcount. For employers What this means for foreign employers (next steps) The rules above sit on top of a setup chain that has to be in place before the first hire. In order: the employer entity must exist and be registered; it must enrol with the cantonal compensation office for AHV and the rest of the social-insurance system; payroll has to be set up to run the deductions and continued-pay obligations; and the worker's permit status has to be confirmed. Employer registration is cantonal, so for many foreign founders the chain starts with a low-tax base such as registering as an employer in Zug . If you are still planning the structure, starting a business in Switzerland walks through incorporation and registration in the right order, and company formation handles the entity itself. When it comes to running the relationship, the duties in this guide, continued pay, working-time records, notice and the collective-dismissal process, are discharged through payroll and accounting. We work on a custom-quote basis, so talk to our team about hiring in Switzerland with the canton and the role and we will scope the compliance setup around it. FAQ Frequently asked questions What is the notice period for employment in Switzerland? Seven days during the probation period. After probation, the statutory default under the Code of Obligations (OR 335c) is one month in the first year of service, two months in years two to nine, and three months from the tenth year, in each case to the end of a calendar month. Can an employer dismiss an employee without giving a reason? Yes. Switzerland applies freedom of termination, so either party may end the contract with notice and without stating a reason. The dismissal must not be abusive under OR 336 and must not fall within a protected period under OR 336c. What is the maximum legal working week in Switzerland? The Labour Act sets a maximum of 45 hours per week for industrial workers, office and technical staff and large-retail sales staff, and 50 hours per week for all other employees. How much paid holiday is mandatory? Employees are entitled to at least four weeks of paid vacation per year, rising to five weeks for those under 20, with at least two weeks taken consecutively. Is severance pay required in Switzerland? Statutory severance under OR 339b is mandatory only for employees aged 50 or over with at least 20 years of service, at two to eight months' salary. There is otherwise no general statutory severance. When is an employer barred from terminating? During protected periods under OR 336c: illness or accident (30, 90 or 180 days depending on tenure), pregnancy and the 16 weeks after birth, and military or civil service. Notice given during a protected period is void. What is abusive dismissal and what compensation applies? An abusive dismissal is a termination for a prohibited reason under OR 336, such as discrimination, the exercise of a legal right or union membership. Compensation can be up to six months' salary under OR 336a. How long can a probation period last? The default probation period is one month, extendable to a maximum of three months by written agreement. Notice during probation is seven days. What overtime premium must employers pay? Overtime carries at least a 25% wage supplement, unless the parties agree to compensate it with equivalent time off. When does a collective or mass dismissal trigger consultation duties? At the OR 335d thresholds, measured over 30 days: at least 10 dismissals in firms of 21 to 99 employees, at least 10% in firms of 100 to 299, and at least 30 in firms of 300 or more. The employer must consult employees and notify the cantonal labour office. Does Switzerland have a minimum wage? There is no federal statutory minimum wage. A small number of cantons set their own minimum wage; elsewhere pay is fixed by the individual contract or an applicable collective bargaining agreement. Does Swiss employment law apply to foreign employees the same way? Yes. The Code of Obligations and the Labour Act apply to all employees working in Switzerland regardless of nationality. Keep reading Related guides and services. Hiring Employees in Switzerland Minimum Wage in Switzerland 2026 Swiss Social Security (AHV/AVS) Swiss Occupational Pension (BVG/LPP) Legal services Employer of record Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Minimum Wage in Switzerland 2026 — Cantonal Rates URL: https://business-in-switzerland.com/guides/swiss-minimum-wage Description: Switzerland has no national minimum wage. The 2026 cantonal rates, per-hour and per-month figures, and which wage floor applies when you hire in Switzerland. Minimum Wage in Switzerland 2026 — Cantonal Rates STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Minimum wage Minimum Wage in Switzerland 2026: Cantonal Rates Explained Switzerland has no national minimum wage. Five of its 26 cantons set their own statutory floor, and elsewhere collective agreements decide the minimum, so what an employer must pay depends entirely on location and sector. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: June 2026 For a country with some of the highest wages in the world, Switzerland is unusual in having no national minimum wage . A 2014 federal referendum to introduce one was rejected by roughly three quarters of voters. Instead, the floor is set in two ways: by individual cantons that have passed their own minimum-wage laws, and by sector-wide collective labour agreements ( Gesamtarbeitsvertrag , GAV) and normal employment contracts. The key facts at a glance: there is no federal floor; 5 of 26 cantons set their own; Geneva has the highest statutory minimum in the world; everywhere else collective agreements and model contracts set the binding rate; and every cantonal figure is indexed and usually adjusted each January. For a foreign employer, the practical question is rarely "what is the Swiss minimum wage" but "what is the minimum in the canton and industry where I am hiring". This guide answers both, with the 2026 numbers and the rules that sit behind them. By the numbers The figures that anchor this topic. None Federal minimum wage 5 of 26 Cantons with a statutory floor CHF 24.59 Geneva minimum / hour · 2026 ~CHF 7,024 Median full-time wage / month · 2024 The short answer Does Switzerland have a minimum wage? No, Switzerland has no national statutory minimum wage. Wage-setting rests on social partnership between employers and unions rather than central legislation, and the federal government deliberately leaves pay to the market and to collective bargaining. The qualifier has three parts. First, five of the 26 cantons have passed their own minimum-wage laws. Second, in the other 21 cantons the binding floor for many sectors comes from generally-binding collective labour agreements. Third, where neither applies, the wage is freely negotiated, subject only to rules against abusive contracts. The surprise for many is that a country this wealthy has no single legal number: Swiss market rates sit far above any statutory floor, so the minimum mainly bites in lower-paid service work, part-time roles and entry positions. The 2014 vote Why Switzerland has no national minimum wage In May 2014 Swiss voters were asked, in a federal popular initiative, to approve a national minimum wage of CHF 22 per hour. They rejected it decisively, by a margin of roughly three to one. Voters and the federal government took the view that a single national floor would not fit a country whose living costs and labour markets vary widely between cantons. So how are wages set instead? Through social partners. Employer associations and trade unions negotiate sector-wide collective agreements that fix minimum pay, working hours, holidays and notice periods. The cantons retain the power to legislate their own floor if local voters want one. The result is a layered system in which the binding minimum depends on where the work is done and in which industry, rather than on one federal statute. Cantonal floors Which cantons have a minimum wage in Switzerland? As of 2026, five cantons have a statutory minimum wage written into cantonal law. The rates are indexed to the cost of living and adjusted, usually every year, so treat the figures below as the 2026 position rather than a permanent number, and verify the current rate at the cantonal labour office before setting pay. Geneva : about CHF 24.59 per hour, the highest statutory minimum in the world, applied across almost all sectors. Basel-Stadt : roughly CHF 21.70 to CHF 22.20 per hour, applied to defined sectors. Jura : around CHF 21.40 per hour. Neuchatel : around CHF 21.30 to CHF 21.35 per hour. Ticino : roughly CHF 20.00 to CHF 20.50 per hour, varying by economic sector. The remaining 21 cantons have no statutory minimum. There, the only binding floor is whatever a collective agreement sets for the industry. Because each figure is indexed to inflation and reviewed annually, competitor pages quoting last year's rate are frequently out of date. Always check the live number at the cantonal labour office. Geneva Geneva: the world’s highest statutory minimum wage Geneva voters approved a cantonal minimum wage in 2020, and it has risen with indexation since. At roughly CHF 24.59 per hour in 2026 (up from about CHF 24.48 in 2025), it is widely described as the highest statutory minimum wage in the world. A reduced rate of around CHF 18.07 per hour applies to certain agriculture and floriculture roles, a distinction worth respecting because it is a frequent compliance trap. On a full-time week of about 41 to 42 hours, the general Geneva minimum translates to roughly CHF 4,400 or more gross a month. The floor is broad: it covers most employment relationships performed in the canton, with narrow carve-outs. Because the figure is indexed and moves each January, employers running payroll in Geneva should budget for an annual uplift rather than a fixed rate. Per hour vs per month Minimum wage per hour vs per month in Switzerland Swiss minimum wages are quoted per hour, but most contracts state a monthly salary, so a conversion is often needed. A common method uses a standard week of about 42 hours, which works out to roughly 182 hours in an average month. Multiply the hourly minimum by that figure to get an indicative gross monthly equivalent. Geneva at CHF 24.59 per hour is about CHF 4,470 gross per month full-time. Basel-Stadt at around CHF 22 per hour is roughly CHF 4,000 gross per month. Ticino at around CHF 20 per hour is roughly CHF 3,640 gross per month. These monthly figures are indicative only: actual weekly hours vary by sector and contract, and part-time roles are paid the same hourly floor pro rata. All are gross figures, before the employee and employer shares of social security, occupational pension and, for many foreign workers, wage-source tax. Currency Minimum wage in Switzerland in euros, dollars and pounds A frequent search is the Swiss minimum wage converted into euros, US dollars or British pounds. We deliberately do not publish a fixed conversion, because exchange rates float and any number printed here would be wrong within weeks. The honest answer is to take the Swiss-franc figure and apply a live rate at the moment you need it. As an indicative, dated illustration only, Geneva's CHF 24.59 per hour in mid-2026 sits in the region of EUR 26, USD 30 or GBP 22 per hour, give or take, depending on the rate of the day. Treat those as ballpark, not authoritative, and always check a live currency rate before relying on a converted figure for budgeting or contracts. No statutory floor How wages are set where there is no statutory minimum In the 21 cantons without a statutory minimum, three other mechanisms set the floor, and they should not be confused with one another: Generally-binding collective agreements (GAV / CBA) : where a sector agreement is declared generally binding ( allgemeinverbindlich , force obligatoire ) it applies to every employer in that field, including foreign-owned firms, whether or not they belong to the signatory association. Construction, hospitality, cleaning, retail, security and temporary staffing are typical examples, often with thirteenth-month pay and shift premiums on top. Normal employment contracts (NAV / CTT) : cantonal or federal model contracts that impose a mandatory minimum in specific sectors where abusive wages have been documented. This is a distinct instrument from a GAV. Individual employment contracts : where none of the above applies, the wage is freely negotiated, subject only to the general limits on grossly unfair pay. Checking the applicable GAV is therefore the first compliance step in any canton, with or without a statutory minimum, because a sector agreement can set a floor well above the cantonal rate. Equal treatment Do foreigners get the same minimum wage in Switzerland? Yes. A cantonal statutory minimum applies to work physically performed in the canton, regardless of the worker's nationality or where the employer is registered. A foreign company employing someone who carries out their duties in Geneva owes the Geneva minimum, and the same equal-treatment principle covers posted and temporary workers, with the accompanying-measures regime adding documentation and notification duties for cross-border arrangements. Part-time staff receive the same hourly floor pro rata. Students working in a covered role are owed the same minimum. Apprentices and trainees on recognised programmes, and certain education-linked internships, are usually treated differently, but the precise carve-outs vary by canton and should be checked against the specific cantonal statute rather than assumed. The work-permit dimension runs in parallel: our Swiss work permit guide sets out who can be hired and on what basis. In context Minimum wage vs the average Swiss salary Is the Swiss minimum actually high? Nominally, yes, but it needs context. The median full-time wage was about CHF 7,024 a month in 2024 according to the Federal Statistical Office, far above any cantonal minimum. The statutory floor is a floor that most roles never touch, which is why the minimum-wage debate in Switzerland centres on a handful of low-paid service sectors rather than the economy as a whole. Switzerland's cost of living is correspondingly high, so real purchasing power is more modest than the headline franc figure suggests. Wages, and the case for cantonal rather than national minimums, also differ sharply by region: median pay in the Zurich area runs well above that in Ticino. That spread is part of why a single national figure was rejected. For employers weighing where to base a team, low-tax cantons such as Zug compete on the overall cost and talent picture, not on the wage floor. For employers Which minimum wage applies when you hire in Switzerland? The compliance rule is straightforward once the layers are clear. Apply the statutory minimum of the canton where the work is performed; if a generally-binding sector agreement also covers the role, the higher of the two prevails. A short checklist for a foreign employer: Identify the canton where the work is physically performed. Check whether that canton has a statutory minimum, and its current indexed 2026 rate. Check whether a generally-binding collective agreement covers the sector, and read its wage table. Apply the higher of the two as the binding floor, and budget the employer social-security share on top of the gross wage. Document the figure in payroll and diarise the January indexation review. Getting this right from day one is where most foreign founders need help. Our payroll compliance and accounting and payroll services set the right floor and handle the deductions, while employer of record lets you hire before you have a local entity. If you are still at the planning stage, starting a business in Switzerland walks through incorporation, registration and the steps that come before your first hire. We work on a custom-quote basis, so contact us with the canton and role and we will scope it. FAQ Frequently asked questions Is there a minimum wage in Switzerland? No national statutory minimum wage exists. Five of the 26 cantons set their own minimum; elsewhere generally-binding collective agreements and normal employment contracts set de-facto floors. Where none of these applies, the wage is freely negotiated subject to anti-abuse limits. Which cantons have a minimum wage in Switzerland? Five cantons have a statutory minimum wage: Geneva, Neuchatel, Jura, Basel-Stadt and Ticino. The other 21 cantons have no statutory floor, so there the only binding minimum is whatever an applicable collective labour agreement sets for the sector. What is the highest minimum wage in Switzerland? Geneva has the highest statutory minimum wage, around CHF 24.59 per hour in 2026, described as the highest in the world. It is indexed to inflation and adjusted, usually each January, so verify the current rate at the cantonal labour office. What is the minimum wage in Switzerland per hour? There is no single national figure. In 2026 the cantonal statutory rates range from about CHF 20 per hour in Ticino to CHF 24.59 per hour in Geneva. Each rate is indexed annually, so treat any figure as the current-year position. What is the minimum wage in Switzerland per month? On a roughly 182-hour full-time month, Geneva’s minimum works out to about CHF 4,400 or more gross. Other cantons are proportionally less. The exact monthly figure depends on the canton and on contractual weekly hours. Why doesn’t Switzerland have a national minimum wage? A 2014 federal vote on a national minimum of CHF 22 per hour was rejected by roughly three quarters of voters. Wages are instead set by social partners through collective bargaining and by individual cantons that choose to legislate their own floor. Do foreigners earn the same minimum wage in Switzerland? Yes. A canton’s statutory minimum applies to all workers performing work there, regardless of nationality, including foreign, posted and temporary workers. Part-time staff receive the same hourly floor pro rata. How are wages set in cantons without a minimum wage? Through generally-binding collective agreements in sectors such as construction, hospitality, cleaning and security, through normal employment contracts in sectors with documented abusive wages, and otherwise through freely negotiated individual contracts. What is the average (median) salary in Switzerland? The median full-time wage was about CHF 7,024 per month in 2024 according to the Federal Statistical Office. This is a context figure, not a minimum, and it sits far above any cantonal statutory floor. Is the Swiss minimum wage actually high given the cost of living? Geneva’s is nominally the world’s highest, but Switzerland’s cost of living is correspondingly high, so real purchasing power is more modest than the headline franc number suggests. The minimum mainly matters in low-paid service sectors. What is the minimum wage in Switzerland in euros or dollars? We do not publish a fixed conversion because exchange rates float. Treat any euro, dollar or pound figure as an indicative, dated approximation, and check a live rate at the moment you need it for budgeting or contracts. As a foreign company hiring in Switzerland, which minimum wage applies to me? The statutory minimum of the canton where the work is performed, and where a generally-binding sector agreement applies, the higher of the two. Check both before setting payroll, and budget the employer social-security share on top of the gross wage. Keep reading Related guides and services. Hiring Employees in Switzerland Average Salary in Switzerland 2026 Swiss Employment Law Basics Swiss Payroll Taxes Payroll services Employer of record Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Participation Exemption: Holding Tax Relief URL: https://business-in-switzerland.com/guides/swiss-participation-exemption Description: How Switzerland’s participation exemption frees qualifying dividends and capital gains from corporate tax: the 10%, CHF 1m and 1-year gates explained. Swiss Participation Exemption: Holding Tax Relief STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Participation exemption Swiss participation exemption: holding tax relief explained Switzerland does not strike dividends and qualifying capital gains out of the tax base. Instead it reduces a company’s tax bill in proportion to its participation income, which in practice brings the tax on those receipts close to zero. This is the mechanism that makes Switzerland a natural home for holding companies. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: December 2026 When a Swiss company holds shares in other companies, the dividends and capital gains it earns from those shareholdings are taxed very lightly. The relief that does this has four names for the same thing: the participation exemption , the participation relief , the participation deduction , and, in German, the Beteiligungsabzug . It is set out in articles 69 and 70 of the Federal Direct Tax Act (DBG/LIFD). The label is slightly misleading. The relief is not a formal exemption that removes the income from the tax base. It is an indirect, proportional reduction of the tax otherwise due, calculated as the ratio of net participation income to total net profit, which in most cases brings the effective tax on qualifying dividends and gains close to nil. Before 2020 Switzerland delivered a similar result through special cantonal holding regimes; those were abolished by the STAF/TRAF reform and replaced by this ordinary-law relief, now available to every Swiss company in every canton. This guide explains how it works, the qualifying gates, the calculation, and why it underpins the Swiss holding-company structure. By the numbers The figures that anchor this topic. ≥ 10% Capital share to qualify · DBG art. 69 CHF 1m Or fair market value of holding 1 year Minimum holding for capital gains 2020 STAF replaced holding privilege The short answer What the participation exemption is, in one paragraph. The participation exemption is a profit-tax relief that reduces the corporate income tax of a Swiss company in proportion to its net income from qualifying participations. It is set out in DBG articles 69 and 70 and goes by four interchangeable names: participation exemption, participation relief, participation deduction, and the German Beteiligungsabzug . Its purpose is to leave qualifying dividends and capital gains effectively untaxed at the level of the company that receives them. The single most important point, and the one most pages get wrong, is that this is an indirect, proportional mechanism rather than a line-item exemption. The dividend or gain stays inside taxable profit. The law then cuts the tax otherwise payable by the share that net participation income represents of total net profit. If almost all of a company’s profit comes from qualifying participations, almost all of its tax disappears. But because the relief works on a ratio, high financing or administration costs that reduce net participation income will also dilute the relief, so the outcome is usually, but not always, close to a full exemption. Why it exists The problem it solves: economic double taxation. A subsidiary earns a profit and pays corporate income tax on it. When it distributes that after-tax profit as a dividend to its parent, the parent would, without relief, pay tax again. If the parent then distributes to its own parent, a third layer would apply, and so on up the chain. This is economic multiple taxation: the same underlying profit taxed over and over simply because it moves between companies in a group. The participation exemption breaks that cascade. Operating profit is taxed once, at the tier where it is generated, and can then flow up a group structure without compounding tax at each level. This is the economic logic behind every participation-exemption system in the developed world; Switzerland’s version is generous in scope and simple to apply, which is one reason multinational groups place intermediate and top holding companies here. Our holding company page sets out how that structure is built in practice. The two gates Qualifying participation: dividends versus capital gains. A participation has to clear one of two gates depending on the income. The dividends gate is wider; the capital-gains gate is stricter. For dividends and other profit distributions, the receiving company must meet at least one of these tests at the time of distribution (DBG art. 69): It holds at least 10% of the share capital of the distributing company; or It holds at least 10% of the profit and reserve rights ; or Its participation has a fair market value of at least CHF 1,000,000 . For capital gains on selling a shareholding, the test is tighter: the disposed participation must have represented at least 10% of the capital and must have been held for at least one year . Read side by side: dividends qualify on a 10% capital stake, a 10% profit-rights stake, or a CHF 1m market value, with no holding period ; capital gains qualify only on a 10% capital stake held for a full year, and the CHF 1m value test does not substitute for the 10% requirement on a disposal. The "no holding period for dividends" point is the detail readers most often miss. The calculation How the deduction is calculated. The relief is a ratio. You take net participation income and divide it by total taxable net profit ; the result is the percentage by which the corporate income tax is reduced. Net participation income is not simply the gross dividend. From the gross figure you deduct the financing costs attributable to the holding, a flat administrative allowance, and any write-downs or depreciation linked to the participation. The administrative allowance is conventionally taken at 5% of the gross participation income unless the company can show its actual administration costs were lower. Financing costs are allocated to the participation in proportion to its share of the company’s assets. The more of these costs that attach to the holding, the smaller net participation income becomes, and the smaller the percentage reduction. That is why the relief is described as proportional: a holding financed largely by debt will see more of its relief eroded than one financed by equity. This calculation is what the German term Beteiligungsabzug , the participation reduction, literally describes. Worked example A worked example. The following is a generic, illustrative example with round numbers, not client data, shown only to demonstrate the formula. Take a holding company whose sole income is a gross dividend of CHF 500,000 from a qualifying subsidiary, with CHF 1,000,000 of total taxable net profit for the year. Gross participation income: CHF 500,000 Less financing costs attributable to the holding: CHF 75,000 Less the 5% administrative allowance: CHF 25,000 Net participation income: CHF 400,000 Net participation income of CHF 400,000 divided by total taxable profit of CHF 1,000,000 gives a 40% reduction of the corporate income tax. Now read the dilution effect: if the same holding carried CHF 200,000 of financing cost instead of CHF 75,000, net participation income would fall to CHF 275,000 and the reduction would drop to roughly 27.5%, on identical dividend income. The arithmetic is what makes the "indirect, proportional" character concrete. Where a pure holding has almost no other income and modest financing, the same formula instead lands close to 100%, which is the everyday result and the reason the relief is loosely called an exemption. Capital gains Capital gains on selling shares. Capital gains realised when a Swiss company sells a shareholding also benefit from the relief, but only under the stricter gate. The participation sold must have represented at least 10% of the company’s capital and must have been held for at least one year. The one-year clock is the key difference from dividends, which have no holding period at all: the law rewards genuine long-term participations rather than short-term trading positions. Only the gain above original cost qualifies, and any depreciation previously claimed and now recovered (a recapture) is taxed normally. Two finer points matter on a disposal. First, Swiss case law (a Federal Supreme Court ruling in December 2021) confirmed that the disposed stake must itself be at least 10% : selling a 5% slice out of a larger holding does not qualify for relief on that slice. Second, after a partial sale that drops the remaining holding below 10%, further capital-gains relief on the residual depends on that residual still having a market value of at least CHF 1,000,000 at the start of the tax year. These are the situations where confirming the treatment in advance, before the deal closes, is worth the effort. Foreign subsidiaries Dividends from foreign subsidiaries qualify too. For a foreign founder this is the decisive question, and the answer is a clean yes. The participation exemption applies to qualifying dividends and gains from both Swiss and foreign subsidiaries , provided the 10%, CHF 1m or one-year tests are met. Crucially, there is no requirement that the foreign subsidiary be taxed at any minimum rate in its own country. A dividend from a low-taxed or even untaxed foreign subsidiary can still attract the relief at the Swiss parent. In practical terms, an EU or US group routed through a Swiss parent can let income from operating companies around the world flow up to the holding with little additional Swiss tax on the receipt. The participation exemption handles the Swiss corporate-tax side; treaties and the Switzerland-EU agreement handle the withholding side at source. Readers building layered, multi-entity wealth structures often combine this with our family office work. The 2020 reform What the 2020 STAF/TRAF reform changed. Until the end of 2019, Switzerland offered special cantonal regimes for holding, domicile and mixed companies. A pure holding could pay almost no cantonal income tax under the cantonal holding privilege. The OECD and the EU treated these ring-fenced regimes as harmful preferential tax practices, and Switzerland agreed to abolish them. The Federal Act on Tax Reform and AHV Financing (STAF, also called TRAF or RFFA) came into force on 1 January 2020 and repealed the holding, domicile, mixed-company, principal-company and finance-branch regimes. The participation exemption itself was not new, but it became the principal tool for relieving holding income once the special regimes disappeared. Because it is an ordinary-law relief available to every company, it removed the ring-fenced character the OECD objected to while preserving Switzerland’s attractiveness for group structures. Cantons also layer on capital-tax relief for the portion of equity attributable to participations, so the holding is lightly taxed on both its income and its capital. The residual ordinary corporate tax that the relief reduces is covered in our guide to Swiss corporate tax rates . A different tax Participation exemption versus the 35% withholding tax. This is the distinction that trips people up, so it is worth stating plainly: the participation exemption and Swiss withholding tax are two different taxes . The participation exemption is a relief from corporate income (profit) tax at the company that receives the dividend or gain. Swiss withholding tax ( Verrechnungssteuer ) is a separate 35% levy collected at source when a Swiss company pays a dividend (VStG art. 13). The participation exemption does nothing, by itself, about that 35%. Withholding is dealt with through a different route. Inside a Swiss group, the parent reclaims the 35% through its tax return or uses a notification procedure so the tax is never withheld in the first place. For a foreign parent, double-tax treaties cut the rate to 15, 10, 5 or 0%, and the Switzerland-EU agreement reduces it to 0% on qualifying intercompany dividends. Both halves have to line up for a structure to be efficient end to end; our withholding tax guide and dividend taxation guide cover the withholding side. Canton choice Choosing a canton for a Swiss holding. Because the participation exemption is part of federal direct tax law and the harmonised cantonal framework, the relief itself is the same in all 26 cantons . What differs between cantons is the headline ordinary effective rate that applies to whatever profit the relief does not shelter. That combined federal, cantonal and municipal rate ranges from around 11.85% in Zug to the high teens in higher-tax cantons. For a pure holding company, the canton matters less than for a trading company, precisely because the holding’s core income is sheltered by the deduction regardless of location. The headline rate only bites on non-participation income, such as interest or service fees the holding may earn. Even so, low-rate cantons such as Zug remain the common anchor for Swiss holdings, both for the residual-income rate and for the wider administrative and treaty-access ecosystem. Working with us How we help foreign founders structure a Swiss holding. Setting up a Swiss holding is ordinary company formation: there is no special "holding" legal form. It is an AG or a GmbH, with the usual minimum capital of CHF 100,000 for an AG (at least CHF 50,000 paid in) or CHF 20,000 for a GmbH. The participation exemption attaches to the qualifying income, not to a licence or status, so any company meeting the thresholds can claim it. What increasingly matters is substance: a real seat, decision-making in Switzerland and, where appropriate, local directors, since treaty access and anti-abuse rules expect genuine economic presence rather than a letterbox. Where a structure carries real value, certainty is worth securing in advance. Swiss practice allows a company to obtain an advance tax ruling from the cantonal authority, confirming how financing costs are allocated, how a partial disposal is treated, or whether a particular minority stake meets the value test, before the transaction closes. We help foreign founders set up the holding, build adequate substance and lock down the position with the relevant cantonal tax office. We work on a custom-quote basis, so contact us with the group structure and we will scope it. FAQ Frequently asked questions What is the participation exemption in Switzerland? It is a profit-tax relief, also called the participation deduction or Beteiligungsabzug (DBG art. 69 to 70), that reduces a Swiss company’s corporate income tax in proportion to its net income from qualifying participations. Qualifying dividends and capital gains stay in the tax base, but the tax on them is reduced to close to zero, which effectively exempts them at the level of the receiving company. What counts as a qualifying participation? For dividends: a holding of at least 10% of the share capital, or at least 10% of the profit and reserve rights, or a participation worth at least CHF 1,000,000. For capital gains: a holding of at least 10% of the capital that has been held for at least one year. Meeting one test in the relevant gate is enough. Is there a minimum holding period for dividends? No. Dividends qualify with no minimum holding period. Only capital gains require the participation to have been held for at least one year before disposal. Do dividends from a foreign subsidiary qualify? Yes. The relief applies to qualifying dividends from both Swiss and foreign subsidiaries, and there is no requirement that the foreign subsidiary be subject to any minimum tax in its own country. A dividend from a low-taxed or untaxed foreign subsidiary can still qualify at the Swiss parent. Is the participation exemption a full tax exemption? Functionally yes in most cases, but technically no. It is an indirect, proportional reduction of the tax due, not a line-item exemption of the income, so high financing or administration costs that reduce net participation income will also dilute the relief. For a pure holding with modest costs the effect is usually close to a full exemption. How is the participation deduction calculated? You divide net participation income by total taxable net profit; the result is the percentage by which the corporate income tax is reduced. Net participation income is the gross dividend or gain less attributable financing costs, a 5% administrative flat allowance, and any linked write-downs. The higher those costs, the smaller the percentage reduction. Did the 2020 STAF/TRAF reform abolish Switzerland’s holding company regime? Yes. The special cantonal holding, domicile and mixed-company privileges were abolished on 1 January 2020 under the STAF/TRAF reform. Holdings are now taxed under ordinary law, but the participation exemption still frees qualifying dividends and capital gains, and cantonal capital-tax relief on participations applies on top. Does the exemption apply to capital gains on selling shares? Yes, if the participation sold represented at least 10% of the company’s capital and had been held for at least one year. The disposed stake must itself be at least 10% (confirmed by a Federal Supreme Court ruling in December 2021), and any recovered depreciation is taxed normally. How does this differ from the 35% withholding tax on dividends? They are two different taxes. The participation exemption is a relief from corporate income tax at the company that receives the dividend. The 35% Verrechnungssteuer is a separate withholding tax collected at source, which a Swiss group reclaims or notifies away, and which double-tax treaties or the Switzerland-EU 0% intercompany rate reduce for a foreign parent. What happens to relief if my stake falls below 10% after a partial sale? After a partial sale that drops the residual holding below 10%, further capital-gains relief on that residual requires its market value to be at least CHF 1,000,000 at the start of the tax year. Below that, the residual no longer qualifies for the relief on a later disposal. Which canton is best for a holding using the participation exemption? The relief is federal and harmonised nationally, so it is identical in all 26 cantons. What differs is the headline ordinary effective rate on any non-participation income, which ranges from around 11.85% in Zug to the high teens elsewhere. Zug is the common low-tax anchor for Swiss holdings. What is the Beteiligungsabzug? It is the German term for the participation deduction, the same relief described in this guide. It is set out in articles 69 and 70 of the Federal Direct Tax Act (DBG) and reduces the corporate income tax of a company that earns qualifying participation income. Keep reading Related guides and services. Dividend Taxation in Switzerland Swiss Corporate Tax Rates 2026 Swiss Withholding Tax (Verrechnungssteuer) Holding company Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Payroll Taxes & Tax at Source (Quellensteuer) Guide URL: https://business-in-switzerland.com/guides/swiss-payroll-taxes-guide Description: What foreign employers withhold from a Swiss salary: social-security contributions, tax at source (Quellensteuer), tariff codes, and the CHF 120,000 rule. Swiss Payroll Taxes & Tax at Source (Quellensteuer) Guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Payroll tax Swiss Payroll Taxes: Source Tax (Quellensteuer) for Foreign Employees Switzerland has no single payroll tax. An employer withholds two unrelated things from a salary: social-security contributions for every employee, and income tax at source (Quellensteuer) only for foreign employees who do not hold a C permit. This guide explains both, and the filings that tie them together. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: November 2026 For most Swiss residents, income tax is never deducted from pay. They file an annual return and settle directly with the canton and commune. There is one large exception: foreign employees who do not hold a C settlement permit , together with cross-border workers, have their income tax withheld by the employer straight from each pay slip. This is tax at source, known as Quellensteuer in German and impot a la source in French. Source tax is only one layer of a Swiss pay slip. On top of it, every employer also withholds the employee's share of social-security contributions and adds its own employer share. Getting the two systems right, and settling them on time with the cantonal tax office and the social-security funds, is the core of Swiss payroll compliance for any company that hires staff. Every rate below is the 2026 position; statutory parameters are reviewed regularly, so confirm the current-year figures before each payroll year. By the numbers The figures that anchor this topic. CHF 120k Ordinary-assessment trigger · source tax ~10.6% AHV/IV/EO total · split 50/50 · 2026 A · B · C · H Source-tax tariff code letters 35% Verrechnungssteuer · a different tax The short answer Does Switzerland have a payroll tax? There is no single federal payroll tax in Switzerland. Instead, an employer withholds two separate things. The first is social-security contributions , which apply to every employee regardless of nationality or permit. The second is income tax at source (Quellensteuer), which applies only to foreign employees who do not yet hold a C settlement permit. Swiss nationals and C-permit holders have no income tax withheld from their wages; they file an ordinary return instead. That two-part structure is why "payroll tax" is a misnomer here. In the United States or the United Kingdom, a payroll tax is a single levy on wages. The Swiss model splits the job: a social-insurance stack that every salary carries, plus a wage tax that only part of the workforce pays. For a foreign employer the practical question is therefore not "what is the Swiss payroll tax" but "what do I deduct from this particular employee, and where do I send it". The rest of this guide answers both, deduction by deduction. Who is subject Who pays tax at source (Quellensteuer)? As of 2026, tax at source applies to foreign employees whose permit does not give them ordinary-assessment status: B permit (residence) , L permit (short-term) and F or N permits where the holder is employed: taxed at source on employment income. G permit (cross-border commuter, Grenzganger) : people who live abroad and work in Switzerland are taxed at source, subject to the double-tax treaty rules for their country of residence, which can change where and how much they ultimately pay. Exempt are holders of a C settlement permit , and foreign nationals married to a Swiss citizen or to a C-permit holder. They are assessed by the ordinary annual return like residents, so no income tax is withheld from their pay. Swiss nationals are never taxed at source. An employee can move out of source tax mid-employment by obtaining a C permit or marrying into one of those categories, so the employer must check each person's permit and civil status at hiring and update payroll whenever it changes. Not the same tax Quellensteuer vs Verrechnungssteuer: do not confuse the two. Two Swiss taxes share the English word "withholding", and conflating them is the single most common payroll mistake. The table below sets them apart. Quellensteuer (tax at source): income tax on the wages of certain foreign employees. The rate is variable and read from a cantonal tariff. The employer withholds it from salary and remits it to the cantonal tax office. It is a final settlement for most employees. This is the payroll tax this guide is about. Verrechnungssteuer (anticipatory tax): a flat 35 percent federal tax on investment income such as dividends, interest and certain lottery winnings. It is a security deposit that a declaring resident reclaims through the tax return, typically within a three-year claim window. It has nothing to do with salaries. Different base, different rate, different administration, different purpose. If you are researching the 35 percent levy on company distributions, that is the anticipatory tax and a corporate matter; our guide to the 35% anticipatory tax (Verrechnungssteuer) covers it in full. Payroll deals only with Quellensteuer. Tariff codes How tariff codes work (A0N, C2Y and the rest). The source-tax rate is not one percentage. It is read from a cantonal tariff selected by a three-character code that captures the employee's situation. The code has three parts. Letter (marital and earner status): A single, B married with one earner, C married dual-earner, D secondary income, H single parent supporting children. Digit (number of children): 0, 1, 2 and so on, for the dependants the tariff allows. Final letter (church tax): Y for a member of a recognised church, N for a non-member. Read aloud, A0N is a single employee with no children who is not a church member, and C2Y is a married dual-earner with two children who is a church member. Within each code the rate is progressive: it rises with gross monthly income and falls with the number of children. Because every canton publishes its own tariff tables, the same salary can carry a different rate in Zug than in Geneva. Codes change when life does, so a marriage, a birth or a permit change means the employee notifies the employer, and tariff corrections for the prior year are generally made up to 31 March. Payroll software loads the current cantonal tables, but the inputs are the employer's responsibility. The deduction stack The social-security deduction stack. Every employee, foreign or not, carries the same social-insurance stack. The 2026 rates, hedged and to be confirmed each year, run roughly as follows. AHV/IV/EO (first pillar): old-age, disability and income-compensation insurance, about 10.6 percent of gross salary split equally , so the employer withholds around 5.3 percent from the employee and pays a matching 5.3 percent. No upper salary ceiling. ALV (unemployment): about 2.2 percent total, shared equally, applied up to an annual ceiling in the region of CHF 148,200 (2025 figure, verify 2026), with a 1.0 percent solidarity contribution on salary above the ceiling. BVG/LPP (second pillar, occupational pension): compulsory above an entry threshold of roughly CHF 22,000 of annual salary (confirm the current figure). Contributions are calculated on the coordinated salary and rise with age, from about 7 percent at 25 to 34, to 10 percent at 35 to 44, 15 percent at 45 to 54 and 18 percent at 55 to 65. The employer must fund at least half. UVG/LAA (accident): the employer pays the occupational-accident premium; the employee usually pays the non-occupational premium, withheld from salary for staff working eight hours a week or more. Rates depend on the insurer and risk class. FAK/CAF (family allowances): roughly 1.7 to 3.5 percent, employer-only, set by each canton. Combined employee deductions before any source tax commonly land around 12 to 15 percent of gross, while the total employer-plus-employee burden is often in the region of 21 to 25 percent. These are approximate. Our guide to the full social-security contribution system sets out all three pillars, and how BVG occupational pension works explains the coordinated salary and age bands in detail. Gross to net A worked net-pay example: gross to net. The arithmetic is easier to follow on a single illustrative salary. Take a single employee, tariff code A0N, on a gross of CHF 8,000 a month in an illustrative canton. All figures here are illustrative for 2026 and rounded; real numbers depend on the canton, the pension plan and the current tables. Step 1, AHV/IV/EO: about 5.3 percent of CHF 8,000, roughly CHF 424. Step 2, ALV: about 1.1 percent, roughly CHF 88. Step 3, BVG: the employee share of the age-banded pension on the coordinated salary, illustratively in the order of CHF 300 to CHF 500 depending on age and plan. Step 4, UVG non-occupational: the accident premium, illustratively around CHF 60 to CHF 100. Step 5, source tax: look up the A0N tariff for the canton and apply the rate to the relevant base. On this salary it might fall in the region of 8 to 12 percent, so several hundred francs, but the exact figure comes only from the cantonal table. Net pay is the gross less Steps 1 to 5. The employer then remits the social-security contributions to the relevant funds and the source tax to the cantonal tax office, usually keeping a small collection commission for the latter. The employer also adds its own employer-side charges on top of the gross, so the true cost of the hire is higher than the headline salary. Treat the percentages as the starting point for a real calculation, not as a quote. The CHF 120,000 line The CHF 120,000 threshold and ordinary assessment. Source tax is meant to be the final settlement for most employees, but not for higher earners. As of 2026, where a source-taxed employee's gross annual employment income reaches roughly CHF 120,000 , the canton applies a subsequent ordinary assessment (nachtragliche ordentliche Veranlagung, or NOV). The employee then files a full return like a resident, the source tax already withheld is credited against the final bill, and any difference is settled with the tax office. This threshold has applied nationwide since the 2021 source-tax reform and is not inflation-indexed, so confirm the current rule. Below CHF 120,000, an employee can request a voluntary ordinary assessment by 31 March to claim deductions the flat tariff does not give, such as Pillar 3a contributions, commuting or childcare. Since the 2021 reform that choice is irrevocable: once made, it binds the employee to file every year afterwards. Whether tax at source or a full return works out better is a trade-off between simplicity and deduction recovery, and it depends on the individual's circumstances, so this is a point to model rather than assume. The mechanics of personal liability are covered in our guide to ordinary income-tax assessment . Cantonal sourcing Which canton’s tariff applies. Source tax is a cantonal tax, so the right table is the one that the canton of taxation publishes. The sourcing rule depends on where the employee lives and works. Swiss-resident employees: the canton of residence sets the tariff. Non-resident employees: the employer's canton applies. Weekly commuters who stay near work during the week and return home at weekends: the canton of the weekday stay. This matters for your payroll setup because all 26 cantons set their own tariff tables, family-allowance rates and collection commissions, so the same gross salary produces a different net in different cantons. It is one reason low-tax cantons such as the canton where you employ staff feature in foreign-founder planning. Map each employee to the correct canton of taxation before the first run, because correcting it later means reissuing statements. Employer operations Employer obligations: registration and the payroll cycle. Before the first salary run, a new Swiss employer typically registers with five bodies: the cantonal tax office for source tax, an AHV compensation office (Ausgleichskasse) for the first pillar, a BVG pension fund , a UVG accident insurer , and the source-tax register for any employee taxed at source. Competitors scatter these; treat them as one checklist to clear together. The recurring cycle then has a monthly and an annual rhythm. Monthly (quarterly in some cantons), the employer reports and remits the source tax withheld, usually keeping a collection commission of about 1 to 2 percent of the tax for the work, with the exact rate set by each canton. Social-security contributions are paid provisionally to the AHV compensation office during the year and reconciled in an annual statement . The 13th salary is ordinary pay, subject to contributions and, for source-taxed staff, annualised in the tariff calculation, though cantonal spreading practice varies. At year end the employer must issue every employee a salary certificate (Lohnausweis, certificat de salaire) summarising gross pay, deductions and benefits in kind, plus a tax-at-source statement for source-taxed staff. Late or missing filings expose the employer to interest, penalties and personal liability. Our guide to hiring your first employee in Switzerland sequences the registration, contract and payroll steps. Founder as first hire Foreign founder as your company’s first employee. A slice of this audience is underserved everywhere else: the founder who is their own company's first employee. If you incorporate a one-person AG or GmbH and draw a salary as the director, you are an employer and an employee at once. You still have to register with the social-security and tax bodies, withhold the social-insurance stack from your own pay, and, if you do not hold a C permit, withhold source tax on yourself and remit it like any other employer. You must also issue yourself a Lohnausweis at year end. That is workable for a solo founder for a while, but the load grows fast. The usual trigger points to hand it off are a second hire, staff across more than one canton, BVG complexity, or simply the language of cantonal correspondence. At that stage, our outsource your Swiss payroll service runs the full cycle, and Swiss accounting and payroll administration bundles it with bookkeeping so the employer-side liabilities stay visible month to month. We work on a custom-quote basis: tell us the canton, the headcount and the permit mix, and we will scope it. FAQ Frequently asked questions Does Switzerland have a payroll tax? There is no single federal payroll tax. Employers withhold social-security contributions for every employee and income tax-at-source (Quellensteuer) only for foreign employees without a C permit. Swiss nationals and C-permit holders file ordinary returns, so no income tax is withheld from their pay. Who pays tax at source (Quellensteuer) in Switzerland? Foreign employees resident in Switzerland without a C permit (B, L, and F or N permits if employed) and cross-border commuters (G permit). C-permit holders and foreigners married to a Swiss or C-permit spouse are taxed by ordinary assessment instead. What is the difference between Quellensteuer and Verrechnungssteuer? Quellensteuer is income tax withheld from the wages of certain foreign employees. Verrechnungssteuer (anticipatory tax) is a separate 35% federal tax on investment income such as dividends and interest, and is refundable to declaring residents. Payroll deals only with Quellensteuer. What does a tariff code like A0N or C2Y mean? The letter is marital and earner status (A single, B married single-earner, C married dual-earner, H single parent), the digit is the number of children, and the final letter is church tax (Y for a member of a recognised church, N for a non-member). What is the CHF 120,000 threshold for tax at source? Foreign employees taxed at source whose gross annual employment income exceeds CHF 120,000 must file a mandatory subsequent ordinary assessment. The source tax already paid is credited against the final bill. This has applied nationwide since the 2021 reform; confirm the current-year rule. Do I still file a tax return if I pay tax at source? Usually not below CHF 120,000, but you can request a voluntary ordinary assessment by 31 March to claim deductions such as Pillar 3a, commuting and childcare. Since 2021 that choice is irrevocable and binds you to file every year afterwards. How much are employer social-security contributions in Switzerland? Approximately AHV/IV/EO 5.3% employer share, ALV 1.1% up to the ceiling, plus BVG (at least half of an age-banded rate), UVG occupational accident, and a canton-set FAK of roughly 1.7 to 3.5%. Total employer cost is commonly around 12 to 18% on top of gross. Confirm current-year rates. Can the employer keep part of the tax at source? Yes. The employer retains a collection commission of about 1 to 2% of the withheld source tax, set by each canton, for collecting and remitting it. Does a C permit holder pay tax at source? No. C-permit (settlement) holders are taxed by ordinary assessment like Swiss nationals, so no income tax is withheld from their wages. Social-security contributions are still deducted as for any employee. Which canton’s tariff applies to my employee? For Swiss-resident employees, the canton of residence; for non-residents, the employer’s canton; and for weekly commuters, the canton of the weekday stay. Keep reading Related guides and services. Swiss Social Security (AHV/AVS) Personal Income Tax in Switzerland Hiring Employees in Switzerland Swiss VAT Number (UID/MWST) Payroll services Accounting services Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Pension Fund (BVG): Employer's Guide 2026 URL: https://business-in-switzerland.com/guides/swiss-pension-system-bvg Description: What foreign employers must do about the Swiss BVG second pillar: who to insure, 2026 thresholds, contribution rates, employer share, choosing a fund. Swiss Pension Fund (BVG): Employer's Guide 2026 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Pension (BVG) Swiss occupational pension (BVG/LPP): an employer's guide Once you employ staff in Switzerland above a modest salary threshold, you must affiliate them to a second-pillar pension fund and pay at least half of the contributions. The occupational pension is a legal duty for the employer, not an optional benefit. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: November 2026 Swiss retirement provision rests on three pillars. The first, AHV/AVS, is the state old-age and survivors' insurance that covers basic living needs. The second is the occupational pension , known by its German and French abbreviations BVG and LPP, which is funded by employer and employee contributions and is designed to let people keep their accustomed standard of living in retirement. The third pillar is voluntary private saving. For a foreign company hiring in Switzerland, the second pillar is the one that creates a concrete administrative obligation from the first qualifying employee onward. Unlike the pay-as-you-go first pillar, the BVG is a funded, capital-based system: each insured person builds up an individual retirement account inside a pension fund ( Pensionskasse ). The employer chooses and joins a fund, deducts the employee's share from each salary, adds its own at least equal share, and remits the total. This guide explains who must be insured, how the insured salary is calculated, the age-based credit rates, the contribution split, how to choose a fund, and what happens when an employee changes job or leaves the country. Key figures are stated as of 2026. By the numbers The figures that anchor this topic. CHF 22,680 BVG entry threshold / year · 2026 CHF 26,460 Coordination deduction · 2026 50%+ Employer's minimum share 7-18% Retirement credit by age band The short answer What is the BVG second pillar, and is it mandatory for my company? The BVG ( Berufliche Vorsorge ) or LPP ( Prévoyance Professionnelle ) is the Swiss occupational pension , the second of the country's three retirement pillars. It is a funded scheme: contributions paid in by employer and employee are saved in an individual account, earn interest, and are paid out at retirement as a pension or a lump sum. A pension fund is also called a Pensionskasse or caisse de pension , so those terms describe the same thing. Yes, it is mandatory. Above an annual entry threshold, an employer must affiliate to a registered pension fund and insure every qualifying employee. This is not a benefit the company can choose to skip: the duty falls on the employer to set the scheme up, enrol staff, deduct the employee share, add its own share and remit the total to the fund. The rest of this guide sets out who must be insured, what it costs, and how a new Swiss company affiliates to a fund. BVG vs LPP BVG vs LPP, and where it sits in the three pillars A common point of confusion: BVG and LPP are not two schemes, they are one law in two languages . BVG is the German abbreviation and LPP the French abbreviation for exactly the same federal occupational-pension act. Whichever term a fund or contract uses, the rules, thresholds and rates are identical across the country. The three pillars fit together as follows. The first pillar, AHV/AVS, is mandatory for everyone who lives or works in Switzerland and is financed pay-as-you-go, covering subsistence needs only. The second pillar, the BVG/LPP occupational pension, layers on top for employees and is funded in advance in individual accounts. The third pillar is private, tax-advantaged saving that fills any remaining gap. Together the first two pillars are intended to replace roughly 60 percent of final salary. Our guide to the Swiss social security system sets the BVG alongside the other contributions an employer must run. Who is covered Which employees must you insure? The entry threshold BVG affiliation is mandatory for employees who are already subject to AHV and who earn more than the annual entry threshold ( Eintrittsschwelle ) with a single employer. As of 2026 that threshold is CHF 22,680 , equal to three quarters of the maximum annual AHV pension. An employee earning at or below it is not covered by the mandatory scheme, although some funds offer voluntary insurance below the line. Cover begins at different ages for its two components. From age 17 the employee is insured for the risks of death and disability only; from the start of the year in which they turn 25 the retirement savings (old-age credit) component is added. Insurance runs to the statutory reference age of 65. Some categories sit outside the mandatory scheme, for example employees on a fixed contract of three months or less, and self-employed people, who may insure themselves voluntarily instead. Part-time staff are covered on the same threshold test, which is why several funds reduce the coordination deduction pro rata to avoid under-insuring them. Coordination deduction The coordinated (insured) salary and coordination deduction The BVG does not insure the whole salary. Part of the income is already covered by the first pillar, so a fixed amount, the coordination deduction ( Koordinationsabzug ), is subtracted before the pension contribution is worked out. As of 2026 the coordination deduction is CHF 26,460 , equal to seven eighths of the maximum AHV pension. What remains after the deduction is the coordinated or insured salary ( koordinierter Lohn ). The insured salary is bounded at both ends. As of 2026 the upper salary limit recognised by the mandatory scheme is CHF 90,720, which after the coordination deduction produces a maximum coordinated salary of CHF 64,260. There is a floor too: if the calculation would give a very small figure, a minimum coordinated salary of CHF 3,780 applies. The figures uprate periodically with the maximum AHV pension, so always confirm the current-year numbers before fixing payroll. Earnings above the upper limit can be insured through a voluntary supplementary plan, covered further below. Worked example How contributions are calculated: a worked example Take an employee earning CHF 80,000 a year as of 2026. Subtract the coordination deduction of CHF 26,460 and the insured (coordinated) salary is CHF 53,540. The retirement credit and the risk premiums are charged on that CHF 53,540, not on the full CHF 80,000. If the employee is in the 35 to 44 age band, the mandatory retirement credit is 10 percent of CHF 53,540, or CHF 5,354 a year, before risk and administrative premiums. That total is then split: the employer must fund at least half, so on this example the employee share deducted through payroll is no more than CHF 2,677 a year and the employer pays at least as much again on top. The deduction bites harder on lower salaries, because a fixed CHF 26,460 is removed regardless of hours. An employee earning CHF 30,000 has an insured salary of only CHF 3,540, just above the minimum. These mechanics feed straight into payroll, which our payroll services team runs for foreign employers, with the remittance and reconciliation handled through our accounting service . Retirement credits Age-based savings credits (7 / 10 / 15 / 18 percent) The savings portion of the BVG is built from annual retirement credits ( Altersgutschriften ), expressed as a percentage of the insured salary. The mandatory minimum rates rise with age, so older employees accumulate faster. As of 2026 the statutory minimums are: Age 25 to 34 : 7 percent of the insured salary. Age 35 to 44 : 10 percent. Age 45 to 54 : 15 percent. Age 55 to the reference age : 18 percent. These are the legal minimums for the mandatory part. A fund may credit more, and many supplementary plans do. Because the rate jumps with each age band, the cost of insuring an older workforce is materially higher than for a young team, a point worth modelling before you fix headcount and salaries. Who pays How much the employer pays (at least half) The single most important rule for budgeting is that the employer must pay at least 50 percent of the total BVG contributions . The employee's share is deducted from gross salary each month; the employer adds its own share, which must be equal to or greater than the sum of all employees' shares, and remits the combined amount to the fund. Many employers choose to pay more than half as a recruitment incentive. The total contribution covers three elements: the retirement credit (the savings component), risk premiums for death and disability, and an administrative and guarantee-fund charge. Only the employee's gross-salary deduction reaches the payslip; the employer share is a separate cost on top of wages, which is why the true cost of a Swiss hire runs well above the headline salary. Our payroll taxes guide shows how the BVG line sits with AHV, unemployment insurance and accident cover. Above the minimum Mandatory vs supplementary cover, and 1e plans for high earners Everything described so far is the mandatory ( obligatorisch ) part, the legal minimum set by the BVG. Many funds also offer supplementary cover ( überobligatorisch ), which insures salary above the upper limit and can apply higher credit rates than the statutory minimums. As of 2026 the supplementary range typically runs from the upper-limit salary of CHF 90,720 up to about CHF 907,200, ten times the upper limit. For senior staff and well-paid expatriate hires, so-called 1e plans are relevant. Available on the salary band from roughly CHF 136,080 to CHF 907,200 as of 2026, a 1e plan lets the insured person choose their own investment strategy for that supplementary portion and bear the investment risk and reward directly. This matters when you recruit at the top of the market: above the mandatory ceiling, the design of the plan, not the statutory minimum, drives both cost and benefit. Interest and payout Conversion rate and minimum interest rate Accumulated mandatory retirement assets must earn at least a minimum interest rate ( BVG-Mindestzins ) set by the Federal Council, which reviews it each autumn. That rate was 1.25 percent for 2025; because it can change annually, treat any single figure as provisional and confirm the rate applying in the relevant year before you rely on it. At retirement the saved capital is turned into an annual pension using the conversion rate ( Umwandlungssatz ). The statutory minimum conversion rate on the mandatory portion is 6.8 percent at the reference age of 65, so CHF 100,000 of mandatory capital produces about CHF 6,800 of pension a year. That level still stands: the proposed BVG reform that would have changed it was rejected by referendum on 22 September 2024 (around 67 percent voted no), so any competitor page describing pre-vote uncertainty is out of date. An insured person may usually take all or part of the capital as a lump sum instead of a pension, subject to the fund's rules and notice periods. Choosing a fund Choosing and affiliating to a pension fund for a new Swiss company An employer does not run its own pension scheme unless it is large enough to justify one. In practice most companies affiliate to a collective foundation ( Sammelstiftung ) run by an insurer or independent provider, or join an industry fund where a collective labour agreement dictates one. Affiliation is a legal requirement: a new employer with qualifying staff must be affiliated to a registered scheme, and if it fails to act the substitute occupational benefit institution ( Auffangeinrichtung ) can affiliate it compulsorily. When comparing providers, look at the contribution model (savings rates above the statutory minimum), the coordination-deduction rules for part-timers, the cost loadings, the coverage ratio, and the interest credited on supplementary assets. The choice is a genuine cost and benefits decision, not a formality, and it should be made before the first qualifying employee starts. The practical steps are: affiliate to a fund, register your staff, set the payroll deduction, and remit the contributions on the fund's schedule. If you are setting up an employment footprint without a Swiss entity, an employer of record already holds the pension affiliation, which removes this step. A short checklist for a new employer: Confirm which employees exceed the CHF 22,680 entry threshold as of 2026. Select and affiliate to a registered pension fund or collective foundation before staff start. Calculate each insured salary: gross salary minus the CHF 26,460 coordination deduction, within the floor and cap. Apply the age-based retirement credit of 7 to 18 percent, plus risk and admin premiums. Set the employer share at 50 percent or more and run the employee deduction through payroll. Re-check the entry threshold, coordination deduction and minimum interest rate each year, as they adjust. Portability and the payroll stack Job changes, leaving Switzerland, and how BVG fits the payroll stack When an employee changes job, their accrued capital does not stay behind. The vested benefit ( Freizügigkeitsleistung ) transfers to the new employer's pension fund, or, if there is a gap between jobs, to a vested-benefits account or policy until the next fund takes over. Early withdrawal ( Vorbezug ) is possible on limited grounds, mainly buying a main residence, starting self-employment, or permanently leaving Switzerland. Note the cross-border restriction: an employee relocating within the EU or EFTA cannot cash out the mandatory part if they remain compulsorily insured for old age, disability and survivors in the new country; that share stays in a Swiss vested-benefits account. BVG is only one strand of the employer on-cost. On top of gross salary, a Swiss employer also pays AHV/IV/EO (the first pillar and related funds), ALV (unemployment insurance), and UVG (accident insurance), with the BVG contribution often the largest single line for older staff. Budget all of them together rather than in isolation. Our guide to hiring employees in Switzerland places the pension step in sequence with contracts, registration and the other social-insurance enrolments, and starting a business in Switzerland covers the incorporation that triggers the affiliation duty in the first place. We work on a custom-quote basis, so contact us with your headcount and salaries and we will scope the payroll. FAQ Frequently asked questions What is the BVG (second pillar) and is it mandatory for my Swiss company? BVG is the occupational pension, or second pillar. It is mandatory: an employer must affiliate to a pension fund and insure every employee earning above the entry threshold. The duty falls on the employer to set up the scheme, deduct the employee share, add at least an equal share, and remit the total to the fund. Which employees must I enrol, and what is the entry threshold? Employees earning above CHF 22,680 per year from a single employer must be insured, as of 2026, a figure equal to three quarters of the maximum AHV pension. Risk cover for death and disability applies from age 18, and retirement savings accrue from age 25. The threshold adjusts periodically, so verify the current figure. How is the coordinated (insured) salary calculated, and what is the coordination deduction? Subtract the coordination deduction of CHF 26,460 (as of 2026) from gross salary to get the coordinated salary, floored at CHF 3,780 and capped at CHF 64,260. The deduction exists because part of the income is already covered by the first-pillar AHV, so the BVG insures only the slice above it. How much does the employer have to pay toward the pension fund? The employer must pay at least 50 percent of total contributions, so the employer share is at least equal to the sum of all employees shares. Many employers pay more. The employee share is deducted from gross salary, while the employer share is a separate cost on top of wages. How do the age-based savings credits work? Savings credits rise with age as a percentage of coordinated salary: 7 percent at ages 25 to 34, 10 percent at 35 to 44, 15 percent at 45 to 54, and 18 percent from 55 to the reference age. These are the legal minimums for the mandatory part, and a fund may credit more under a supplementary plan. At what age do retirement savings begin, versus risk-only cover? Risk-only cover for death and disability applies from age 18, while retirement savings accrue from 1 January after age 24, that is from age 25. Insurance runs to the statutory reference retirement age of 65 for both men and women under the harmonised rules. What is the BVG conversion rate, and what is the minimum interest rate? The conversion rate is a 6.8 percent minimum on mandatory assets, so CHF 100,000 of capital yields about CHF 6,800 per year. The Federal Council sets the minimum interest rate on mandatory assets and reviews it each autumn; it was 1.25 percent for 2025, so confirm the current-year figure. What is the difference between mandatory and supplementary cover, and what is a 1e plan? Mandatory (obligatorisch) cover is the legal BVG minimum; supplementary (überobligatorisch) cover insures salary above the upper limit and can apply higher rates. 1e plans, available on a high-salary band up to about CHF 907,200, let high earners choose their own investment strategy on the supplementary part and bear the risk directly. What happens to an employee pension fund when they change jobs or leave Switzerland? On a job change, the vested benefit transfers to the new fund or, between jobs, to a vested-benefits account. On departure, early withdrawal is possible on limited grounds, but the mandatory part cannot be cashed out when relocating within the EU or EFTA if the person stays compulsorily insured there. How does a new Swiss company choose and affiliate to a pension fund? Most small companies affiliate to a collective foundation run by an insurer or independent provider, or join an industry fund set by a collective agreement. Compare contribution models, part-time coordination rules, cost loadings and the interest credited. The steps are: affiliate, register staff, set the payroll deduction, and remit, all before the first qualifying employee starts. Did the 2024 BVG reform change anything? No. The proposed BVG reform was rejected by referendum on 22 September 2024, with around 67 percent voting no, so current rules stand, including the 6.8 percent minimum conversion rate. Competitor content describing pre-vote uncertainty or a lower rate is out of date. How does BVG fit with the rest of Swiss payroll (AHV, ALV, UVG)? BVG is one of several mandatory employer contributions alongside AHV/IV/EO, ALV unemployment insurance and UVG accident insurance. Together they form the total employer on-cost on top of gross salary, with the BVG line often the largest for older staff. Budget all of them together rather than in isolation. Keep reading Related guides and services. Swiss Social Security (AHV/AVS) Hiring Employees in Switzerland Swiss Payroll Taxes Payroll services Employer of record Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Personal Income Tax in Switzerland (2026 Guide) URL: https://business-in-switzerland.com/guides/swiss-personal-income-tax Description: How Swiss personal income tax works in 2026: the three-tier system, tax at source for foreigners, the CHF 120,000 trigger, canton rates and deductions. Personal Income Tax in Switzerland (2026 Guide) STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Income tax Personal Income Tax in Switzerland: Federal, Cantonal and Communal There is no single Swiss income tax rate. Federal direct tax tops out at 11.5%, but the combined federal, cantonal and communal burden runs from roughly 22% in the lowest-tax cantons to around 41% to 46% in the highest, so what you actually pay depends on canton, commune, income and family status. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: October 2026 Switzerland taxes the worldwide income of its residents, but it does so through three separate layers that stack on top of each other: the federal direct tax ( direkte Bundessteuer / impôt fédéral direct ), the cantonal tax, and the communal tax of the municipality where you are resident. The federal tariff is fixed nationally and only mildly progressive, with a ceiling marginal rate of 11.5%. The cantonal and communal layers are where the real spread lies, because each of the 26 cantons sets its own scale and each commune applies its own multiplier. That is why the headline "what is the income tax rate in Switzerland" has no one answer. The honest version is a range: a high earner in a low-tax commune in Zug can face a combined top marginal rate in the low twenties, while the same income in a high-tax canton such as Geneva can be taxed at well over 40% at the margin. This guide explains how the three tiers fit together, who pays at source versus by annual return, the federal brackets, where it is cheapest by canton, the deductions that cut your bill, and how married couples and the other personal taxes work. Every figure is for 2026 and should be checked against the ESTV tax calculator for your exact commune, because rates change annually. By the numbers The figures that anchor this topic. 11.5% Federal top marginal rate · 2026 ~22% to 46% Combined top marginal · by canton CHF 120k Mandatory ordinary-assessment trigger 26 Cantons with independent tax laws The short answer How much income tax do you actually pay in Switzerland? There is no single Swiss income tax rate, and any source quoting one figure is misleading. The federal direct tax has a statutory ceiling of 11.5%, but that is only the federal slice. Add the cantonal and communal taxes and the combined top marginal rate, as of 2026, runs from roughly 22% in the lowest-tax cantons such as Zug and Schwyz to around 41% to 46% in high-tax cantons such as Geneva, Vaud and Bern. Treat these as indicative ranges for 2026 rather than fixed numbers. The common error is to see "11.5%" reported as the Swiss income tax rate and assume that is the whole burden. It is not. The 11.5% is the federal ceiling that applies only at very high incomes, and for most residents the cantonal and communal layers together exceed it. Four variables move your actual rate: the canton you live in, the commune within it, your income level, and your family status. Because the lower brackets are taxed at lower rates, the average effective rate on your total income is always lower than the top marginal figure. The system The three-tier system: federal, cantonal and communal Swiss income tax is built in three tiers that are all charged on the same income through a single annual return. The Confederation levies a uniform federal direct tax under the Federal Direct Tax Act, applied identically across the country. Each of the 26 cantons then sets its own income-tax law, which is the largest source of variation. Finally, the commune ( Gemeinde / commune) where you are resident charges its own tax, almost always expressed as a multiplier on the basic cantonal tax. The federal layer is the same everywhere and modest, so it rarely drives the outcome. The cantonal layer is the big swing factor, because 26 independent scales produce genuinely different bills for the same salary. The communal layer is set through an annual multiplier known as the Steuerfuss (or coefficient ): a commune at 100% charges the full basic cantonal rate, one at 75% charges three quarters of it. Many cantons add a small optional church tax for registered members, which can be opted out of by leaving the church. This three-tier structure is the canonical frame for everything that follows. Residence test Who pays: tax residence vs taxation at source The first question most foreigners need answered is whether they are taxed on everything they earn or only on Swiss income. The dividing line is tax residence. Swiss tax residents are taxed on their worldwide income and wealth, with foreign real estate and foreign business establishments excluded by international allocation rules and double-taxation treaties relieving income already taxed abroad. Non-residents are taxed only on Swiss-source income, such as a salary for work physically performed in Switzerland. You generally become a Swiss tax resident by taking up domicile in Switzerland, or by a qualifying period of physical presence: broadly around 30 days if you are working here, or around 90 days even without working, though the exact presence tests should be confirmed against the federal rules for your situation. Residence matters because it sets the scope of what is taxed. But how you pay differs by permit: most foreign employees who are resident but do not yet hold a C settlement permit are taxed at source rather than by annual return, which is the subject of the next section. Source tax Tax at source (Quellensteuer) for foreign workers Most foreign nationals working in Switzerland who do not hold a C settlement permit are taxed at source rather than by filing a return. Under the source-tax regime ( Quellensteuer / impôt à la source ), the employer withholds income tax directly from each month's salary and pays it to the cantonal tax authority. The employee receives a net wage with the tax already deducted, in the same way as social-security contributions, and by default does not file a separate annual return for that income. Who is taxed at source: holders of B and L permits, and cross-border commuters, while C-permit holders and Swiss nationals are not, because they file ordinarily. The withholding rate is not a single national figure. It is set by the canton of work and depends on a tariff code reflecting marital status, number of children, religious affiliation and whether a spouse also works, with a standard set of deductions already baked into the rate. Cross-border commuters on a G permit, who typically return home weekly or daily, are a special case whose treatment also depends on the relevant double-taxation treaty. Which permit you hold drives the whole filing path, so it is worth reading our work permit guide alongside this one. The trigger The CHF 120,000 trigger and when you must file a return Source taxation is not always the end of the story. A source-taxed resident whose gross annual employment income exceeds CHF 120,000 (assessed per spouse) is moved into mandatory ordinary assessment. In that case the source tax already withheld is credited against the final bill calculated on a full return, and the taxpayer claims the actual deductions described below instead of the standardised ones built into the tariff. Secondary triggers, such as significant taxable assets or income not taxed at source, also exist but vary by cantonal practice, so check your canton rather than assume a single figure. Even below CHF 120,000, a source-taxed worker can usually request a voluntary (retrospective) ordinary assessment, typically by 31 March of the following year. This is worth doing if you have deductions the tariff does not fully capture, such as pillar 3a contributions, pension buy-ins, commuting or childcare costs, because it can produce a refund. Note that once you opt into ordinary assessment you generally stay in it for future years. Over time the regime ends entirely: a foreign resident usually qualifies for a C permit after around ten years and then files an ordinary return like any other resident. The permit timeline behind this is set out in our residence permit guide. Federal layer Federal direct tax brackets (2026) The federal direct tax on individuals is progressive and applies the same scale across the whole country. It starts at zero for low incomes, with no federal tax due below a threshold of roughly CHF 18,500 for single filers, then rises through bands from a first positive rate of about 0.77% up to the statutory ceiling of 11.5% at very high incomes. The exact income at which the 11.5% top rate begins is high and is adjusted periodically for inflation, so treat any precise threshold as the 2026 position and confirm it against the current federal table; the 11.5% ceiling itself is stable. Married couples and single parents use a separate, flatter schedule with a higher zero-rated band, beginning around CHF 32,000 of taxable income before any federal tax is due, and reaching the same 11.5% ceiling only at a higher income than for single filers. Because the federal top marginal rate is only 11.5%, the federal tax is rarely the dominant part of a high earner's bill: the cantonal and communal layers together usually exceed it, which is exactly why where you live matters more than the federal scale. By canton Income tax by canton: where it is cheapest (and most expensive) Because the cantonal and communal layers do the heavy lifting, canton choice is a genuine financial planning lever. As an indicative 2026 picture, the lowest-tax cantons for personal income are Zug, Schwyz and Nidwalden, where a high earner's combined top marginal rate sits in the low-to-mid twenties; our income tax in Zug page explains why it is consistently the most attractive. At the other end, Geneva (around the low forties at city level), Vaud and Bern reach combined top marginal rates in the region of 41% to 46%; our Geneva income tax page covers that profile. Zurich sits in the middle of the table for a large city, as our Zurich income tax page sets out. To make the spread concrete: a single earner on CHF 100,000 of taxable income faces a markedly lower effective rate in a low-tax commune in Zug than in the city of Geneva, and the gap widens at CHF 250,000 as more income falls into the higher cantonal brackets. These worked comparisons are indicative for 2026 only, and the precise figure depends on your exact commune, so use the ESTV tax calculator to model your own address rather than relying on a headline ranking. Deductions Deductions that cut your taxable income Swiss residents are taxed on net income after a range of deductions, and the single biggest lever for most employees is pillar 3a, the private restricted-pension scheme. For 2026 the maximum deductible pillar 3a contribution is around CHF 7,258 for employees who are members of an occupational pension fund, while the self-employed without a pension fund can contribute up to 20% of net earned income, capped at roughly CHF 36,288. The full contribution is deductible from taxable income. A newer feature allows retroactive pillar 3a buy-ins for missed years going back up to ten years (with the first eligible gap year being 2025), though you should confirm the exact mechanics with your pension provider before relying on them. Pillar 2 buy-ins into the occupational pension fund, which can be substantial and are fully deductible in the year paid, making them a powerful one-off lever near retirement. Professional and commuting expenses between home and work, subject to a federal cap and cantonal limits. Health and accident insurance premiums , within fixed allowances that vary by canton and family situation. Childcare costs for third-party care of young children, up to a deductible ceiling. Debt interest, a double-earner deduction and certain donations. The franc amounts are fixed and indexed, and cantonal allowances often differ from the federal ones, so the same expense can produce a different deduction at each level. Planning pillar 3a and pension buy-ins before year end is one of the most reliable legitimate ways to reduce a Swiss tax bill. Households Married couples and joint taxation Married couples in Switzerland are currently assessed jointly: their incomes are added together and taxed as a single unit at both federal and cantonal level, using a separate married schedule that is flatter than the single one. Because progressive rates apply to the combined income, a two-earner couple can pay more than two unmarried individuals would on the same incomes, the so-called marriage penalty, which a dedicated double-earner deduction is designed to soften. There is an active political debate about moving to individual taxation ( Individualbesteuerung ), under which spouses would be assessed separately. It is important to be clear that this reform is under parliamentary discussion only and is not in force: married couples are still assessed jointly. Treat any commentary about individual taxation as a proposed change to watch, not the current law. Not income tax The other personal taxes you should not confuse with income tax Income tax is only one of several personal taxes, and conflating them is a common mistake. Three others sit alongside it and should be kept distinct. Wealth tax is levied only by cantons and communes, with no federal equivalent, and is charged progressively at roughly 0.1% to 1.0% of net wealth depending on canton; it should be weighed in the same relocation analysis as income tax, and our Swiss wealth tax guide covers it in full. The 35% federal withholding tax ( Verrechnungssteuer ) is deducted at source on Swiss interest and dividends. It is not a separate income tax: for residents who declare the income it is credited or refunded against their ordinary assessment, acting as an anti-evasion mechanism rather than a final cost. Finally, social-security contributions (AHV/AVS for old-age, ALV for unemployment, and BVG for the occupational pension) are deducted from gross salary but are categorically not income tax. They buy pension and insurance entitlements and are calculated on different bases, so they should never be added to the income-tax rate when comparing total deductions from pay. Next steps Getting it right as a foreigner: planning and next steps For most foreign workers the practical decisions are two. First, source tax or voluntary filing: if you are taxed at source and have meaningful deductions such as pillar 3a, pension buy-ins or childcare, requesting a voluntary ordinary assessment by the cantonal deadline can recover tax the tariff did not capture, but remember that once you opt in you generally stay in. Second, canton choice: because the federal layer is fixed and modest while cantonal and communal taxes vary widely, residence is the single biggest variable in your bill, worth tens of thousands of francs a year for a high earner. More complex situations, such as cross-border arrangements, internationally mobile households, or very high net worth individuals considering expenditure-based (lump-sum) taxation, benefit from advice and sometimes an advance ruling that confirms treatment before you commit. Our Swiss tax-ruling advisory handles those cases, and you can talk to a specialist with your canton, permit status and income profile for a scoped, custom quote. Whatever your situation, model your own commune in the ESTV calculator first, because every figure in this guide is an indicative 2026 range, not a substitute for your exact numbers. FAQ Frequently asked questions How much personal income tax do you pay in Switzerland? There is no single rate. Federal direct tax tops out at 11.5%, but combined federal, cantonal and communal top marginal rates run from roughly 22% in low-tax cantons such as Zug and Schwyz to around 41% to 46% in high-tax cantons such as Geneva, Vaud and Bern. Your actual burden depends on canton, commune, income and family status, using indicative 2026 figures. Who has to pay income tax in Switzerland? Tax residents pay on worldwide income and wealth; non-residents pay only on Swiss-source income. Most foreign employees on a B or L permit are taxed at source directly by their employer rather than filing an annual return. What is tax at source (Quellensteuer)? It is income tax withheld directly from salary by the employer for B and L permit holders and cross-border workers, charged at cantonal tariff rates, instead of the employee filing an annual return. The employee receives a net wage with the tax already deducted. When do I have to file a tax return instead of being taxed at source? If your gross annual employment income exceeds CHF 120,000 you must file an ordinary assessment; below that you can request one voluntarily, typically by 31 March of the following year. C permit holders and Swiss nationals always file ordinarily. What is the federal income tax rate in Switzerland? Federal direct tax is progressive with a statutory ceiling of 11.5%. Low incomes are zero-rated up to a threshold of roughly CHF 18,500 for single filers, then bands rise to the 11.5% top rate, which only applies at very high incomes. Which canton has the lowest income tax? Zug, Schwyz and Nidwalden are consistently among the lowest-tax cantons for personal income; Geneva, Vaud and Bern are among the highest, with Zurich in the middle. These are indicative 2026 rankings, and your exact bill depends on the commune. How much tax will I pay on a CHF 100,000 salary? It varies by canton and commune. A single earner pays a markedly lower effective rate in a low-tax canton like Zug than in a high-tax one like Geneva. Use the ESTV tax calculator for your exact commune to get a reliable figure. What can I deduct from my income tax? Pillar 3a contributions (up to around CHF 7,258 in 2026 with a pension fund), pillar 2 pension buy-ins, professional and commuting expenses, health and accident insurance premiums, childcare costs and debt interest, among others. Cantonal allowances often differ from the federal ones. Are married couples taxed jointly? Yes. Married couples are currently assessed jointly on combined income at federal and cantonal level, using a separate married schedule with a double-earner deduction. A move toward individual taxation is under political debate but is not yet in force. Is there a wealth tax in Switzerland? Yes, levied by cantons and communes, with no federal wealth tax, progressively at roughly 0.1% to 1.0% of net wealth depending on canton. It is a separate personal tax from income tax and should be weighed in any relocation decision. Do social-security contributions count as income tax? No. AHV/AVS, unemployment (ALV) and occupational-pension (BVG) contributions are deducted from gross salary but are separate from income tax. They buy pension and insurance entitlements and are calculated on different bases. What is the tax filing deadline in Switzerland? The annual return is generally due around 31 March of the following year, with cantonal variation and paid extensions available on request. The deadline for requesting a voluntary ordinary assessment as a source-taxed worker is also typically 31 March. Keep reading Related guides and services. Wealth Tax in Switzerland 2026 Swiss Payroll Taxes Average Salary in Switzerland 2026 Lump-Sum Taxation in Switzerland Zug Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Residence Permit Types — B, C, L, G & Ci URL: https://business-in-switzerland.com/guides/swiss-residence-permit-types Description: The Swiss residence permits explained: L, B, C, Ci and G plus S, F and N. EU/EFTA vs third-country rules, work rights, renewal and the path to settlement. Swiss Residence Permit Types — B, C, L, G & Ci STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Permit types Swiss Residence Permit Types: B, C, L, G and Ci Explained Switzerland labels every foreign resident with a single-letter permit category that fixes how long you may stay, whether you may work, and what comes next. Knowing which letter applies is the first step in any relocation. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: October 2026 Switzerland does not issue one generic "residence permit". It issues a defined set of permit categories, each identified by a letter, and the letter on your card determines almost everything that matters: the length of stay, the right to take a job or run a business, the rules on family reunification, and the path toward permanent settlement and eventually citizenship. The everyday letters are L (short stay), B (residence), C (settlement), Ci (residence with gainful employment) and G (cross-border commuter), with the protection permits S, F and N completing the set. The State Secretariat for Migration (SEM) sets the federal rules, while the cantonal migration offices administer applications in practice. The single biggest dividing line is whether you hold an EU or EFTA passport. Nationals of EU and EFTA states move under the Agreement on the Free Movement of Persons and receive permits almost as a formality, without quotas. Everyone else is a "third-country national" and faces annual federal quotas, a labour-market test and a higher evidential bar. This guide sets out each permit type, who qualifies, how the categories connect, and which letter a relocating founder actually needs. By the numbers The figures that anchor this topic. L · B · C Core permit ladder 5 or 10 yr Residence before C settlement 8 letters Permit categories in total None EU/EFTA quota under free movement At a glance Swiss residence permits at a glance. Every Swiss permit answers four questions: who it is for, how long it lasts, whether you can work, and whether it leads to settlement. The table sets out the everyday categories side by side; the sections below take each letter in turn. The letters L, B and G behave differently for EU/EFTA nationals and for third-country nationals, so read those rows together with the regime split that follows. Permit Who it is for Duration Work rights Path to C L Short-term stay, fixed purpose 3 to 12 months, extendable to 24 Tied to the named contract No (temporary status) B Longer-term residence, work or means EU/EFTA 5 years; third-country 1 year, renewed annually Yes, for the stated purpose Yes, after 5 or 10 years C Settled residents Permanent (card reissued every 5 years) Unrestricted Is the settlement permit Ci Family of diplomats and IGO staff Length of the principal's posting Gainful employment allowed Treated separately G Cross-border commuters EU/EFTA 5 years; third-country 1 year Work in Switzerland, live abroad Not a residence permit S / F / N Protection and asylum Temporary, situation-dependent Varies, subject to notification Separate regime The numbers above are the general position under SEM and ch.ch guidance; treaty-specific and nationality-specific details are set out under each permit below. For the mechanics of applying and registering, see our residence permit guide . The decisive split EU/EFTA vs third-country: the split that decides everything. The same permit letter behaves very differently depending on your passport, so this distinction comes before the permits themselves. EU and EFTA nationals move under the Agreement on the Free Movement of Persons (FZA / AFMP). They need no work permit to take a job or start a business, are not counted against quotas, and receive an L or B permit largely on proof of an employment contract or sufficient means. The permit confirms a right the agreement already grants rather than gating it, and validity runs longer with no labour-market test. Third-country nationals , meaning everyone outside the EU and EFTA, face a managed system. Each year the Federal Council fixes a national quota (the Höchstzahlen ) for new B and L permits, split between residence and short-stay permits, with the exact units set by federal ordinance rather than fixed in law. On top of the quota, a third-country application must pass a labour-market test showing the role could not readily be filled from the Swiss or EU/EFTA market (the Inländervorrang or domestic-worker priority), meet qualification requirements, and offer pay and conditions in line with local norms. Applicants also receive a biometric residence card. After Brexit, UK nationals are treated as third-country with their own ring-fenced arrangements, so confirm the current ordinance on sem.admin.ch rather than assuming a figure. Permit L Permit L: short-term residence (Kurzaufenthaltsbewilligung). The L permit ( Kurzaufenthaltsbewilligung ) covers stays of a limited, defined duration, typically under twelve months. It is issued for a specific purpose such as a fixed-term assignment, a short employment contract, a project posting or a course with a set end date. As a rule the L permit runs for 3 to 12 months and can be extended to a maximum of 24 months. It is tied to the job or purpose for which it was granted, so changing employer or activity usually means a fresh application rather than a simple transfer. For EU and EFTA nationals, a short-term L permit is the standard document where the employment contract runs from three to twelve months under free movement. For third-country nationals, the L permit is drawn from the federal short-stay quota and requires the same labour-market justification as a longer residence permit. Holders are generally taxed at source ( Quellensteuer ). An L permit can in some cases be converted into a B permit, but it is designed as a temporary status and does not, on its own, count toward the residence period that leads to settlement. Permit B Permit B: residence permit (Aufenthaltsbewilligung). The B permit ( Aufenthaltsbewilligung ) is the main residence category and the one most relocating professionals and entrepreneurs hold first. It authorises longer-term residence in a specific canton and, in most cases, the right to work for the purpose stated in the permit. For EU and EFTA citizens , a B permit is issued where there is an open-ended or one-year-plus employment contract, or proof of sufficient means for the economically inactive, and is generally valid for five years before renewal. A first renewal may be limited to one year if the holder has been involuntarily unemployed for more than twelve consecutive months. For third-country nationals , the B permit is an initial residence permit, renewable annually, tied to employment or another approved purpose, and drawn from the annual federal quota. On tax, B holders are taxed at source, with ordinary assessment ( Nachträgliche ordentliche Veranlagung , NOV) becoming mandatory above a gross annual salary of around CHF 120,000. A B permit is also the usual basis for family reunification, letting a spouse and children join the holder. Self-employed third-country applicants must additionally show an economic interest to Switzerland, meaning Swiss customers, Swiss revenue and a genuine contribution to the local economy, assessed by the cantonal labour-market authority and SEM. Setting up a company does not by itself produce a B permit; our migration support team handles the permit application alongside the formation. Permit C Permit C: settlement permit (Niederlassungsbewilligung). The C permit ( Niederlassungsbewilligung ) is the settlement permit. It is open-ended, not tied to a particular job, and removes most labour-market restrictions: a C holder may change employer, become self-employed or stop working without affecting their status, and a spouse benefits from the same freedom. Settlement is the closest position to a Swiss national short of citizenship. The plastic card is reissued every five years for control purposes, but the underlying status is permanent and is not renewed on conditions. Crucially for tax, C holders leave the source-tax system: they file ordinary annual tax returns like Swiss citizens, in contrast to B, L and G holders who are taxed at source. The C permit is also the prerequisite for ordinary naturalisation, which is why it functions as the gateway between long-term residence and Swiss citizenship. B permit vs C permit From B to C: how many years to settlement. The strongest single question searchers bring is the B-versus-C upgrade, so it is worth setting out clearly. As a general rule the qualifying period turns on nationality and on whether a settlement agreement exists between Switzerland and the home country. Five years of uninterrupted residence for EU and EFTA nationals, and for citizens of countries that hold a settlement agreement with Switzerland, including a handful of states such as the United States and Canada. Confirm whether a specific nationality qualifies, since the list is defined by treaty. Ten years of uninterrupted residence for most other third-country nationals, on the standard path. Early settlement at five years is possible under Art. 34 FNIA (AIG) where integration is successful, which in practice means at least B1 spoken language ability, respect for the legal order and financial independence. After the C permit comes naturalisation. Ordinary naturalisation generally requires holding a settlement permit and around ten years of residence, with stronger language and integration evidence. The C permit is the prerequisite, so the path runs L or B, then C, then citizenship; our Swiss citizenship guide covers that final stage in detail. Permit Ci Permit Ci: residence with gainful employment. The Ci permit is a narrow category for the spouses and children of members of foreign diplomatic missions, consular posts and international organisations based in Switzerland, as well as certain staff of those bodies. Switzerland hosts a large concentration of international institutions, particularly in Geneva, so the Ci permit is far more common there than elsewhere. Its distinguishing feature is that it allows the family member to take up gainful employment in Switzerland during the period the principal is posted, which diplomatic status would otherwise restrict. The Ci permit is linked to the principal's assignment: it lasts as long as that posting and ends when it does. It is a purpose-specific status rather than a step on the residence ladder, so time on a Ci permit is treated differently from ordinary B-permit residence when settlement is later assessed. Competitor explainers often omit it; including it completes the picture. Permit G Permit G: cross-border commuter (Grenzgänger). The G permit ( Grenzgängerbewilligung ) is for cross-border commuters: people who live abroad, usually in a neighbouring country, and work in Switzerland. It is the standard status for the large workforce living in France, Germany, Italy, Austria or Liechtenstein who commute into Swiss cantons such as Geneva, Basel, Ticino and the Jura arc. For EU and EFTA citizens the permit follows free-movement rules and runs for five years tied to an employment contract; for third-country nationals it is available only to those already holding a settled residence right in a neighbouring state and within the border zone, renewed yearly. A G holder keeps their main residence outside Switzerland and must return there at least once a week, a rule anchored in Art. 35 FNIA (AIG). The number of permitted non-return days is set by the relevant bilateral agreement and has shifted with post-pandemic teleworking accords, so verify the current limit for the country concerned rather than assuming a single figure. Remote work from abroad is allowed up to a treaty-specific share of working time. Cross-border workers are taxed at source, with the final allocation governed by the applicable double-taxation agreement, so an employer should plan for the wage-tax and social-security treatment in payroll. The G permit is also why a founder who lives across the border, for example in France while directing a company in Geneva , may need this category rather than a residence permit. Permits S, F and N Protection permits: S, F and N (for completeness). Three further permits exist for protection and asylum. They are not relocation or business-immigration routes, but they are part of the same letter system, so a complete answer names them. The S permit grants temporary protection to people in need of collective refuge, activated by the Federal Council rather than through the individual asylum procedure. It was used at scale from 12 March 2022 for people fleeing the war in Ukraine, with the protection regime extended by Federal Council decision and kept under regular review. S holders may take up employment subject to notification. The F permit is for people who are provisionally admitted, meaning a removal order cannot currently be enforced, so they may remain on a temporary basis. The N permit identifies asylum seekers whose application is still being processed. Founders and employees moving to Switzerland for work will not use any of these categories; they are included here only to close the taxonomy. Logistics Applying, renewing and keeping your permit. Wherever the federal rules originate with SEM, the day-to-day handling sits with the canton. You apply to, and renew with, the cantonal migration office ( Migrationsamt , Service de la population or Ufficio della migrazione ) of the canton where you live. As a rule, file a renewal roughly three months before the permit expires, bringing proof of continued employment or means, address registration and the current card. EU/EFTA renewals are largely confirmatory; third-country renewals re-test the underlying conditions. The point most mobile founders miss is the lapse rule. Under Art. 61 FNIA (AIG), a B or C permit lapses after about six months of continuous absence from Switzerland. You can preserve it by filing a maintenance request before you leave, which can extend the holding period, typically up to four years for a C permit. If you spend long stretches abroad, plan this in advance: letting a settlement permit lapse by accident can reset years of qualifying residence. For the full application and registration workflow, including the work-authorisation angle, see our work permit guide . For founders Which permit does a foreign founder need? The right starting permit depends on how you intend to live and work in Switzerland, not just on the company you set up. Owning Swiss shares or being a director does not by itself grant any permit. The common founder cases map cleanly onto three letters: Relocating owner-manager → Permit B. A founder who moves to Switzerland to run a GmbH or AG needs a B permit. EU/EFTA founders obtain it under free movement; third-country founders must secure a quota place and prove an economic interest to Switzerland, sequenced alongside the incorporation. Cross-border director → Permit G. A founder who keeps their home in a neighbouring country and commutes to direct a Swiss company uses a G permit, with the weekly-return rule and source-tax treatment that come with it. Short assignment → Permit L. A time-boxed project, secondment or pilot phase fits the L permit, which can later convert to a B if the role becomes permanent. Because the permit and the company are separate steps that have to be timed together, founders usually run them in parallel. Our company formation and migration teams handle both sides, and if you are weighing where to base the business, low-tax options such as incorporating in Zug sit alongside the relocation decision. We work on a custom-quote basis, so talk to our team with your nationality and plans and we will scope the route. FAQ Frequently asked questions What are the main types of Swiss residence permit? The everyday permits are L (short-term residence), B (residence), C (settlement), Ci (residence with gainful employment) and G (cross-border commuter), plus the protection permits S, F and N. SEM sets the federal rules and the cantonal migration offices administer applications. What is the difference between a B permit and a C permit? A B permit is a renewable residence permit tied to a purpose such as employment, with conditions and tax at source. A C permit is permanent, unrestricted settlement with ordinary taxation. The C card is reissued every five years but the status itself is permanent, and the C permit is the prerequisite for naturalisation. How many years on a B permit before I can get a C permit? Five years for EU/EFTA nationals and certain treaty or MOU countries such as the United States and Canada; ten years for most other third-country nationals. An early settlement permit is possible at five years under Art. 34 FNIA where integration is successful, including at least B1 spoken language ability. What is a G permit, and do I have to return home each week? The G permit lets you live abroad and work in Switzerland as a cross-border commuter. You must return to your home residence at least once a week under Art. 35 FNIA, with a limited number of non-return days per year set by the relevant bilateral agreement. How long is an L permit valid? An L permit is usually valid for 3 to 12 months, tied to a specific contract or purpose, and can be extended up to a maximum of 24 months. It is designed as a temporary status and can in some cases be converted into a B permit. Can a non-EU/EFTA citizen get a Swiss residence permit? Yes, through the third-country track. It is subject to a labour-market test, the domestic-worker priority rule (Inländervorrang) and annual federal quotas. The conditions are stricter and more evidential than for EU/EFTA nationals, who move under free movement. Does a Swiss residence permit let me work? B, C, Ci and G permits allow employment. An L permit is tied to the specific contract it was issued for, so it does not give a free right to change jobs. The C permit removes most restrictions and lets the holder change employer or become self-employed. What happens to my permit if I leave Switzerland for a long period? A B or C permit lapses after about six months of continuous absence under Art. 61 FNIA, unless you file a maintenance request before you leave to keep it, which can extend the holding period for several years. Long stretches abroad should be planned in advance to avoid resetting qualifying residence. How do EU/EFTA and third-country permits differ? EU/EFTA permits run under free movement with longer validity and no quota or labour-market test. Third-country permits fall under annual federal quotas, require a labour-market test showing the role could not be filled locally or from the EU/EFTA, and renew on shorter cycles. Where do I apply for or renew a Swiss permit? At your cantonal migration office (Migrationsamt, Service de la population or Ufficio della migrazione). Renew roughly three months before expiry, bringing proof of employment or means and your current card. The State Secretariat for Migration sets the federal rules that the canton applies. What is a Ci permit? A Ci permit is a residence permit with the right to gainful employment, granted to the spouses and children of diplomats and staff of international organisations based in Switzerland. It lasts as long as the principal’s posting and is a purpose-specific status rather than a step toward settlement. Are B and L permit holders taxed at source? Yes. B, L and G holders are generally taxed at source (Quellensteuer), with ordinary assessment becoming mandatory above a gross annual salary of around CHF 120,000. C permit holders leave the source-tax system and file ordinary annual tax returns. Keep reading Related guides and services. Relocating to Switzerland How to Get Swiss Citizenship Migration support SECO work permits Work permit guide Residence permit guide Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Share Capital: AG & GmbH Minimums URL: https://business-in-switzerland.com/guides/swiss-share-capital-requirements Description: Swiss share capital rules: AG needs CHF 100,000, GmbH CHF 20,000. Paid-in amounts, the blocked account, foreign-currency capital and the 2023 capital band. Swiss Share Capital: AG & GmbH Minimums STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Share capital Swiss share capital requirements Every Swiss company limited by shares must hold a statutory minimum capital. The amount, how much must be paid in at formation, and how it is deposited differ between the AG and the GmbH, and the rules are set by the Code of Obligations. Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: December 2026 Share capital is the foundation of a Swiss corporation. It is the equity that shareholders commit when the company is formed, it is registered publicly in the Commercial Register, and it sets the floor below which a company cannot be capitalised. The two main forms, the AG (Aktiengesellschaft, company limited by shares) and the GmbH (Gesellschaft mit beschränkter Haftung, limited liability company), each carry their own statutory minimum and their own rules on how much must be paid up before the company can trade. For a foreign founder the practical questions are straightforward but consequential: how much capital do I need, how much must I actually transfer at the start, can I contribute assets instead of cash, and what happens to the money I deposit. This guide answers each in turn, with the relevant articles of the Code of Obligations, and explains the capital-band and increase rules introduced by the 2023 company-law reform. By the numbers The figures that anchor this topic. CHF 100,000 AG · MIN SHARE CAPITAL · OR ART. 621 CHF 50,000 AG · MIN PAID-IN · OR ART. 632 CHF 20,000 GMBH · MIN CAPITAL · FULLY PAID CHF 100 GMBH · MIN QUOTA · OR ART. 774 The headline AG and GmbH each have a statutory minimum. The Code of Obligations fixes a minimum share capital for both incorporated forms. An AG must have at least CHF 100,000 of share capital (OR art. 621). A GmbH must have at least CHF 20,000 (OR art. 773). These are floors, not targets: a company may be capitalised with more, and many are, but it cannot be entered in the Commercial Register with less. The difference in the two figures is the single largest driver of the choice between the forms for cost-sensitive founders. Our AG versus GmbH comparison sets the capital question alongside governance, shareholder privacy and credibility, and the capital requirements calculator lets you model the cash you must actually commit. The AG The AG: CHF 100,000, with at least CHF 50,000 paid in. An AG is incorporated with share capital of at least CHF 100,000 (OR art. 621). Crucially, not all of it has to be transferred up front. At formation the shareholders must pay in at least 20% of each share's nominal value, but in no case less than CHF 50,000 in total (OR art. 632). For a company set up at the CHF 100,000 minimum, that means CHF 50,000 of real money must be deposited before registration; the balance remains a binding obligation that the company can call up later. The unpaid portion is not a loophole. It is debt the shareholder owes the company, callable by the board, and it features in the company's accounts. A foreign founder forming an AG at the minimum should therefore budget CHF 50,000 of liquid capital as the genuine entry cost, separate from notarial and registration fees. Full mechanics of the AG are set out on our AG formation page. The GmbH The GmbH: CHF 20,000, fully paid in. The GmbH minimum is CHF 20,000, and unlike the AG it must be fully paid in at formation (OR art. 773 and 777c). There is no 20% partial-payment option: the whole capital has to be available before the company is registered. The trade-off for the lower headline figure is that every franc of it must be committed from day one. GmbH capital is divided into quotas (Stammanteile). Each quota must have a nominal value of at least CHF 100 (OR art. 774). Unlike AG shareholders, who stay private, GmbH partners and the size of their holdings are listed in the Commercial Register. The full procedure is on our GmbH formation page, and the practical pros and cons sit in the AG versus GmbH comparison . Cash contributions The blocked capital-payment account. Capital paid in cash is not handed to the directors. It is deposited into a dedicated capital-payment account (Kapitaleinzahlungskonto) opened with a Swiss bank in the name of the company in formation. The bank issues a confirmation that the funds have been received, and that confirmation is presented to the notary and the Commercial Register as proof that the capital exists. The funds are blocked : they cannot be withdrawn while the company is still being formed. Once the company is entered in the Commercial Register, the bank releases the money to the now-existing company, which can use it as working capital. Opening the account and obtaining the confirmation typically takes a few days and is one of the first steps in the formation sequence . The deposit itself is your money put to work, not a fee. Contributions in kind Contributions in kind and an audited valuation. Capital does not have to be cash. Founders may satisfy the requirement with contributions in kind (Sacheinlage): real estate, machinery, intellectual property, a going concern or other assets that can be valued and transferred to the company. This is common where a founder is folding an existing business or a portfolio of assets into the new entity rather than injecting fresh money. Because non-cash assets can be overstated, the law requires safeguards. The founders prepare a written formation report describing the assets and their valuation, and a licensed audit expert confirms in an audit attestation that the report is complete and accurate and that the assets are worth at least the capital they are credited against. The contribution, its value and the contributor are also disclosed in the articles of association and the Commercial Register. The combination of an independent valuation and public disclosure is what protects creditors when capital is paid in assets rather than francs. After registration What happens to the capital once you are live. A frequent misconception is that share capital is frozen permanently. It is not. Once the Commercial Register entry is made and the bank releases the blocked account, the capital becomes ordinary company funds . The business can spend it on rent, salaries, equipment or stock like any other money it holds. What the law protects is not a ring-fenced cash pile but the balance-sheet figure : the company must maintain equity, and it cannot simply repay capital to shareholders outside the formal capital-reduction or dividend rules. One consequence is that there is no ongoing obligation to keep CHF 100,000 or CHF 20,000 sitting in a bank account. The minimum is tested at formation. Thereafter the protection shifts to accounting rules, reserves and the over-indebtedness provisions discussed below. The 2023 reform The capital band and foreign-currency capital. The company-law reform in force since 1 January 2023 modernised the capital rules. Two changes matter most for founders. First, the capital band (Kapitalband, OR art. 653s to 653v): the articles of association may authorise the board to increase or reduce the registered capital by up to plus or minus 50% over a maximum five-year window, without convening a fresh general meeting for each move. This gives growth-stage and investor-backed companies a flexible capital tool that previously required a shareholder vote each time. Second, share capital may now be denominated in a foreign currency , in CHF, USD, EUR, GBP or JPY, provided that currency is the most important for the company's activities (OR art. 621 para. 2). Where a foreign currency is used, the company must also keep its accounts and file its taxes in that same currency. The reform also reduced the minimum nominal value of a share to CHF 0.01 (OR art. 622 para. 4), allowing very fine-grained share structures. Increases and reductions Increasing and reducing the capital later. Outside the capital band, an ordinary capital increase is a formal process: the general meeting resolves to issue new shares or quotas, the new capital is paid in (again through a blocked account for cash, or with an audited valuation for assets in kind), and a notary and the Commercial Register record the change. Increases are how companies bring in new investors or convert reserves into share capital. A capital reduction is more sensitive because it returns value to shareholders and can prejudice creditors. The law therefore requires creditor-protection steps, including in many cases a creditor call and an audit confirmation that claims remain covered after the reduction, before the reduced figure is registered. Both increases and reductions touch stamp duty and audit thresholds, so they are usually planned alongside the company's overall structure rather than in isolation. Stamp duty Issuance stamp duty on paid-in capital. Paying in capital can trigger the federal issuance stamp duty (Emissionsabgabe) of 1% on the capital contributed (Federal Stamp Duty Act, StG art. 5 and 6). Importantly, there is a lifetime exemption of CHF 1,000,000 per company. Because both the AG and GmbH minimums sit well below that threshold, a standard formation at the statutory minimum incurs no issuance stamp at all; the duty only bites once cumulative capital contributions over the company's life exceed CHF 1 million. This is why the headline capital figure rarely creates a tax cost at the outset. It becomes relevant for later increases, large in-kind contributions or capitalisation of holding structures, where contributions can cross the exemption. For those cases the timing and form of the contribution are worth planning in advance. Capital protection Loss of capital and over-indebtedness duties. Once a company is trading, Swiss law imposes duties when its equity erodes. If the company faces a loss of capital , broadly where accumulated losses consume a defined part of the share capital and legal reserves, the board must take corrective measures and, depending on severity, propose restructuring steps to the general meeting (OR art. 725a, as revised in the 2023 reform). The reform also introduced an explicit duty for the board to monitor liquidity and act on imminent insolvency (OR art. 725). If the company becomes over-indebted , meaning its liabilities exceed its assets at both going-concern and liquidation values, the board must in principle notify the court unless creditors subordinate claims sufficient to cover the shortfall (OR art. 725b). These provisions are the real teeth behind the capital regime: the minimum is set at formation, but it is these duties that keep directors accountable for the company's solvency thereafter. Because the tests are accounting-driven, they sit close to the audit rules and should be reviewed with a qualified accountant. Choosing a figure How much capital to commit in practice. The statutory minimum is a legal floor, not a recommendation. Banks, landlords, suppliers and tax authorities read the registered capital as a signal of seriousness, and an AG capitalised at exactly CHF 100,000 with only CHF 50,000 paid in reads differently from one fully paid. For licensed or regulated activities, separate and far higher capital rules apply and override the general minimums entirely. A sensible approach is to match the registered capital to the working capital the business genuinely needs for its first year, rounded to a figure that supports credibility, while keeping the paid-in mechanics and stamp-duty exemption in view. Model the alternatives with the capital requirements calculator , then confirm the form and amount against the wider plan in our Swiss company types overview . FAQ Frequently asked questions What is the minimum share capital for a Swiss AG? A Swiss AG must have share capital of at least CHF 100,000 (OR art. 621). At formation, at least 20% of each share but no less than CHF 50,000 in total must be paid in (OR art. 632). The remaining amount stays a callable obligation of the shareholders. What is the minimum share capital for a Swiss GmbH? A GmbH must have at least CHF 20,000 of capital, and unlike the AG it must be fully paid in at formation (OR art. 773 and 777c). The capital is divided into quotas, each with a nominal value of at least CHF 100 (OR art. 774). How much of the AG capital must actually be paid in at the start? For an AG, at least 20% of each share must be paid in, subject to an absolute minimum of CHF 50,000 (OR art. 632). A company formed at the CHF 100,000 minimum must therefore deposit CHF 50,000 before registration. The unpaid balance remains owed to the company and can be called up later. Where is the share capital deposited before incorporation? Cash capital goes into a blocked capital-payment account opened at a Swiss bank in the name of the company in formation. The bank confirms receipt, the confirmation is shown to the notary and Commercial Register, and the funds are released to the company once it is registered. Can I contribute assets instead of cash? Yes. Capital can be paid in kind using assets such as real estate, machinery, intellectual property or a going concern. The founders must prepare a formation report, a licensed audit expert must confirm the valuation, and the contribution is disclosed in the articles and the Commercial Register. What happens to the share capital after the company is registered? Once registered, the blocked account is released and the capital becomes ordinary company funds that can be spent on the business. There is no duty to keep the minimum amount in a bank account permanently. What the law protects afterwards is the balance-sheet equity, not a frozen cash pile. What is the capital band introduced in 2023? The capital band (Kapitalband, OR art. 653s to 653v) lets a company's articles authorise the board to increase or reduce registered capital by up to plus or minus 50% over a maximum five-year window without a separate general-meeting vote each time. It is a flexible tool for growth-stage and investor-backed companies. Can Swiss share capital be in a foreign currency? Since 1 January 2023, share capital may be denominated in CHF, USD, EUR, GBP or JPY, provided the chosen currency is the most important for the company's activities (OR art. 621 para. 2). The company must then keep its accounts and file its taxes in that same currency. Is there a tax on paying in share capital? Paying in capital can trigger the federal issuance stamp duty of 1% (StG art. 5 and 6), but there is a lifetime exemption of CHF 1,000,000 per company. Because the AG and GmbH minimums are well below that, a standard formation at the statutory minimum incurs no issuance stamp. Do I have to keep the minimum capital in the bank at all times? No. The minimum is tested at formation. After registration the capital can be used as working capital. Ongoing protection comes instead from accounting rules, legal reserves and the loss-of-capital and over-indebtedness duties on the board (OR art. 725, 725a and 725b). Keep reading Related guides and services. AG vs GmbH in Switzerland Types of Company in Switzerland Swiss Audit Requirements Capital calculator AG formation GmbH formation Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Social Security Contributions 2026: AHV, BVG & Rates URL: https://business-in-switzerland.com/guides/swiss-social-security-system Description: Swiss social security in 2026: AHV/IV/EO, ALV, BVG, UVG and family allowances, who pays which share, the employer cost on top of gross, and how to register. Swiss Social Security Contributions 2026: AHV, BVG & Rates STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Social security Swiss Social Security: AHV/AVS Contributions Explained for Employers Switzerland runs a three-pillar system, but for an employer the live obligation is a set of payroll contributions, AHV/IV/EO, ALV, BVG, UVG and family allowances, mostly shared with the employee and, for the state pillar, levied on the whole salary with no ceiling. Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: October 2026 If you are a foreign founder or an overseas employer about to run payroll for a Swiss entity, the question you actually need answered is simple: which contributions apply, who pays which share, and what does a Swiss hire cost on top of gross salary. The one-line answer is that the core state contribution, AHV/IV/EO, is around 10.6% of gross split roughly 50/50 with no upper limit , and on top of it sit unemployment insurance (ALV), occupational pension (BVG), accident cover (UVG) and family allowances (FAK). This guide sets out each scheme, the 2026 rates, the employer and employee split, the all-in employer cost, and the step-by-step registration path for a newly formed company. All figures are the 2026 position and are drawn from the official portals at ahv-iv.ch and the Federal Social Insurance Office (bsv.admin.ch). Because federal, cantonal, insurer and plan figures all adjust periodically, treat the numbers here as current-year guidance and reconfirm before each payroll year. If you are still at the planning stage, starting a business in Switzerland covers incorporation and the steps before your first hire. By the numbers The figures that anchor this topic. 3 Pillars · state · occupational · private ~10.6% AHV/IV/EO total · uncapped · 2026 CHF 148,200 ALV / UVG salary ceiling · 2026 ~12-15% Employer cost on top of gross · 2026 The framework Swiss social security at a glance: the three-pillar system Swiss social protection is organised into a three-pillar system (Drei-Saeulen-System). For an employer the value of the framework is that it tells you which of your payroll lines is compulsory and who organises it. Read from the employer's compliance and cost angle rather than the retiree's, the three pillars are: Pillar 1, state insurance (AHV / IV / EO) : the compulsory pay-as-you-go scheme that guarantees a basic subsistence income. AHV covers old age and survivors, IV covers disability, EO compensates loss of earnings during service and for maternity and paternity leave. It is mandatory, shared 50/50, and has no salary ceiling. Pillar 2, occupational pension (BVG) : funded, employer-organised pension saving that, together with the first pillar, aims to maintain the employee's accustomed standard of living. It is mandatory above an entry salary and is detailed in our guide to the Swiss pension system (BVG) . Pillar 3, private and voluntary (3a / 3b) : tax-favoured private saving. Pillar 3a is tied, with an annual maximum (around CHF 7,200 for employees in recent years, confirm the 2026 figure), and 3b is flexible. This is not an employer payroll obligation; it sits here only so you see where it fits. Everything that follows decomposes the employer's actual payroll duties: the first pillar, plus unemployment, accident and family-allowance cover, and the second-pillar pension above the entry salary. The rates 2026 contribution rates: the complete employer payroll table This is the consolidated 2026 payroll picture for an employer. Percentages are of gross salary. The first-pillar and ALV figures are statutory and Switzerland-wide; UVG, BVG and FAK have no single national percentage because they depend on the insurer, the pension plan, the employee's age and the canton, so those rows are shown as ranges or as "varies". Confirm each line against ahv-iv.ch and bsv.admin.ch before running payroll. Scheme Total Employee Employer Ceiling Who pays AHV / IV / EO (Pillar 1) ~10.6% ~5.3% ~5.3% None Split 50/50 ALV (unemployment) ~2.2% ~1.1% ~1.1% CHF 148,200 Split 50/50, surcharge above cap UVG occupational (BU) Varies None Varies by risk class CHF 148,200 Employer only UVG non-occupational (NBU) Varies Varies by risk class Optional CHF 148,200 Usually employee BVG (Pillar 2 pension) ~7% to 18% Up to 50% At least 50% Coordinated band Employer at least half FAK (family allowances) ~1% to 3% None ~1% to 3% Cantonal Employer only How to read the table (employee share vs employer share) For each shared scheme, the employer withholds the employee column from gross wages at source, adds its own employer column on top, and remits both to the relevant office or insurer. The single point that trips up most foreign employers is the ceiling column: AHV/IV/EO has no ceiling and is owed on the whole salary, while ALV and UVG stop at the insured-earnings cap of around CHF 148,200. That contrast is set out in the next sections. First pillar Pillar 1 in detail: AHV, IV and EO (state insurance) The first pillar bundles three insurances that are collected together as a single deduction. As of 2026 the combined AHV/IV/EO contribution is around 10.6% of gross salary , split roughly in half so each side pays about 5.3% . Within that total, the rough split is AHV around 8.7%, IV around 1.4% and EO around 0.5%, all hedged to the 2026 ahv-iv.ch leaflet. What AHV, IV and EO each cover AHV / AVS (Alters- und Hinterlassenenversicherung): old-age and survivors' insurance, the state pension. IV / AI (Invalidenversicherung): disability insurance. EO / APG (Erwerbsersatzordnung): income compensation during military or civil service, and for maternity and paternity leave. No salary ceiling: why AHV applies to your whole payroll Unlike most countries, and unlike ALV and UVG, the first-pillar contribution has no upper limit . It is levied on the entire salary, so a senior hire on a high package owes the same 10.6% on every franc as an entry-level employee. Foreign employers who assume a contribution cap, as exists in many home jurisdictions, routinely under-budget the cost of senior staff. There is no cap to find: AHV/IV/EO is uncapped by design. Unemployment ALV: unemployment insurance and the CHF 148,200 ceiling Unemployment insurance ( ALV / AC , Arbeitslosenversicherung) is the other compulsory first-tier payroll charge. As of 2026 the contribution is around 2.2% of salary , split equally between employer and employee at roughly 1.1% each. Crucially, ALV is capped . The 2.2% applies only up to an annual insured-earnings ceiling in the region of CHF 148,200 per year as of 2026. This is the same ceiling that governs UVG insured salary, which is why the two move together. The solidarity surcharge above the ceiling Salary above the CHF 148,200 ceiling attracts a smaller solidarity surcharge rather than the full 2.2%, again shared between employer and employee. Sources differ on whether an upper cut-off applies to that surcharge, so we state it conservatively: the standard rate applies up to the cap, and a reduced surcharge applies above it. Confirm the exact surcharge mechanics for 2026 against bsv.admin.ch before relying on a precise figure for a high earner. Accident insurance UVG: accident insurance, occupational vs non-occupational Accident insurance ( UVG / LAA , Unfallversicherung) is compulsory for all employees and is split by the type of risk it covers. There is no single statutory percentage : the rate depends on the insurer and the industry risk class, and insured salary is capped at the same CHF 148,200 as ALV. Who pays BU and NBU Occupational accident cover (BU / AAP), for accidents and illnesses arising from the job, is paid by the employer in full . Non-occupational accident cover (NBU / AANP), for accidents in private life, is generally deducted from the employee , though an employer may choose to cover it as a benefit. The contract should state which side bears the NBU premium so there is no dispute later. When non-occupational cover becomes mandatory Non-occupational cover becomes mandatory once an employee works at least the minimum weekly hours set by the scheme, commonly cited as eight hours per week with the same employer. Below that threshold, the worker is covered against non-occupational accidents through their compulsory health insurance instead. Second pillar Pillar 2: BVG occupational pension thresholds The second pillar, occupational pension under the BVG / LPP , is mandatory once an employee earns above an entry salary. It is funded, employer-organised, and the employer must pay at least half of the contributions. As of 2026 the key thresholds are, all hedged to bsv.admin.ch: an entry threshold of around CHF 22,680 , a coordination deduction of around CHF 26,460 , an upper limit near CHF 90,720 , and a statutory minimum interest rate in the region of 1.25%. Entry threshold and coordinated salary explained The mechanic that confuses foreign employers most is the coordinated salary . BVG does not insure the whole wage. It insures the slice between the coordination deduction and the upper limit, so the contribution is calculated on that coordinated band rather than on gross pay. An employee earning below the entry threshold of around CHF 22,680 is not enrolled at all. Our BVG occupational pension guide works through the band in detail. Age-banded contribution rates and the employer's minimum 50% BVG retirement credits rise with the employee's age, running in a band of roughly 7% to 18% of coordinated salary depending on age and plan. The figure is plan-specific, so it is not a fixed national rate. Whatever the plan sets, the employer must fund at least 50% of the total, and many employers contribute more as a recruitment benefit. Family allowances Family allowances (FAK) and other employer-funded cover Family allowances (Familienzulagen, FAK) provide child and education allowances to employees with children, and they are funded by an employer-only contribution to a cantonal family compensation fund. There is no employee deduction. 2026 family-allowance minimums As of 2026 the federal minimum allowances rose for the first time since 2009, to around CHF 215 per month per child and around CHF 268 per month for the education or training allowance. These are federal minimums; cantons may set higher amounts, so confirm the cantonal figure where you employ. Cantonal FAK rates vary The employer-funded FAK contribution rate is set at cantonal level and typically falls in the low single digits as a percentage of payroll, for example somewhere around 1% to 3% depending on the canton and fund. Because the rate is cantonal and moves yearly, an employer with staff in more than one canton can face different FAK rates for different workers. Confirm the current rate with the cantonal fund linked to your compensation office. Optional daily-sickness benefit insurance (KTG) Daily-sickness benefit insurance (KTG / IJM) is voluntary but widely carried, because it lets an employer insure continued salary during illness rather than bearing it directly. Where taken, the premium is commonly shared with the employee. It is not a statutory contribution, but most employers carry it, so it belongs on the payroll planning list. Employer cost What a Swiss employee actually costs you (employer-side total) Headline salary is only part of the cost. Once the employer-side contributions are added, the true cost of a Swiss hire sits several percentage points above gross. As a hedged guide, the employer-only burden is roughly 12% to 15% of gross, and the combined employer plus employee deductions reach roughly 21% to 25% , depending on the BVG plan, the UVG risk class and the canton. A worked breakdown of the on-top-of-gross cost On the employer side the on-top items are: about 5.3% AHV/IV/EO on the full salary, about 1.1% ALV up to the ceiling, at least half of the BVG contribution on the coordinated band, the full occupational-accident (BU) premium, and the full cantonal FAK contribution. We deliberately present this as a range rather than a single number, because the BVG, UVG and FAK components are plan, insurer and canton specific. Our guide to Swiss payroll taxes shows how these contributions sit alongside source tax on a real payslip, and our payroll services price the exact figure for a given role and canton. Registration How a foreign employer registers (step-by-step) Registration is a defined sequence that a foreign-owned entity completes right after incorporating. If you have not yet set up the company, company formation comes first; social-security registration follows immediately. Register with the cantonal compensation office (Ausgleichskasse) before your first hire. This is the mandatory first action. There are around 90 compensation offices coordinated centrally, and the office administers AHV/IV/EO, collects contributions and issues or confirms each employee's AHV number. Affiliate a BVG pension fund. Mandatory once an employee crosses the entry threshold of around CHF 22,680. The employer organises the fund and pays at least half the contributions. Take out UVG accident cover. Compulsory for all staff. The BU (employer-paid) and NBU (usually employee-paid) split is set up with the chosen accident insurer. Affiliate the cantonal family-allowance fund (FAK). Usually handled via the compensation office; the contribution is employer-funded. Then, on an ongoing basis, deduct, match, remit and reconcile. Withhold the employee share at source, add the employer share, pay monthly advance instalments, and reconcile against an annual wage statement. Late registration brings administrative fines plus back-payment with interest, so the sequence is worth completing before the first salary run. Getting this right at the outset is exactly where our accounting services and our guide to hiring employees in Switzerland are designed to help, from registration through to the monthly reconciliation. Cross-border Foreigners, cross-border workers and the A1 certificate Hiring across a border raises the question of which country's social-security system applies. The governing principle is that a person is insured in only one country at a time , usually where the work is physically performed. Automatic coverage and your AHV number Anyone gainfully employed in Switzerland is automatically covered by the first pillar, acquires pension rights, and is assigned a 13-digit AHV number. The employer is liable for the local contributions even if the company itself is registered abroad. Where there is no Swiss entity, an employer of record can hold the Swiss employment and run compliant local payroll while the foreign business directs the work. Posted workers, the A1 certificate and EU Regulation 883/2004 For staff moving between Switzerland and the EU or EFTA, EU Regulation 883/2004 coordinates which system applies. A posted worker who stays insured in their home country carries an A1 certificate as proof, which exempts the employer from Swiss contributions for that person. Cross-border commuters and genuinely multi-state workers follow specific determination rules. The relocation side of the move runs in parallel: see our Swiss work permit and residence permit guides. Can you get AHV contributions back when you leave? Treatment on departure depends on nationality and the applicable agreement. EU/EFTA and totalisation-agreement nationals generally keep their pension rights rather than receive a refund, while some non-agreement nationals may be able to claim a reimbursement of contributions. Confirm the position for a specific case with ahv-iv.ch. Self-employed Self-employed vs employee contributions The 50/50 split is a feature of employed work. A self-employed person carries the contribution alone, with no employer to share it. Why a self-employed founder pays differently For the self-employed, AHV/IV/EO is charged on a degressive scale : the maximum rate is around 10.0% on higher incomes, tapering down on lower earnings, with a minimum annual contribution of roughly CHF 530 as of 2026. There is no ALV at all, so a self-employed founder is not insured against unemployment, and BVG and UVG are optional rather than compulsory. Critically, the compensation office decides self-employed status on the substance of the relationship , not on the label in a contract, and can reclassify a contractor who is in reality an employee, which triggers retroactive employer contributions. Settle the status question before work begins. FAQ Frequently asked questions What are the social security contribution rates in Switzerland in 2026? AHV/IV/EO is around 10.6% of gross salary, split roughly 5.3% employer and 5.3% employee with no ceiling. ALV unemployment insurance is around 2.2% up to CHF 148,200, and on top sit BVG occupational pension, UVG accident cover and cantonal family-allowance (FAK) contributions. Figures are the 2026 position from ahv-iv.ch and bsv.admin.ch and adjust periodically. Who pays Swiss social security, the employer or the employee? Pillar 1 (AHV/IV/EO) and ALV are split 50/50: the employer withholds the employee half from gross pay and remits both shares. Family allowances and occupational-accident (BU) cover are paid by the employer only, while non-occupational accident (NBU) cover is usually deducted from the employee. Is there a salary ceiling on AHV contributions? No. AHV/IV/EO applies to the entire salary with no upper limit, so it is owed on high earnings just as on low ones. By contrast ALV and UVG are capped at an insured-earnings ceiling of around CHF 148,200 as of 2026. What is the Swiss three-pillar system? Pillar 1 is the state AHV/IV/EO scheme for a subsistence income, Pillar 2 is the BVG occupational pension that maintains an accustomed standard of living, and Pillar 3 is private and voluntary saving (3a tied, 3b flexible). For an employer, Pillars 1 and 2 are the compulsory payroll obligations. Do foreigners working in Switzerland have to pay social security? Yes. Anyone gainfully employed in Switzerland is automatically covered, acquires pension rights and is assigned a 13-digit AHV number, with the employer liable for local contributions even if registered abroad. Cross-border and posted-worker cases follow EU Regulation 883/2004, where an A1 certificate can keep a worker insured in their home country. How does a foreign employer register for social security in Switzerland? Register with the cantonal compensation office (Ausgleichskasse) before your first hire, then affiliate a BVG pension fund, take out UVG accident cover and join the cantonal family-allowance fund. The compensation office issues or confirms the AHV number, after which you deduct, match, remit and reconcile contributions each payroll period. What does an employer pay on top of gross salary? Approximately 12% to 15% of gross on the employer side: the employer share of AHV/IV/EO (about 5.3%) and ALV (about 1.1%), at least half of the BVG pension, the full occupational-accident premium and the full cantonal FAK contribution. The exact figure depends on the BVG plan, the UVG risk class and the canton. What is the BVG entry threshold in 2026? In 2026 employees earning at least around CHF 22,680 per year must be enrolled in the second-pillar occupational pension. Below that entry threshold there is no BVG obligation. Confirm the current threshold against bsv.admin.ch, as it adjusts periodically. What is the difference between AHV and BVG? AHV is the Pillar 1 state pay-as-you-go scheme with no salary ceiling, charged on the whole wage. BVG is the Pillar 2 funded occupational pension, organised by the employer, mandatory above an entry salary and calculated on a coordinated-salary band rather than gross pay. Both are compulsory, but they work very differently. How much unemployment insurance (ALV) do I pay and what is the ceiling? ALV is around 2.2% of salary, split roughly 1.1% employer and 1.1% employee, levied up to an insured-earnings ceiling of about CHF 148,200 as of 2026. Salary above the ceiling attracts a smaller solidarity surcharge rather than the full rate. Confirm the 2026 surcharge mechanics against bsv.admin.ch. Can I get my AHV contributions back if I leave Switzerland? It depends on your nationality and the applicable agreement. EU/EFTA and totalisation-agreement nationals generally keep their pension rights rather than receive a refund, while some non-agreement nationals may be able to claim a reimbursement. Confirm the position for a specific case with ahv-iv.ch. What is an AHV number and how do I get one? The AHV number is a 13-digit Swiss social-security identifier, mandatory for anyone gainfully employed in Switzerland. It is issued or confirmed through the cantonal compensation office when the employer registers a new employee, and it follows the person across employers and schemes. Keep reading Related guides and services. Swiss Occupational Pension (BVG/LPP) Swiss Payroll Taxes Hiring Employees in Switzerland Payroll services Employer of record Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Transfer Pricing in Switzerland: Rules for Foreign Groups URL: https://business-in-switzerland.com/guides/swiss-transfer-pricing Description: How Swiss transfer pricing works: the arm Transfer Pricing in Switzerland: Rules for Foreign Groups STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Transfer pricing Transfer Pricing in Switzerland: Rules for Foreign Groups Switzerland has no codified transfer-pricing statute, yet intra-group prices must still be at arm's length. The standard is enforced indirectly, through the rules on hidden profit distributions, and the OECD Guidelines supply the interpretive detail. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: January 2027 Foreign groups looking at Swiss transfer pricing expect a thick rulebook and find a gap instead: Switzerland has no standalone transfer-pricing law and no statutory master-file or local-file duty. What it has is a firmly applied arm's length principle , enforced through the ordinary rules on how taxable profit is determined and through the doctrine of the hidden profit distribution between related parties. The absence of a dedicated code does not mean freedom. The Federal Tax Administration and the 26 cantonal authorities apply the 2022 OECD Transfer Pricing Guidelines as their working standard, expect intra-group dealings to be priced as independent parties would price them, and can reassess profit where they are not. This guide answers the questions a worried foreign CFO actually asks: is there a rule, what is the law, what is the cash-tax damage if pricing is wrong, what must I document, and how do I lock in certainty before I file. By the numbers The figures that anchor this topic. None Dedicated TP statute · CH 35% WHT on a deemed dividend · VStG CHF 900m CbCR turnover threshold 6:1 Thin-cap finance-company ratio The short answer Does Switzerland have transfer pricing rules? Yes, but not in a dedicated code. There is no Swiss transfer-pricing statute, no prescribed documentation filing written into federal tax law, and no transfer-pricing-specific penalty schedule. For a group used to heavy compliance regimes elsewhere, that looks unusually light. It is not. The arm's length principle is fully in force; it simply lives inside the general profit-determination rules rather than in a separate transfer-pricing law. Who does this affect? Any foreign group with a Swiss footprint that prices something across an intra-group border: a Swiss subsidiary buying from or selling to a parent, a Swiss holding charging or paying management and licence fees, a Swiss intellectual-property entity collecting royalties, or a Swiss finance company lending within the group. If a Swiss entity transacts with a related party on terms an independent party would not have accepted, the difference is exposed to reassessment. You are, in short, fully on the hook, even though there is no rulebook with "transfer pricing" on the cover. Legal basis The legal basis: three articles, no transfer-pricing code The arm's length standard is read into Swiss tax through three provisions and a body of guidance. At federal level, Art. 58(1)(b) of the Federal Direct Tax Act (DBG) lets the authorities add back expenses and benefits that are not commercially justified, which captures the hidden profit distribution ( verdeckte Gewinnausschüttung ) to a related party. At cantonal and communal level, Art. 24(1) of the Tax Harmonisation Act (StHG) is the equivalent, which is why all 26 cantons align on the same arm's length logic despite setting their own rates. The third pillar is the cash-tax hook: Art. 4(1)(b) of the Withholding Tax Act (VStG) treats a non-cash benefit to a shareholder as a deemed dividend subject to 35% withholding tax. On the guidance side, FTA Circular No. 4 of 19 March 2004 points squarely at the OECD Guidelines, and in January 2024 the Federal Tax Administration and the Swiss Tax Conference published Switzerland's first dedicated transfer-pricing guidance (in French and German), consolidating existing practice rather than changing the law. Because corporate tax is levied at both federal and cantonal levels, the Swiss corporate tax rates determine how a single adjustment multiplies across the layers. Arm's length The arm's length principle and OECD alignment Arm's length ( Drittvergleich ) means a simple test applied to a complex world: would two independent parties, dealing at arm's length, have agreed the same price, margin or interest rate for this transaction? If yes, the price stands. If no, the authorities can correct it to the market figure and tax the difference. The analysis runs through comparability factors, a functional analysis of who does what, and the selection of a pricing method, exactly as the OECD prescribes. Switzerland has not copied the OECD Guidelines into statute, yet treats the 2022 OECD Transfer Pricing Guidelines as its de-facto rulebook. Tax administrations rely on them in assessments and rulings, and the Federal Supreme Court increasingly resorts to them when interpreting the arm's length standard. The practical consequence for a foreign group is continuity: documentation prepared to OECD standards for another country is generally accepted as the basis for a Swiss analysis, and a coherent group pricing policy applied consistently is the single best defence in a Swiss review. The consequence What happens when a price is not at arm’s length This is the section foreign founders care about most, and it is a clean causal chain. A non-arm's-length price to a related party is recharacterised as a hidden profit distribution . That triggers a primary adjustment : the Swiss company's taxable profit is corrected upward and taxed at the combined federal and cantonal rate. Where the benefit moved to a shareholder, the same recharacterisation can pull in 35% withholding tax on the deemed dividend under the VStG. A corresponding adjustment in the counterparty's country, and a secondary adjustment on the implied capital movement, may follow. Two practical points sharpen the risk. First, without a matching change abroad, a unilateral Swiss adjustment leaves the group economically taxed twice on the same profit. Second, the burden of proof shifts to the taxpayer for profit-reducing facts and where documentation is thin, so a company that cannot explain its pricing is at a structural disadvantage. The 35% withholding hit is the headline number, and it connects this guide to the wider chain set out in our Swiss withholding tax and dividend taxation guides. Methods Transfer pricing methods Switzerland accepts Swiss practice recognises all five OECD methods and applies the most-appropriate-method standard rather than a rigid hierarchy. The method should follow from a functional analysis of who performs functions, owns assets and bears risk: Comparable uncontrolled price (CUP) : benchmarks the intercompany price against the price for the same or similar dealings between independents. Preferred where good comparables exist, such as commodity sales or loans. Resale price : works back from the price to an independent customer, deducting an arm's length distribution margin. Cost-plus : adds an arm's length mark-up to the supplier's costs, typical for routine services and contract manufacturing. Transactional net margin method (TNMM) : tests one party's net profit margin against comparable independents, widely used where transaction-level comparables are scarce. Profit split : allocates the combined profit of highly integrated or unique-contribution dealings between the parties. Benchmarking studies are expected, and a result that falls within the interquartile range of comparable independents is accepted by the Swiss authorities without further adjustment. Documentation Documentation: what you must keep (and the decision tree) Because no Swiss law prescribes a master file or local file, there is no fixed format and no automatic filing. Switzerland adopts the OECD three-tier model only for country-by-country reporting (below). Master and local files are advisable, not statutory : they are the cleanest way to discharge the burden of proof when an authority raises the point. Do you actually need transfer-pricing documentation? A practical decision flow: if the group is above the CbCR turnover threshold, country-by-country reporting is mandatory regardless. If you run material cross-border intra-group flows (financing, IP, central services, goods), keep OECD-style documentation ready even though you need not file it. If your only intra-group dealings are minor and domestic, a short functional note and intercompany agreements usually suffice. On language and deadlines , English documentation is generally accepted, an authority's additional-information request typically runs to around 30 days (extendable), and documentation produced in time discharges the burden of proof. Documentation non-compliance can attract penalties in the region of CHF 500 to CHF 20,000. Ongoing accounting support keeps the underlying records audit-ready. CbCR Country-by-Country Reporting: the only mandatory filing The one genuinely compulsory transfer-pricing-adjacent filing in Switzerland is country-by-country reporting. Multinational groups with consolidated annual turnover above CHF 900 million must file a country-by-country report, which the Federal Tax Administration exchanges automatically with partner jurisdictions. The CHF 900 million threshold mirrors the EUR 750 million OECD figure, so the franc equivalent can drift with the exchange rate and should be checked for borderline groups. On timing, the Swiss regime entered into force on 1 December 2017, applied to fiscal years from 1 January 2018, with the first automatic exchange in 2020. The report is filed within 12 months of the fiscal year-end, and the ultimate parent's reporting status is notified to the FTA within 90 days. It sets out revenue, profit, tax paid, employees and assets by jurisdiction: a high-level risk-assessment map, not a pricing study, but one that can prompt enquiries into the underlying transfer pricing. Late or missing reports carry a penalty of CHF 200 per day, capped at CHF 50,000 . Intra-group financing Intra-group financing and the safe-harbour interest rates Financing is the one area where Switzerland publishes concrete numbers. Each year the Federal Tax Administration issues two circulars, one for Swiss-franc loans and one for foreign currencies, setting safe-harbour interest rates for loans between related parties. For 2026 these are Circular No. 218 (CHF) and Circular No. 219 (foreign currencies). Apply the published rate and the interest is generally accepted without any further analysis; deviate from it and the onus is on you to prove the rate is arm's length with a proper study. The circulars distinguish loans the Swiss company grants from loans it receives, and cover both equity-financed and operating positions across the major currencies. As a maintained reference, the safe-harbour table is refreshed every January, so the figures below should be verified against the current-year circular at the moment of use. A separate safe harbour allows a 5% cost-plus mark-up on routine, low-value intra-group services without a full benchmarking exercise. Charging more or paying more than the safe-harbour rate exposes the excess to reclassification as a hidden profit distribution. Thin cap Thin capitalisation and the 6:1 rule Switzerland limits how much intra-group debt a company can carry through an asset-based thin-capitalisation test under FTA Circular No. 6 of 1997. Rather than a single ratio, the circular fixes a maximum debt percentage for each class of asset (cash, receivables, inventory, fixed assets, participations and so on). Debt above the resulting "deemed equity" is treated as hidden equity, and the interest on that excess is disallowed and can itself be recharacterised as a hidden profit distribution carrying withholding-tax exposure. For pure finance companies, a practical 6:1 debt-to-equity safe harbour is applied. Stay within it and the financing structure is generally accepted; exceed it and the excess interest is disallowed. The thin-cap test runs alongside the safe-harbour interest rates: a loan can satisfy the rate band and still fall foul of the deemed-equity ceiling, so both gates must be cleared. Certainty Getting certainty: rulings and APAs Switzerland's most valuable transfer-pricing feature is its ruling practice. A taxpayer can put a proposed pricing approach to the competent authority, the cantonal administration for profit tax and the Federal Tax Administration for withholding tax, and obtain a binding unilateral ruling confirming the treatment, provided the facts are fully and accurately disclosed and the position is lawful. Swiss rulings are routine and relatively fast, which makes them the practical certainty tool for most foreign groups. For cross-border dealings, a bilateral or multilateral advance pricing agreement (APA) negotiated by the State Secretariat for International Finance (SIF) can fix the method with the other state's authority for a defined period, removing the risk of double taxation before it arises. This is where the light-touch statute becomes an advantage: instead of litigating after the fact, a group locks in the answer before it files. Our tax ruling service handles the drafting and the dialogue with the authorities, on a custom-quote basis. The strategic close Transfer pricing, low-tax cantons and Pillar Two Transfer pricing is the hinge on which a low-rate Swiss structure either holds or fails. The attraction of a canton like Zug is a low effective rate, but that rate is only safe where two conditions hold: real substance (people, functions and decision-making actually in the canton) and arm's length pricing of the intra-group flows that feed the local profit. Strip out the substance, or misprice the royalties and service charges, and the authorities can move the profit out of the low-rate base entirely. Groups centralising IP or financing in a Swiss holding company in the low-tax canton of Zug should pair the structure with genuine functions and a defensible policy. For the largest groups, transfer pricing now interacts with the OECD's Pillar Two minimum tax. Multinationals with consolidated revenue at or above EUR 750 million fall within the GloBE rules and Switzerland's qualified domestic minimum top-up tax (QDMTT), in force from 1 January 2024, which tops effective taxation up to 15% . A transfer-pricing adjustment feeds GloBE income, so pricing changes can move the top-up calculation. The interaction is adjacent context rather than a substitute for the arm's length analysis, but it raises the stakes on getting the pricing right. FAQ Frequently asked questions Does Switzerland have transfer pricing rules? No standalone transfer-pricing statute. The arm's length principle is enforced through hidden-profit-distribution rules in Art. 58(1)(b) DBG, Art. 24(1) StHG and Art. 4(1)(b) VStG, applying the 2022 OECD Transfer Pricing Guidelines. Is transfer pricing documentation mandatory in Switzerland? There is no statutory Master File or Local File duty. Only Country-by-Country Reporting is mandatory, for groups above the CHF 900 million threshold. Documentation must still be produced on request to discharge the burden of proof. What is the arm's length principle in Switzerland? Intra-group cross-border transactions must be priced as independent parties would price them. Deviations are recharacterised as hidden profit distributions. What happens if a transfer price is not at arm’s length? A primary profit-tax adjustment is made on the upward correction, plus a potential 35% withholding tax on the deemed non-cash benefit. Corresponding and secondary adjustments may follow. What are the Swiss safe-harbour interest rates for intra-group loans? The Federal Tax Administration publishes them annually for CHF and foreign currencies (for 2026, Circulars 218 and 219). Applying the published rate removes the need for a separate transfer pricing analysis on that loan. What is the CbCR threshold in Switzerland? Consolidated group turnover above CHF 900 million, for fiscal years starting on or after 1 January 2018. Are there transfer pricing penalties in Switzerland? There is no TP-specific penalty regime; general tax penalties and late-payment interest apply. CbCR breaches carry up to CHF 50,000 (CHF 200 per day); documentation non-compliance ranges from CHF 500 to CHF 20,000. Can I get an Advance Pricing Agreement in Switzerland? Yes. Unilateral tax rulings are routine and relatively fast. Bilateral and multilateral APAs are negotiated by the State Secretariat for International Finance (SIF). Which transfer pricing methods does Switzerland accept? All five OECD methods: CUP, Resale Price, Cost Plus, TNMM and Profit Split. Results within the interquartile range are accepted. What is the 6:1 thin-capitalisation rule? A safe-harbour debt-to-equity ratio for finance companies under FTA Circular No. 6. Interest on excess debt is disallowed and may be treated as a hidden distribution. What is a hidden profit distribution (verdeckte Gewinnausschüttung)? A non-arm's-length benefit to a related party that the authorities recharacterise as a deemed dividend, taxed at company level and subject to 35% withholding tax. Does Switzerland require a master file and local file? Not by statute. Switzerland follows the OECD three-tier model only for CbCR. Master file and local file are advisable but not legally compulsory. Keep reading Related guides and services. Swiss Corporate Tax Rates 2026 Swiss Participation Exemption Swiss Double Tax Treaties Tax ruling Holding company Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss VAT 2026 — Rates, Registration & Platform Rule URL: https://business-in-switzerland.com/guides/swiss-vat Description: Swiss VAT rates 8.1% / 2.6% / 3.8%, the CHF 100,000 threshold, non-resident rules, and the 2026 platform rule — a clear reference guide for foreign businesses. Swiss VAT 2026 — Rates, Registration & Platform Rule STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Guide — updated for 2026 Swiss VAT — rates, registration, and the 2026 platform rule. Swiss VAT (MWST / TVA / IVA) is a federal tax administered by ESTV. Three rates, one CHF 100,000 threshold, and a worldwide-turnover test that catches foreign suppliers from the first franc. This guide is for foreign founders, non-resident sellers, and finance leads in foreign-owned Swiss companies. Talk to a specialist Written by Stefan Locher · Reviewed by Marc Wyler Last reviewed: May 2026 Switzerland is not part of the EU VAT zone. It runs its own value-added tax under the Federal Act on Value Added Tax (MWSTG) and administers it through the Federal Tax Administration (ESTV). If you are forming or already running a Swiss company, or selling goods or digital services into Switzerland from abroad, this page covers the mechanics you need before you hire an accountant. If you have not yet incorporated, read our starting a Swiss business guide first; VAT obligations follow from the incorporation decision. Last reviewed: April 2026. Swiss VAT ordinance thresholds are re-verified every January. Cite estv.admin.ch for any figure used in a contract or a tax return. At a glance Four numbers every Swiss VAT conversation turns on. The standard rate, the threshold, the cadence, the timing of the next rule-change. Scan these, then read the body. 8.1% Standard VAT rate since 1 Jan 2024 MWSTG / ESTV CHF 100k Registration threshold (worldwide turnover) MWSTG art. 10 60 days Quarterly return + payment window MWSTG art. 86 2026 Platform becomes deemed supplier MWSTG amendment Rates Swiss VAT rates from 1 January 2024. Three rates cover every Swiss supply. The 2024 change lifted every rate by 0.4 percentage points to help fund the AHV/AVS pension reform, not to close a VAT gap. Swiss VAT rates applicable from 1 January 2024 (MWSTG / ESTV). Menstrual hygiene products moved to the reduced 2.6% rate on 1 January 2025 as a separate parliamentary decision. Rate Label Covers Effective Previous 8.1% Standard rate Default rate for all supplies not covered by the reduced or accommodation rate. Goods, most services, digital supplies. 1 January 2024 7.7% (until 31 December 2023) 2.6% Reduced rate Food and non-alcoholic beverages (for take-away, not restaurant consumption), medicine, printed books and newspapers, menstrual hygiene products (since 2025). 1 January 2024 2.5% (until 31 December 2023) 3.8% Accommodation rate Hotel and holiday-letting accommodation with breakfast. Does not apply to restaurant meals billed separately. 1 January 2024 3.7% (until 31 December 2023) Standard rate — 8.1% The 8.1% standard rate applies to every Swiss supply not caught by the reduced or accommodation rate. Most goods, most services, business-to-business charges, consulting, and digital supplies sit here. This is the default rate to assume on your invoicing system unless a supply clearly fits one of the lower bands. Reduced rate — 2.6% The 2.6% reduced rate applies to food and non-alcoholic beverages sold for take-away consumption, human medicine, printed books and newspapers, and since 1 January 2025 menstrual hygiene products. Restaurant meals, alcoholic beverages and food served on-premises do not qualify for the reduced rate. This is the line foreign e-commerce sellers most often miscalculate when they move a product catalogue into Switzerland. Accommodation rate — 3.8% The 3.8% accommodation rate applies specifically to hotel rooms and holiday lettings sold with breakfast. Meals billed on a separate line (for example, a restaurant bill at the hotel) revert to the 8.1% standard rate. Rate history — from 7.7% to 8.1% Before 1 January 2024 the three rates were 7.7% / 2.5% / 3.7%. The 2024 uplift of 0.4 percentage points on the standard rate, 0.1 pp on the reduced rate and 0.1 pp on the accommodation rate was legislated as a dedicated funding source for the AHV/AVS old-age pension reform, not as an indexation. Historical invoices issued in 2023 and earlier remain fully valid at the old rates. Liability Who must register — the CHF 100,000 threshold. One threshold, two worlds. Swiss-resident businesses and foreign suppliers cross the same number but experience very different consequences. Swiss-resident businesses A Swiss-resident business registers for VAT once its worldwide taxable turnover reaches CHF 100,000 in any 12-month period under MWSTG art. 10. The test is forward-looking where a startup already forecasts exceeding the threshold on realistic numbers; you register from day one rather than waiting to cross the line mid-year. If you are deciding whether to form a Swiss GmbH or AG , factor the VAT recurring cost into your first-year budget; the registration itself is free but the monthly compliance cadence is not trivial. Non-resident / foreign businesses — worldwide turnover and the first franc Foreign businesses are measured against the same CHF 100,000 threshold, but against their worldwide taxable turnover (from activities that would be Swiss-taxable if performed in Switzerland), not only against Swiss revenue. Once that worldwide figure is crossed, every Swiss supply carries VAT from the first franc, with no domestic de-minimis. The effect is that a foreign seller with CHF 5 million of global revenue but only CHF 2,000 of Swiss sales is still fully liable on those CHF 2,000. This is the rule foreign e-commerce sellers most often discover after the fact. Mandatory registration regardless of threshold Certain categories register from the first franc regardless of the CHF 100,000 measure. Importers of taxable goods, foreign providers of electronic services to Swiss consumers above the platform-facilitated thresholds, and specific categories under the mail-order rule (see the e-commerce section below) fall into this set. If you think your model might fit, do not assume the threshold protects you; the rule is specific enough that general de-minimis logic does not apply. Voluntary registration below CHF 100,000 Businesses below the threshold may elect voluntary registration under MWSTG art. 11. The case for voluntary registration is strongest where your customers are Swiss VAT-registered businesses (they recover the VAT you charge, so a change in the VAT-inclusive price is neutral for them), where input VAT on your Swiss suppliers and capex is material, or where your pipeline will cross the threshold soon anyway and you want continuity of VAT number and reporting history. The trade-off is the recurring compliance burden; voluntary registration commits you to at least one tax period at the chosen cadence. Side by side Swiss-resident vs. foreign supplier — seven rules, two columns. Most peer guides merge these two situations into one block of prose. They should not. The differences drive your registration plan and your compliance cost. Dimension Swiss-resident business Foreign / non-resident supplier Threshold measure Worldwide taxable turnover CHF 100,000 (MWSTG art. 10) Worldwide taxable turnover CHF 100,000 (MWSTG art. 10) Swiss-only de-minimis Same threshold — no separate domestic de-minimis needed None — liability from the first franc of Swiss revenue once worldwide CHF 100,000 is crossed Fiscal representative Not required Mandatory — Swiss-domiciled Fiskalvertreter, joint and several liability Registration channel ESTV ePortal (eportal.admin.ch), Form 533 ESTV ePortal, Form 533, plus signed fiscal-representative agreement Typical lead time Around 5–15 business days with a complete file Around 4–6 weeks in practice due to representative coordination VAT number format CHE-xxx.xxx.xxx MWST (UID) CHE-xxx.xxx.xxx MWST (UID) — same format Filing cadence Quarterly default; semi-annual under Saldosteuersatz Quarterly default; semi-annual under Saldosteuersatz Non-resident requirement Fiscal representative — what non-residents need. If you are registering from abroad without a Swiss permanent establishment, a Swiss-domiciled fiscal representative is a condition of registration, not an option. What a fiscal representative does A fiscal representative (Fiskalvertreter) is a Swiss-domiciled person or firm that ESTV treats as the official point of contact for your Swiss VAT obligations. The representative files your returns, receives correspondence and assessments, and assumes joint and several liability for VAT, interest and penalties alongside your foreign entity. The representative is not the taxpayer, but ESTV can proceed against the representative where collection against the foreign entity is impractical. That joint liability is the reason representative mandates are priced on substance and risk, not on volume. How to appoint one Appointment is a contractual arrangement. You sign a representation agreement with a Swiss-domiciled firm that accepts the mandate, and the signed agreement is submitted to ESTV with your registration file. Appointment should be finalised before Form 533 is filed; registration without a representative agreement in place is typically rejected for non-residents and the file restarts when the gap is closed. For most foreign-owned setups, the fiscal-representative function is handled by the same provider that runs managed Swiss accounting . Registration process How to register for Swiss VAT — step by step. Six steps from liability confirmation to first filing. Pace varies by resident vs. non-resident status; the sequence does not. Step 1 Confirm liability Measure worldwide taxable turnover against the CHF 100,000 threshold under MWSTG art. 10. For foreign businesses, assume liability once worldwide taxable turnover is crossed and you make any Swiss supply. Step 2 Appoint a fiscal representative (non-residents) Non-resident businesses appoint a Swiss-domiciled Fiskalvertreter before filing. The representative signs an agreement accepting joint and several liability for Swiss VAT obligations. Step 3 Complete Form 533 via ESTV ePortal Registration runs through eportal.admin.ch. Form 533 captures legal entity, UID, business activity, anticipated turnover, election of accounting method (effective or Saldosteuersatz), and elected VAT period start date. Step 4 Submit supporting documents Expect to supply extract of registration (commercial register or foreign equivalent), articles of association, identification of signatories, and for foreign entities the signed fiscal-representative agreement. Incomplete files are the most common cause of delay. Step 5 Receive MWST number (timeline) Swiss-resident entities typically receive the MWST number within around 5 to 15 business days. Non-resident files with fiscal-representative coordination more commonly run around 4 to 6 weeks. End-of-year and Q1 load can extend beyond that window. Step 6 Begin filing from the effective date Your first VAT period runs from the effective date assigned by ESTV. The first return and payment are due within 60 days of period end. Saldosteuersatz users move to a semi-annual cadence from day one. Expect around 5 to 15 business days for Swiss-resident entities with a clean file, and around 4 to 6 weeks for non-resident files coordinating the fiscal-representative agreement. End-of-year and early-Q1 filing volumes at ESTV can extend those windows. Trading before the MWST number is issued is a common and material mistake; invoices cannot charge VAT until you have a number, and back-dating a number is not available. Talk to a specialist See how we run VAT compliance Identifier Swiss VAT number format (UID). A single number covers company registration, VAT and social-security identification. How to read it, where it appears, and what the MWST suffix means. Swiss entities receive a unique enterprise identification number (UID / Unternehmens-Identifikationsnummer) in the format CHE-xxx.xxx.xxx . When the same entity is registered for VAT, the MWST suffix is added: CHE-xxx.xxx.xxx MWST . The suffix indicates active VAT registration; its absence means no VAT liability, not that the entity does not exist. The UID is searchable on the federal UID register (uid.admin.ch) and matches the entry in the commercial register (Handelsregister / zefix.ch). For invoicing, the Swiss UID with MWST suffix must appear on every invoice issued by a registered taxable person; for cross-border buyers, including the VAT number alongside the standard buyer and seller details is the cleanest proof that the supply has been assessed under Swiss VAT. Filing cadence Filing, payment, and deadlines. Quarterly by default, 60 days to file and pay, semi-annual under Saldosteuersatz. Interest and penalties follow a predictable schedule. Filing periods The default Swiss VAT cadence is quarterly. Every entity registered at a quarterly cadence receives four return periods per year, mapped to calendar quarters. Businesses on the Saldosteuersatz (net tax rate method — see next section) file semi-annually. ESTV may assign monthly filing for entities with consistently large net-VAT payables; monthly filing reduces the time-value exposure for the tax authority on significant net amounts. The 60-day rule Both the return and the payment are due within 60 days of the end of each period. For a Q1 period ending 31 March, the filing and payment deadline falls on 30 May. Filing runs electronically through the ESTV ePortal; payment is via bank transfer against the reference number on the VAT account statement. Late filing — interest and penalties Late payment triggers default interest (Verzugszins) at the rate set annually by the Federal Department of Finance; the rate for 2024–2025 was typically in the low single digits per year. Late filing can additionally trigger an administrative fine. Persistent or material non-compliance moves into the tax- evasion regime under MWSTG art. 96 and following, with significantly higher financial exposure. In practice, building a working file each month so that the quarterly return is a consolidation (not a scramble) removes most late-filing risk. Accounting methods Effective method vs. the net tax rate method (Saldosteuersatz). Two ways to compute Swiss VAT. One tracks input and output VAT line by line. The other applies a sector-specific flat rate to gross turnover and skips input-VAT tracking entirely. Effective method (Effektive Abrechnungsmethode) Under the effective method you track output VAT on your sales and input VAT on your purchases, net the two, and remit the difference (or claim the refund where input exceeds output). The method is precise and is the default for any business with substantial input VAT to recover, material capital expenditure, or a book-keeping system that already tracks VAT at transaction level. Net tax rate method (Saldosteuersatz, MWSTG art. 37) The Saldosteuersatz under MWSTG art. 37 replaces input-VAT tracking with a sector-specific flat rate set by ESTV. You apply the flat rate to your gross (VAT-inclusive) turnover and remit that amount; no input VAT is recovered on the return. Eligibility is capped at annual taxable turnover of CHF 5,005,000 (incl. VAT) and net VAT liability of CHF 103,000 per year calculated at the ordinary rate. Election binds for a minimum 1-year period. Election is via Form 1055, and filing moves to a semi-annual cadence. Which method is right for your business The decision is fact-specific. A consulting firm with low input VAT, simple invoicing and a few Swiss suppliers usually gains from the Saldosteuersatz: less compliance, a predictable rate, no input-VAT tracking. A trading entity with substantial Swiss supplier invoices, a restaurant with materially mixed VAT-rate inputs, or a capital-intensive business typically stays on the effective method, because the input-VAT recovery is material. Election is not lightly reversible; it binds for one tax period at minimum and changing in either direction carries a notification window. Model both before the first filing. Scope Exempt vs. zero-rated supplies — why the difference matters. Both are taxed at 0% in the consumer's hand. Only one lets you reclaim Swiss VAT on your inputs. The line is MWSTG art. 21 vs. MWSTG art. 23. Aspect Excluded (art. 21) Zero-rated (art. 23) Statutory basis MWSTG art. 21 MWSTG art. 23 Output VAT charged No VAT charged on the supply VAT within the system, taxed at 0% Input-tax deduction Not permitted on costs relating to the excluded supply Fully recoverable on costs relating to the zero-rated supply Typical examples Healthcare, education, financial services, insurance, residential lettings Exports, international transport, services deemed performed abroad Mixed-activity apportionment Partial deduction per MWSTG art. 30 Partial deduction per MWSTG art. 30 where a supplier has a mix Excluded supplies (Steuerausnahmen, MWSTG art. 21) Excluded supplies sit outside the VAT system entirely. Healthcare, education, most financial services, insurance intermediation, and residential letting are the classic categories. No VAT is charged on the output, and no input-tax deduction is available on the costs that relate to that output. A Swiss financial-services business with excluded output therefore does not reclaim the VAT on the consulting, IT and rent invoices it receives. Zero-rated supplies (Steuerbefreite Leistungen, MWSTG art. 23) Zero-rated supplies are inside the VAT system but taxed at 0%. Exports, international transport, and services deemed performed abroad are the canonical cases. Input VAT on costs relating to zero-rated output is fully recoverable, which is why Swiss exporters typically sit in a structural net-refund position on their quarterly return. Partial deduction for mixed activities (MWSTG art. 30) Where a business has a mix of taxable, zero-rated and excluded outputs, input tax is apportioned. The apportionment method must be reasonable, consistently applied, and documented. ESTV accepts turnover- based apportionment as a default for many business models; sector-specific keys apply for banks and insurers. 2026 platform rule The 2026 platform rule — what marketplaces now owe. From 2026, the platform becomes the deemed supplier for Swiss VAT on facilitated third-party sales. A rule that shifts the compliance burden from many small sellers to fewer large platforms. How it works Under the 2026 platform rule, online marketplaces and similar platforms that facilitate sales from third-party sellers to Swiss consumers are treated as the deemed supplier for Swiss VAT purposes. The platform collects and remits Swiss VAT on the facilitated sale, even where the underlying seller is below the CHF 100,000 threshold and even where that seller is not itself Swiss-registered. Who is now liable — platform vs. seller For a facilitated sale inside scope of the rule, the platform is the taxable person. The underlying seller does not invoice the Swiss consumer with VAT and does not account for that VAT directly. The platform does. For sales outside the platform channel (direct seller-to-consumer transactions), the pre-existing rules on Swiss-resident vs. foreign-supplier liability continue to apply. What changes for a non-resident third-party seller If all your Swiss sales go through platforms that are in scope, your own Swiss VAT registration obligation may disappear on those transactions. If you sell partly through platforms and partly direct-to-consumer, your registration is assessed on your direct-channel turnover; the platform-handled share does not reset the test but does not count toward the direct-channel threshold either. The rule is still bedding in and ESTV guidance is expected to evolve through the first tax periods of 2026; plan on a review with your Swiss adviser in the weeks after your first 2026 filing. Cross-border Digital services and e-commerce into Switzerland. Two distinct regimes. The mail-order rule for physical low-value consignments, and the worldwide-turnover test for digital services. Both are assessed by ESTV, both interact with the CHF 150 BAZG de-minimis at the border. Mail-order rule (MWSTG art. 7 para. 3) Under the mail-order rule, foreign sellers of low-value imported goods (each consignment at or below the CHF 65 low-value threshold, subject to ESTV ordinance update) must register for Swiss VAT once annual cross-border sales of such consignments reach CHF 100,000. The rule exists because low-value consignments were previously landing in Switzerland VAT-free under the border de-minimis, so the rule moves the collection point upstream to the seller. Thresholds and the exact low-value-consignment figure are revisited periodically by ESTV ordinance; re-verify in January each year. Digital / electronic services Foreign providers of electronic services (SaaS, streaming, app stores, online advertising) to Swiss recipients apply the standard worldwide-turnover test. Digital services are treated as supplied where the customer is located for B2C, so a software subscription sold to a Swiss consumer is a Swiss supply even where the seller is based abroad. Where the customer is a Swiss-registered business, the reverse- charge rule (see next section) shifts accounting to the customer. Import VAT at the border (BAZG / customs) Physical goods crossing the Swiss border also trigger import VAT collected by BAZG (Federal Office for Customs and Border Security) at the import moment. A separate CHF 150 tax-free de-minimis applies at the border for travellers, distinct from the CHF 65 mail-order threshold that triggers seller-side registration; the two figures are often confused but serve different purposes and are updated under different ordinances. Import VAT paid by a registered Swiss business is recoverable as input VAT on the quarterly return, subject to the apportionment rules for mixed activities. Reverse charge Reverse charge on imported B2B services. When a Swiss-registered business buys a service from a foreign supplier, the Swiss recipient self-accounts for VAT. The supplier does not need to register in Switzerland for that transaction. For business-to-business services imported from abroad, Swiss VAT applies under the reverse-charge mechanism. The foreign supplier invoices without VAT; the Swiss-registered business recipient self- accounts for output VAT at the applicable Swiss rate, and (where the service relates to taxable output) recovers the same amount as input VAT on the same return. The net effect is often neutral, but the entries must still appear on both sides of the return for audit trail purposes. The reverse-charge rule is what allows a Swiss consulting firm to buy foreign legal or software services without forcing every foreign supplier to register for Swiss VAT. It does not extend to business-to-consumer supplies, where the foreign supplier remains assessed under the worldwide- turnover test described above. Group structure VAT groups (MWST-Gruppe, MWSTG art. 13). Closely related Swiss companies can elect to be treated as a single taxable person for VAT. Intra-group supplies fall outside the VAT scope, and a single consolidated return is filed. When VAT grouping makes sense A VAT group under MWSTG art. 13 is designed for corporate groups with substantial intra-group service flows or intra-group financing charges. By collapsing those transactions out of the VAT scope, the group avoids cash-flow friction from intra-group VAT that would otherwise be collected on one side and reclaimed on the other. The group is particularly valuable for Swiss holding structures with material management-services recharges to operating subsidiaries; see our page on Swiss holding structures for how VAT grouping interacts with the participation-exemption regime. Joint and several liability Joint and several liability is the price of the simplification. Every group member is jointly liable for the VAT, interest and penalties of every other member. This rules VAT grouping out where group companies are not aligned on solvency risk, where minority shareholders are not on board with the joint-liability exposure, or where some group companies are operationally distant from the others. Application process The group applies jointly to ESTV, naming the group representative who interacts with the authority and receives the consolidated assessments. Eligibility rests on close relationship (holding relationship, common management, or common ownership); passive portfolio relationships between otherwise unrelated companies are not eligible. Approval is prospective; past periods are not retroactively grouped. Disambiguation Is Switzerland in the EU VAT zone? A direct answer to the single most common misconception among foreign sellers preparing to operate in Switzerland. No. Switzerland is not part of the EU VAT directive system. Switzerland is a non-EU member state for VAT purposes. There is no VIES registration for Swiss entities, no intra-community supply treatment, no acquisition VAT via an EU mechanism, and no reverse- charge regime that piggybacks on EU registrations. A business that operates in both the EU and Switzerland holds two separate VAT registrations and files them separately under two different legal frameworks. In practice, this means cross-border flows between an EU entity and a Swiss entity are treated as third-country flows under the EU VAT Directive and as foreign supplies under MWSTG. Documentation (export declarations, commercial invoices, customs paperwork) is therefore needed on both legs of the transaction, rather than the lighter intra-community paperwork an EU-to-EU supplier would use. Lifecycle VAT de-registration. The final step in the VAT lifecycle. Two triggers, one claw-back rule foreign founders often underestimate. A business de-registers for Swiss VAT when it ceases Swiss activity entirely, when worldwide taxable turnover falls below CHF 100,000 on a sustained basis and voluntary continuation is not elected, or where a formal liquidation closes the entity. De-registration is filed with ESTV and takes effect from a specified date after confirmation. The claw-back rule matters at de-registration. Input VAT previously recovered on assets still on the balance sheet is adjusted, because those assets will no longer generate taxable output. The adjustment is calculated on a straight-line depreciation basis over the applicable asset-life window set by ESTV. Foreign founders closing a Swiss entity frequently underestimate the claw-back on recently acquired plant, equipment and significant capitalised software; planning the de-registration date around the asset base materially reduces the final-period VAT bill. Pitfalls Common mistakes foreign businesses make. Five patterns we see on nearly every onboarding call with a foreign founder. Each one is cheap to avoid before the first supply and expensive to fix after the first return. Missing the worldwide-turnover trigger The single most common error. Foreign founders assume a CHF 2,000 sale in Switzerland cannot trigger Swiss VAT. It can, because the CHF 100,000 test looks at worldwide taxable turnover, not Swiss-only sales. If your home-market turnover is already above CHF 100,000 and you make any Swiss supply, you are liable from the first franc. Misapplying the reduced 2.6% rate to restaurant meals or alcohol Food supplies only qualify for the 2.6% rate when sold for take-away consumption. Restaurant meals consumed on-premises, catering served at the customer's event, and alcoholic beverages do not qualify and revert to the 8.1% standard rate. A restaurant selling both take-away and on-premises needs split rate handling on the POS system; a single-rate configuration produces material misstatement on the quarterly return. Forgetting the reverse-charge self-assessment Swiss businesses buying foreign B2B services must self-account under the reverse-charge rule. Forgetting to book the corresponding output and input entries is not a neutral oversight; it is a missing entry on the return and can trigger an assessment if ESTV spots the pattern on audit. Assuming Switzerland = EU for VAT Switzerland is not part of the EU VAT zone. A Swiss supplier cannot use a VIES number, and an EU supplier cannot issue an intra-community invoice to a Swiss customer. A separate Swiss registration is needed, and cross-border flows use third-country VAT rules, not EU rules. Reinforced in the disambiguation section above. Trading before the MWST number is issued Invoices cannot show Swiss VAT until the MWST number has been issued by ESTV. Back-dating is not available. Trading between the registration-application date and the MWST-number-issued date is a narrow operational risk, typically handled by invoicing at the VAT-inclusive gross price with a corrective invoice issued once the number arrives. FAQ Frequently asked questions Twelve answers mapped to the top People Also Ask queries for Swiss VAT. Schema emitted in the page head matches every answer byte-for-byte. What are the current Swiss VAT rates? Switzerland operates three VAT rates. The standard rate is 8.1%, the reduced rate is 2.6% (food, medicine, printed materials, and since 2025 menstrual hygiene products), and the accommodation rate is 3.8% for hotel stays with breakfast. All three became effective on 1 January 2024, replacing the previous 7.7% / 2.5% / 3.7% set. The rate change was tied to the AHV/AVS old-age pension reform, not to general indexation. What is the Swiss VAT registration threshold? The threshold is CHF 100,000 of annual taxable turnover under MWSTG art. 10. For Swiss-resident businesses this is measured against worldwide taxable turnover on a rolling 12-month basis. For foreign businesses supplying into Switzerland, the same CHF 100,000 measure applies to worldwide taxable turnover, and liability starts from the first franc of Swiss revenue once the worldwide figure is crossed. There is no separate Swiss-only de-minimis for foreign suppliers. Do foreign businesses pay Swiss VAT from the first franc? Yes. Once a foreign business has worldwide taxable turnover above CHF 100,000 from supplies that would be Swiss-taxable if made in Switzerland, every subsequent Swiss supply is liable for VAT from the first franc. There is no domestic threshold that shelters initial Swiss sales. This rule catches foreign sellers with substantial home-market turnover who imagine Swiss activity is too small to matter. Is Switzerland in the EU VAT zone? No. Switzerland is not part of the EU VAT directive system. Practical consequences: no VIES registration, no EU-style reverse charge via a common-market mechanism, no intra-community supply treatment, and a separate Swiss VAT registration is required in addition to any EU registrations. Swiss VAT follows MWSTG (the federal Swiss VAT Act) and is administered by ESTV, not by any EU body. Do I need a fiscal representative to register for Swiss VAT? Yes, if you are a non-resident business without a Swiss permanent establishment. Appointment of a Swiss-domiciled fiscal representative (Fiskalvertreter) is a standard condition of registration for foreign suppliers. The fiscal representative assumes joint and several liability for your Swiss VAT obligations and handles correspondence with ESTV. A Swiss address, not just a correspondence address abroad, is the core requirement the authority looks for. How does the 2026 platform rule work? From 2026, online platforms (marketplaces, app stores) that facilitate sales from third-party sellers to Swiss consumers are treated as the deemed supplier for Swiss VAT purposes. The platform, not the individual seller, collects and remits Swiss VAT, even where the underlying seller is below the CHF 100,000 threshold. The rule shifts administrative burden from many small sellers to fewer large platforms and is administered by ESTV. How long does Swiss VAT registration take? For Swiss-incorporated entities the registration is typically issued within 5 to 15 business days of a complete application via the ESTV ePortal. Non-resident applications commonly take longer, around 4 to 6 weeks in practice, because the fiscal-representative agreement and supporting documents for the foreign entity extend the review. Incomplete filings pause the clock, and end-of-year or Q1 load can push timelines beyond six weeks. How often must I file Swiss VAT returns? The default cadence is quarterly, with the return and payment due within 60 days of each period end. Businesses on the Saldosteuersatz (net tax rate method) file semi-annually. ESTV may assign monthly filing for entities with consistently large net-VAT payables. Annual filing is an option for eligible smaller entities subject to ESTV approval, typically where reporting history and volume support a lighter cadence. What is the Saldosteuersatz (net tax rate method)? Under MWSTG art. 37, eligible businesses can replace full input-tax tracking with a sector-specific flat rate set by ESTV that is applied to gross turnover. The eligibility caps are annual taxable turnover of CHF 5,005,000 (incl. VAT) and net VAT liability of CHF 103,000 per year at the ordinary rate, with a minimum 1-year commitment. Filing becomes semi-annual, and the method is elected on Form 1055. What is the difference between excluded and zero-rated supplies? Excluded supplies under MWSTG art. 21 (healthcare, education, financial services, insurance, residential lettings) are outside the VAT system. No VAT is charged on the output and no input-tax deduction is permitted on related costs. Zero-rated supplies under MWSTG art. 23 (exports, international transport, services deemed performed abroad) are within the VAT system but taxed at 0%, and input tax on related costs is fully recoverable. The distinction decides whether you can reclaim Swiss VAT on your suppliers. Can a Swiss holding company form a VAT group with its subsidiaries? Yes. MWSTG art. 13 permits closely related Swiss companies, usually linked by a holding relationship, common management, or common ownership, to form a VAT group. Intra-group supplies fall outside the scope of Swiss VAT, a single consolidated VAT return is filed for the group, and joint and several liability applies across group members. The group is a single taxable person for MWST purposes, not multiple. Are there VAT rules specific to e-commerce and imports into Switzerland? Yes. Foreign sellers of low-value imported goods (each consignment at or below the CHF 65 low-value threshold, subject to ESTV ordinance update) must register for Swiss VAT once annual cross-border sales of such consignments reach CHF 100,000, under the mail-order rule in MWSTG art. 7 para. 3. This is distinct from the CHF 150 BAZG duty-free de-minimis that applies at the border for travellers. Foreign providers of digital services apply the worldwide-turnover test, and from 2026 platforms become the deemed supplier for facilitated sales. Next step From compliance to operations. Once your VAT obligations are clear, the practical question is who runs the recurring compliance. Two routes foreign founders typically take, and where the broader tax picture matters beyond VAT. Swiss VAT is one of three recurring compliance streams for a foreign-owned Swiss company, alongside annual statutory accounts under OR/CO and the cantonal corporate tax return. VAT is the first stream founders want clarity on, because the monthly and quarterly cadence drives the bookkeeping rhythm. If you want that cadence handled end-to-end, see how we run Swiss accounting service for foreign-owned entities. VAT is a federal tax and is uniform across all 26 cantons. Your corporate income tax is not. The canton of registration drives effective rates, extension regimes, filing-portal choice and audit intensity. If you are still deciding where to base the Swiss entity, factor the cantonal tax layer into the decision via our choice of canton profiles. For the full spread of foreigner-focused reference material, see our other Swiss business guides . Talk to a specialist Managed Swiss accounting This guide is provided for information only and does not constitute legal or tax advice. Swiss VAT rules change: the 2024 rate revision and the 2026 platform rule are recent examples. Thresholds in the Saldosteuersatz and mail-order rule are revisited under the MWSTG annual ordinance update. Re-verify any figure used in a contract or a tax return against the Federal Tax Administration at estv.admin.ch. Last reviewed April 2026. VAT + accounting Hand Swiss VAT to a Zug-based team. Tell us your entity, your current registration status and your open VAT questions. We come back within one business day with a scoped proposal covering VAT registration, quarterly filing, input-tax recovery, and the reverse-charge and platform-rule edge cases. No obligation, no price gates before scope. Request a proposal --- ## Swiss VAT Number: Format, Lookup & Use (UID/MWST) URL: https://business-in-switzerland.com/guides/swiss-vat-number-explained Description: What a Swiss VAT number looks like, how it relates to the UID, how to find and verify one on uid.admin.ch, and how foreign firms register. Swiss VAT Number: Format, Lookup & Use (UID/MWST) STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content VAT number Swiss VAT Number (UID/MWST): Format, Lookup and Use A Swiss VAT number is not a separate number at all: it is your company UID with a VAT suffix appended, for example CHE-123.456.789 MWST. This guide explains the format, how to look one up for free, how to verify it, why it is not in VIES, and how a foreign business gets one. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: October 2026 Switzerland uses a single number to identify a business everywhere: in the Commercial Register, with the tax authority, in customs and on invoices. It is the UID ( Unternehmens-Identifikationsnummer , IDE in French, IDI in Italian), written as CHE-123.456.789 . Once a company is entered in the VAT register, that same number becomes its VAT number, distinguished only by a three-letter suffix. There is no second, separate VAT number to track down. This page is about the number itself: its anatomy, the language suffixes, how to tell it apart from the personal tax number, how to find and validate one, why a Swiss number returns nothing in the EU VIES system, and the threshold at which a foreign firm must obtain one. For VAT rates, returns and filing mechanics, read our companion Swiss VAT system, rates and returns guide. By the numbers The figures that anchor this topic. CHE-xxx.xxx.xxx UID format · 9 digits MWST / TVA / IVA VAT suffix · DE / FR / IT CHF 100,000 Worldwide turnover · VAT trigger Free UID and VAT register lookup The short answer What a Swiss VAT number is The Swiss VAT number is your company UID with a VAT-language suffix added. It is not a separate identifier issued alongside the UID. One number identifies the business across every federal and cantonal system, and the suffix simply marks that the holder is registered for value-added tax. The UID was introduced to give every Swiss enterprise a single, permanent identifier that all authorities share. Before it existed, a company carried different reference numbers for the Commercial Register, for VAT and for social-security and customs systems. Today the UID replaces them: the number assigned at registration follows the entity through its whole life, regardless of name changes, relocation between cantons or changes in tax status. The same nine digits a foreign partner reads on a Swiss supplier's incorporation extract are the digits it prints on its invoices once it charges VAT. Who issues it Who assigns the UID and the VAT status Two federal bodies are involved, and keeping them apart removes most of the confusion: The Federal Statistical Office (FSO) operates the central UID register and issues the UID itself. The number is also published in the Commercial Register, where it appears on the entity record the moment a company is incorporated. The Federal Tax Administration (FTA, known in German as the ESTV) assigns VAT status to an existing UID. It does not mint a new number; it flags the UID as VAT-registered and authorises the MWST, TVA or IVA suffix. Because the UID is created at incorporation, the number originates in the formation process rather than the tax process. If you are setting up an entity, our company formation team handles the registration that produces the UID, and arranges VAT registration where the business needs it. Anatomy of the number What a Swiss VAT number looks like A Swiss VAT number is built from a country prefix, nine digits and a suffix, in a fixed pattern. Read CHE-123.456.789 MWST from left to right: CHE is the prefix. It is the ISO three-letter country code for Switzerland (Confoederatio Helvetica) and is always present, so every Swiss UID starts with CHE. Nine digits follow, conventionally printed in three groups of three separated by dots. They are issued sequentially and carry no embedded meaning: they do not encode the canton, the industry or the founding date. The ninth digit is a check digit , calculated by a modulo-11 method from the preceding eight. It lets software catch a mistyped number before it reaches a register. The language suffix (MWST, TVA or IVA) is added after a space once the entity is VAT-registered, and bridges to the next section. You will see the same number written with or without the dots and hyphen. CHE-123.456.789 , CHE123456789 and CHE 123 456 789 all refer to one entity. The canonical presentation keeps the hyphen after CHE and dots between the digit groups. (CHE-123.456.789 is a flagged example, not a real company.) The language suffix MWST, TVA and IVA: the language suffixes The suffix is the only visible difference between a plain UID and a VAT number. It records the company's language region, not the buyer's, and means the same thing in each official language: MWST is German, for Mehrwertsteuer . TVA is French, for Taxe sur la valeur ajoutee . IVA is Italian, for Imposta sul valore aggiunto . All three are simply the word VAT in a Swiss national language, so CHE-123.456.789 MWST and the same number ending TVA are structurally identical: a registered VAT taxpayer entitled to charge the tax. A company that is not registered for VAT keeps the same CHE digits but has no suffix and may not add one. Seeing the MWST, TVA or IVA tag is therefore a quick signal that the holder is a live VAT registrant. Disambiguation UID vs VAT number vs IDE vs TIN vs AHV The single biggest source of error is mixing the business identifier up with the personal one. They look nothing alike once you know what to watch for. A business is identified by the UID, which begins CHE ; an individual is identified by the social-security and tax number, which begins 756 . UID / IDE / IDI : the business identifier, CHE-123.456.789. Issued by the Federal Statistical Office, found in the UID register and the Commercial Register. IDE and IDI are just the French and Italian names for the same UID. VAT number : the same UID plus a suffix, CHE-123.456.789 MWST. Same base number, VAT status added by the FTA. Personal TIN / AHV : the individual's number, in the form 756 followed by ten digits. It identifies a person, never a company, and is unrelated to the UID. Commercial Register number : historically a CH-prefixed company reference, now superseded by the UID as the single registered identifier. In short: if a number starts with CHE it is a business; if it starts with 756 it is a person; and the VAT number is not a fourth number but the UID with a tax suffix. Free lookup How to find a company’s Swiss VAT number The official UID register at uid.admin.ch , run free by the Federal Statistical Office, answers almost every question about a Swiss business number. To find a company's number: Open the search at uid.admin.ch. Search by company name, by address, or by the UID itself if you already have it. Open the matching entity record. Read the UID, the legal name and address, the legal form, and the VAT register status , which tells you whether the entity is registered for VAT. If you only have a trading name and want the underlying legal entity and its incorporation details, the Commercial Register portal Zefix (zefix.ch) searches across all cantonal registers and also shows the UID on each record. To find your own number, it appears on your FTA registration confirmation, in the UID register, and must be shown on your invoices. Both registers are free and need no account. Verification How to verify or validate a Swiss VAT number Finding a number is not the same as confirming it is valid for VAT. A business can hold an active UID without being VAT-registered, and a registration can lapse. There are two layers of checking, and they answer different questions: Active vs VAT-registered. Look the UID up in the register and read the VAT status field. An entity with an active UID is not necessarily a VAT taxpayer. Only a record showing VAT register status: Active confirms the holder is entitled to charge Swiss VAT. Confirm the legal name and address on the record match the invoice. Offline sanity check. Because the ninth digit is a modulo-11 check digit, a calculator or software can flag a number that has been mistyped. This catches a typo, but it does not prove the number is VAT-active. Only the register confirms status. This matters because input VAT can be reclaimed only when it has been correctly charged by a genuinely registered supplier. A wrong, inactive or invented VAT number on a purchase invoice puts your own deduction at risk. If you want this validation built into your purchase workflow, our accounting service checks supplier numbers as part of routine bookkeeping. Not an EU number Why a Swiss VAT number is not in the EU VIES system Switzerland is outside the European Union and runs its own UID register, so a Swiss number cannot be validated in VIES , the EU's VAT information exchange system. VIES checks only the VAT numbers of EU member states, so entering a CHE number there simply returns nothing. This is expected behaviour, not a sign that the number is fake. Where do you check a Swiss number instead? Use the Swiss federal UID register at uid.admin.ch, exactly as described in the find and verify sections above. A business trading both inside the EU and into Switzerland may hold both an EU VAT identifier and a Swiss CHE number; they are separate registrations in separate systems and should never be confused on documentation. Cross-border supplies between Switzerland and the EU are imports and exports through customs, not intra-community transactions, so a Swiss number is not interchangeable with an EU one. Foreign businesses How a foreign business gets a Swiss VAT number A foreign company can be required to register for Swiss VAT even without a Swiss establishment. The trigger is turnover, not residence. Where worldwide annual turnover from taxable supplies reaches CHF 100,000 and the business makes any supply within Switzerland, VAT liability arises from the first franc of Swiss turnover, with no separate domestic threshold to clear first. Three practical points follow for a foreign registrant: You must usually appoint a Swiss-resident tax representative to act for you before the FTA. You should register within 30 days of liability beginning. Registration assigns a UID with the VAT suffix, exactly like a domestic taxpayer. The detailed registration mechanics, the simplified net-tax-rate option and the filing calendar all sit in the Swiss VAT system, rates and returns guide. We can handle the registration and ongoing filing for you: our accounting service covers Swiss VAT registration and returns, and we work on a custom-quote basis. Many foreign founders pair this with setting up in Zug , the default low-tax canton for cross-border structures. On the invoice The VAT number on invoices A registered Swiss business that charges VAT must identify itself on its invoices with its UID carrying the VAT suffix. A compliant Swiss invoice generally shows: The supplier's name and address and its VAT number in CHE-xxx.xxx.xxx MWST form. The customer's name and address. The date or period of supply and a description of the goods or services. The consideration, the applicable VAT rate, and the VAT amount. Quoting the number with its suffix is what allows the customer to reclaim the input tax; printing the bare UID without the MWST tag undermines the deduction on the other side. For the full set of invoicing rules and the rate that applies to each supply, see the Swiss VAT guide . Keeping the number correct and consistent across quotes, invoices and credit notes is a basic but frequently missed point of VAT hygiene. FAQ Frequently asked questions What does a Swiss VAT number look like? CHE-123.456.789 MWST: the prefix CHE, nine digits in three dot-separated groups of three, then a VAT suffix. The ninth digit is a modulo-11 check digit, and the suffix marks the number as VAT-registered. Is the UID the same as the VAT number in Switzerland? Yes. The VAT number is your company UID with MWST, TVA or IVA appended; there is no separate VAT number. A business not registered for VAT keeps the same UID without any suffix. What do MWST, TVA and IVA mean? They are the word VAT in German, French and Italian respectively: Mehrwertsteuer, Taxe sur la valeur ajoutee and Imposta sul valore aggiunto. The suffix reflects the company’s language region, not the buyer’s, and all three identify the same kind of registration. How do I find a company’s Swiss VAT number? Search the company name, address or UID free on the official UID register at uid.admin.ch, run by the Federal Statistical Office. The Commercial Register portal Zefix also shows the UID on each entity record if you only have a trading name. How do I check whether a Swiss VAT number is valid? Look it up on uid.admin.ch and confirm the VAT register status shows Active, and that the legal name and address match the invoice. The ninth digit is also a modulo-11 check digit, so software can catch a mistyped number, though only the register confirms VAT status. Can I check a Swiss VAT number in VIES (the EU system)? No. Switzerland is outside the EU, so Swiss numbers are not in VIES and entering a CHE number there returns nothing. Check Swiss numbers in the federal UID register at uid.admin.ch instead. Do foreign companies get a Swiss VAT number? Yes. Once liable, when worldwide turnover from taxable supplies reaches CHF 100,000 and the firm makes a Swiss supply, a foreign company registers with the Federal Tax Administration and receives a UID with the MWST suffix. Most foreign registrants must also appoint a Swiss-resident tax representative. Where do I find my own Swiss VAT number? On your Federal Tax Administration registration confirmation and in the UID register at uid.admin.ch. It must also appear on your invoices once you are registered for VAT. What is the difference between the UID and the personal TIN/AHV number? The UID (CHE followed by nine digits) identifies a business; the personal TIN or AHV number (756 followed by ten digits) identifies an individual. A number starting CHE is a company, a number starting 756 is a person. Does a Swiss VAT number always start with CHE? Yes. CHE is the ISO three-letter country code for Switzerland and prefixes every Swiss UID, so both the plain UID and the VAT-suffixed form always begin with CHE. What is the CHF 100,000 threshold for VAT registration? A business must register for Swiss VAT once worldwide turnover from Swiss-taxable supplies reaches CHF 100,000 per year. Foreign firms making a Swiss supply are liable from the first franc, with no separate domestic threshold to clear first. Is the Swiss VAT number the same as the company registration number? The UID is the single business identifier published in the Commercial Register, and the VAT number is that same UID with a tax suffix. They are the same base number, not two different ones. Keep reading Related guides and services. Swiss Withholding Tax (Verrechnungssteuer) Swiss Corporate Tax Rates 2026 Swiss Accounting Standards Swiss VAT guide Accounting services Company formation Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Wealth Tax in Switzerland 2026: Rates by Canton URL: https://business-in-switzerland.com/guides/swiss-wealth-tax Description: How Swiss wealth tax works in 2026: no federal tax, cantonal rates 0.1-1%, allowances, exemptions, and how foreigners and new arrivals are taxed. Wealth Tax in Switzerland 2026: Rates by Canton STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Wealth tax Wealth tax in Switzerland Switzerland is one of the few developed countries that still taxes private wealth every year. The levy is cantonal and communal, never federal, so what you pay depends entirely on where in Switzerland you live. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: July 2026 Most countries that once taxed net wealth have abandoned it. Switzerland kept it. Every year, the 26 cantons and their communes levy an annual tax on your net assets , the value of everything you own minus everything you owe, measured at 31 December . There is no federal wealth tax, so the rate, the structure and the tax-free allowance are set canton by canton. For a resident of modest means the bill is small, and every canton exempts a band of wealth entirely. For internationally mobile entrepreneurs and family-office principals, however, the wealth tax is often the single most important reason to compare cantons before settling. This guide explains how the levy is built, what counts as taxable wealth, and how foreign residents and lump-sum taxpayers are treated. By the numbers The figures that anchor this topic. None Federal wealth tax 0.1% to 1% Typical cantonal range · 2026 31 Dec Valuation date each year 26 Cantons setting their own rate The answer Does Switzerland have a wealth tax? Yes, but only at cantonal and communal level. There is no federal wealth tax in Switzerland. All 26 cantons levy an annual tax on net wealth, and each commune then applies its own multiplier on top of the cantonal scale. Rates sit in a band of roughly 0.1% to 1% of net wealth , depending on canton and commune. It helps to keep three charges separate. The wealth tax is an annual levy on the value of your net assets. Income tax is charged on what you earn, including the income those assets produce. Private capital gains on movable assets such as shares are generally exempt from tax altogether. Read together, the wealth tax is best understood as one component of your total annual Swiss tax burden, paid alongside income tax rather than instead of it. Who is liable Who pays Swiss wealth tax. Anyone who is tax-resident in Switzerland pays wealth tax on their worldwide net assets, wherever those assets are held. That includes foreign nationals living in Switzerland on a B or C residence permit. Taking up residence is what triggers the liability, not citizenship. People who are not Swiss residents face only limited liability: they are taxed solely on assets with a Swiss connection, principally Swiss real estate and certain Swiss business interests. A non-resident who owns a holiday chalet in Valais pays Swiss wealth tax on that chalet, but not on a portfolio held in their home country. If you are weighing a move, our guide to the Swiss residence permit sets out how residence is established, and new arrivals usually also need to open a Swiss bank account when they settle. The mechanism How Swiss wealth tax is calculated. The calculation runs in two steps. First, fix the base : take your worldwide gross assets as valued at 31 December , then subtract your debts and the cantonal tax-free allowance. Mortgages and other loans are deductible, which is why a heavily financed asset adds far less to the base than its headline value. Second, apply the rate : the basic cantonal scale is multiplied by the cantonal multiplier and the communal multiplier (the Steuerfuss , or centimes additionnels in the French-speaking cantons), and a few cantons such as Geneva add a supplementary wealth tax. Because the communal multiplier varies from town to town, two households with identical assets in the same canton can receive different bills simply because they live in different communes. What is taxed What counts as taxable wealth, and what is exempt. The base is broad. As of 2026, taxable assets generally include: Bank and savings balances, including foreign accounts. Securities: shares, bonds and fund units, valued at their year-end market price. Real estate, valued at its cantonal tax value rather than open-market price. The surrender value of life-insurance policies. Business equity and shares in your own company. Cars, boats and other valuable movable property, and in principle holdings of gold or crypto-assets. Several important asset classes are exempt . Occupational pension capital (Pillar 2) and tied private pension savings (Pillar 3a) are not taxed until they are paid out, and ordinary household goods and furniture fall outside the base. Just as significant is what is never taxed at all: most private capital gains on movable assets are exempt, so a share portfolio that rises in value is not taxed on the gain. The wealth tax is, in effect, the annual price Switzerland charges for that generous treatment of gains. Allowances Tax-free allowances by canton. Every canton grants a tax-free allowance, so the levy only begins once net assets cross a floor. Only the excess above the allowance is taxed. The size of the floor varies widely and is usually higher for married couples than for single taxpayers, with many cantons adding a further amount per dependent child. As a rough guide, general allowances across the cantons sit somewhere between CHF 70,000 and CHF 200,000 as of 2026. Zurich, for example, exempts in the order of CHF 80,000 for a single taxpayer and around CHF 160,000 for a married couple, while several cantons set materially higher thresholds. Because each canton re-indexes its figures, treat any specific number as indicative and confirm the current amount with the cantonal tax office before relying on it. Rates Wealth tax rates by canton (2026 comparison). Headline rates are low by international standards, typically 0.1% to 1% of net wealth as of 2026, but the spread between cantons is large. Most cantons apply a progressive scale where the percentage rises with total wealth; a minority of low-tax cantons use a flat rate. When reading any comparison, remember it shows the annual francs payable, not a single marginal rate, because the communal multiplier and any supplementary tax feed into the final figure. The practical effect is significant. A couple holding CHF 1 million in net assets might pay a little over CHF 1,000 a year in a low-tax canton, yet several times that in a high-tax one, and for larger fortunes the gap compounds. That is why so much Swiss residency planning turns on canton choice, with Zug and Zurich sitting at very different points on the scale. A trustworthy figure for your own situation depends on your asset mix, your canton and even your commune, so we do not publish a one-size estimate. You can model the moving parts with our capital-requirements calculator , or request a canton-specific wealth-tax estimate built around your asset profile. The spread Lowest and highest wealth-tax cantons. The low-tax cantons cluster in central Switzerland. Nidwalden, Obwalden, Schwyz and Zug are consistently among the cheapest, several of them using low flat-rate systems that keep the bill modest even on substantial wealth. At the other end, Geneva, Vaud and Neuchatel sit near the top of the range. Geneva also operates a supplementary wealth tax, although it reduced its overall wealth-tax burden with a cut that took effect in 2025. The size of the spread is easy to underestimate. At a net wealth of CHF 1 million the annual bill in the most expensive cantons can be several times that in the cheapest, and the multiple is wider still for larger fortunes. For a side-by-side view, compare Geneva against a low-tax peer such as Zug. Specific cantonal figures change yearly, so any number quoted should be re-verified against the cantonal tax office. Foreigners How foreigners and new arrivals are taxed. Swiss residents declare worldwide net wealth, with one important refinement for property. Real estate located abroad is exempt from actual Swiss wealth tax, but it is still counted to set the rate applied to your Swiss-taxable wealth, because the scale is progressive. A resident who owns a CHF 2 million house in another country pays no Swiss wealth tax on the house itself, yet that value can lift the rate on their remaining assets slightly. This exemption-with-progression is the point most general explainers gloss over. Foreign nationals who move to Switzerland without taking up gainful employment here can often elect lump-sum (expenditure-based) taxation , also called the forfait . Instead of declaring actual worldwide income and wealth, the taxpayer is assessed on deemed annual living expenditure, with a notional wealth element folded into the same agreed base. A federal minimum base applies, in the order of CHF 435,000, and the regime has been abolished in several German-speaking cantons while it is retained in cantons such as Vaud, Valais, Geneva, Ticino and the central-Swiss cantons. Several high-tax cantons also run a tax shield that caps combined income and wealth tax as a share of income, though the exact cap should be confirmed locally. Special assets Crypto, property and other special assets. Cryptocurrency is taxable wealth. It is valued at its year-end price, and the Federal Tax Administration (ESTV) publishes year-end rates for the major tokens to standardise the valuation. Holdings of physical gold are treated the same way, at market value on 31 December. Real estate is valued at its official cantonal tax value, which is usually set conservatively below open-market price, and the related mortgage is deductible as a debt. That combination means a financed Swiss property often adds far less to the wealth-tax base than its market value suggests, which is one reason many owners keep a mortgage in place. The surrender value of a life-insurance policy is also taxable wealth, valued at the amount the insurer would pay on cancellation rather than the sum insured. Planning How to reduce Swiss wealth tax legally. Switzerland leaves several legitimate levers in the taxpayer's hands. None of the following is avoidance; each is a recognised feature of the system: Debt and mortgage deduction. All debts, including mortgages, reduce gross assets before the rate applies, so financing structure matters. Pillar 3a and pension contributions. Tied pension savings sit outside the wealth-tax base until payout, so contributing moves taxable wealth into an exempt wrapper. Canton and commune choice. The multiplier-driven spread between locations is where most of the saving is realised; where you live is the single biggest lever. Lump-sum taxation, if eligible. For qualifying new arrivals it can cap the base that would otherwise apply to a large fortune. For asset-rich families the canton decision dwarfs everything else, which is why modelling it before relocating is the highest-value step. The aim is to use the reliefs the law provides, not to conceal or misstate assets. Your structure Wealth tax and your Swiss structure. Personal wealth tax does not stop at your bank account. Shares in a Swiss holding company are themselves taxable personal wealth, valued at the company's tax value, so the way a business is owned and capitalised feeds directly into the owner's annual bill. Coordinating the corporate structure with the shareholder's canton of residence is part of getting the overall position right. For larger fortunes, the wealth tax is usually managed inside a wider plan that also covers income tax, succession and canton choice, which is the heart of family-office structuring . If you are weighing a Swiss move and want the numbers for your own asset profile, request a canton-specific wealth-tax estimate . We will not quote a figure without first understanding your assets and your target canton. FAQ Frequently asked questions Does Switzerland have a wealth tax? Yes, but it is levied only at cantonal and communal level; there is no federal wealth tax. All 26 cantons impose one, each setting its own rate, structure and tax-free allowance, so the amount you pay depends on where you live. Who has to pay wealth tax in Switzerland? Anyone tax-resident in Switzerland, including foreigners with a B or C permit, pays on their worldwide net assets. Non-residents pay only on Swiss-situs assets such as Swiss real estate. How is Swiss wealth tax calculated? Take your net assets at 31 December (worldwide gross assets minus debts), subtract the cantonal tax-free allowance, then multiply by the basic cantonal rate and the cantonal and communal multipliers, plus any supplementary wealth tax. How much is wealth tax in Switzerland? Roughly 0.10% to 1% of net wealth as of 2026, depending on the canton and commune. Most cantons apply a progressive scale, while a minority of low-tax cantons use a flat rate. Which canton has the lowest wealth tax? Nidwalden, Obwalden, Schwyz and Zug are consistently among the lowest, several of them using low flat-rate or near-flat systems. Specific figures change each year and should be confirmed with the cantonal tax office. Which canton has the highest wealth tax? Geneva, Vaud and Neuchatel sit near the top of the range. Geneva also operates a supplementary wealth tax, though it reduced its overall burden with a cut that took effect in 2025. Do foreigners pay Swiss wealth tax? Yes, if they are tax-resident in Switzerland, on their worldwide net assets. Non-residents are taxed only on assets connected to Switzerland, such as Swiss property, not on portfolios held elsewhere. Is there a tax-free allowance for wealth tax? Yes. Every canton exempts a band of net wealth before the tax starts, roughly between CHF 70,000 and CHF 200,000 as of 2026, differing for singles and couples, with many cantons adding a per-child amount. Below the threshold there is no wealth tax. Are pension assets (Pillar 2 or Pillar 3a) subject to wealth tax? No. Occupational pension capital (Pillar 2) and tied private pension savings (Pillar 3a) are exempt from wealth tax until the assets are paid out. Is foreign real estate taxed? Foreign real estate is exempt from actual Swiss wealth tax, but it is still counted to set the rate applied to your remaining Swiss-taxable assets, because the scale is progressive. This is known as exemption-with-progression. Is cryptocurrency subject to wealth tax? Yes. Crypto is taxable at its year-end value, using the rates the Federal Tax Administration (ESTV) publishes at the end of the year. Physical gold is treated the same way, at its 31 December market value. How can I legally reduce Swiss wealth tax? Through debt and mortgage deductions, Pillar 3a contributions, choosing a low-tax canton and commune, and lump-sum taxation if you qualify as a new arrival. These are recognised features of the system, not avoidance or evasion. Keep reading Related guides and services. Personal Income Tax in Switzerland Lump-Sum Taxation in Switzerland Capital Gains Tax in Switzerland Buying Property in Switzerland as a Foreigner Family office Zug Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Withholding Tax: The 35% Explained URL: https://business-in-switzerland.com/guides/swiss-withholding-tax Description: Switzerland Swiss Withholding Tax: The 35% Explained STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Withholding tax Swiss Withholding Tax (Verrechnungssteuer): The 35% Explained Switzerland levies a flat 35% federal withholding tax on dividends, certain interest and lottery winnings. It is a security tax, not a final charge: Swiss residents reclaim it in full, and non-residents recover the part above their treaty rate. Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: August 2026 Swiss withholding tax goes by four names for one tax. In German it is Verrechnungssteuer , in French impôt anticipé , in Italian imposta preventiva , and in English it is usually called the anticipatory or withholding tax. It is a federal tax on movable-capital income, charged at a flat 35% under article 13 of the Withholding Tax Act (VStG) and administered by the Federal Tax Administration (ESTV). The same rate applies across all 26 cantons. The number that matters most is whether the 35% is final, and the answer is no. Withholding tax is a security tax: it is set deliberately high so that nobody wants to forfeit it, which gives taxpayers a strong incentive to declare the underlying income. Declare it and you get the tax back. Swiss residents reclaim the full 35% through their tax return; non-residents reclaim the part above the residual rate fixed by the relevant double-tax treaty. This guide explains what the 35% applies to, how to disambiguate it from wage source-tax, how to reclaim it, and the notification procedure that lets corporate groups avoid paying cash at all. By the numbers The figures that anchor this topic. 35% Federal rate · VStG art. 13 100% Resident refund if declared 3 years Refund deadline · VStG art. 32 0% Royalties · no Swiss withholding The short answer What is Swiss withholding tax? The 35% in one minute Swiss withholding tax is a flat 35% federal tax on movable-capital income, and it is refundable, not final. It is deducted at source by the company or bank paying the income, which remits it to the Federal Tax Administration (ESTV) before the recipient sees a franc of it. So a Swiss company declaring a gross dividend of CHF 100 pays CHF 65 to the shareholder and CHF 35 to the federal treasury. The word "anticipatory" is the key to the whole system. The 35% is a prepayment held as security against under-declaration, not a definitive charge. A compliant taxpayer recovers it: declare the income and the tax comes back; hide it and the 35% is lost for good. That single mechanic, a high rate paired with a refund for honest declaration, explains everything that follows. One tax, four labels: Verrechnungssteuer (German), impôt anticipé (French), imposta preventiva (Italian) and anticipatory or withholding tax (English) all name the same VStG levy. Do not confuse it with Quellensteuer, the wage source-tax covered further down. Scope What the 35% applies to (and what it doesn't) The 35% rate reaches three core categories of Swiss-source capital income: Dividends and profit distributions from Swiss AGs, GmbHs and cooperatives, including constructive dividends and liquidation surpluses above paid-in capital. Interest on Swiss bonds and debentures and on bank or savings deposits. Lottery, betting and gambling winnings above the relevant exemption thresholds. A few categories carry reduced rates rather than the headline 35%: life annuities and certain pensions are taxed at 15% , and other insurance benefits at 8% . Just as important is what is not caught. Royalties pay no Swiss withholding tax , and neither does ordinary commercial loan interest between unrelated parties. Licence fees and IP payments leave the country gross, which sets Switzerland apart from many EU states and makes it an efficient location for holding intellectual property. When the question is about a different Swiss tax on turnover, our Swiss VAT guide covers that ground separately. Disambiguation Verrechnungssteuer vs Quellensteuer: not the same tax Two Swiss taxes both work by deduction at source, and the search results constantly confuse them. They are different taxes with different rules: Verrechnungssteuer (the subject of this guide) is the 35% federal withholding tax on capital income such as dividends and interest. It is reclaimable in full by residents and reduced by treaty for non-residents. Quellensteuer , or tax at source, is the wage withholding an employer deducts from the salaries of certain foreign employees and cross-border workers who do not hold a settlement permit. It is a payroll matter, calculated on cantonal tariff scales, not a flat 35%. If you arrived here looking for the tax on your salary, you want Quellensteuer, not Verrechnungssteuer. The rates, the forms and the reconciliation are entirely different, and the starting point is employment and permit status rather than investment income. Everything below this section is about the capital-income tax. Purpose Why Switzerland withholds it: a safeguard, not a final tax The 35% rate is deliberately punitive because the tax is designed as a safeguard. By making the levy painful enough that nobody wants to surrender it, the system pushes taxpayers to declare the underlying dividend or interest on their ordinary return. The withholding is the stick; the refund is the carrot. That is why withholding tax is best understood as a guarantee or anticipatory tax rather than a genuine burden. For an honest taxpayer it is a cash-flow timing issue, not a cost. The real economic charge on the income is the normal income or corporate tax that applies once the income is declared and assessed. The 35% simply ensures that declaration happens, and it is recovered once it has. The refund branch Reclaiming the tax: residents vs non-residents How you get the 35% back depends on one binary: are you resident in Switzerland or not? Swiss residents , individuals and companies alike, reclaim the full 35%. The mechanism is the ordinary tax return: declare the gross income, and the cantonal authority credits or repays the withheld tax. For individuals it is netted against the cantonal and communal tax bill; for companies it is reclaimed directly from the ESTV. The single condition is proper declaration. Fail to report the income and the refund right is forfeited, turning the 35% into a permanent cost. Non-residents cannot use a Swiss tax return, so they reclaim only the portion of the 35% that exceeds the residual rate set by the double-tax treaty between Switzerland and their country of residence. The residual stays in Switzerland; the excess is recoverable by formal claim. Whichever route applies, careful bookkeeping is what preserves the refund, which is why declaration and reconciliation sit at the centre of our Swiss accounting and tax filing work. Treaty rates Treaty rates by country (US, UK, EU and the wider network) For non-residents the recoverable amount is 35% minus the treaty residual. The residual depends on the country and on the size of the shareholding. The figures below are indicative; always confirm the country-specific residual with the ESTV or the State Secretariat for International Finance before relying on it, because protocols change. Country / bloc Portfolio residual Qualifying corporate residual Note United States 15% 5% (corporate with at least 10% voting) Qualifying pension funds reach 0%. United Kingdom 15% 0% (qualifying corporate parent) A qualifying UK parent reclaims the full 35%. EU parent-subsidiary n/a 0% Holding of at least 25%, held at least two years, both companies subject to corporate tax. Beyond these, Switzerland maintains a treaty network of more than 100 agreements, with dividend residuals that typically land at 0, 5, 10 or 15%. For a portfolio US holder the reclaim is 35 minus 15; for a qualifying UK corporate parent it is the whole 35. The pattern is the same everywhere: identify the treaty rate, claim the difference. How to reclaim How to reclaim: forms, deadline and ePortal (step by step) For a non-resident claimant the reclaim is an ordered process: Confirm eligibility and your treaty position. Establish residence, the applicable treaty residual, and that the income has been declared where the home country requires it. Choose the right form. Form 25 is the general foreign-claimant form, supported by country-specific forms (79, 80, 81, 82, 83, 95) depending on the residence state. File within the three-year window. The claim expires three years after the end of the calendar year in which the benefit fell due, under article 32 VStG. A dividend paid in March 2022 must be claimed by 31 December 2025. Submit through the ESTV ePortal. Refund claims and supporting documents are filed digitally. The deadline is the trap most non-residents fall into. Three years sounds generous, but it runs from the end of the year of payment, not from the date you noticed the deduction, and the ESTV does not extend it for oversight. File early. For groups The notification procedure (Meldeverfahren) For dividends inside a qualifying corporate group, the ESTV allows the notification procedure (Meldeverfahren) to replace the cash payment of withholding tax. Instead of paying 35% to the federal treasury and then reclaiming the relievable part, the distributing company reports the dividend on the relevant form and accounts only for any residual treaty rate, often nil. Pay-via-declaration removes a damaging cash-flow drag, because the group never has to fund and then recover the full amount. The mechanics turn on forms and thresholds: Form 106 for domestic dividends where the parent holds at least 10%, Form 108 for qualifying foreign recipients, with supporting Forms 103 and 110, and a 30-day filing deadline. The international variant requires an advance approval certificate, 823, 823B or 823C , valid for five years for certificates issued on or after 1 January 2023. Because eligibility hinges on the exact group structure, this is the highest-value planning lever for a Swiss holding-company structure , and a natural point to lock in certainty with an advance tax ruling before a distribution. Capital and exit Capital contributions and liquidation: when the 35% does NOT apply Not every distribution is caught. Under the capital contribution principle (Kapitaleinlageprinzip, KER), in force since 1 January 2011, repayments of share capital and of formally booked capital-contribution reserves (the agio) are exempt from withholding tax. They can be returned to shareholders gross, exactly like the capital that was paid in. This matters most at the end of a company's life. When a company is wound up, the 35% applies only to the liquidation surplus , the portion of the final distribution that exceeds paid-in share capital plus qualifying KER reserves. Accumulated retained earnings are caught; returned capital is not. A clean, well-documented capital structure is therefore as valuable at exit as at formation, and modelling it before a company liquidation or restructuring avoids an unexpected 35% charge on what shareholders may have assumed was a tax-free return of capital. For founders What this means for a foreign-owned Swiss company Pulling the threads together, the practical playbook for a foreign owner of a Swiss GmbH or AG looks like this: Treat the 35% as a timing and documentation exercise, not a cost, provided income is properly declared and treaty positions are confirmed. For intra-group distributions, elect the notification procedure so the group never funds cash withholding in the first place. Build and maintain capital-contribution (KER) reserves, because they can later be returned to shareholders free of the 35%. Confirm anything non-standard, a notification election, a treaty residual, a liquidation surplus, with an advance tax ruling before you act. The structure around the distribution matters as much as the rate. A holding based in a low-tax canton such as Zug , with documented KER reserves and a notification election in place, can move profits upward with little or no residual leakage. Getting that architecture right from the outset is where most foreign founders need help, and we work on a custom-quote basis: tell us the structure and the planned distribution and we will scope it. FAQ Frequently asked questions What is the withholding tax rate in Switzerland? 35% federal anticipatory tax (Verrechnungssteuer) on dividends, Swiss-bond and bank interest, and lottery winnings, under article 13 of the Withholding Tax Act. Reduced rates of 15% apply to life annuities and 8% to other insurance benefits. Is Swiss withholding tax 35% final? No. It is a security tax. Swiss residents reclaim 100% via their tax return by declaring the underlying income; non-residents reclaim the portion above the applicable treaty rate. Only failure to declare the income makes the 35% a permanent cost. How do non-residents reclaim Swiss dividend withholding tax? File a refund claim with the ESTV (Form 25 or a country-specific form) within three years, supported by a residence certificate. The residual treaty rate stays in Switzerland and only the excess above it is recovered. What is the deadline to reclaim Swiss withholding tax? Three years after the end of the calendar year in which the dividend or interest fell due, under article 32 VStG. A dividend paid in March 2022, for example, must be claimed by 31 December 2025. What is the US-Switzerland dividend withholding rate? 35% domestic, reduced by treaty to 15% for portfolio holdings or 5% for a corporate holder with at least 10% voting; you reclaim the difference. Qualifying US pension funds can reach a 0% residual. Can a UK company reclaim all 35%? A qualifying UK corporate parent can reduce Swiss withholding tax to 0% under the treaty and reclaim the full 35%. Portfolio UK holders are capped at a 15% residual, so they reclaim 35 minus 15. Is there withholding tax on royalties or ordinary loan interest in Switzerland? No. Royalties and ordinary commercial loan interest carry no Swiss withholding tax. The 35% applies to dividends, Swiss bonds and bank or savings deposits, which is one reason Switzerland is efficient for holding intellectual property. What is the notification procedure (Meldeverfahren)? For qualifying intra-group dividends, the company declares the dividend (Form 106 for domestic holdings of at least 10%, or Form 108 for qualifying foreign recipients) within 30 days instead of paying cash withholding tax and reclaiming it. The international variant needs an advance approval certificate. What is the difference between Verrechnungssteuer and Quellensteuer? Verrechnungssteuer is the 35% tax on capital income such as dividends and interest; Quellensteuer (tax at source) is wage withholding on expat and cross-border salaries, calculated on cantonal tariff scales. They are separate taxes with different rules and reclaim mechanisms. Does the 35% apply when I liquidate my Swiss company? Only to the surplus above paid-in share capital and qualifying capital-contribution reserves. Repayments of share capital and of booked KER reserves are exempt under the capital-contribution principle in force since 2011. Is there withholding tax on interest from a Swiss bank account? Yes. The 35% applies to interest on Swiss bank and savings deposits and on bonds. Swiss residents reclaim it by declaring the interest in their annual tax return. Can I file the withholding-tax forms online? Yes. Forms 106 and 108 and approval certificates 823, 823B and 823C are filed digitally through the ESTV ePortal, alongside refund claims and their supporting documents. Keep reading Related guides and services. Dividend Taxation in Switzerland Swiss Double Tax Treaties Swiss Corporate Tax Rates 2026 Transfer Pricing in Switzerland Holding company Tax ruling Turn this into a Swiss plan that works. A 30-minute call to map your structure, canton, timeline and required substance. No price-list. Every engagement is scoped on the call. Request a proposal --- ## Swiss Work Permit Guide for Foreigners — EU, Non-EU, UK URL: https://business-in-switzerland.com/guides/work-permit Description: A current guide to Swiss work permits for foreigners: the eight permit types, annual quotas, EU, non-EU, UK and self-employed routes, timelines, and costs. Swiss Work Permit Guide for Foreigners — EU, Non-EU, UK STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Guide — Work permits Getting a Swiss work permit as a foreigner: EU, non-EU, UK, and the self-employed route What a Swiss work permit actually is, which one applies to you, how long it takes, what it costs, and whether forming a Swiss company is enough on its own. Written for foreign founders, directors, and skilled professionals planning a move to Switzerland. Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: May 2026 At a glance Four numbers that frame the Swiss work-permit picture 90 days EU/EFTA visa-free stay per calendar year facts-switzerland §3.1 (FZA / AFMP, footnote 14) ~8,500 Non-EU/EFTA annual quota baseline facts-switzerland §3.2 (SEM ordinance, footnote 15) 8 – 12 weeks Typical end-to-end for non-EU/EFTA Deep research §H2 6; structure §9 timeline note 14 days Deadline to register at your commune facts-switzerland §3.1 (AFMP commune registration) Quotas are set annually by the Federal Council and we re-verify them against the SEM ordinance each year. All figures on this page are anchored in research/facts-switzerland.md §3 . Definition What a Swiss work permit actually is A Swiss work permit is an administrative authorisation issued under the Federal Act on Foreign Nationals and Integration (FNIA / AIG) and the Agreement on the Free Movement of Persons (FZA / AFMP), permitting a foreign national to reside and work in Switzerland. For most foreigners the permit is a single document that combines residence and work rights, which is why you will see the terms "residence permit" and "work permit" used almost interchangeably in Swiss administrative language. Work permit vs work visa: the distinction that matters at the embassy Non-EU/EFTA nationals actually need two separate artefacts. The D-visa is a long-stay national visa issued by a Swiss embassy or consulate, which lets you enter Switzerland lawfully. The permit (B, L, G, or another letter) is the residence-and-work authorisation issued by the cantonal migration office after you arrive. In everyday speech people say "work visa" and mean the whole bundle, but the two documents are separate, and Swiss processes treat them separately. Who needs a permit at all EU/EFTA citizens do not need a separate permit for stays of up to 90 days per calendar year. For longer stays, or for any gainful employment of more than a few days, EU/EFTA nationals register with the commune and obtain a B or L permit under free movement. Non-EU/EFTA nationals need a permit for almost any gainful activity, with narrow exceptions for short posted assignments. If you are not sure which category applies to you, start with the nationality-segment sections below and cross-reference our Swiss residence permit page for the residence-only picture. Permit taxonomy The eight Swiss permit types compared Switzerland recognises eight permit letters under federal immigration law. Most foreign founders and professionals engage only with B, L, G, and C. The remaining four (Ci, F, N, S) are edge cases that we note here for completeness. Permit Name Validity Quota Typical holder B Annual residence 1 year, renewable Yes, for non-EU/EFTA and UK Long-term foreign workers and founders L Short-term residence Up to 12 months Yes, for non-EU/EFTA and UK Project-based or fixed-duration assignments G Cross-border commuter Tied to employment No Workers resident in an EU/EFTA border zone C Settlement 5 years, unrestricted labour market No After 5 or 10 years continuous residence Ci Residence with gainful employment Tied to principal permit No Spouses of Swiss / C-permit holders, certain family cases F Provisional admission 12 months, renewable No Persons whose removal is temporarily inadmissible N Asylum seeker During asylum procedure No Persons with a pending asylum claim S Protection status Renewable, emergency regime No Persons granted temporary protection under the dedicated regime Source: facts-switzerland §3.2 (permit framework and validity) cross-checked against SEM’s published permit reference. Permit B — annual residence, the most common foreigner permit The B permit authorises residence and work for one year, renewed annually for as long as the underlying employment or self-employment continues. It is the default long-term permit for foreign founders and skilled professionals. For non-EU/EFTA nationals it counts against the annual federal quota; for EU/EFTA nationals it is quota-free. A B permit typically converts to a C settlement permit after five or ten continuous years of residence depending on nationality. Permit L — short-term residence up to 12 months The L permit covers fixed-duration assignments of up to 12 months, extendable in limited circumstances to a total of 24 months. It is common for secondments, pilot projects, and interim hires. Like the B permit, the L is quota-bound for non-EU/EFTA and UK nationals and quota-free for EU/EFTA nationals. Permit G — cross-border commuter The G permit is for workers who reside in a neighbouring-country border zone (France, Germany, Italy, Austria) and commute into Switzerland for work. Holders are expected to return to their country of residence regularly (in practice, at least once a week under current SEM guidance), and the permit is tied to the specific border-zone address. Permit C — settlement, the long-term endpoint The C permit is Switzerland’s settlement permit: five-year validity, unrestricted labour-market access, no employer sponsorship required. EU/EFTA nationals and nationals of selected bilateral-treaty countries (including US and Canadian citizens) qualify after five continuous years of residence. Most other non-EU/EFTA nationals qualify after ten. Integration criteria apply in both cases. Permits Ci, F, N, S — edge cases, in one place The Ci permit allows the spouse of a Swiss or C-permit holder to work without a separate authorisation. The F permit is for persons whose removal from Switzerland is temporarily inadmissible. The N permit applies during a pending asylum procedure. The S permit provides temporary protection under the dedicated emergency regime; recent reforms in late 2025 simplified how S-permit holders notify cantonal authorities of employment, and we refresh the detail in our cantonal briefings as guidance evolves. Decision tree Which permit applies to you — quick decision tree Use this nested logic as a starting point. Every real case has cantonal nuance; treat this as a first filter, not a legal conclusion. Are you an EU or EFTA national? Stay ≤ 90 days per calendar year — no permit needed. Stay > 90 days, employed — B permit (≥ 12-month contract) or L permit (3–12 months), issued on registration. Self-employed in Switzerland — B permit on viable-self-employment grounds under FZA art. 19. Resident in an EU/EFTA border zone, working in Switzerland — G permit. Are you a UK national? Pre-2021 resident of Switzerland — your rights are protected under the UK-CH Withdrawal Agreement; continue on your existing permit. New arrival post-2021 — Swiss-UK Free Movement Agreement, with a dedicated UK quota tranche; apply for B or L per employment duration. Are you a third-country (non-EU/EFTA) national? Employed by a Swiss employer with a qualifying role (degree or senior experience) — B or L permit, subject to quota and labour-market test. Self-employed, founding a company — B permit on economic-benefit grounds; a strong business plan is decisive. Spouse / registered partner of a Swiss or C-permit holder — Ci permit, which includes the right to work. If you are EU or EFTA EU/EFTA nationals — free movement and the 90-day rule Under the Agreement on the Free Movement of Persons (FZA/AFMP), EU/EFTA nationals enjoy broad rights to enter, reside, and work in Switzerland with minimal formality. The core rules have not changed materially since the agreement entered into force; the formalities sit at the commune level. Free movement under FZA / AFMP EU/EFTA citizens can enter Switzerland with a valid passport or national identity card and take up employment or self-employment subject to registration. Quotas do not apply to the standard EU/EFTA permit tracks. Numerical limits continue to exist for EU/EFTA service-providers posted to Switzerland on assignments longer than 120 days, but these are distinct from employment-route permits. The 90-day rule and when you need to register For stays of up to 90 days per calendar year you do not need a permit; this covers most short business trips, conferences, and assignments under the posted-workers notification regime. For any longer stay, or for gainful employment exceeding eight days in a calendar year with certain employers, you must register with the commune of residence within 14 days of taking up residence and apply for a B or L permit. How to apply for a B or L permit as an EU/EFTA national The process is built around commune registration. You accept the Swiss offer, enter Switzerland, register at the commune’s residents’ office (Einwohnerkontrolle) within 14 days, submit the permit application with the commune and cantonal migration office, and collect the permit card once issued. Timelines are typically two to four weeks from registration, though larger urban cantons run longer in peak periods. Croatian nationals — full access from 1 January 2025 Since 1 January 2025, Croatian nationals enjoy full free-movement treatment under the FZA/AFMP framework on par with other EU/EFTA nationals. Transitional quota arrangements that previously applied have ended. If your dossier was started under the prior regime, confirm with your cantonal migration office whether a re-filing is required. If you are non-EU / EFTA Third-country (non-EU/EFTA) nationals — quota, qualification, and the labour-market test This is the more involved track. Non-EU/EFTA nationals face both a federal quota ceiling and a substantive qualification test before a permit is granted. The path is well-trodden; it just demands a meticulous dossier. The labour market test — art. 21 priority hierarchy Swiss immigration law requires that a vacancy be offered first to Swiss residents and C-permit holders, then to EU/EFTA nationals resident in Switzerland or an EU/EFTA state, before it can be filled by a non-EU/EFTA candidate. The employer must document the search, typically through ads in appropriate Swiss channels and the regional job centre (RAV), and justify in writing why the chosen candidate is the only viable fit. Employer sanctions apply under Swiss immigration law for breaches of these requirements. Qualification requirements — degree, managerial experience, or recognised specialist Non-EU/EFTA applicants typically need a university degree, confirmed managerial experience, or recognised specialist skills that match the role. Roles that could be filled by an unskilled worker are not open to non-EU/EFTA permits. This single criterion rejects more applications than any other. Salary must match Swiss market rates The employer must pay Swiss market-rate compensation for the role and location, benchmarked against collective labour agreements (GAV / CCT) and the Swiss Earnings Structure Survey (LSE). Low-ball offers are refused at the cantonal stage. For senior hires in Zurich or Zug the effective floor is higher than the cantonal average, reflecting market pay. Who applies — you or your employer In the employed route the Swiss employer applies; the applicant’s role is to supply the dossier. Candidates sometimes assume they file their own application; this misunderstanding costs weeks. In the self-employed route (below), your Swiss company is the employer of record and files accordingly. If you are a UK national UK nationals — the post-Brexit route The Swiss-UK Free Movement Agreement (1 January 2021) Following the UK’s departure from the EU, the UK and Switzerland signed a bilateral Services Mobility Agreement that preserved targeted access for UK workers. The agreement entered into force on 1 January 2021 and sits alongside the standard Swiss third-country framework, creating a dedicated UK tranche of quota places. UK-specific quota A UK-specific tranche of B and L permits is published each year within the federal quota ordinance. Recent years have reserved on the order of 2,100 B permits and 1,400 L permits for UK nationals. Quotas are set annually by the Federal Council, so reconfirm the current year’s tranche with your cantonal migration office before filing. Acquired rights under the Withdrawal Agreement UK nationals who were lawfully resident in Switzerland before 1 January 2021 are protected under the UK-Switzerland Citizens’ Rights Agreement. In practice, this means the permit you held before Brexit continues to renew on the old free-movement terms, and your qualifying period toward a C permit is preserved. If you are in this cohort, do not apply under the new regime, your acquired rights are stronger. If you are self-employed Self-employment — and whether forming a Swiss company gets you a permit This is the single most misunderstood question on the Swiss permit topic. Forming a Swiss company does not, on its own, grant you a permit. The company and the permit are two separate applications, and the permit track you qualify for depends on your nationality. EU/EFTA self-employment — FZA art. 19 and the viability test EU/EFTA nationals who intend to be self-employed in Switzerland apply for a B permit under FZA art. 19. The cantonal migration office evaluates the viability of the planned activity: client base, projected revenue, business structure, and how the applicant will live from the activity. The test is lighter than the non-EU/EFTA economic-benefit doctrine, but it is not a rubber stamp. Non-EU/EFTA self-employment — the "economic benefit" doctrine Non-EU/EFTA self-employed applicants face the economic-benefit (or economic-interest) doctrine: you must demonstrate that your activity produces substantive benefit for Switzerland. Committed capital, local job creation, transfer of scarce expertise, and integration into Swiss commercial networks are the ingredients the canton looks for. The business plan is the decisive document. There is no startup visa in Switzerland Unlike France, Portugal, or Estonia, Switzerland does not operate a dedicated "startup visa" or "entrepreneur visa" as of the date this guide was updated. Founders who arrive expecting one are redirected onto the standard B-permit route with an economic-benefit case. Any future change to this framework would be announced via SEM and the Federal Council; until then, expect the standard rules. From Swiss company to work permit — the sequencing The pragmatic sequence for a non-EU/EFTA founder is: incorporate a Swiss entity ( Swiss GmbH formation for lean operations at CHF 20,000 minimum paid-in capital under OR art. 773, 777c, or Swiss AG formation for larger structures at CHF 100,000 with CHF 50,000 paid in under OR art. 621, 632), set up operational substance in the chosen canton, then apply for a B permit with your new Swiss company as the employer of record. The full corporate setup is covered on form a Swiss company , and the broader context on starting a business in Switzerland . AHV registration for self-employed persons Self-employed residents in Switzerland are liable for AHV (old-age and survivors’ insurance) contributions on self-employment income. Registration with the cantonal AHV compensation fund is mandatory once projected annual earnings exceed the low minimum; contributions scale with income and need to be planned alongside the permit timeline, not after it. Process Application process step by step The process varies meaningfully by nationality segment and by employment status. The three variants below cover the majority of cases. Non-EU / EFTA, employed 8 steps, 8–12 weeks The Swiss employer (or your Swiss company, for self-sponsored founders) prepares the dossier: signed employment contract, detailed job description, salary benchmark, and a labour-market-test rationale explaining why a Swiss, EU, or EFTA resident could not fill the role. The employer files the application with the cantonal migration authority (Migrationsamt / Office cantonal de la population / Ufficio della migrazione) in the canton where the job is located. Cantonal review and labour-market assessment, typically a few weeks depending on canton workload and dossier completeness. The cantonal decision is forwarded to the State Secretariat for Migration (SEM) in Bern for federal approval. Once SEM approves, authorisation is transmitted to the Swiss embassy or consulate in your country of residence for D-visa issuance. Collect the D-visa at the embassy, then enter Switzerland within its validity. Register with the commune of residence (Einwohnerkontrolle) within 14 days of arrival. Collect the physical permit card from the cantonal migration office once biometrics have been captured. EU / EFTA nationals 5 steps, 2–4 weeks Accept a Swiss employment offer (or register a planned self-employed activity). Enter Switzerland on the basis of EU/EFTA free movement; no entry visa required. Register with the commune of residence (Einwohnerkontrolle) within 14 days of arrival. Submit the permit application with the commune and cantonal migration office, attaching employment contract or business registration evidence. Collect the B or L permit card once issued, typically within a few weeks of registration. Self-employed applicants Pairs with company formation Decide the legal form (GmbH or AG) and incorporate in a chosen canton. For EU/EFTA founders, a sole proprietorship is also permitted; for non-EU/EFTA founders, a Swiss legal entity plus employment contract with that entity is the pragmatic path. Prepare a detailed business plan covering products, markets, revenue model, committed investment, hiring plan, and specifically the economic benefit to Switzerland. For EU/EFTA applicants the focus shifts to viability under FZA art. 19. File the permit application with the cantonal migration authority in the canton of business registration. Register with the commune of residence within 14 days of arrival in Switzerland. If projected self-employment earnings exceed the AHV threshold, register with the cantonal AHV compensation fund so social-security contributions are captured from day one. Common delays, where the timeline slips Three sources of delay account for most slipped timelines: cantonal workload (Zurich and Geneva in peak periods), incomplete dossiers that come back for additional evidence, and bank CDD on foreign ultimate beneficial owners for self-employed founders who need a Swiss operating account. Plan each in parallel rather than sequentially where possible. Quotas Annual quotas and mid-year utilisation Quotas are the federal ceiling on non-EU/EFTA, UK, and certain EU/EFTA permit tranches each year. They have been a constant political conversation, and the published totals have moved only rarely. The quota table in outline The federal quota ordinance publishes, every year, the number of B and L permits available for non-EU/EFTA nationals, for UK nationals as a dedicated tranche, and for EU/EFTA service-providers posted to Switzerland on assignments longer than 120 days. Recent years have landed at approximately 4,500 B and 4,000 L permits for non-EU/EFTA nationals (roughly 8,500 total, per the 2025 ordinance carried into 2026), with an additional contingent for UK nationals post-Brexit. Quotas are set annually by the Federal Council and we re-verify them against the SEM ordinance each year. Quotas have been frozen since 2019 In practice, the published non-EU/EFTA totals have not changed materially since 2019. The Federal Council reviews annually and has, to date, held the line. This is a political rather than technical parameter, so expect the review to continue. Mid-year utilisation — the practical signal Quota utilisation is reported throughout the year. In mid-2025, utilisation sat at around one-third of the L tranche and somewhat less than half of the B tranche, meaning the quota was not the binding constraint for most employers; the labour-market test and dossier quality were. The signal for applicants: file cleanly, and the quota almost never rejects you. What the quota does NOT cover EU/EFTA employment permits sit outside the quota. Short assignments under 90 days, posted-workers notifications, and intra-EU/EFTA commuting (the G permit) are not quota-bound. Many founders fear "we ran out of quota" when what actually blocks them is the qualification test. Cantonal variation Cantonal variation in processing time and character Federal law is uniform across Switzerland, but the cantonal migration offices differ in throughput, documentation depth, and working language. The canton you apply in is the canton where the job is based, so the choice follows the employer. Canton Processing character Notes Zug Generally fast processing Small canton, streamlined migration office; well-suited to holding and DLT founders. Zurich Efficient but strict dossier requirements Highest application volume; thorough labour-market-test scrutiny, particularly for senior hires. Geneva Longer runway in peak periods International-organisation and commodities-trading volume keeps case loads high; plan for extra weeks. Vaud Moderate throughput Lausanne-based tech and life-sciences applications; French-language dossier. Basel-Stadt Moderate, pharma-heavy Large pharma employers route many senior non-EU/EFTA hires through this canton. Qualitative signal, drawn from cantonal labour-market practice and our own filings. For a structural comparison of all 26 cantons, see compare Swiss cantons . Changing canton as a B permit holder Moving between cantons as a B-permit holder is permitted but not automatic. You notify both the old and new cantonal migration offices, and the new canton issues a revised permit reflecting the new address and employer (if the employer has changed). Time credited toward the C settlement permit carries over across cantons. Your permit follows the canton where your employer is based A common misconception is that you can pick "any" canton for your permit. In practice, the permit is tied to the canton where your employment is based. Founders who incorporate in Zug but work from Zurich encounter this routinely; the solution is to align company seat, operational presence, and residence. Documents Documents you will need Cantonal migration offices publish their own checklists, but the common core across cantons looks like this. For employed non-EU/EFTA applicants Valid passport (non-EU/EFTA: typically with at least six months’ remaining validity). Signed Swiss employment contract with position, salary, and duration. Updated CV and diplomas; legalised and translated where the canton requires it. Employer’s labour-market-test rationale (non-EU/EFTA only). Proof of accommodation in Switzerland (rental contract or hotel booking for onboarding period). Passport-format photograph meeting Swiss biometric standards. For EU/EFTA applicants Valid EU/EFTA passport or national ID card. Signed Swiss employment contract or proof of self-employment registration. Proof of residence in the commune (rental contract, landlord confirmation). Civil-status document if applying for family reunification simultaneously. For self-employed applicants Everything in the employed-applicant checklist, plus: Swiss Commercial Register extract for the newly formed GmbH or AG (via zefix.ch). Detailed business plan including financial projections and economic-benefit narrative. Evidence of committed capital or funding source (bank confirmation, investment letters). Proof of Swiss business bank account opening, or a credible path to opening one. Need to prepare banking alongside the permit dossier? See our opening a Swiss business bank account page. For family reunification Marriage certificate or registered-partnership certificate (apostilled and translated). Birth certificates for children under 18 (apostilled and translated). Proof of sufficient family income and adequate housing in the canton of residence. Custody documentation where one parent remains in the home country. Costs Costs and fees Government fees The federal-level application fee is modest, typically around CHF 95 per applicant (GebV-AuG standard fee for permit-document issuance), plus the cost of the physical permit card and cantonal administrative charges. Exact figures are published by SEM and by each canton, and we reconfirm them at the filing stage. Ancillary costs Document legalisation (apostille), certified translation into a cantonal official language, and commune registration account for a meaningful share of the out-of-pocket total, especially for non-EU/EFTA applicants whose diplomas and civil-status documents need notarised translation. Budget for these early; they are not optional add-ons. Professional-assistance fees — published rates plus custom proposals We do not publish flat advisory prices because every permit file has different complexity, nationality pathway, and canton-specific requirements. Fees are scoped per case once we understand the dossier. See our engagement process for how we structure a written proposal. Family members Family members — spouses, partners, children Spouse or registered partner Spouses and registered partners of a Swiss resident or a Swiss permit holder are eligible for family reunification. Where the principal holder has a C settlement permit or Swiss nationality, the spouse may receive a Ci permit, which allows employment without a separate authorisation. Where the principal holder has a B permit, the spouse receives a derivative B permit. Children under 18 Minor children qualify for family reunification with the principal permit holder, and receive a derivative permit of the same class. Schooling is tied to the canton of residence. Integration support is organised at the cantonal and communal level, which matters if the family moves from one canton to another. Unmarried partners — where the law stops Switzerland does not recognise unregistered cohabitation for family-reunification purposes in the same way it recognises marriage or registered partnership. Unmarried partners can apply for their own permit on their own qualifications, but they cannot piggyback on the principal holder’s dossier. Cantonal practice varies for long-term partners with children in common; get case-specific advice. Settlement path From B permit to C permit — the settlement journey The 10-year rule for most non-EU/EFTA nationals Most non-EU/EFTA nationals qualify for the C settlement permit after ten continuous years of lawful residence in Switzerland. The clock is cantonal: each canton checks continuity against its own registration records, and gaps longer than certain thresholds can restart the count. The 5-year rule for EU/EFTA and accelerated nationalities EU/EFTA nationals and nationals of selected bilateral-treaty countries qualify after five continuous years. The most frequently cited accelerated nationalities in practice are US and Canadian citizens, though the full list is driven by bilateral treaties. Swiss embassy pages and cantonal guidance confirm eligibility case by case. Integration criteria — language, clean record, financial autonomy The cantonal authority evaluates integration at the C-permit stage: proficiency in the canton’s official language (typically A2 oral, A1 written, though some cantons demand higher), clean criminal and fiscal record, absence of dependency on social assistance, and demonstrated integration into local life. These criteria are taken seriously, and applicants who underestimate them risk a refusal even at the ten-year mark. Rejections Common rejection reasons and how to avoid them Most refusals land on a handful of causes. Diagnosing the cause is the first step to recovering the file. Qualification mismatch The role requires a degree or recognised specialism, and the applicant’s evidence falls short of it. Fix: additional diploma evidence, or reframe the role description to match the actual qualifications. Below-market salary offer The offered compensation is below GAV / CCT benchmarks or below the LSE range for the role and location. Fix: revise the offer, or document exceptional circumstances that justify the deviation. Insufficient labour-market-test documentation The employer cannot show that the role was offered to Swiss, C-permit, and EU/EFTA candidates first. Fix: run a documented search through Swiss channels and the regional job centre (RAV), and re-file with the evidence. Economic-benefit case not made The self-employed dossier does not substantiate measurable contribution to Switzerland. Fix: strengthen the business plan, commit capital, hire, or bring in a scarce-expertise narrative backed by evidence. Missed deadlines The applicant missed the 14-day commune-registration window, or the renewal deadline for an existing permit. Fix: file immediately with an explanation; in many cases the canton accepts a late filing with a small administrative fee, but the risk of a gap is real. Appeal paths — cantonal, then federal Every refusal carries appeal rights: first to the cantonal appellate authority, then to the Federal Administrative Court within the stated deadline. Appeals take months; in many practical cases, fixing the deficient element and re-filing is faster than pursuing an appeal. We take that call after reviewing the refusal reasoning. FAQ Frequently asked questions — Swiss work permits Do I need a work permit as an EU or EFTA citizen? No separate work permit is required for stays of up to 90 days per calendar year. For longer stays you must register at the commune within 14 days of taking up residence and apply for a B or L permit. Because EU/EFTA nationals fall under the Agreement on the Free Movement of Persons (FZA/AFMP), the permit is quota-free and issued quickly. What is the quota for non-EU (third-country) Swiss work permits? Switzerland runs an annual federal quota for non-EU/EFTA nationals, UK nationals, and EU/EFTA service-providers on long assignments. Published figures have sat broadly at roughly 4,500 B and 4,000 L for non-EU/EFTA nationals, around 2,100 B and 1,400 L reserved for UK nationals, and a smaller tranche for EU/EFTA service providers on assignments longer than 120 days. Quotas are set annually by the Federal Council and we re-verify them against the SEM ordinance each year. Can I get a Swiss work permit by forming a Swiss company? Not automatically. Forming a GmbH or AG creates a Swiss legal entity, but the permit is a separate application. Non-EU/EFTA founders must demonstrate economic benefit to Switzerland (substantive investment, local job creation, or unique expertise) through a business plan filed with the cantonal migration authority. EU/EFTA founders apply for a B permit on viable-self-employment grounds under FZA art. 19. How long does a Swiss work permit take? For non-EU/EFTA employed applicants the total timeline typically runs 8–12 weeks: cantonal review, federal SEM approval, then D-visa processing at the Swiss embassy in your home country. EU/EFTA nationals typically complete the process within 2–4 weeks of commune registration. Zurich and Zug are generally faster; Geneva can run longer owing to application volume. What is the difference between Swiss B, C, L, and G permits? B is the annual residence-and-work permit, renewed yearly and tied to continuing employment. L is short-term, up to 12 months, for fixed-duration assignments. G is the cross-border commuter permit for workers who reside in a neighbouring-country border zone and return home regularly. C is the settlement permit with a 5-year validity and unrestricted labour-market access, reached after 5 years for EU/EFTA and accelerated-treaty nationalities, or 10 years for most other non-EU/EFTA nationals. What is the economic-benefit test for self-employment in Switzerland? Non-EU/EFTA self-employed applicants must demonstrate substantive contribution to the Swiss economy through a detailed business plan submitted to the cantonal migration authority. Typical evidence includes committed investment, local job creation, or scarce expertise. There is no standalone startup visa in Switzerland as of the date this guide was updated. EU/EFTA self-employed applicants instead face a viability test under FZA art. 19, evaluating whether the planned activity is commercially plausible. Can my family come with me to Switzerland on my work permit? Yes. Spouses, registered partners, and children under 18 qualify for family reunification and receive derivative permits tied to the principal permit-holder’s status. Spouses of Swiss nationals or C-permit holders may receive a Ci permit, which allows employment without separate work authorisation. Unmarried partners face stricter criteria and additional documentation. When does my Swiss B permit upgrade to a C permit? After five continuous years of residence for EU/EFTA nationals and for a selected group of bilateral-treaty nationalities, and after ten continuous years for most other non-EU/EFTA nationals. In both cases, integration criteria apply: adequate language proficiency in the canton’s official language, a clean criminal and financial record, and demonstrated social and economic integration. Do Americans have an accelerated path to Swiss permanent residence? Yes. US nationals are among the bilateral-treaty countries with accelerated C-permit eligibility, five continuous years of residence rather than ten, subject to the standard integration criteria. Canadian citizens are the other most frequently cited example in this group. How much does a Swiss work permit application cost? The federal-level application fee is modest, typically around CHF 95 per applicant, plus costs for the permit card, document legalisation and translation, and cantonal administrative charges. Professional-assistance fees are quoted per case; we do not publish flat advisory prices because every permit file has different complexity, language, and canton-specific requirements. Can my Swiss company sponsor my work permit if I am the sole owner? In principle yes, because your Swiss company applies on your behalf as the employing entity. But because you are simultaneously the applicant and the employer, the labour-market-test and economic-benefit documentation is reviewed more carefully. Expect the cantonal authority to ask for a credible business plan, genuine operational presence in Switzerland, and, for most non-EU/EFTA founders, a demonstrable contribution the Swiss labour market cannot fill locally. Do I have to live in Switzerland to keep my work permit? Yes for the B permit, you must maintain genuine residence in Switzerland, and extended absences can result in non-renewal. For the C settlement permit, continuous absences beyond six months can result in forfeiture unless a preservation request is filed in advance. Cross-border commuters on G permits reside outside Switzerland by definition, and the G permit is tied to a specific border-zone residence. What happens if my Swiss work permit application is rejected? Rejections are issued with written reasoning and a defined appeal window, first to the cantonal appellate authority and then, if necessary, to the Federal Administrative Court within the stated deadline. The most common reasons for refusal are qualification mismatch, below-market salary offers, thin labour-market-test documentation, and insufficient economic-benefit cases for self-employed applicants. In many cases the pragmatic path is to correct the deficient element and re-file rather than appeal. Next steps Pair a permit with a company setup — or read further Pair a permit with company setup For most non-EU/EFTA founders, the permit and the company are scoped together from day one. We draft the business plan in the shape the cantonal migration office expects, incorporate the GmbH or AG, and file the B-permit application with the new company as employer of record. Pair a permit with company setup to start a conversation. Related reading Form a Swiss company — the full company-formation service. Swiss residence permit — for residence without employment (lump-sum, retiree, family). Starting a business in Switzerland — the broader founder picture. Opening a Swiss business bank account — banking alongside the permit. Compare Swiss cantons — cantonal depth, rates, and handelsregister profiles. Our office Baarerstrasse 14, 6300 Zug We scope permit-and-company dossiers from Zug, and file with the canton where your employer or new entity is based. Monday to Friday, 09:00–18:00 CET. Meetings by appointment. Request a proposal See our process Plan your Swiss work permit with us. A 30-minute call to map your nationality pathway, canton, timeline, and whether forming a Swiss company is part of the answer. No price list; every engagement is scoped on the call. 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What cookies are A cookie is a small text file that a website asks your browser to store on your device, so that the site or its service providers can recognise the device on future requests. Some cookies exist only for the duration of a single browsing session and are discarded when the browser closes; others persist for a defined period. Similar storage technologies include local storage and session storage, which we treat with the same discipline. Cookies we set The table below lists cookies that may be set when you visit business-in-switzerland.com. These are set by our edge provider (Cloudflare) for security and bot mitigation. We do not set any first-party analytics or marketing cookies. Cookie Purpose Duration Party cf_chl_* Cloudflare Turnstile challenge token, used to verify that a contact-form submission comes from a real browser. Session First-party-like (Cloudflare) __cf_bm Cloudflare bot-management cookie, set at the edge to distinguish automated traffic from humans. 30 minutes First-party-like (Cloudflare) _cfuvid Issued by certain Cloudflare products to distinguish unique visitors for rate-limiting and security purposes. Session First-party-like (Cloudflare) Exact cookie names, presence and durations depend on Cloudflare's current product configuration. See the Cloudflare privacy policy for the authoritative reference. Third-party cookies We do not embed third-party content that sets cookies on this domain. When you click an external link (for example to admin.ch, zefix.ch, finma.ch, edoeb.admin.ch or a processor page), the destination site may set its own cookies on its own domain. Those cookies are not under our control and are governed by the destination's privacy policy. Analytics and marketing cookies We do not use any. If we introduce analytics in the future, a cookie-consent banner will be shown before any non-essential cookie is set, and this policy will be updated to list the cookie, its purpose, its duration and its party. We will not retroactively activate analytics for traffic that visited before the update. How to control cookies You can manage cookies through your browser settings. All current browsers let you view cookies, delete them, and block future cookies by domain. Documentation is published by each browser vendor (Chrome, Safari, Firefox, Edge, Brave and others). Please note that disabling Cloudflare's challenge cookies will prevent the contact form from working, because the Turnstile challenge depends on them. This is a functional constraint, not a tracking choice. Do Not Track and Global Privacy Control We honour Global Privacy Control signals where applicable. Because we do not run tracking or advertising, there is no tracking behaviour to suppress; the signal is recorded as respected but has no visible effect. Legal basis Strictly-essential cookies, including the bot-mitigation cookies listed above, do not require prior consent under the ePrivacy Directive 2002/58/EC as implemented in EU member states and under Swiss telecommunications law, in particular FMG art. 45c . A clear notice (this page) is sufficient. Changes to this policy We update this policy whenever the cookie inventory changes or our posture changes (for example, if we later choose to introduce analytics). Material changes are announced through the "Last updated" date at the top of this page. Questions Email info@business-in-switzerland.com , read the privacy policy for the broader picture, or use the contact form . Other legal pages Imprint Privacy policy Terms of service Disclaimer Contact us --- ## Liability disclaimer for this website URL: https://business-in-switzerland.com/legal/disclaimer Description: Disclaimer for business-in-switzerland.com: site content is general information, not advice; no advisor-client relationship formed by site use. Liability disclaimer for this website STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Legal Disclaimer What the content on this site is, and what it is not. A short statement of scope for visitors considering whether to rely on anything we publish. Last updated: 2026-05-03 · Version: v1.0 Not advice The content published on business-in-switzerland.com is general commentary on Swiss business law, tax, cantonal specifics and regulatory process. It is written to help foreign founders, investors and wealth advisors orient themselves. It is not legal advice, not tax advice, not accounting advice, and not regulatory advice, and it cannot substitute for advice tailored to your specific facts by a qualified professional. Time-sensitive information Swiss tax rates, immigration quotas, FINMA supervision rules, and Code of Obligations provisions change. We cite figures with a verified-as-of date in our published references and aim to re-check sources annually, but readers must check currency at the point of reliance. If the figure matters to a decision, verify it against the primary source we cite, or ask us. Jurisdictional scope We focus on Swiss law as it applies to foreign nationals and companies setting up in Switzerland. We do not advise on non-Swiss law. A cross-border structure, a residency move, a tax-treaty question or a recognition-of-judgment issue will often need local counsel in the reader's home jurisdiction in addition to Swiss input. No advisor-client relationship Reading the website, sending us an email, or submitting the contact form does not create an advisor-client relationship. Such a relationship is created only by a separately negotiated and signed engagement letter executed by both parties. Until that engagement letter is in place, we do not owe you a duty of professional care, and you should not act on any correspondence with us as if we did. For how an engagement begins in practice, see the engagement process . Reliance Reliance on site content is at the reader's own risk. To the maximum extent permitted by Swiss law, we exclude liability for reliance-based damage, subject to the mandatory carve-out for gross negligence and wilful misconduct under OR art. 100 . The corresponding terms of service set out the limitation in full. Third-party content and links We link to external resources such as admin.ch, fedlex.admin.ch, zefix.ch, finma.ch, estv.admin.ch and edoeb.admin.ch, and occasionally to processor policy pages for Cloudflare, Resend and Telegram. External links are provided for convenience and do not constitute endorsement. We do not control external content and do not accept responsibility for it. Professional cautions FINMA-regulated matters Licensing under FinIA, FinSA, BankG, FinfraG or the Collective Investment Schemes Act requires pre-filing engagement with FINMA and usually involves timelines and documentation that cannot be inferred from published rates or general descriptions. Do not rely on site content for regulatory timing or substantive licensing criteria. Cantonal tax planning Cantonal effective tax rates published in our cantonal pages and in the wider reference material are municipality-specific. The headline rate used for comparison is typically the canton's main city, and the actual rate at a different commune within the same canton may differ. Before a structuring decision, check the commune-level rate. Immigration and permits Immigration, residence and work-permit routes depend on nationality, quota availability and cantonal labour-market assessment. Generalisations on the website are educational; permit feasibility is confirmed case by case with the competent cantonal migration office. Changes to this disclaimer We update this disclaimer when the scope of our published content changes, when Swiss law changes, or when our processor stack changes in a material way. Changes are announced through the "Last updated" date at the top of this page. Questions Email info@business-in-switzerland.com , use the contact form , or read the related terms of service and privacy policy . Frequently asked questions Can information on the site be relied upon as legal or tax advice? No. The site provides general commentary on Swiss business law, tax, cantonal specifics and regulatory process. Specific advice for your situation requires a signed engagement letter. See the section "No advisor-client relationship" on this page. Who do I contact for a data-rights request? The controller at info@business-in-switzerland.com. Response within 30 days (nFADP) or one month (GDPR). Full detail in the privacy policy. Other legal pages Imprint Privacy policy Terms of service Cookie policy Engagement process About the firm Contact us --- ## Imprint URL: https://business-in-switzerland.com/legal/imprint Description: Legal notice for business-in-switzerland.com: publisher, registered office in Zug, Commercial Register entry, VAT status and contact email. Imprint STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Legal Imprint / Legal notice Publisher information for business-in-switzerland.com, published under Swiss law as required by the Federal Act against Unfair Competition and the Code of Obligations. Last updated: 2026-05-05 · Version: v1.0 (draft) This imprint is in draft form. Final legal-entity details will be added once the underlying Swiss company registration completes. Until then the page is served with a noindex,follow directive, and the fields marked [pending] below will be replaced with the confirmed Handelsregister entry, UID and Zefix link. Publisher The website business-in-switzerland.com is published by a Swiss legal entity registered at the address below. The legal entity is responsible for the content published on this website within the meaning of Swiss law. Legal entity Name [LEGAL ENTITY NAME — pending client confirmation] Legal form [AG or GmbH — pending client confirmation] Registered office Baarerstrasse 14 6300 Zug Switzerland Commercial Register Registered with the Handelsregisteramt of the Canton of Zug under the Swiss Uniform Business Identification Number [CHE-XXX.XXX.XXX — pending] . The entry can be verified once available on Zefix, the unified Swiss Commercial Register portal. The legal basis for this disclosure is OR art. 931 and OR art. 936b . Zefix record: [link pending Zefix propagation] . VAT status The Swiss federal VAT threshold under MWSTG art. 10 is CHF 100,000 in worldwide taxable turnover per year . Below that threshold, VAT registration is voluntary. The current VAT status of the publisher is [VAT registration status and CHE-XXX.XXX.XXX MWST number — pending client confirmation] . This section will be updated once the entity registration is complete. Responsible for content Responsibility for the content on this website sits with the managing director of the publisher entity. Under OR art. 55 , the legal entity itself bears liability for acts performed by its organs in the ordinary course of business; the natural-person identity of the managing director is not published on this page. The operating team is listed on the team page , and the firm's background is described on the about page . Contact For all enquiries relating to this imprint, data-protection requests, or takedown notices: info@business-in-switzerland.com We do not publish a phone number. All correspondence is handled by email. The fastest route for general enquiries is the contact form . Hosting This website is hosted by Cloudflare, Inc. on Cloudflare Pages, with content served through Cloudflare's global edge network. Cloudflare, Inc. is headquartered in San Francisco, California, United States, and operates European infrastructure through Cloudflare Germany GmbH. See the privacy policy for details on processor roles, international transfers and safeguards. Applicable law for this imprint This imprint is published pursuant to UWG art. 3(1)(s) of the Swiss Federal Act against Unfair Competition, which requires commercial websites to clearly disclose the provider's identity, postal address, and an electronic contact method. Corresponding disclosure duties follow from OR art. 931 and OR art. 936b of the Swiss Code of Obligations. Changes to this page We update this page whenever the publisher's registered details change, whenever the VAT status changes, or whenever Swiss disclosure law changes. Earlier versions are retained internally and available on request. The current version and last-updated date are noted at the top of this page. Questions or requests For any question on this imprint, including a request to correct the information above, please reach out via the contact page or by email to info@business-in-switzerland.com . Other legal pages Privacy policy Terms of service Cookie policy Disclaimer --- ## Privacy policy and data protection notice URL: https://business-in-switzerland.com/legal/privacy Description: How we process personal data under Swiss FADP (nFADP) and EU GDPR: controller, purposes, processors, cross-border transfers, retention and your rights. Privacy policy and data protection notice STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Legal Privacy policy How we process personal data under the Swiss Federal Act on Data Protection (nFADP) and, for visitors in the European Economic Area, the EU General Data Protection Regulation (GDPR). Last updated: 2026-05-06 · Version: v1.0 This privacy policy explains what personal data we collect when you visit business-in-switzerland.com or contact us through the website, why we process it, who we share it with, how long we retain it, and which rights you have. Swiss visitors are covered by the revised Federal Act on Data Protection (nFADP), effective 2023-09-01 . Visitors in the European Economic Area are also covered by the EU General Data Protection Regulation (GDPR), Regulation (EU) 2016/679 . Both regimes apply to their respective audiences on parallel tracks; we describe the combined requirements below. Who we are (controller) The controller for the processing described on this page is the Swiss legal entity that publishes business-in-switzerland.com. See the imprint for the full publisher details including Handelsregister entry and registered office in Zug. Contact for all matters relating to this policy: info@business-in-switzerland.com . Contact for data-rights requests Data-rights requests (access, rectification, erasure, restriction, portability, objection) should be sent to info@business-in-switzerland.com . We acknowledge receipt within a few business days and aim to respond substantively within 30 days under nFADP, one month under GDPR art. 12(3). Where identity verification is required we will ask for a proportionate confirmation. DPO status We have not appointed a dedicated Data Protection Officer. Under nFADP the role is voluntary; under GDPR it is mandatory only for specific processing profiles (large-scale systematic monitoring of data subjects, large-scale processing of special categories, public-authority processing) that this website does not meet. The controller handles data-rights requests directly. Which personal data we process We only process data that you give us, together with the minimum technical metadata needed to deliver and secure the website. We do not buy visitor data from third parties. Contact-form data When you submit the form on the contact page , we receive your name, email address, message subject, message body, and the optional fields you choose to fill in (typically company name and country of interest). Technical metadata at submission Each submission carries standard technical metadata, specifically the source IP address, User-Agent string, submission timestamp, and the result of the Cloudflare Turnstile challenge. We also check a hidden honeypot field that real visitors leave empty. This metadata is used to validate the request and block automated abuse. Rate-limit metadata To prevent abuse, the backend stores a short-lived token tied to a hashed IP address in Cloudflare KV, with an expiry of no more than ten minutes per the rate-limit window. No long-term IP storage takes place on our side. Email-routing data Our custom-domain addresses ( *@business-in-switzerland.com ) are forwarded through Cloudflare Email Routing to the publisher's internal mailbox. Email Routing only sees whatever you place into the email you send. Server logs Standard web-request metadata is logged by our edge provider (Cloudflare) as part of its infrastructure operations. Retention is governed by Cloudflare's own policy, referenced rather than duplicated here; see Cloudflare's privacy policy for current periods. What we do not collect No web analytics. No Google Analytics, no Plausible, no Matomo, no Mixpanel, no Heap, no Hotjar, no Mouseflow, no Microsoft Clarity. No behavioural advertising data, no retargeting pixels, no cross-site tracking. No profiling or automated decision-making. No children's data is solicited. The site is a business-to-business professional-services site and is not directed at children. No biometric, health or religious data. If we ever introduce analytics, a cookie-consent banner will appear and this policy will be updated before the new processing starts. Purposes and legal bases Each processing activity rests on a nFADP justification for Swiss visitors and, where relevant, a GDPR lawful ground for EEA visitors. Responding to your enquiry We use your contact-form submission to reply to your message, to understand your situation, and, if you decide to retain us, to prepare an engagement letter. Legal grounds: pre-contractual measures and performance of a prospective contract ( GDPR art. 6(1)(b) ); private-law justification under nFADP. Security and spam prevention We use the Cloudflare Turnstile challenge, a honeypot field, and a short-lived IP-based rate limit to keep the site safe from automated abuse. Legal grounds: legitimate interest ( GDPR art. 6(1)(f) ); private-law justification under nFADP. Record-keeping, if an engagement results If your enquiry becomes a paid engagement, we retain correspondence and engagement documents to comply with Swiss bookkeeping duties. Legal grounds: legal obligation ( GDPR art. 6(1)(c) ); statutory record-keeping under OR art. 958f , which sets a ten-year retention rule for accounting records. Who we share your data with (recipients and processors) We use a small number of named service providers to host the site, deliver email, and receive backend alerts. Each provider acts as a processor under a written agreement. Cloudflare, Inc. Cloudflare, Inc., 101 Townsend St., San Francisco, CA 94107, United States, provides our hosting (Cloudflare Pages), our content-delivery and security edge (including the Turnstile challenge that protects the contact form), our email-routing forwarder, and the KV store that backs rate-limiting. Cloudflare offers an EU/UK representative through Cloudflare Germany GmbH. Sub-processors are listed on Cloudflare's public sub-processors page. See the Cloudflare privacy policy . Resend, Inc. Resend, Inc., 2261 Market Street, STE 22149, San Francisco, CA 94114, United States, delivers transactional email on our behalf (submissions from the website are relayed into our internal mailbox through Resend). Our domain is configured in Resend's European region ( eu-west-1 ). See the Resend privacy policy . Telegram (Bot API) We use the Telegram Bot API to mirror inbound enquiries into an internal team chat for routing and response coordination. The message content is limited to the details the visitor submits through the contact form, plus the technical metadata described above. See the Telegram privacy policy . Professional advisors and authorities Where required by law, or where necessary to establish, exercise or defend legal claims, we may share relevant information with our professional advisors (for example, external counsel) or with competent authorities. No sale, no monetisation, no ad networks We do not sell personal data, trade it with ad networks, or share it with data brokers. The website does not run advertising. International data transfers Cloudflare and Resend are US-headquartered. Processing therefore involves transfers to the United States. Under nFADP, the United States is currently not on the FDPIC adequacy list, so transfers rely on the Swiss-US Data Privacy Framework for participating US entities and on Standard Contractual Clauses approved by the Swiss Federal Data Protection and Information Commissioner. United States (Cloudflare, Resend) We rely on the Swiss-US Data Privacy Framework where the processor participates and is active under the Framework at the time of transfer, and on FDPIC-approved Standard Contractual Clauses where the Framework does not cover the flow. Safeguards in place Swiss-US Data Privacy Framework certifications, verified on the dataprivacyframework.gov portal. FDPIC-approved Standard Contractual Clauses where the Framework does not apply. Processor data processing agreements covering confidentiality, sub-processor lists and security controls. FDPIC adequacy guidance The current Swiss adequacy list and related guidance are published by the Swiss Federal Data Protection and Information Commissioner. See the FDPIC website. How long we keep your data Enquiry mailbox records Enquiry correspondence is retained for the duration of the enquiry lifecycle. For business-to-business enquiries this is typically up to 36 months. If the enquiry becomes a paid engagement, the correspondence tied to that engagement is retained for ten years after the end of the engagement, in line with OR art. 958f bookkeeping rules. Telegram messages Messages routed to the internal team chat are retained per Telegram's default retention. We do not force deletion on our side. Rate-limit tokens Rate-limit tokens held in Cloudflare KV expire within no more than ten minutes. Server logs Edge server logs are retained per Cloudflare's policy, which we reference rather than duplicate. Your rights under nFADP and GDPR The following rights apply, combining the Swiss and EU regimes. Where a right is specific to one regime, we note it. We exercise these rights free of charge, except for manifestly unfounded or excessive requests. Right of access ( nFADP art. 25 , GDPR art. 15 ). Ask us what we process about you. Right to rectification ( nFADP art. 32(1) , GDPR art. 16 ). Correct inaccurate or incomplete data. Right to erasure ( nFADP art. 32(2) , GDPR art. 17 ). Ask us to delete, subject to bookkeeping obligations under OR art. 958f for engagement records. Right to restriction of processing ( GDPR art. 18 ). No direct nFADP equivalent; we honour it for EEA visitors. Right to data portability ( GDPR art. 20 ). No direct nFADP equivalent; we provide an export on request as a goodwill measure. Right to object ( GDPR art. 21 ) to processing based on legitimate interest. Right to lodge a complaint with the Swiss FDPIC ( edoeb.admin.ch ) or with your local EU supervisory authority. To exercise any of these rights, email info@business-in-switzerland.com . We aim to respond within 30 days under nFADP, one month under GDPR, and will explain any extension before the deadline lapses. Automated decision-making and profiling We do not make any decision about you by automated means, and we do not profile you. All replies to enquiries are written by a human. Cookies and browser storage Cookies and related storage technologies are described on the separate cookie policy . At launch the site sets strictly-essential cookies only. Children's data The website is a business-to-business professional-services publication. We do not knowingly solicit or collect data from children. If you believe a child has submitted data to us in error, please email info@business-in-switzerland.com so we can delete it. Changes to this privacy policy We update this policy whenever our processing, processors, or legal obligations change. Material changes are announced through the "Last updated" date at the top of this page. Prior versions are retained internally and available on request. Questions or complaints Email the controller at info@business-in-switzerland.com . You can also lodge a complaint directly with the Swiss FDPIC at edoeb.admin.ch or with your local EU supervisory authority. Frequently asked privacy questions Quick answers for the questions we get most often about how we handle data. Is my form submission confidential? Yes. The submission is handled by Cloudflare Pages Functions and routed to the controller's backend (Resend email + Telegram Bot API). It is not shared with advertisers, not added to marketing lists, and not sold. Do you sell personal data? No. Never. The site has no advertising, no retargeting, no partner data syndication, and no marketing cookies. Who sees my form submission? The publisher's internal team via a shared backend inbox, and the named processors (Cloudflare for infrastructure, Resend for email delivery, Telegram Bot API for alerting). Full list in the section "Who we share your data with" on this page. How long is my data kept? Retention is category-specific: rate-limit tokens ≤10 minutes; enquiry mailbox up to 36 months for B2B enquiries; engagement-related correspondence 10 years per OR art. 958f. Are international transfers involved? Yes, to the United States (Cloudflare, Resend). Safeguards are the Swiss-US Data Privacy Framework where applicable and FDPIC-approved Standard Contractual Clauses for flows not covered by the Framework. Can I have my data deleted? Yes, subject to bookkeeping-retention obligations for records tied to a completed engagement (OR art. 958f). Request via info@business-in-switzerland.com. Do you have a Data Protection Officer (DPO)? No designated DPO is appointed. Under nFADP a DPO is voluntary; under GDPR it is mandatory only in narrow cases that we do not meet. The controller handles data-rights requests directly at info@business-in-switzerland.com. Other legal pages Imprint Terms of service Cookie policy Disclaimer Contact the controller --- ## Terms of service URL: https://business-in-switzerland.com/legal/terms Description: Terms governing use of business-in-switzerland.com: scope, acceptable use, intellectual property, liability limits, Swiss law and Zug forum. Terms of service STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Legal Terms of service The rules that govern your use of business-in-switzerland.com. These terms do not govern a professional engagement, which is covered by a separately signed engagement letter. Last updated: 2026-05-07 · Version: v1.0 Scope of these terms What these terms cover These terms form a contract between you, as a visitor to the website business-in-switzerland.com, and the legal entity that publishes the website (see the imprint for the publisher identity). The contract covers the manner in which you may use the website, the intellectual-property regime that applies to the material we publish, the limitations on our liability and the governing law. What these terms do not cover These terms are not an engagement letter. Nothing on the website, in a form submission, or in a reply from us creates an advisor-client relationship by itself. A professional engagement is created only by a separately negotiated and signed engagement letter. See the engagement process for how a retainer begins in practice, and the disclaimer for the advice-scope limits on site content. Acceptance By visiting or otherwise using business-in-switzerland.com, you accept these terms. If you do not accept them, please stop using the website. We may update the terms as set out below under "Changes to these terms"; continued use after an update constitutes acceptance of the updated version. Permitted and prohibited use Permitted use You may read the website, share links to its pages, cite its content in good faith with appropriate attribution, and use the contact form to reach us about professional services. Prohibited use Automated scraping or crawling beyond what our robots rules permit. Reverse engineering of the contact-form flow, the Cloudflare Turnstile challenge, or any security control. Any attempt to compromise the edge infrastructure, load the site with denial-of-service traffic, or otherwise interfere with availability. Defamation, harassment, impersonation, or the publication of unlawful content through the contact form. Circumvention of access controls or authentication mechanisms. Intellectual property Site content All original text, layouts, data tables, compilations, graphics, and source code published on this website are owned by the publisher entity or used under licence. All rights are reserved except where expressly licensed. You may quote short extracts with attribution; any other re-use requires our prior written consent. Third-party materials Iconography uses the Lucide icon library under the ISC licence. Photography, where used, is sourced from Pexels under the Pexels License. Typography uses Inter by Rasmus Andersson and JetBrains Mono , both under the SIL Open Font License. Each of these licences is acknowledged in the website's source code, and the respective upstream projects retain ownership of their work. Nothing on this website grants you a licence to the underlying trademarks of the publisher entity or of these third parties. Links to external sites We link to external sites, including government and regulatory resources such as admin.ch, fedlex.admin.ch, zefix.ch, finma.ch, estv.admin.ch and edoeb.admin.ch, as well as to processor pages for Cloudflare, Resend and Telegram. External links are provided for convenience and do not constitute an endorsement. We do not control the content of third- party sites and do not accept responsibility for it. No warranty The website and its content are provided on an "as is" and "as available" basis, without warranties of any kind, whether express, implied or statutory, to the maximum extent permitted by Swiss law. We do not warrant that the website will be uninterrupted or error-free, that defects will be corrected, or that the information is current at any specific moment. The advice-scope limits set out in the disclaimer apply in full. Limitation of liability To the maximum extent permitted by Swiss law, liability for damages arising out of or in connection with your use of the website is limited as follows. Liability for ordinary negligence is excluded. Liability for gross negligence and wilful misconduct cannot be excluded and is expressly preserved in line with the mandatory rule of OR art. 100 . Liability for auxiliary persons is excluded to the extent permitted by OR art. 101 . Indemnity If your use of the website breaches these terms and that breach causes a third-party claim against us, you will indemnify us for the reasonable costs of defending that claim, including legal fees, save where the claim arises from our own gross negligence or wilful misconduct. Force majeure Neither party is liable for a failure or delay in performance caused by circumstances beyond reasonable control, in line with OR art. 119 . Performance obligations are suspended during the event and resume when the event ends. Severability If any clause of these terms is or becomes unenforceable, the remaining clauses stay in force, and the unenforceable clause is replaced by an enforceable clause that most closely reflects the original intent. Governing law These terms are governed by Swiss substantive law, to the exclusion of its conflict-of- laws rules and to the exclusion of the United Nations Convention on Contracts for the International Sale of Goods (CISG) where otherwise applicable. Jurisdiction and forum The exclusive forum for disputes arising out of or in connection with these terms is the competent court at the publisher's registered seat in Zug, Switzerland. This exclusive- forum clause is subject to the mandatory consumer-forum rules under the Lugano Convention where a visitor qualifies as a consumer domiciled in a contracting state. Language The English version of these terms is authoritative. Any translation provided for convenience is non-binding; in case of discrepancy, the English text prevails. Changes to these terms We may update these terms. Material changes are announced through the "Last updated" date at the top of this page. Continued use after an update constitutes acceptance. Prior versions are retained internally and available on request. Questions Email info@business-in-switzerland.com or use the contact form . Frequently asked questions about these terms Which law applies to disputes with me? Swiss substantive law governs the site-use terms. Forum is the publisher's registered seat in Zug, subject to mandatory Lugano Convention consumer-forum rules for EU-domiciled consumer disputes. Where do I find the imprint and legal notices? All five legal pages — Imprint, Privacy, Terms, Cookies, Disclaimer — are linked at the bottom of every page. Entry point: /legal/, or use the footer. Do these terms govern a client engagement? No. These terms govern visitor use of the website only. A professional engagement is governed by a separately executed engagement letter between the client and the publisher entity. Other legal pages Imprint Privacy policy Cookie policy Disclaimer How engagements begin Contact us --- ## Swiss fiduciary services — formation, accounting, mandate URL: https://business-in-switzerland.com/services Description: Swiss fiduciary services for foreign founders. Company formation, accounting, nominee director, and domiciliation — delivered end-to-end in English. Swiss fiduciary services — formation, accounting, mandate STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Swiss fiduciary services Swiss fiduciary services — company formation, accounting, and mandate services in English Under one mandate: Swiss company formation, ongoing accounting, the Swiss-resident director your AG or GmbH legally needs, registered address at Baarerstrasse 14, and lifecycle closure. Delivered for foreign founders, in English, across all 26 Swiss cantons. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: April 2026 What it is What a Swiss fiduciary actually does Before the menu, the definition. Swiss fiduciary firms (Treuhand, in German) sit in a lane that Anglo-American readers often misread — and it is worth five minutes to get it right before scoping an engagement. Continuing mandate, not one-time setup A Swiss fiduciary acts as an ongoing mandate representative for a Swiss company. You do not hire us for a single task and say goodbye. You appoint us for a multi-year counterpart role: we form the entity, keep the books, file the VAT returns, hold the Swiss-resident signature where the Code of Obligations demands one, forward the mail from cantonal authorities, and eventually sign the wind-down deed when you close the company. This is structurally different from a one-off formation agent who incorporates and leaves. In Swiss usage, the word is Treuhand . The English equivalent is imperfect — we say "fiduciary" because "corporate services firm" is vague and "agent" is wrong. What matters is the function: a single licensed professional counterpart across the company lifecycle. Where a fiduciary sits between notary, bank, and tax authority Forming and running a Swiss company touches at least four public or private counterparts: a Swiss notary for the incorporation deed, a Swiss bank for the consignment and operating accounts, the cantonal Handelsregister (federated via zefix.ch) for the register entry, and ESTV for federal tax and VAT. Add cantonal tax, AHV/AVS for payroll, FINMA if the activity is financial, and SEM / cantonal labour authorities if the founder needs a permit. A fiduciary is the single point of contact that compresses these counterparts into one relationship on your side of the table. What we are not : a law firm with litigation scope, a pure accountant who only touches the ledger, or a formation agent whose engagement ends at the Handelsregister confirmation. All three exist in the Swiss market, and they are the correct hire for some situations. Fiduciary work is the one counterpart that stays. Who we work with Foreign founders setting up their first Swiss entity. Non-resident entrepreneurs building holding or family-office structures. Cross-border SMEs adding a Swiss subsidiary or a Swiss operating entity. Investors who need a specialised structure — holding company, family office wrapper, FINMA-licensed vehicle, crypto / DLT company — and who want the legal-language gap closed. Every engagement is run in English, and the statutory German / French / Italian filings are handled by us on your behalf. Lifecycle stage 1 Incorporation services Swiss company formation for the four legal forms foreign founders use in practice. Each card links to the dedicated sub-service with the figures, statutory articles, and the typical timeline. Company formation — overview End-to-end incorporation for AG, GmbH, branch offices, and sole proprietorships. Notarial deed, Handelsregister filing, VAT registration, first bank account. Typical end-to-end: 2–6 weeks depending on legal form. Learn more AG / joint-stock company CHF 100,000 total share capital, CHF 50,000 paid in at formation (OR art. 621, 632). The capital multiple of choice for holding, crypto, and FINMA-pathway structures. Learn more GmbH / limited liability company CHF 20,000 fully paid in at formation (OR art. 773, 777c). Lean operating vehicle for consulting, trading, and owner-operated SMEs. Learn more Shelf companies An existing Swiss entity, clean of trading history, ready for transfer when the timeline does not accommodate a fresh incorporation. Scoped individually on request. Learn more Swiss company formation is the most-trafficked pillar here. If you already know the legal form, the AG / joint-stock company formation and GmbH / limited liability company formation pages cover the capital, residency, notary, and bank steps in detail. Lifecycle stage 2 Ongoing operations The standing-order services that keep a Swiss company compliant month by month and year by year. Accounting is the gravitational centre; payroll, VAT, and audit coordination orbit it. Accounting and bookkeeping Monthly bookkeeping, VAT returns, annual financial statements, year-end close, and limited-review audit coordination (OR art. 727a). English-language reporting. Learn more Tax advisory Federal, cantonal, and municipal corporate income tax plus VAT. Combined effective rates range 11.85% (Zug) to 20.54% (Bern); we model your canton candidates before you commit. Learn more Payroll and HR AHV/AVS first-pillar, BVG/LPP second-pillar enrolment, source-tax for foreign employees, salary certificates, and year-end reconciliations. Learn more Audit coordination Limited-scope review under OR art. 727a as the SME default; ordinary audit when two of the three statutory thresholds (CHF 20m balance sheet, CHF 40m revenue, 250 FTE) are exceeded. We coordinate with independent audit firms, not audit ourselves. Learn more The anchor link for operations is ongoing accounting and bookkeeping . VAT registration becomes mandatory at CHF 100,000 of worldwide taxable turnover for domestic companies and from the first franc of Swiss turnover for foreign companies over that threshold (MWSTG art. 10). Lifecycle stage 3 Compliance and representation The rules of the road. A Swiss-resident signatory is federally mandatory for both an AG and a GmbH; a registered address is mandatory; anti-money-laundering and beneficial-ownership compliance has tightened across the Swiss financial centre. Swiss-resident director (nominee) One of our partners sits on your board (AG, OR art. 718.4) or as managing officer (GmbH, OR art. 814.3) to satisfy the Swiss-resident signatory rule. Fiduciary, not signature-blind. Learn more Domiciliation / registered address Registered address at Baarerstrasse 14, 6300 Zug, commercial-register address, inbound post handling, and cantonal-authority notice forwarding. Learn more AML and beneficial-ownership compliance Ongoing anti-money-laundering and beneficial-ownership register filings aligned with the Swiss transparency regime. Scope is confirmed on a case basis. Learn more The federal Code of Obligations requires at least one Swiss-resident person with signatory authority for both legal forms: OR art. 718.4 for an AG, OR art. 814.3 for a GmbH. Non-resident founders close this gap through Swiss-resident director services . Lifecycle stage 4 Lifecycle closure Not every company runs forever. Voluntary wind-down in Switzerland is a federally codified procedure with a statutory blocking period, a final tax clearance, and a deregistration at the Handelsregister. Liquidation Voluntary wind-down under OR art. 736–747 — notary step, statutory blocking period, deregistration from the Handelsregister, final tax return, and clearance. Learn more Or talk first Not sure which services apply? Most engagements bundle three to five services. A 30-minute scoping call maps the stack you actually need and the order we sequence it. Request a proposal Swiss company liquidation is the closing bookend. Typical voluntary wind-down timelines run 10–18 months from shareholder resolution to final deregistration, owing to the statutory blocking period. Canton matters Choose your canton — cantonal depth at every service Swiss fiduciary services are federal in law, cantonal in tax, and municipal in texture. Every service on this hub has a cantonal surface. The most material cantonal lever is corporate income tax. Combined effective rates across the 26 cantons range from 11.85% at Zug (the lowest in Switzerland) to 20.54% at Bern (the highest), a spread of roughly 8.7 percentage points. Zurich sits at 19.61%, Geneva at 14.70%, with Schwyz and Lucerne around 14.0% and 12.3% respectively. The numbers are re-verified every January–February against KPMG Clarity on Swiss Taxes and the ESTV cantonal tables. We file at the Handelsregister of whichever canton you pick, via the federal zefix.ch portal. Our physical base is Baarerstrasse 14 in Zug, which is also why most of our holding, crypto, and family-office clients headquarter in Canton Zug. If your answer is not Zug, we still form the company: Zurich for banking depth, Geneva for UN / commodity counterparties, Schwyz or Lucerne for low-rate peers, Vaud or Ticino for French- or Italian-language comfort. For the full comparison, see cantonal rates and Handelsregister offices across all 26 cantons . Process How we work — from enquiry to signed mandate Most services have a published fixed fee. Multi-step engagements (M&A, FINMA, restructuring) are scoped on a 30-minute call. Here is the path from first message to signed mandate. 01 Enquiry Day 0 Send the contact form with canton preference, entity type, permit situation, timeline, and the services you want scoped. The more precise the input, the faster the scoping call. 02 Scoping call Within 2 business days A 30-minute English call to confirm canton, legal form, Swiss-resident signatory arrangement, accounting cadence, and any FINMA / permit / banking overlay. 03 Written proposal 2–3 business days after the call For services with published fixed fees (formation, accounting, payroll, trademark, registered address, etc.) we confirm the rate. For multi-step engagements (M&A, FINMA, restructuring) we send a fixed-scope written proposal with itemised deliverables, assumptions, and a fee band. Signed proposal becomes the engagement letter. See how we scope a written proposal for the full version of the process, including what a scoping call typically covers and what the written proposal contains. At a glance By the numbers — Switzerland at a glance Three numbers that set the frame for most engagements scoped on this hub. CHF 20k – 100k Minimum share capital, GmbH or AG OR art. 621 / 773 (facts-switzerland §1.1, §1.2) 11.85% – 20.54% Combined effective corporate tax by canton (2026) facts-switzerland §2.2 (KPMG, ESTV 2026) CHF 100,000 VAT registration threshold MWSTG art. 10 (facts-switzerland §2.3) Federal withholding tax on outbound dividends is 35%, before double-taxation-treaty relief. Cantonal tax rates are re-verified annually. FAQ Frequently asked questions — Swiss fiduciary services What does a Swiss fiduciary actually do? A Swiss fiduciary (Treuhand) is an ongoing mandate representative for a Swiss company — covering formation, accounting, VAT filings, the Swiss-resident director requirement under OR art. 718.4 / 814.3, domiciliation, and liquidation. It is not a law firm and not a pure accountant; it is a single professional counterpart across the company lifecycle. Can you handle my company entirely in English? Yes. Documentation, meetings, and correspondence are in English. Statutory filings (Handelsregister, notary deed, tax returns) are submitted in German, French, or Italian as the canton requires, with English summaries shared back. Do I need a Swiss-resident director, and can you provide one? Yes, at least one Swiss-resident person with sole or joint signature is required: OR art. 718.4 for an AG, OR art. 814.3 for a GmbH. We provide one of our partners as Swiss-resident signatory under a nominee or full-fiduciary mandate. Do you cover all 26 cantons? Yes. We incorporate and file in all 26 cantonal Handelsregister offices via the federal zefix.ch portal. Our Zug base serves most holding, crypto, and family-office clients; Zurich, Geneva, Schwyz, Vaud, and Ticino are also common choices. See the cantons hub for rate comparisons. Can I bundle formation, accounting, and nominee in one engagement? Yes, that is the typical starting shape. Formation (AG or GmbH) plus ongoing accounting plus Swiss-resident director under a single mandate reduces your administrative counterparts from four to one. Add-ons include payroll, VAT returns, audit coordination, and beneficial-ownership filings. How long does it take to form a Swiss GmbH or AG? A GmbH typically takes 2–4 weeks and an AG 3–6 weeks, from first draft of articles to Handelsregister entry. VAT registration adds 5–15 days; a Swiss operating bank account 5–30 days depending on customer due diligence on foreign ultimate beneficial owners. Do you publish prices? No. Every engagement is custom-scoped by entity type, canton, permit needs, ongoing-mandate scope, and language complexity. We produce a written fixed-scope proposal after a 30-minute scoping call. See the fees and process page for how the scoping works. Do you work with existing Swiss companies switching providers? Yes. Provider-switch engagements are a regular part of the book. We take over the incumbent mandate on a fixed transition date, ingest bookkeeping files, coordinate Handelsregister signatory changes, and resume VAT, audit, and payroll on the next cycle. When does my Swiss company need to register for VAT? When worldwide taxable turnover reaches CHF 100,000 per year (MWSTG art. 10). Foreign companies with any Swiss supply and worldwide turnover over CHF 100,000 are liable from the first franc of Swiss turnover. Platforms collecting for third-party sellers are liable from 2026. How do I request a proposal? Send your situation (target canton, entity type, permit status, timeline, services wanted) via the contact form. A scoping call is booked within two business days; a written proposal follows 2–3 business days after the call. Related Related resources Three hubs adjacent to services. Each is worth a look before you book a call. Cantons Compare all 26 cantons Combined effective corporate tax, Handelsregister speed, and cantonal specialities (holding, commodities, pharma, DLT). The fastest way to price out canton choice before scoping. Explore cantons Specialised Specialised structures Swiss holding companies, family offices, FINMA-licensed vehicles, and crypto / DLT companies. For structures where the ordinary incorporation path is not enough. Learn more Guides Guides for foreign founders Residence permits, work permits, Swiss VAT, opening a Swiss bank account, and starting a business in Switzerland — the research-phase library for founders before they scope. Read the guide Ready to start your Swiss setup? One mandate covers formation, accounting, the Swiss-resident director, domiciliation at Baarerstrasse 14, and lifecycle closure. Every engagement is scoped on a 30-minute English call. Request a proposal --- ## Swiss Accounting Services for Foreign-Owned Companies URL: https://business-in-switzerland.com/services/accounting Description: Swiss accounting for foreign-owned AG and GmbH: bookkeeping, VAT returns, annual accounts, cantonal tax filing. English output. Zug office. Custom quote. Swiss Accounting Services for Foreign-Owned Companies STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Service Swiss accounting services, English-output, foreign-owner-friendly, canton-aware. Ongoing compliance for foreign-owned Swiss AG and GmbH companies: bookkeeping, VAT returns, annual accounts under OR/CO or Swiss GAAP FER, and cantonal tax filings. Books kept in English. Zug office. Custom quote after a no-obligation call. Request a proposal Written by Stefan Locher · Reviewed by Marc Wyler Last reviewed: May 2026 At a glance Four numbers every Swiss accounting engagement turns on. Bookkeeping, VAT, audit, retention. The figures that frame every engagement conversation before scope is set. 100k CHF VAT registration threshold MWSTG art. 10 20 / 40 / 250 CHF m / m / FTE — ordinary-audit thresholds OR art. 727 ≤ 10 FTE — audit opt-out line OR art. 727a 10 yrs Records retention OR art. 958f Who this is for Three reader situations, one service page. If you recognise yourself in any of the three, the rest of this page is written for you. You are a founder scoping the recurring cost of owning a Swiss company before you incorporate, and you want to know what compliance actually looks like month by month. You already run a foreign-owned Swiss AG or GmbH and your current provider is not delivering (late filings, English communication gaps, surprise invoices). Or you are a foreign parent company mandating outsourced books for a Swiss subsidiary and you want one provider who handles bookkeeping, VAT, annual accounts and cantonal tax end-to-end. This page walks what we deliver, how the Swiss rules bind you, and where we hand off to adjacent services. Scope What you outsource to us — monthly, quarterly, annually. Three cadences, aligned to how a Swiss entity is actually audited and taxed. No hidden scope; no surprise upsells; nothing priced à la carte until scope is agreed. Monthly — bookkeeping, receivables and payables, VAT preparation Ledger postings, bank reconciliation across all CHF and foreign-currency accounts, receivables and payables processing, monthly VAT working file, and a management snapshot showing month-to-date revenue, cost and working-capital position. The VAT working file is carried forward each month so the quarterly return is a consolidation, not a scramble. Deliverables are pushed through a secure portal; all correspondence is in English. Quarterly — VAT return filing, management report The default Swiss VAT cadence is quarterly; we prepare and electronically file the VAT return with ESTV under MWSTG art. 10, covering input-VAT reconciliation and cross-check against the ledger before submission. You receive a quarterly management report in addition to the statutory filing: it is short, operational, and written for a founder who does not want to read a 40-page financial statement. An annual VAT option exists for smaller entities subject to ESTV approval; we confirm eligibility on request. Annually — statutory accounts, tax return, annual report OR/CO-compliant statutory accounts (balance sheet, profit and loss statement, notes) under OR art. 957 and the following articles, together with the cantonal corporate tax return for your canton of registration. Audit liaison is included where a limited or ordinary audit is triggered. The annual report is produced where legally required or where your board or parent company prefers it. All filings are archived against the 10-year retention rule under OR art. 958f in verifiable electronic form. Standard selector Your Swiss accounting standard — OR/CO, Swiss GAAP FER, IFRS, US GAAP. Which standard applies to your entity is not a single answer; it depends on size, listing, funding and parent-level reporting. Four options, one decision. Standard Basis Typical user When it applies OR / CO (Code of Obligations) OR art. 957–963b Every Swiss company — legal minimum Default for AG, GmbH, sole proprietorship, branch. Swiss GAAP FER FER 1–31 (private standard) Mid-sized non-listed companies Lender covenants, group disclosure, cantonal audit scrutiny. IFRS IFRS / IAS standards SIX-listed, international groups Listed requirement; convenient for global parent consolidation. US GAAP FASB ASC US-parent Swiss subsidiaries Parent-level reporting; often bridged from OR/CO at subsidiary level. OR / CO — the legal minimum Every Swiss company falls under the Swiss Code of Obligations. Articles 957 to 963b set the statutory accounting duty: double-entry bookkeeping, balance sheet, profit and loss statement, notes, and retention. If you are incorporated in Switzerland, this is the floor; you can layer a higher standard on top, you cannot fall below it. Swiss GAAP FER — for mid-sized non-listed companies Swiss GAAP FER is used voluntarily by mid-sized non-listed companies whose lenders, investors or cantonal tax authorities want more disclosure than OR/CO gives. FER 20 on impairment and FER 30 on consolidation are the two standards foreign founders most often encounter. It sits between OR/CO and IFRS in cost and rigour. IFRS — for listed and international groups IFRS is required for SIX-listed companies and is commonly used by Swiss subsidiaries of international groups so parent-level consolidation runs cleanly. A US-parent subsidiary often elects US GAAP at the subsidiary-reporting level and then bridges to OR/CO for local statutory filings. How we pick the right standard for your entity The decision is scoped at onboarding. Inputs are legal form, size, funding structure, parent-company preference and lender or cantonal disclosure pressure. We do not force Swiss GAAP FER on companies that do not need it, nor do we leave a CHF 100m-revenue subsidiary on OR/CO alone when the group reports in IFRS. Bookkeeping rules Double-entry bookkeeping and the CHF 500,000 threshold. Where Swiss bookkeeping law actually draws the line, and why the rule is not the same for every legal form. Swiss bookkeeping duty is set by OR art. 957. The rule has two tiers. Sole proprietorships and partnerships with annual turnover below CHF 500,000 may keep simplified cash-basis records (income, expenditure, asset register). Above CHF 500,000 of annual turnover, full double-entry bookkeeping is mandatory. Separately, every limited company (AG and GmbH) must maintain double-entry bookkeeping from day one regardless of turnover, because the rule is triggered by the legal form, not by the revenue figure. This is where many foreign founders trip: a GmbH with CHF 30,000 of first-year turnover still keeps full double-entry books. Books must include journal, general ledger, and supporting sub-ledgers for receivables, payables, inventory and fixed assets. They may be kept in an official Swiss language or in English under OR art. 958c, alongside the currency of business operations. Electronic systems are permitted provided integrity and retrievability are preserved over the retention period. VAT compliance VAT — registration, cadence, and the foreign-business rule. The single compliance area where foreign founders most often miscalculate. Three paragraphs you should not skip. The CHF 100,000 threshold, and the foreign-business exception Swiss VAT registration is mandatory once worldwide annual turnover from taxable supplies reaches CHF 100,000 (MWSTG art. 10). For foreign businesses supplying goods or services into Switzerland, the rule is stricter: once the worldwide CHF 100,000 threshold is met, VAT liability begins from the first franc of Swiss turnover, with no domestic-threshold relief. The registration authority is ESTV (the Federal Tax Administration), and registration is typically completed within five to fifteen business days after application. Voluntary registration below the threshold is possible and can be advantageous when input-VAT recovery on Swiss supplier invoices exceeds the administrative burden. Quarterly versus annual VAT returns The default Swiss VAT return cadence is quarterly, filed electronically via the ESTV portal. An annual filing option exists for smaller entities with prior ESTV approval; eligibility typically hinges on a combination of turnover size and reporting history. If you think your entity could qualify, speak to us about eligibility before submitting the request; we have found the annual option valuable for low-volume holding or SPV entities where quarterly filings are disproportionate. Swiss VAT rates in one line The standard rate is 8.1% (effective since 1 January 2024). The accommodation rate for hotel stays with breakfast is 3.8%. The reduced rate is 2.6% on food, medicine, printed materials, and menstrual hygiene products. For a deeper walk-through of rate application, the place-of-supply rules and the 2026 platform rule for online marketplaces, see our full Swiss VAT page . Audit regime When your Swiss company needs an audit — ordinary, limited, opt-out. Three tiers. The one that applies is decided by size, not by ambition. Ordinary audit OR art. 727 2 of 3 exceeded for 2 consecutive years Balance sheet ≥ CHF 20m · Revenue ≥ CHF 40m · ≥ 250 FTE Limited audit OR art. 727a Default for mid-size AG / GmbH Below ordinary-audit thresholds; above opt-out line. Opt-out OR art. 727a (2) ≤ 10 FTE · unanimous shareholder consent Most common path for small foreign-owned Swiss entities. Ordinary audit — two of three thresholds An ordinary audit is required under OR art. 727 when 2 of 3 thresholds are exceeded for two consecutive years: a balance-sheet total of CHF 20 million, revenue of CHF 40 million, or 250 full-time employees. Ordinary audit means a registered audit firm, audit planning, substantive testing and an opinion letter that accompanies your statutory accounts. Cost and preparation burden scale accordingly. Limited audit — the default for mid-size companies Limited audit under OR art. 727a is the default regime for non-listed AG and GmbH above the opt-out line. Scope is narrower than an ordinary audit: the review targets plausibility and the absence of material misstatement, rather than full substantive assurance. Opt-out — companies with ≤ 10 FTE and unanimous shareholder consent Companies with 10 or fewer full-time employees may opt out of audit entirely under OR art. 727a with unanimous shareholder consent. This is the most common path for small foreign-owned Swiss entities and one we set up at formation wherever eligibility applies. An opt-out can be reversed by shareholder resolution at any point. Operational calendar The Swiss accounting calendar, month by month. What is due, what we deliver. A reference for founders who want to see the recurring shape of Swiss compliance before they commit. Month What is due What we deliver January Prior-year closing prep begins; VAT Q4 data finalised. Accruals schedule; VAT Q4 working file. February VAT Q4 return due end of month. VAT Q4 filing to ESTV; management pack Jan. March Year-end accounts drafting; AGM preparation for Q2. Draft financial statements; depreciation schedule. April Geneva corporate return standard deadline (30.04). Geneva tax filings where relevant; Q1 management pack. May VAT Q1 return due end of month. VAT Q1 filing; board-pack preparation for AGM. June AGM window for most AG / GmbH; dividend resolutions. AGM minutes; dividend withholding filings. July Bern / St. Gallen / Graubünden standard deadlines. Corporate tax returns for those cantons. August VAT Q2 return due end of month. VAT Q2 filing; mid-year reforecast. September Zug / Zurich / Lucerne / Schaffhausen standard deadlines. Corporate tax returns; extension requests where needed. October Extension pushes; audit liaison for limited-audit files. Limited-audit coordination with external auditor. November VAT Q3 return due end of month. VAT Q3 filing; budget prep for next year. December Year-end cut-off; inventory count; provisions review. Year-end trial balance; provisions and accruals proposals. Cantonal deadlines Cantonal corporate-return deadlines at a glance. Each canton runs its own tax calendar. The standard date, the extension window, and the notes you need before choosing a canton of registration. Corporate-return deadlines by canton. Standard dates are stable; extension windows can shift between ordinance years and should be re-verified in January. Personal tax deadlines differ from corporate. Canton Code Standard deadline Extension window Notes Zug ZG 30 September Up to 31 May (following year) Low-tax canton; lenient extension regime. Zurich ZH 30 September Up to 30 November (on request) 2025 effective-rate cut; ZHprivateTax portal for electronic filing. Geneva GE 30 April Up to 31 December (on request) Earliest standard deadline; IFRS usage higher than DE-speaking cantons. Bern BE 31 July Up to 15 November (on request) Federal capital; TaxMe platform for electronic filing. Lucerne LU 30 September Up to 31 March (following year) LuTax platform; second-lowest combined rate. St. Gallen SG 31 July Up to 30 November (on request) eTax.SG platform; combined rate 14.29%. Schaffhausen SH 30 September Up to 31 December (on request) Northern gateway canton; German-language filings. Graubünden GR 31 July Up to 31 October (on request) Trilingual canton; returns accepted in DE/IT/RM. Zug — tightest discipline, latest extension window Canton Zug runs the 30 September standard deadline for corporate returns, with extensions commonly granted to 31 May of the following year on request. Zug is our home canton and the lowest-tax canton in the country; full canton profile at tax and registration details for Canton Zug . Zurich — parallel calendar, reform-driven rate cut Zurich shares the 30 September standard deadline, with extensions typically to 30 November on request. The 2025 effective-rate cut makes Zurich more competitive despite its historical premium. See the full Zurich canton profile for how the reform stacks against Zug for HQ use cases. Geneva — earliest standard deadline, strong IFRS footprint Canton Geneva has the earliest corporate-return deadline on this list (30 April), with extensions typically to 31 December. IFRS usage is materially higher than in German-speaking cantons, reflecting the international-HQ and UN-agency reader base. For deeper detail see Geneva filing deadlines and tax profile . Specialised cases Specialised accounting — holding, family office, FINMA, crypto. Four niches where ongoing compliance diverges materially from a plain AG or GmbH. Each links to the dedicated page for full treatment. Holding-company accounting post-STAF Participation relief recording, substance requirements, intercompany documentation, and the participation exemption mechanics that make Swiss holding vehicles attractive. Accounting for a Swiss holding company Family office — consolidation and discretion Multi-entity consolidation across jurisdictions, private-client reporting cadence, confidentiality discipline, investment-portfolio accounting at market value. FINMA-regulated entities Banks, portfolio managers under FinIA, fund-management companies under CISA and insurers follow licence- specific accounting and supervisory-reporting cadences beyond the OR/CO baseline. Crypto and DLT — token classification Utility, payment and asset tokens each carry different accounting treatment. DLT transaction bookkeeping anchored by the Zug Crypto Valley ecosystem and the 2021 DLT Act framework. Software We work in bexio, Abacus, Banana, Odoo — and can migrate you. Neutral on software. The right choice depends on your volume, your parent-system integrations, and whether you need multi-entity consolidation. Our team operates across the four accounting systems foreign founders most commonly bring us: bexio (the Swiss SME default, cloud-native), Abacus (the incumbent mid-market Swiss system, deeper VAT module), Banana (lightweight desktop accounting common for small entities and associations), and Odoo (full ERP where accounting is one module of many). If your Swiss entity is already on one of these, we work inside it. If you are deciding from a blank sheet at incorporation, we walk the trade-offs in the onboarding call. Migrations follow a three-phase playbook: chart-of-accounts mapping from the legacy system to the target, historical-data carry-over (typically two fiscal years to keep comparatives intact), and a parallel-run period of one to two closing cycles to verify the migration before the legacy system is archived. We do not charge migrations as open-ended time-and-materials; scope is agreed up front. Foreign-owner reassurance Can you stay remote? Can books be in English? Two questions we answer on nearly every onboarding call. The answers are yes and yes, with one board-level caveat. Outsourcing the accounting function to a Swiss provider is standard practice for foreign-owned Swiss entities. No in-house finance team is required; we operate as your Swiss finance function from our Zug office. Books may be kept in an official Swiss language or in English under OR art. 958c, so you can read your ledger, management pack and draft accounts in a language your board understands. Some cantonal filings (notably final tax returns) must be submitted in an official language, and we handle that translation layer transparently. The one caveat is board composition, not accounting. A Swiss AG must have at least one board member with signatory authority resident in Switzerland (OR art. 718.4); a GmbH must have at least one managing officer with sole or joint signature resident in Switzerland (OR art. 814.3). This is separate from the accounting function and is handled by either a relocating founder, a Swiss-resident partner, or a nominee-director arrangement. If that is your open question, see nominee director services for the full treatment. Compliance risks Document retention, late filing, director liability. Three operational risks the bookkeeper answers first, the tax authority answers second, and the board answers last. Addressed in that order. Ten-year retention rule All accounting records must be retained for 10 years under OR art. 958f. Scope includes books, vouchers, accounting-relevant correspondence, annual accounts and audit reports. Electronic storage is permitted provided records remain readable, unaltered and retrievable across the full retention period, and the underlying file format does not go obsolete during that window. What happens if you miss a filing The cantonal tax authority issues an automatic reminder. If the deadline is still not met, the authority proceeds to a discretionary assessment, estimating your taxable income without the benefit of your accounts. The resulting bill is typically materially higher than a filed return would have produced. Interest is charged on the outstanding tax, and penalties apply; repeat or severe cases can expose directors to cantonal criminal sanctions. In practice, extension requests are routinely granted when filed before the standard deadline, which is why we build extension pushes into the operational calendar as a fallback, not as a first line. Director personal liability — why accounting hygiene matters at board level Swiss board members carry fiduciary duties under OR art. 754 and related articles. Where books are incomplete, inaccurate, or filed late, the board's diligence defence narrows. This is a governance point, not a fear point: reliable accounting is part of the evidentiary record the board relies on if a dispute, audit or creditor action ever tests the reasonableness of a business decision. Foreign founders who run multiple Swiss entities routinely ask us to standardise accounting hygiene across the group for precisely this reason. Regulatory recency What's changed in Swiss accounting, 2023–2025 highlights. Three shifts foreign founders should know about, and one 2026 item to keep on the radar. Electronic submission pathways have matured across cantons. The 2023 update to the Commercial Register Ordinance (HRegV) expanded digital-signature acceptance for filings, and ESTV has been steadily expanding the electronic-submission scope on the VAT side. The direction of travel is that ESTV is increasingly expecting standardised electronic accounting data on audit requests for larger entities, which is one more reason to pick an accounting system and chart of accounts that can export clean machine-readable data. The STAF reform is now fully in force: the former holding-company special status has been phased out and replaced by the participation-exemption mechanics at federal level and by the Patent Box and R&D super-deductions at cantonal level. For holding structures this primarily changes how effective tax is computed on dividend income, not how the books are kept. Separately, Zurich legislated an effective-rate cut that took effect in 2025 and Ticino and Basel-Land moved in 2025 as well (Ticino by -3.11 pp and Basel-Land by -2.45 pp, the largest two moves that year). For crypto-adjacent entities, the 2021 DLT Act remains the backbone; the 2025 Federal Council consultation on Payment Token amendments is live and worth tracking for anyone running or planning a token-issuing vehicle in Zug. Treatment of tokens for accounting purposes continues to depend on classification (utility, payment, asset), and the Swiss Tax Administration's guidance is reviewed annually. As of August 2026, that consultation has closed. It ran from 22 October 2025 to 6 February 2026 and covered an amendment to the Financial Institutions Act introducing two new licence categories, payment institutions and crypto institutions, with issuance of regulated stablecoins reserved to payment institutions. Entities that filed a submission should watch for the Federal Council's dispatch to parliament as the next step; token classification for accounting purposes has not changed as a result of the consultation itself. Source: State Secretariat for International Finance (SIF) . Onboarding How we work — onboarding from day zero. Four stages, typically six to eight weeks from first call to first monthly close, depending on system and historical-data readiness. 1. Initial consultation — 30 minutes. We walk your entity, your current setup and your open compliance risks. No commitment. No pressure to switch providers mid-call. 2. Scope agreement and engagement letter — 3 to 5 days. We issue a custom proposal. Once you sign, we issue a formal engagement letter (Mandatsvertrag) that names deliverables, cadence, escalation points and the retention archive. 3. Historical-data handover — 2 to 4 weeks. Chart-of-accounts review, opening balances, prior filings audit, reconciliation of carry-forward items. Where you are switching provider, we coordinate the handover directly with the outgoing team. 4. First monthly close — end of month one. We run the first full monthly cycle, pre-agreed deliverables on the agreed day. From here, the calendar above is the cadence. How we quote and engage Explore all services FAQ Frequently asked questions Ten answers mapped to the top People Also Ask queries for Swiss accounting. Schema emitted in the page head matches every answer byte-for-byte. Do I need an accountant in Switzerland? All Swiss legal entities such as AG and GmbH must keep proper books under OR art. 957. Sole proprietorships with turnover above CHF 500,000 must keep full double-entry books. Below that threshold, simplified cash-basis records are permitted but ESTV audit powers and VAT compliance make professional accounting support the realistic path, particularly for foreign founders. What are the bookkeeping requirements for a Swiss GmbH or AG? Every Swiss GmbH and AG must maintain double-entry bookkeeping under OR art. 957 to 963b. Annual accounts must include a balance sheet, profit and loss statement, and notes. Books may be kept in an official Swiss language or English. Records must be retained for 10 years in paper or verifiable electronic form. What is the VAT registration threshold in Switzerland? Businesses with worldwide annual turnover of CHF 100,000 or more from taxable supplies must register for Swiss VAT under MWSTG art. 10. Foreign companies supplying goods or services into Switzerland become liable from the first franc of Swiss turnover once the worldwide threshold is met. Voluntary registration below the threshold is possible and can be advantageous for input VAT recovery. How long must I keep financial records in Switzerland? Swiss law requires a 10-year retention period for all accounting records under OR art. 958f, including books, vouchers, correspondence with accounting relevance, and annual accounts. Electronic storage is permitted provided records remain readable, unaltered, and retrievable throughout the retention period. Can a foreign company outsource its Swiss accounting? Yes. Foreign-owned Swiss entities routinely outsource bookkeeping, financial statements, VAT filing and tax returns to a Swiss accounting firm. There is no requirement for an in-house finance function. The Swiss-resident representative obligation under OR art. 718.4 for AG and OR art. 814.3 for GmbH is a board-level matter and is independent of where the accounting work is done. What happens if I miss a Swiss tax filing deadline? Missing a cantonal filing deadline triggers an automatic reminder notice. If the deadline is still not met, the cantonal tax authority proceeds to a discretionary assessment in which your taxable income is estimated without the benefit of your accounts, typically resulting in a higher tax bill. Interest charges and penalties apply. Repeat or severe cases can expose responsible directors to cantonal criminal sanctions. Does my Swiss company need an audit? Audit requirements depend on size. An ordinary audit is required under OR art. 727 if 2 of 3 thresholds are exceeded for two consecutive years: CHF 20 million balance sheet, CHF 40 million turnover, or 250 full-time employees. Below that, a limited audit under OR art. 727a applies. Companies with 10 or fewer full-time employees may opt out of audit entirely with unanimous shareholder consent. What accounting standards apply in Switzerland? The Swiss Code of Obligations is the legal minimum for every company. Swiss GAAP FER is commonly used by mid-sized non-listed companies. IFRS is required for SIX-listed companies and often preferred by international groups. US GAAP is common for US-parent Swiss subsidiaries at the subsidiary level. FINMA-regulated entities follow additional standards depending on the licence category. Can my books be kept in English? Yes. Swiss accounting rules permit books and annual accounts in an official Swiss language or in English. Specific cantonal filings may still need to be submitted in an official language, but management reports, board packs, and the operational accounting system can run entirely in English, which is standard for foreign-owned entities. How much do Swiss accounting services cost? Swiss accounting cost depends on entity type, transaction volume, canton, reporting standard, and service scope, including whether payroll, VAT, and tax filing are in scope. We do not publish price lists. Following an initial consultation we issue a custom proposal tailored to your entity, so that quoted scope matches your actual workload rather than an off-the-shelf package. Pricing Published rates for accounting and payroll. All fees excl. MWST. Bexio licence and BVG contributions passed through at cost. Service Our fee Market range Ongoing bookkeeping (hourly) CHF 120 / hour CHF 80–180 Year-end + tax return (dormant company) CHF 990 / year CHF 1,400–1,800 Year-end + tax return (active, small) CHF 1,900 / year CHF 2,000–5,000 MWST registration CHF 290 CHF 300–800 MWST quarterly return CHF 190 / quarter CHF 200–500 Monthly payroll, up to 5 employees CHF 120 / month CHF 100–200 Monthly payroll, 6–20 employees CHF 250 / month CHF 200–600 Lohnausweis (year-end statement, per employee) CHF 50 CHF 50–150 Bookkeeping restoration (hourly) CHF 150 / hour CHF 150–250 Opening balance sheet CHF 490 CHF 500–1,500 Liquidation balance sheet CHF 990 CHF 1,000–3,000 Bexio licence (software, pass-through) from CHF 35 / month CHF 35–83 Dedicated payroll mandate (separate page): /services/payroll/ . Bookkeeping reconstruction for missing periods: /services/bookkeeping-restoration/ . Fit check When outsourced accounting isn't the right fit. Five scenarios where this service, as scoped above, is not the answer, and where to look instead. Your books are missing or incomplete for one or more periods, that is a reconstruction job, not ongoing upkeep; see bookkeeping restoration below. You run a sole proprietorship under CHF 500,000 annual turnover, simplified cash-basis records are permitted under OR art. 957, so full outsourced double-entry bookkeeping may be more than you need. You need the engagement live this week, onboarding runs six to eight weeks from first call to first monthly close, per the process above. Your company has crossed the ordinary-audit thresholds (CHF 20m balance sheet, CHF 40m revenue, or 250 FTEs), we coordinate audit liaison, but the statutory ordinary audit itself is performed by a separate registered audit firm. You haven't incorporated yet, this page covers post-incorporation compliance only; company formation is a separate engagement. Next step Ready to outsource your Swiss compliance? Tell us your entity, your current setup and your open compliance questions. We confirm published fees on the same business day; multi-step engagements get a written proposal within 24 hours. Request a proposal --- ## Swiss bookkeeping restoration from CHF 150/hour URL: https://business-in-switzerland.com/services/bookkeeping-restoration Description: Reconstruct missing Swiss bookkeeping: recover statutory records, prepare overdue year-ends, fix audit findings. CHF 150 per hour. OR art. 957 ff. compliant. Swiss bookkeeping restoration from CHF 150/hour STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Bookkeeping restoration Reconstruct missing Swiss accounting records. Recovery of incomplete or lost bookkeeping back to OR art. 957 ff compliance. Hourly at CHF 150. Most recoveries cost CHF 1,500 to CHF 25,000 depending on volume and source-material quality. Request a proposal Written by Stefan Locher · Reviewed by Marc Wyler Last reviewed: May 2026 02 · Three common scenarios Missing year-ends, audit findings, lost records. 01.01 Missing year-ends You took over a company with one or more outstanding year-end accounts. We reconstruct the underlying bookkeeping, prepare opening balances, and produce the audited (or attested-as-dormant) financial statements. 01.02 Audit findings Auditor flagged material weaknesses or inability to give an opinion. We rebuild the accounting records, document the corrections, and coordinate with the auditor for a clean opinion. 01.03 Lost / damaged records Records lost to system failure, departed bookkeeper, or damaged premises. We rebuild from bank statements, supplier invoices, contracts and counterparty confirmations. 03 · Pricing Hourly base, plus standard year-end deliverables. Service Our fee Market range Bookkeeping restoration (hourly) CHF 150 / hour CHF 150–250 Opening balance sheet (after restoration) CHF 490 CHF 500–1,500 Year-end accounts (active company) CHF 1,900 / year CHF 2,000–5,000 Coordination with auditor (per hour) CHF 150 / hour CHF 150–250 04 · Mandate scope Reconstruct, reconcile, file, audit-coordinate. 04.01 Reconstruction of general ledger from underlying source documents 04.02 Reconciliation of bank accounts, debtors, creditors 04.03 Inventory reconstruction (where applicable) including stocktake support 04.04 Reproduction of journal entries with cross-references to source documents 04.05 Preparation of opening / closing balance sheets in line with OR art. 957 ff 04.06 Coordination with auditor and tax authorities on resulting filings 05 · Process Diagnostic → source review → reconstruction → filing. 01 Diagnostic Free 30-minute scoping call to assess the gap: how many periods, available source material, the resulting tax / regulatory exposure. 02 Source-document inventory We collect what exists: bank statements, contracts, supplier and customer invoices, prior tax returns. Identify what is missing and how to obtain it (counterparty confirmations, bank archives). 03 Reconstruction Ledger rebuilt period by period. Reconciliations performed. Journal entries documented with source references. 1–6 months depending on volume. 04 Filing + audit Year-end financial statements produced. Tax returns filed (with late-filing position negotiated where applicable). Auditor coordination for clean opinion if audit is required. 06 · FAQ Frequently asked questions. When is bookkeeping restoration mandatory? Swiss companies are required to keep accounting records under OR art. 957 ff (Code of Obligations). Failure to maintain records exposes the company and its directors to civil and criminal liability. Tax filings must be supported by underlying records. If records are missing, restoration is the practical answer to bring the company back into compliance. What does "ordinary audit" require for Swiss companies? Under OR art. 727, ordinary audit applies to companies that exceed two of three thresholds in two consecutive years: total assets CHF 20m, revenue CHF 40m, full-time employees 250. Below thresholds the company can opt for limited audit (Eingeschränkte Revision) under OR art. 727a, or — if all shareholders agree and no employees — opt out entirely (Opting-Out). Restoration must satisfy whichever audit standard applies. How much will restoration cost in total? Strongly depends on volume and source-material quality. Small dormant company missing 1–2 years of accounts: CHF 1,500–4,000. Active SME with 3+ missing years and incomplete source: CHF 8,000–25,000. We confirm a budget after the diagnostic call. Will I face penalties for late filings? Tax filings: late-filing fines apply (typically CHF 200–1,000 per period) plus interest on any tax due. AHV / VAT: separate late-filing penalties. We negotiate with the tax authorities where the late filing is due to documented circumstances (departed bookkeeper, system failure) and often achieve significant reduction or waiver. Can the auditor still issue a clean opinion after restoration? Often yes, provided the reconstruction is supported by adequate underlying documentation and reconciliations. Where source material is irrecoverable for some balances, the auditor may issue a qualified opinion limited to those balances. We design the reconstruction to minimise audit qualifications. What if accounting records were never kept (de novo)? Treated as a company in default. Reconstruction starts from incorporation date or last filed accounts (whichever is later). Tax authorities will typically issue assessment-by-estimation for periods without records, which we challenge once reconstruction is complete. This is the most expensive scenario — typical CHF 15,000–40,000 — but unavoidable to bring the company into good standing. 07 · Fit check When restoration isn't what you need. Your books are already current and complete, ongoing monthly bookkeeping is a separate engagement, not this one. You need it resolved within days, reconstruction runs one to six months depending on volume and source-material quality. Source documents are irrecoverable for some balances, the auditor may still issue a qualified opinion limited to those balances; restoration reduces but does not guarantee eliminating audit qualifications. No records were ever kept at all (de novo), this is the slowest and most expensive scenario, typically CHF 15,000 to 40,000, not a quick fix. 08 · Get started Free 30-minute diagnostic call. One-line brief: which company, how many periods missing or incomplete, broad nature of the gap. We confirm an estimated budget, recovery plan and timeline within 48 hours of the diagnostic call. Request a proposal --- ## Swiss company formation — AG, GmbH & canton choice guide URL: https://business-in-switzerland.com/services/company-formation Description: Form a Swiss AG or GmbH as a non-resident founder: capital, canton tax matrix, Swiss-resident director rule and end-to-end timeline of two to six weeks. Swiss company formation — AG, GmbH & canton choice guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Service pillar Swiss company formation — choose the right vehicle, then the right canton. If you are a non-Swiss entrepreneur, the decision is two-axis: which legal form (AG, GmbH, sole proprietorship, branch) and which canton. This page walks the decision with you, names the figures and the articles of the Swiss Code of Obligations, and routes you on to the AG or GmbH deep-dive when you know which vehicle fits. No price gates, no carousel fluff. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 At a glance The four numbers every foreign founder asks about. Capital, resident-director rule and realistic timeline, before we walk the choice in detail. 100k CHF AG min share capital OR art. 621 20k CHF GmbH min capital, fully paid OR art. 773 / 777c 1+ CH-resident signatory required OR art. 718.4 / 814.3 2 – 6 wk End-to-end formation (GmbH / AG) Handelsregister timelines Quick picker Which Swiss company suits you? A decision frame in under fifteen seconds: six legal forms, five criteria, no recommendation column. You pick. Form Min capital (CHF) Liability Public register disclosure Typical use AG (Aktiengesellschaft / SA) 100,000 (50,000 paid-in) Limited to capital Shareholders private Capital raises, HQ, holding, listed-ready GmbH (Sàrl) 20,000 (fully paid) Limited to capital Partners and stakes public Owner-managed SME, small holding, SPV Sole proprietorship None Unlimited, personal Mandatory > CHF 100k turnover Solo operator, pre-GmbH stage Branch office (Zweigniederlassung) None Parent-entity Parent + branch registered Foreign group presence in CH Verein (association) None Limited to association assets Only if commercial activity Non-profit, membership bodies Stiftung (foundation) Endowment, no minimum Foundation assets Registered; FINMA-supervised if charitable cross-border Grant-making, family wealth How to read this table if you are not sure Three decision heuristics cover roughly nine of ten foreign-founder cases. If you plan to raise external equity or attract institutional investors, start with an AG: shareholder privacy and share-class flexibility outweigh the higher capital threshold. If you run owner-managed and want the lowest capital barrier, start with a GmbH at CHF 20,000 fully paid. If you are a solo operator below CHF 100,000 of annual turnover and accept personal liability, sole proprietorship is the lowest-friction entry and you can convert to a GmbH later. For the full point-by-point breakdown on capital, liability, privacy and governance, see our AG vs GmbH comparison guide . Legal form AG — the Swiss stock corporation (Aktiengesellschaft / SA) The vehicle for capital raises, international HQs, holdings and anything share-class-sensitive. Heavier on capital, lighter on public disclosure. Capital, shareholders, board residency Minimum share capital is CHF 100,000, of which CHF 50,000 or 20% of the subscribed amount (whichever is higher) must be paid in at formation (OR art. 621 and art. 632). Shareholders can be one or more natural or legal persons of any nationality and residency, and are not disclosed in the Handelsregister. At least one board member with signatory authority must reside in Switzerland (OR art. 718.4). Bearer shares were abolished in 2019; only registered shares are issued since (OR art. 622.1bis). An ordinary audit is triggered only once two of three thresholds (balance-sheet total CHF 20m, revenue CHF 40m, 250 FTEs) are crossed for two consecutive years (OR art. 727); below that, a limited-scope review applies. Typical use cases Raising external or institutional capital, serving as the Swiss HQ of an international group, holding company (cross-link: Swiss holding structures ), listed or pre-listed entity, and family-office vehicles where share-class flexibility matters. Read the full AG setup walk-through Legal form GmbH — the Swiss limited liability company (Sàrl) The default vehicle for owner-managed SMEs and small holdings. Lower capital, public partner register, faster to set up. Capital, partners, managing director Minimum share capital is CHF 20,000 and must be fully paid in at formation (OR art. 773 and art. 777c). Contributions can be cash or in-kind (real estate, machinery, IP). The capital is deposited to a bank consignment account and blocked until the Handelsregister entry is issued. There must be at least one partner, of any nationality or residency. Unlike an AG, partners and their holdings are disclosed in the Handelsregister. At least one managing officer (Geschäftsführer) with sole or joint signature must be resident in Switzerland (OR art. 814.3). Typical use cases Owner-managed SMEs, freelancers professionalising past sole-proprietorship, family operations, EU-parent subsidiaries where simplicity beats share-class flexibility, and property or IP SPVs where the lower capital matters. Read the full GmbH setup walk-through Completeness Other legal forms (sole proprietorship, branch, Verein, Stiftung) For completeness, and because foreign founders sometimes arrive with one of these in mind already. Sole proprietorship (Einzelfirma / Raison individuelle) No minimum capital. Handelsregister entry is mandatory once annual turnover reaches CHF 100,000 (HRegV art. 36) and voluntary below. Liability is unlimited and personal, which is the defining downside against a GmbH. The owner is taxed as a natural person and pays AHV (old-age insurance) contributions on entrepreneur's income. Branch office (Zweigniederlassung / Succursale) No capital requirement; the branch is an extension of a foreign parent. A Handelsregister filing is still required and the branch must appoint a Swiss-resident representative. The branch is taxed in Switzerland on branch profit; the foreign parent remains legally responsible for branch obligations. Verein / Stiftung (association / foundation) The Verein (non-profit association, ZGB art. 60-79) has no minimum capital and only enters the Handelsregister if it pursues a commercial activity. The Stiftung (classical foundation) requires a dedicated purpose and an irrevocable asset endowment; charitable cross-border foundations are FINMA-supervised. Both forms are typical for NGOs and grant-making vehicles, not for operating commercial businesses. Where it matters Canton matters — where you incorporate changes the tax bill. Effective combined corporate-tax rates run from roughly 11.85% in Zug to 20.54% in Bern. The canton also dictates the Handelsregisteramt, the notary pool, and the language of the notarial deed. Effective combined corporate-income-tax rate by canton (2026). Rates verified from KPMG "Clarity on Swiss Taxes" and cantonal sources; re-check each January. Canton Code Effective rate Best for Zug ZG 11.85% HQ, holding, crypto; lowest rate in CH. Appenzell Innerrhoden AI ~11.5% Lowest headline rate; niche private-wealth. Nidwalden NW ~11.9% Low-tax small canton, often overlooked. Lucerne LU ~12.3% Second-lowest combined rate; low-key alternative to Zug. Glarus GL ~12.4% Small-canton SME setups. Uri UR ~12.6% Alpine transit corridor; niche. Obwalden OW ~12.7% Low-tax alternative in central Switzerland. Basel-Stadt BS ~13.0% Pharma / life-sciences cluster. Thurgau TG ~13.2% Eastern border canton; manufacturing. Basel-Land BL ~13.5% Cut 2.45 pp for 2025; pharma spillover. Schaffhausen SH ~13.8% Northern gateway; German-speaking market. Fribourg FR ~13.9% Bilingual DE/FR; food and agri-tech. Graubünden GR ~14.0% Alpine tourism; trilingual. Neuchâtel NE ~14.0% Watchmaking; French-speaking. Schwyz SZ ~14.0% Low-tax alternative to Zug (Freienbach even lower). Ticino TI ~14.0% Recent 3.11 pp cut (largest 2025 move); Italian-speaking market. St. Gallen SG 14.29% Eastern Switzerland; banking and textiles. Geneva GE 14.70% International HQs, UN agencies, private banking. Vaud VD 14.72% Lausanne / EPFL tech corridor. Aargau AG ~15.1% Zurich spillover; industrial SMEs. Solothurn SO ~15.3% Northwest; SME mittelstand. Jura JU ~16.0% French-speaking; watchmaking SMEs. Valais VS 17.12% Alpine tourism; wine; hydro. Zurich ZH 19.61% Finance, fintech, tech despite the rate. Bern BE 20.54% Federal capital; highest rate. Compare cantons side-by-side Run your canton-capital calculation Beyond the tax rate, what else the canton decides The canton determines more than the combined rate. It dictates which Handelsregisteramt processes the incorporation (each canton runs its own), which notaries you can engage, and the official language of the notarial deed (German, French, or Italian depending on region). It also sets the cantonal capital-tax band that applies to your company's equity going forward, typically between 0.001% and 0.5% of equity. Finally, the canton decides your access to specific industry clusters: pharma and life-sciences in Basel-Stadt, finance and fintech in Zurich, international agencies and private banking in Geneva, the tech corridor in Vaud, and the crypto and holding hubs in Zug. Process Formation timeline — from decision to operating company. End-to-end: two to four weeks for a GmbH and three to six weeks for an AG, assuming documentation is ready and the bank account is not the bottleneck. Step-by-step process (AG & GmbH) 1. Name check via zefix — 1 day. Confirm the company name is available across all cantonal registers. 2. Draft articles of association — 3 to 7 days. Includes notary review of share-class structure (AG) or partner agreement (GmbH). 3. Bank consignment account — 1 to 3 days. Deposit paid-in capital; capital is blocked until Handelsregister entry. 4. Notarial deed of incorporation — 1 day. In-person before a Swiss notary, or video-notarisation where the canton allows it. 5. Handelsregister filing — 7 to 21 days. Cantonal processing; some cantons offer expedited options. 6. VAT registration (if applicable) — 5 to 15 days. Post-incorporation, via ESTV. 7. Operating bank account — 5 to 30 days. Foreign UBOs may extend the CDD process. 8. Post-incorporation filings — ongoing. UBO filing under the 2025 TJPG Transparency Law, board minutes, tax residency confirmations. What can (and cannot) be done remotely Most documents can be signed abroad via apostilled powers of attorney. The notarial deed of incorporation itself typically requires either in-person attendance before a Swiss notary or video-notarisation in the small (but growing) set of cantons that permit it. Bank KYC and CDD for a foreign-owned new entity almost always require at least one in-person meeting or a qualified-introducer workflow, which is covered in our bank-account page . What affects the timeline, realistically Completeness of documentation at filing is the main driver. Beyond that, the complexity of the shareholder structure (single founder versus multi-jurisdiction UBO), cantonal Handelsregister backlog, the bank account difficulty tier, and whether VAT registration is needed in year one all shift the end date. We do not publish "48-hour formation" claims, they do not survive contact with a Swiss Handelsregister. Foreign founders What the Swiss-resident director rule means for you. The single most-asked question from non-Swiss founders, and the one where most peers wave their hands. Three concrete options, trade-offs named. The legal rule — OR art. 718.4 and OR art. 814.3 An AG must have at least one board member with signatory authority (sole or joint) who is resident in Switzerland (OR art. 718.4). A GmbH must have at least one managing officer with signatory authority who is resident in Switzerland (OR art. 814.3). The test is Swiss residency (domicile), not nationality. You, your partner, or your employee can satisfy the rule if they live in Switzerland. Your options as a foreign founder Appoint your own Swiss-resident employee or partner. The cleanest long-term answer, if you have someone who genuinely lives in Switzerland and is willing to carry fiduciary responsibility. Relocate under a B permit. For EU and EFTA nationals, this is direct under free movement. For third-country nationals, expect a quota-constrained process with the FNA art. 19 economic-interest test. See our guide on how to relocate on a work permit . Use a nominee director service. Legal under Swiss law and widely used. The nominee carries real fiduciary duties, not a paper role. Use a nominee director arrangement if the other two options are not on the table. After incorporation The operational obligations foreign founders often underestimate. The Handelsregister entry is only the start. Bank account, VAT, UBO, and first-year accounting are where most new companies lose momentum. Bank account — why it is the hard part Swiss banks apply rigorous customer-due-diligence and anti-money-laundering checks to new entities, especially foreign-owned ones. Rejection rates are elevated for certain UBO jurisdictions. Three realistic tracks exist: a cantonal or retail Swiss bank (conservative, longer KYC); a private bank (higher minimum balances, faster for clean high-net-worth UBOs); and a fintech or neo-bank (CHF IBANs, lighter onboarding, sometimes needed as a bridge while the main bank processes KYC). We do not list specific bank names on this hub, the bank-account opening page covers that in depth. VAT — when you need to register Mandatory registration applies once worldwide taxable turnover crosses CHF 100,000 per year (MWSTG art. 10). For foreign businesses with worldwide turnover above the threshold and any supply made in Switzerland, VAT liability starts from the first franc of Swiss turnover. The standard rate is 8.1% (since 1 January 2024); reduced and accommodation rates are 2.6% and 3.8% respectively. Voluntary registration below the threshold is also possible. UBO register — OR art. 697j and the pending TJPG Every Swiss AG and GmbH already operates an in-company UBO register under OR art. 697j: a shareholder or quotaholder who reaches 25 percent of capital or voting rights, alone or in concert, must disclose the ultimate beneficial owner to the company within one month. The company keeps the register; it is not public but is accessible to Swiss tax, criminal and anti-money-laundering authorities on request. In parallel, the draft Transparency of Legal Persons Act (TJPG / LTPM) — Federal Council Dispatch 2023, parliamentary debate 2024–2025 — would add a central federal beneficial-owner register for all Swiss legal persons and trusts with a Swiss nexus, aligned with FATF Recommendation 24 and EU AMLD5. We track the TJPG's final in-force date on fedlex.admin.ch and update engagement letters in line with the final text. First-year accounting and audit All AG and GmbH entities maintain statutory bookkeeping and file annual financial statements (OR art. 957 and following). A limited review is the default audit regime; ordinary audit is triggered only when two of three thresholds (balance-sheet total CHF 20m, revenue CHF 40m, 250 FTEs) are crossed for two consecutive years (OR art. 727). Our accounting service handles bookkeeping, VAT returns, annual financial statements and audit coordination. Specialised cases Are you a specialised case? (holding, family office, FINMA, crypto) If your structure is one of these, the formation decision is upstream of the generic AG/GmbH question. Start on the specialised hub. Holding company Participation exemption (DBG art. 69-70) makes Swiss holdings efficient for international groups; AG is the default vehicle. Family office Single-family or multi-family. Swiss advantages on asset protection, privacy, and banking infrastructure. FINMA-licensed Banks, portfolio managers under FinIA, funds under CISA, insurers under ISA. Authorisation required before day-1 operations. Crypto / DLT FMIA 2021 DLT extensions and the Zug Crypto Valley ecosystem. Formation sits inside a regulatory perimeter. FAQ Frequently asked questions Ten answers mapped to the top People Also Ask queries for Swiss company formation. Schema emitted below (FAQPage) matches every answer byte-for-byte. Do I need to be a Swiss resident to form a company in Switzerland? No. Shareholders and partners may be any nationality and any residency. What is required is at least one signatory, a board member for an AG (OR art. 718.4) or a managing officer for a GmbH (OR art. 814.3), who is resident in Switzerland. That person can be you after relocation, a Swiss employee or partner, or a nominee director. What is the minimum share capital for a Swiss AG? CHF 100,000 total share capital under OR art. 621, of which CHF 50,000 or 20% of subscribed capital (whichever is higher) must be paid in at formation under OR art. 632. The remainder is callable by the board later. What is the minimum share capital for a Swiss GmbH? CHF 20,000, fully paid in at formation under OR art. 773 and art. 777c. Contributions may be cash or in-kind (real estate, machinery, IP). The capital is blocked on a bank consignment account until Handelsregister entry. How long does it take to register a Swiss company? End-to-end 2 to 4 weeks for a GmbH and 3 to 6 weeks for an AG. The Handelsregister filing itself takes 7 to 21 days depending on the canton. Opening an operating bank account can add a further 1 to 4 weeks, especially for foreign-owned companies. Can I form a Swiss company entirely remotely? Largely yes, with caveats. Documents can be signed via apostilled powers of attorney from abroad, but the notarial deed itself typically requires in-person Swiss notarisation or video-notarisation in cantons that allow it. The operating bank account generally requires at least one in-person or qualified-introducer meeting. Do I need a Swiss-resident director? Yes. At least one person with signatory authority must reside in Switzerland, a board member for an AG (OR art. 718.4) or a managing officer for a GmbH (OR art. 814.3). Residency (domicile), not nationality. Foreign founders typically use one of three solutions: a Swiss-resident partner, self-relocation on a B permit, or a nominee-director arrangement. Can I use a nominee director, and is that legal? Yes. Swiss nominee directorship is legal and widely used. The nominee carries real fiduciary duties under Swiss law, the role is a genuine board seat, not a paper shell. Which canton should I incorporate in? Tax-optimal choices include Zug (effective combined CIT around 11.85%), Lucerne (around 12.3%), Appenzell Innerrhoden (around 11.5%) and Nidwalden (around 11.9%). Cluster-optimal choices depend on sector: Basel-Stadt for life-sciences, Geneva for private banking and international agencies, Vaud and Lausanne for tech, and Zurich for finance despite a higher combined rate of around 19.61%. Rates verified from KPMG Clarity on Swiss Taxes. How much does company formation in Switzerland cost? Total first-year outlay has four components: the statutory capital you bring in (CHF 20,000 for a GmbH fully paid, CHF 50,000 minimum paid-in for an AG), 1% stamp duty on paid-in capital above a CHF 1,000,000 lifetime exemption, notary and Handelsregister fees that vary by canton, and advisor fees that depend on scope. We prepare a custom proposal once we know your preferred form, canton and director arrangement. Which legal form should a freelancer choose, GmbH or sole proprietorship? For a solo operator below CHF 100,000 in annual turnover and comfortable with personal liability, sole proprietorship has the lowest friction, HRegV art. 36 makes Handelsregister entry voluntary below that threshold. As you cross CHF 100,000 or want to cap personal liability, a GmbH (CHF 20,000 fully paid under OR art. 773) becomes materially more defensible. An AG is usually over-featured for freelance operations. Fit check When this hub isn't your next step. Five situations where the AG/GmbH formation path above is not the answer, and what to look at instead. You need same-day or next-week incorporation, end-to-end is two to four weeks for a GmbH and three to six weeks for an AG, and the bank account can add one to four weeks on top. You're running or planning a licensed financial activity, FINMA authorisation for banks, portfolio managers under FinIA, funds under CISA or insurers is required before day-one operations, upstream of the formation question this hub covers. You want a non-profit or grant-making vehicle, Verein and Stiftung are covered on this hub, but neither is built for operating a commercial business. You don't have a Swiss-resident partner or employee and don't want a nominee arrangement, every AG and GmbH needs at least one CH-resident signatory (OR art. 718.4 / 814.3) before formation can complete. You are a solo operator under CHF 100,000 turnover and comfortable with personal liability, sole proprietorship is the lower-friction entry point; the AG/GmbH tracks on this page add cost and complexity you may not need yet. Next step Ready to form your Swiss company? Tell us what you want to build; we come back with a scoped proposal covering legal form, canton, director arrangement and timeline. No template quotes, no price gates. See how we scope a proposal on our fees-and-process page. Request a proposal --- ## Swiss AG Formation — Joint-Stock Company for Foreigners URL: https://business-in-switzerland.com/services/company-formation/ag Description: Form a Swiss AG from abroad: CHF 100,000 share capital, Swiss-resident signatory, OR art. 621 process, cantonal tax options, no prices. Request a proposal. Swiss AG Formation — Joint-Stock Company for Foreigners STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Swiss business setup Form a Swiss AG: the joint-stock-company route for foreign founders. The Aktiengesellschaft (AG), Switzerland's joint-stock corporation, is the default vehicle for capital raises, holding structures, and any founder who values shareholder privacy. CHF 100,000 share capital, at least CHF 50,000 paid in at formation, one Swiss-resident signatory. Part of our company-formation service line. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 At a glance The numbers every AG founder asks about first. Capital threshold, paid-in rule, resident-signatory rule and realistic end-to-end timeline, before the detail. 100k CHF AG min share capital OR art. 621 50k / 20% CHF min paid-in (or 20%) OR art. 632 1+ CH-resident signatory required OR art. 718.4 3 – 6 wk End-to-end formation Handelsregister timelines Definition and fit What is a Swiss AG, and when is it the right vehicle? A compact definition, the German and French aliases, and the three founder profiles we most often set up as an AG. AG in one paragraph The Aktiengesellschaft (AG), known as Société Anonyme (SA) in French-speaking cantons and Società Anonima in Ticino, is Switzerland's joint-stock corporation. It is a separate legal person with its capital divided into shares, the shareholders' liability limited to their subscription. The AG is governed by articles 620 to 763 of the Swiss Code of Obligations (OR) and is the statutory sibling of the GmbH. In English filings, calling it a "Swiss stock corporation" is safer than "Swiss public limited company", since a Swiss AG is not a UK PLC and is typically privately held. Typical profiles we form AGs for Three founder archetypes account for the bulk of our AG engagements. First, scaling companies preparing one or more equity rounds: the AG's registered-share architecture, share-class flexibility, and shareholder privacy outperform the GmbH for any cap-table that will grow. Second, holding and family-office vehicles: the Swiss participation exemption (DBG art. 69 to 70) paired with the AG's privacy make it the default vehicle for group HQs and wealth structures; see our overview of the AG as a holding vehicle . Third, professional-services or licensed businesses that need an AG because their regulator or clients expect one, including FINMA-supervised entities. Capital requirements Capital requirements at a glance. The CHF 100,000 / CHF 50,000-or-20% pair, what the paid-in rule really means, and the two edges most founders miss: in-kind contributions and stamp duty above CHF 1 million. Share capital vs paid-in capital (CHF 100,000 / CHF 50,000 or 20%) Swiss law sets the minimum share capital of an AG at CHF 100,000 (OR art. 621). At incorporation, at least CHF 50,000 or 20 percent of the subscribed share capital, whichever is higher, must be paid in (OR art. 632). The unpaid remainder stays callable and can be demanded by the board at any point once the company operates. Practically, the paid-in portion is deposited on a Swiss bank consignment account (Einzahlungskonto / Kapitaleinzahlungskonto) where it is blocked until the Handelsregister entry is issued, after which it is released to the company's operating account. The bank issues a capital-deposit certificate that the notary annexes to the deed of incorporation. In-kind contributions (Sacheinlage), when capital isn't cash Share capital can be contributed in assets rather than cash under OR article 628. The asset must be clearly identifiable, legally transferable to the company, and valued in a written contribution agreement (Sacheinlagevertrag) signed before incorporation. An independent auditor issues a valuation report confirming that the asset's value is at least equal to the shares issued against it. Both the agreement and the auditor's valuation are referenced in the notarial deed and in the articles of association. Typical in-kind cases: an existing business brought into a newly formed Swiss AG, intellectual-property rights, real estate, or stakes in other companies. Stamp duty on capital issuance The federal stamp issuance duty is 1 percent on paid-in capital and subsequent capital contributions, with a lifetime exemption of CHF 1,000,000 per company (StG art. 5 and 6). Most AGs formed at the CHF 100,000 to CHF 500,000 band sit below the exemption. Once cumulative paid-in capital crosses CHF 1 million over the life of the company, the 1 percent applies to the excess. Governance Governance: board, signatory, and auditor. The OR art. 718.4 resident-signatory rule is the foreign-founder deal-breaker. Board duties, signatory options, and when an audit is (and isn't) triggered. Board of directors (OR art. 707 ff., 716a, 717) A Swiss AG must have at least one board member (Verwaltungsrat). Members can be natural or legal persons of any nationality; residency is separately regulated by the signatory rule below. The board holds residual corporate powers, with specific non-transferable duties under OR article 716a: ultimate direction of the company, determination of its organisation, structuring of its accounting and financial controls, appointing and removing senior executives, oversight of those executives, and preparation of the annual report and AGM. Directors owe a duty of care and loyalty (OR art. 717), enforceable through shareholder actions, and are exposed to personal liability for breaches of statutory duty. The Swiss-resident signatory requirement (OR art. 718.4) At least one authorised representative of the AG, a board member or a company officer with signing power, must reside in Switzerland (OR art. 718.4). The rule is about domicile, not nationality: a non-Swiss national already resident in Switzerland satisfies it, while a Swiss national resident abroad does not. For a foreign sole founder with no Swiss-resident partner or employee, there are three realistic paths: relocating to Switzerland on a B permit, appointing a Swiss-resident employee with signing authority, or engaging our Swiss-resident director service . Owning an AG does not itself grant a residence permit; the permit process and the formation process run on separate tracks. Auditor: ordinary, limited, or opt-out (OR art. 727 / 727a) Every AG is, in principle, subject to a statutory audit. Which audit regime applies depends on size. An ordinary audit under OR article 727 is required if the company exceeds two of three thresholds for two consecutive years: balance-sheet total CHF 20 million, revenue CHF 40 million, 250 full-time equivalents. Below that, a limited-scope audit under OR article 727a applies. A full opt-out is permitted where the company has 10 full-time equivalents or fewer and all shareholders consent unanimously; consent is re-confirmed annually in the shareholders' resolutions. The opt-out is popular for early-stage AGs and holding vehicles; it is reversible. Shares Shares: registered only since 2019. Bearer shares were abolished by the 2019 transparency reform. Here is what that means for a new AG, and how voting, preferred and UBO-disclosed shares actually work. Registered shares (Namenaktien) Since the 2019 transparency reform, a Swiss AG may only issue registered shares, recorded in the company's share register (Aktienbuch) under OR art. 622.1bis. The share register is kept by the company and is not public, which distinguishes the AG from the GmbH, where members and their holdings are listed in the Handelsregister. Shares are transferred by endorsement or assignment, subject to any transfer restrictions the articles impose. The register is what proves who owns what at a given date, and it is the basis for every AGM notice and every dividend distribution. Voting and preferred share classes AGs can issue more than one share class. Voting shares (Stimmrechtsaktien) under OR article 693 allow a lower nominal value to carry one vote, so a founder class of voting shares can retain control after investor rounds; Swiss law caps the voting differential at ten to one. Preferred shares (Vorzugsaktien) under OR article 656 grant economic preferences such as a dividend priority or a liquidation preference and are commonly used in investor rounds. Each share class and its rights must be set out in the articles of association and entered in the Handelsregister; the share-class ladder usually evolves with each financing round. Transparency reforms 2019 to 2021 (UBO disclosure thresholds) The 2019 to 2021 transparency package ended the bearer-share era and introduced internal beneficial-owner disclosure obligations. Under OR art. 697j , a shareholder who acquires a stake of 25 percent or more of share capital or voting rights, alone or in concert, must notify the company of the ultimate beneficial owner (name, surname, residential address) within one month. The company enters the beneficial owner in an internal UBO register kept alongside the share register. The UBO register is not public, but it is accessible to Swiss tax, criminal and anti-money-laundering authorities on request. Wilful non-disclosure triggers forfeiture of membership rights on the affected shares plus criminal-law fines for company officers (OR art. 697m; art. 327 StGB). Decision frame AG vs GmbH at a glance. Five dimensions. No recommendation column: you decide. For the full GmbH walk-through, see GmbH formation. Dimension AG GmbH OR reference Minimum share capital CHF 100,000 CHF 20,000 OR art. 621 / 773 Paid-in at formation CHF 50,000 or 20% (higher) CHF 20,000 fully paid OR art. 632 / 777c Shareholder disclosure Private (internal register) Public in Handelsregister — Share transferability Free by default Consent of partners typical OR art. 684 / 786 Swiss-resident signatory Board member or officer Managing officer OR art. 718.4 / 814.3 As a rule of thumb: if capital, share-class flexibility, or shareholder privacy matters, start with an AG. If lower capital and owner-managed simplicity matter more, start with a GmbH formation . GmbH to AG conversion is available later under the Merger Act (Fusionsgesetz), so the GmbH is a defensible stepping-stone when future capital requirements are uncertain. Process Timeline to incorporation: what 3 to 6 weeks really looks like. Seven ordered steps from zefix name check to operating bank account, with realistic durations. The bank is the bottleneck, not the notary. The steps in sequence 1. Name check via zefix — 1 day. Confirm the proposed AG name is available across all cantonal registers. 2. Draft articles of association — 3 to 7 days. Share classes, transfer restrictions and governance provisions reviewed by the notary. 3. Bank consignment account and paid-in deposit — 1 to 3 days. Capital blocked until Handelsregister entry is confirmed; bank issues the capital-deposit certificate. 4. Notarial deed of incorporation — 1 day. Öffentliche Beurkundung before a Swiss notary under OR art. 629; founders or duly empowered attorneys-in-fact sign. 5. Handelsregister filing and SHAB publication — 7 to 21 days. Cantonal Handelsregisteramt processes the filing; some cantons offer expedited tracks. 6. VAT registration (if applicable) — 5 to 15 days. ESTV processes VAT registration once worldwide turnover crosses CHF 100,000 or voluntarily. 7. Operating bank account — 5 to 30 days (often 4 to 8 weeks for foreign UBOs). Swiss CDD under AMLA is the step where foreign-UBO timelines stretch. Why bank account onboarding is the real bottleneck Peer write-ups routinely quote "incorporation in 10 days" and quietly omit the banking step. Swiss customer-due-diligence (CDD) requirements under the Anti-Money-Laundering Act (AMLA) and FINMA supervisory practice apply a source-of-funds and source-of-wealth review to every new corporate customer. For foreign founders, the review extends to the UBO jurisdiction's AML regime, the group-structure chart, and the source-of-wealth documentation. Depending on the bank and the complexity of the UBO, this adds 2 to 4 weeks beyond the standard 5 to 30-day range, sometimes longer. We build this into every engagement plan rather than quote an artificially short timeline. Where you incorporate Canton choice: where to register your AG. Effective combined corporate tax rates for an AG at the cantonal capital run roughly 11.85% in Zug to 20.54% in Bern. Rate alone isn't the full story. Cantonal AG effective combined corporate tax rate (2026; federal + cantonal + municipal at the cantonal capital). Verified against KPMG "Clarity on Swiss Taxes" and cantonal sources; re-verified annually in January. Canton Code Effective rate Signal Zug ZG 11.85% Holding, crypto and HQ default. Appenzell-Innerrhoden AI ~11.5% Lowest headline rate nationally. Nidwalden NW ~11.9% Low-tax small canton, often overlooked. Lucerne LU ~12.3% Second-lowest combined rate. Basel-Stadt BS ~13.0% Pharma and life-sciences cluster. Geneva GE 14.70% International HQs, UN agencies, private banking. Zurich ZH 19.61% Finance and fintech cluster despite higher rate. Compare all 26 cantons It isn't only the tax rate Effective rate is the headline, not the whole picture. Cantonal Handelsregister processing time varies from under a week in expedited cantons to three weeks in busier ones. Cantonal Handelsregister and notary fees differ and scale with capital. Notarial-deed language follows the canton's official language (German in Zug and Zurich, French in Geneva and Vaud, Italian in Ticino). Industry clusters matter too: pharma and life-sciences in Basel-Stadt, fintech and crypto in Zug, international-agency and private-banking business in Geneva. Finally, local bank access differs: Zug and Zurich have the deepest bench of commercial-bank options for foreign-UBO companies. AG as a holding or IP-holding vehicle When an AG is formed to hold shares of operating subsidiaries, the Swiss participation exemption (DBG art. 69 to 70) effectively exempts qualifying intercompany dividends from federal corporate tax. Paired with Zug's 11.85% combined rate, the participation exemption is the single biggest reason international groups structure their European HQ as a Swiss AG. For the full framing, see AG as a holding vehicle . After day one What your AG must do after day one. The incorporation deed is only the start. AGM, annual accounts, audit regime (if triggered), tax and VAT filings, and the internal UBO register all run from day one. Annual general meeting (OR art. 698 ff.) The AG must hold an annual general meeting (Generalversammlung) within six months of its financial year-end. Standard agenda items: approval of the annual accounts, discharge of the board and officers, election or re-election of board members and the auditor (where applicable), and any dividend resolution. Minutes are kept in the company's books and feed the Handelsregister updates triggered by changes to the board or the articles. Accounting and audit obligations The AG maintains statutory bookkeeping and produces annual financial statements under OR articles 957 ff. Where the audit thresholds from the governance section are crossed, an ordinary audit under OR article 727 applies; otherwise a limited audit under OR article 727a runs, unless the company qualifies for and elects the opt-out. Our accounting and audit services cover bookkeeping, VAT filings, the annual statements, and audit coordination. Tax and VAT reporting The AG files annual federal and cantonal corporate-tax returns. The federal statutory rate is 8.5 percent on net profit after tax, which computes to an effective federal rate of approximately 7.83 percent; the cantonal and municipal layers bring the combined rate into the range shown in the canton matrix above. VAT registration is compulsory once worldwide taxable turnover reaches CHF 100,000 (MWSTG art. 10), at the 8.1 percent standard rate. Dividends attract a 35 percent federal withholding tax at source, reducible under treaty and refundable in full for Swiss-resident recipients. The UBO / shareholder disclosure register Alongside the public Handelsregister, the AG maintains an internal UBO register under OR art. 697j . Shareholders crossing the 25 percent threshold (share capital or voting rights), alone or in concert, must notify the company within one month, and the company records the beneficial owner's name, surname and residential address in the register. The duty is ongoing; changes must be reported promptly. The register is not public but is accessible to Swiss tax, criminal and AML authorities on request under the 2019 to 2021 transparency package. Our engagement What we deliver: your AG, end-to-end. A single Swiss counterparty for the legal, notarial, banking, and post-incorporation work. No templates, no price gates. Every engagement is scoped on the call. Our engagement scope A standard AG-formation engagement covers: drafting the articles of association, the board regulations and the share register; coordinating the Swiss notary and scheduling the notarial deed; preparing and lodging the Handelsregister application; opening the bank consignment account and managing paid-in capital release; registering for VAT where turnover thresholds require it; arranging the Swiss-resident signatory where needed, including via our nominee-director service; and handing over to first-year compliance (accounting, payroll and audit coordination). Scope is adjusted per matter; the exact list is fixed in the engagement letter. How we work with foreign founders Most of the work is handled remotely. Where in-person attendance is required, we schedule a single notarial appointment in Zug; alternatively, we act under a duly apostilled power of attorney signed in your home jurisdiction and countersigned by a Swiss notary. All communication is English-first. Bank introductions are part of the engagement; we prepare the CDD dossier to match the specific bank's documentation standard so that the onboarding runs in parallel with the Handelsregister filing rather than sequentially after it. What happens after incorporation Once the Handelsregister certificate is issued and the operating bank account is live, the company moves into first-year compliance. We continue as your Swiss counterparty under a separate accounting and audit services engagement, with the Swiss-resident director service continuing where it was used for formation. See how we scope and price engagements for the engagement model end-to-end. FAQ Frequently asked questions. Twelve answers mapped to the top People Also Ask queries for Swiss AG formation. FAQPage schema emitted in the @graph above matches every answer byte-for-byte. What's the minimum share capital for a Swiss AG? CHF 100,000 under OR article 621. At least CHF 50,000 or 20 percent of the share capital, whichever is higher, must be paid in at incorporation under OR article 632. Can I form a Swiss AG remotely as a foreign founder? Yes, in most cases. Non-resident founders incorporate via a Swiss notary, in person or through a duly legalised power of attorney. Practical end-to-end timeline is typically 3 to 6 weeks; the main delay is bank account onboarding, not the legal step. Do I need a Swiss-resident director for my AG? Swiss law requires at least one authorised representative, a board member or officer with signing power, to reside in Switzerland (OR article 718.4). Foreign founders meet this by appointing a resident board member or using a nominee-director service. Can one person be both sole shareholder and sole director? Yes. A Swiss AG can be a single-member, single-director company. The sole director must meet the Swiss-residency requirement or be paired with a resident officer holding signing power. What's the difference between share capital and paid-in capital? Share capital is the total nominal value of shares subscribed (minimum CHF 100,000). Paid-in capital is the portion actually deposited at formation (minimum CHF 50,000 or 20 percent, whichever is higher). The unpaid remainder can be called up later by the company. Can I contribute property, IP, or equipment instead of cash? Yes, through an in-kind contribution (Sacheinlage) under OR article 628. The asset must be identifiable, legally transferable, valued in a written contribution agreement, and supported by an auditor's valuation report; the arrangement is documented in the notarial deed and articles of association. Are Swiss AG shareholders public? No. The AG keeps a private share register, unlike the GmbH, whose members appear in the public Handelsregister. Beneficial owners of 25 percent or more must be entered in an internal UBO register under the 2019 to 2021 transparency reforms. When does a Swiss AG need an audit? An ordinary audit is required if the AG exceeds two of three thresholds for two consecutive years: balance-sheet total CHF 20 million, revenue CHF 40 million, 250 FTEs (OR article 727). Below these, a limited audit under OR article 727a applies; an opt-out is available with 10 FTEs or fewer and unanimous shareholder consent. How long does AG incorporation take? Typically 3 to 6 weeks end-to-end. Notarial deed to Handelsregister entry is often 7 to 21 days; the operating bank account can add 5 to 30 days, with foreign UBOs on the longer end due to customer due-diligence requirements. Can I convert a GmbH into an AG later? Yes. Under the Merger Act the GmbH can be transformed into an AG without a liquidation event. The transformation requires a capital top-up to CHF 100,000, new articles of association, a notarial deed, and Handelsregister filing; a typical timeline is 4 to 8 weeks. Which canton is cheapest for an AG from a tax perspective? Zug (effective combined rate approximately 11.85 percent) is the headline low-tax canton; Appenzell-Innerrhoden and Nidwalden are close. Zurich (19.61 percent) and Bern (20.54 percent) are at the top of the range. Rate alone is not the whole picture; canton choice should weigh industry, talent, registry speed, and bank access. Can I issue preferred shares or employee stock options? Yes. Preferred shares are enabled under OR article 656; voting shares with weighted voting under OR article 693. Employee participation programmes are typically structured through conditional capital under OR article 653 ff. or through a treasury-share pool. Fit check When an AG isn't the right vehicle. Five scenarios where the joint-stock-company route above doesn't fit, and where to look instead. You need capital below CHF 100,000, GmbH at CHF 20,000 fully paid is the lower-capital route; see the AG vs GmbH comparison above. You need incorporation within days, realistic timeline is three to six weeks end-to-end, and bank account onboarding alone often adds four to eight weeks for foreign UBOs. You don't have a Swiss-resident signatory arranged, at least one board member or officer with signing power must be resident in Switzerland (OR art. 718.4); without that in place, formation cannot proceed. You plan to raise paid-in capital repeatedly above CHF 1 million over the life of the company, the 1 percent stamp issuance duty applies to the excess once the lifetime exemption is used up. You want to issue bearer shares, abolished since the 2019 transparency reform; a Swiss AG can only issue registered shares now. Next step Ready to form your Swiss AG? Tell us the form, the canton, and the signatory arrangement you have in mind, or let us map it with you. We return a scoped proposal covering every step from articles to first-year compliance. No price-list, no template quotes. Request a proposal --- ## Form a Swiss association (Verein) — CHF 390 URL: https://business-in-switzerland.com/services/company-formation/association Description: Register a Swiss Verein (association): non-profit purpose, no minimum capital, members elect the board. CHF 390 flat. Tax exemption for charitable purposes. Form a Swiss association (Verein) — CHF 390 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Association Form a Swiss Verein for CHF 390. Non-profit ideal purpose under ZGB art. 60 ff. No minimum capital, no notary required, formation effectively immediate. Tax-exempt status available for charitable, cultural, scientific or social-welfare purposes. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 02 · Three defining features Non-profit purpose, no capital, optional tax exemption. 01.01 Non-profit purpose A Verein must pursue an ideal (non-economic) purpose under Civil Code art. 60 ff. Common purposes: cultural, sports, scientific, professional-association, social-welfare, religious. Commercial activity is permitted only as a means to the ideal purpose, not as the purpose itself. 01.02 No minimum capital, no notary No statutory minimum capital. Founding statutes can be signed in writing — no notarial deed required (unlike AG / GmbH). Two or more founder-members are sufficient. 01.03 Tax-exempt option Charitable, scientific, cultural and similar public-benefit Vereins can apply for cantonal tax exemption — exempting the association from federal direct tax and cantonal income tax, and making donations deductible from donors' taxable income. 03 · Pricing Cheapest non-profit legal form in Switzerland. Service Our fee Market range Verein formation CHF 390 CHF 300–1,000 Tax-exempt status application (charitable Verein) from CHF 990 CHF 1,500–4,000 Registered office (where required by canton) CHF 1,200 / year CHF 1,400–2,800 Statutes amendment (post-formation) from CHF 800 CHF 1,000–3,000 04 · Mandate scope Statutes, meeting, board, optional registry and tax. 04.01 Drafting of association statutes reflecting the ideal purpose 04.02 Coordination of the constitutive general meeting with founder-members 04.03 Initial board election and signing-rights documentation 04.04 Handelsregister filing (where required — see FAQ on threshold) 04.05 AHV / VAT registration where the association employs staff or has commercial side-activity 04.06 Optional: cantonal tax-exempt application for public-benefit Vereins 05 · Process Purpose → statutes → meeting → registry/tax. 01 Purpose + members Define the ideal purpose. Confirm at least 2 founder-members. Identify the planned board (Vorstand) of at least 1 person, typically 3+. 02 Statutes Drafted to ZGB art. 60 ff standard. Includes purpose, member-admission rules, contribution mechanics (if any), board structure, decision rules, dissolution. 03 Constitutive meeting Members sign the statutes in writing. Board elected. No notary required. Minutes documented. 04 Registry + tax (where applicable) Handelsregister filing if the Verein operates a commercial business or crosses CHF 100,000 turnover. Tax-exempt application filed in parallel for public-benefit Vereins. 06 · FAQ Frequently asked questions. When must a Verein register with the Handelsregister? Under ZGB art. 61, a Verein must register if it operates a commercial business or — under accounting-law thresholds — if it has annual turnover above CHF 100,000 from commercial activity. Pure non-commercial Vereins (sports clubs, cultural associations, professional associations without paid services) are not required to register but may register voluntarily. Do members of a Verein have liability for its debts? No, by default. Civil Code art. 75a establishes that the association's assets are the only fund available for its debts unless the statutes provide for member liability. Modern Verein statutes follow the default and limit liability to association assets, similar to a GmbH or AG. Can a Verein run a business? Yes — but the business must serve the ideal purpose, not be the purpose itself. Examples: a sports association running a clubhouse café whose profits support the sports activity; a professional association charging membership fees and running educational events. The boundary is whether the commercial activity dominates the association's activities. Heavy commercial activity may require conversion to a GmbH or AG. How long does Verein formation take? Where no Handelsregister filing is required, formation is effectively immediate — the Verein exists from the moment the constitutive meeting signs the statutes. Where registration is required (commercial activity or turnover threshold) the cantonal Handelsregister adds 5–15 working days. Is a tax-exempt Verein the same as a foundation? No — different legal forms. A Verein is a member-driven association governed by member assemblies; a foundation (Stiftung) is a property-driven endowment governed by the founder's defined purpose without members. Both can be tax-exempt for charitable purposes. Vereins are typically used for ongoing membership-based activities (sports, professional, cultural), foundations for endowments and grant-making. See /services/company-formation/foundation/ for foundations. Can a foreign person found a Verein? Yes. Founder-members and board members can be foreign natural persons or foreign legal entities. Where the Verein registers with the Handelsregister, at least one member of the Vorstand must reside in Switzerland with signing power, similar to AG/GmbH director rules. 07 · Fit check When a Verein doesn't fit your purpose. Your purpose is commercial or for-profit, a Verein must pursue an ideal (non-economic) purpose under ZGB art. 60 ff; if commercial activity would dominate, GmbH or AG fits better. You want formal registry visibility from day one, Handelsregister registration is only mandatory once the Verein operates a commercial business or crosses CHF 100,000 turnover; pure non-commercial Vereins are not required to register. You want a property-driven endowment governed by a founder's purpose, not a membership body, that is a Stiftung (foundation), not a Verein. You have fewer than 2 founder-members lined up, Verein formation requires at least 2. 08 · Get started Send the purpose and the founder-members. One-line brief: ideal purpose, list of founder-members (minimum 2), planned board, expected commercial activity if any. We send the statutes draft and timeline within 24 hours. Request a proposal --- ## Open a Swiss branch (Zweigniederlassung) — CHF 1,490 URL: https://business-in-switzerland.com/services/company-formation/branch Description: Register a Swiss branch (Zweigniederlassung) of a foreign company. One Handelsregister filing, no separate share capital. CHF 1,490 incl. notary and registry. Open a Swiss branch (Zweigniederlassung) — CHF 1,490 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Branch registration A Swiss branch of a foreign company, CHF 1,490 all-in. Single Handelsregister filing, no separate share capital, full Swiss tax registration. The fast path to Swiss operations when ring-fencing through a subsidiary is not the priority. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: May 2026 02 · Branch vs subsidiary Same outcome on paper, different liability and capital. 01.01 Branch (Zweigniederlassung) A dependent operating outpost of a foreign parent. Same legal person, same liability. No separate share capital. Registered in the cantonal Handelsregister; subject to Swiss tax on Swiss-source income. 01.02 Subsidiary (separate AG/GmbH) A new Swiss legal person, owned by the parent. Separate liability, separate share capital (CHF 100k AG / CHF 20k GmbH). Higher set-up cost, stronger ring-fencing, easier to scale or sell. 01.03 Decision criteria Pick a branch when you want fast access to Swiss customers without the capital and complexity of a subsidiary, and when ring-fencing is not a priority. Pick a subsidiary when liability separation, capital raising or future sale matters. 03 · Pricing Branch fee, plus the recurring infrastructure. Service Our fee Market range Branch registration (incl. notary, HR filing) CHF 1,490 CHF 2,500–3,500 Resident manager mandate (annual) CHF 2,900 / year CHF 2,500–4,000 Registered office (Zurich or Zug) CHF 1,200 / year CHF 1,400–2,800 Ongoing accounting (dormant year-end) CHF 990 / year CHF 1,400–1,800 Ongoing accounting (active, small) CHF 1,900 / year CHF 2,000–5,000 Fees excl. MWST. Certified translation of parent dossier into German/French is passed through at cost (typically CHF 200–600). 04 · What the fee covers From parent dossier to operational branch. 04.01 Apostilled excerpt and articles of the foreign parent translated into German/French 04.02 Drafting of the branch articles and management mandate 04.03 Notarial deed for branch establishment 04.04 Handelsregister filing in the cantonal register 04.05 Tax registration with the cantonal tax office 04.06 VAT registration if Swiss turnover exceeds CHF 100,000 05 · Process Three weeks from parent dossier to active branch. 01 Parent dossier Apostilled excerpt + articles of the foreign parent. We organise certified translation into the relevant cantonal language. 02 Branch articles Drafted to Swiss standard. Activity scope, registered office, signing rules, name of the resident representative. 03 Notarial deed + filing Notarial deed signed by the parent's authorised representative (or by power of attorney). HR filing within 24 hours. 04 Registry confirmation 5–15 working days at the cantonal Handelsregister. Branch is operational on the date of registration. 06 · FAQ Frequently asked questions. What is the difference between a branch and a subsidiary? A branch is part of the foreign parent — same legal person, same liability. A subsidiary is a separate Swiss legal entity (AG or GmbH) owned by the parent. Branches are simpler to set up and require no share capital, but the parent is fully exposed to Swiss-side liabilities. Subsidiaries ring-fence liability and require separate capital (CHF 100k AG / CHF 20k GmbH). Do I need a Swiss representative for a branch? Yes. Article 935 of the Code of Obligations requires every Swiss branch of a foreign company to have at least one resident with signing power. We provide a resident manager mandate for CHF 2,900 per year. How is a branch taxed in Switzerland? A branch is taxed only on Swiss-source income (federal corporate tax 8.5% statutory plus cantonal/municipal). The foreign parent claims a credit or exemption in its home jurisdiction under the relevant double taxation treaty. Switzerland has approximately 80 DTAs, including with all major OECD economies. Is a Swiss bank account required for a branch? Strongly recommended. Banking due diligence is similar to a subsidiary — UBO documentation, source-of-funds, business plan. Operating accounts can be opened only after the Handelsregister entry. Allow 5–30 days for banking due diligence on the foreign parent. Can the branch hire employees in Switzerland? Yes. The branch can be the legal employer for Swiss-based staff. Standard Swiss payroll (AHV/SUVA/BVG) applies — see /services/payroll/. How long does branch registration take? Typically 3–6 weeks total: 1–2 weeks to assemble the parent dossier and certified translations, 1 week for notarial deed and filing, 1–2 weeks for the cantonal Handelsregister to process. Faster if the parent already has translated/apostilled documents. 07 · Fit check When a branch isn't the better route. You want liability ring-fenced from the parent, a branch is the same legal person as the parent, so the parent stays fully exposed to Swiss-side liabilities; a subsidiary (AG/GmbH) separates that. You plan to raise capital or eventually sell the Swiss operation, a subsidiary, with its own legal personality and share capital, suits that better than a branch. You need registration within days, realistic timeline is three to six weeks total: one to two weeks for the parent dossier and translations, one week for the notarial deed and filing, one to two weeks for Handelsregister processing. You don't have a Swiss resident willing to take signing power, OR art. 935 requires the branch to have at least one, and without that arrangement (or our resident manager mandate) registration can't complete. 08 · Get started Send the parent's legal name and country. One-line brief: foreign parent legal name, country of incorporation, intended Swiss canton, expected turnover. We come back within 24 hours with the document checklist and timeline. Request a proposal --- ## Form a Swiss cooperative (Genossenschaft) — CHF 1,490 URL: https://business-in-switzerland.com/services/company-formation/cooperative Description: Register a Swiss Genossenschaft (cooperative): minimum 7 founder-members, no minimum capital, one-member-one-vote governance. CHF 1,490 incl. notary and filing. Form a Swiss cooperative (Genossenschaft) — CHF 1,490 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Cooperative Form a Swiss Genossenschaft for CHF 1,490. Seven-member minimum, no minimum capital, one-member-one-vote governance under OR art. 828 ff. Right for housing cooperatives, agricultural collectives, consumer cooperatives, and worker-owned businesses. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 02 · Defining features What makes a Genossenschaft a Genossenschaft. 01.01 7-member minimum Swiss cooperative law requires at least 7 founder-members at registration. Members can be natural persons or legal entities. New members can join freely after formation under the articles. 01.02 No minimum capital Unlike GmbH (CHF 20k) or AG (CHF 100k), a Genossenschaft has no statutory minimum share capital. Members may contribute share-capital quotas (Anteilscheine) but the entity itself is not capital-driven. 01.03 Democratic governance One member, one vote — irrespective of capital contribution size. Mandatory under OR art. 885. Suits agricultural, housing and consumer cooperatives where collective decision-making is the operating logic. 03 · Pricing Flat fee for formation, plus the recurring infrastructure. Service Our fee Market range Genossenschaft formation (incl. notary, HR, articles) CHF 1,490 CHF 1,500–5,000 Registered office (Zurich or Zug) CHF 1,200 / year CHF 1,400–2,800 Ongoing accounting (active, small) CHF 1,900 / year CHF 2,000–5,000 Statutes amendment (post-formation) from CHF 800 CHF 1,000–3,000 04 · What the fee covers Articles, deed, registry, governance setup. 04.01 Drafting of cooperative articles (Statuten) reflecting purpose and governance 04.02 Coordination of the constitutive general meeting with all 7+ founder-members 04.03 Notarial deed of formation 04.04 Handelsregister filing in the canton of registered office 04.05 Initial board (Verwaltung) appointments and signing-rights registration 04.06 Drafting of share-capital quota (Anteilschein) template if member contributions apply 05 · Process Members → articles → constitutive meeting → registration. 01 Members + purpose Identify the 7+ founder-members and the cooperative purpose. Confirm Swiss residence requirements (at least one administrator must reside in Switzerland). 02 Articles Drafted to OR art. 828 ff standard. Includes purpose, member-admission rules, contribution mechanics, distribution policy, board structure. 03 Constitutive meeting All 7+ members sign the articles before a notary. Initial board elected. Capital quotas issued where applicable. 04 Handelsregister filing 5–15 working days at the cantonal registry. Cooperative is operational on the date of registration. 06 · FAQ Frequently asked questions. Why does Swiss cooperative law require 7 founder-members? The Code of Obligations art. 831 sets the minimum at 7 to distinguish a cooperative from a closely held capital company and to embed the collective-self-help principle into the legal form. The number cannot be reduced post-formation; if membership drops below 7 the cooperative must either restore the count or convert to another form (typically GmbH). When does a cooperative make more sense than a GmbH? Cooperatives fit when collective decision-making is the operating principle: housing cooperatives where residents own and manage the property together, agricultural cooperatives where farmers pool processing or distribution, consumer cooperatives, and worker-owned operating businesses. For a profit-maximising operating company with concentrated ownership, GmbH is the better fit. The vote-by-head rule is a feature for cooperatives and a bug for capital-concentrated businesses. Do members have liability beyond their contribution? Default rule under OR art. 869: members are liable only with the cooperative's assets. The articles can introduce limited or unlimited additional liability (Nachschusspflicht) of members, but this is rare and must be explicitly drafted. Most modern cooperatives use the default no-additional-liability rule. How are profits distributed in a cooperative? Profit distribution is restricted under OR art. 859. Cooperatives can pay limited interest on capital quotas (Anteilscheine), but the bulk of any surplus must either be reinvested in the cooperative purpose, used for member services, or distributed pro-rata to members' use of the cooperative's services (not pro-rata to capital). This reflects the self-help orientation built into the legal form. Can a foreign person be a founder-member? Yes. Members can be foreign natural persons or foreign legal entities. The Swiss-residence requirement applies at the administration level: at least one member of the Verwaltung (board) must reside in Switzerland with signing power, similar to AG/GmbH director rules. How long does cooperative registration take? Typical timeline 4–8 weeks. Most of the calendar is consumed by drafting articles tailored to the cooperative purpose and assembling the 7+ founder-members for the constitutive meeting. Handelsregister processing itself is 5–15 working days once the notarial deed is filed. 07 · Fit check When a cooperative isn't the right structure. You have fewer than 7 founder-members available, Swiss cooperative law requires a minimum of 7 at registration, and the count can't drop below that afterward without restoring it or converting to another form. You want ownership weighted to capital contribution, governance is one-member-one-vote by law (OR art. 885) regardless of how much capital any member put in. You need to distribute profits pro-rata to ownership stake, distribution is restricted under OR art. 859; surplus is mostly reinvested or allocated by use of services, not by capital share. You need registration within days, typical timeline is four to eight weeks, most of it spent drafting articles and assembling the 7+ founder-members for the constitutive meeting. 08 · Get started Tell us the cooperative purpose and the 7+ members. Send the planned purpose, the founder-member list (names or entity names), and the canton of registered office. We send the document checklist and timeline within 24 hours. Request a proposal --- ## Set up a Swiss foundation (Stiftung) — CHF 1,990 URL: https://business-in-switzerland.com/services/company-formation/foundation Description: Establish a Swiss foundation (Stiftung) for charitable, family or private endowments. Notarial deed, filing and supervisory recognition. CHF 1,990 flat. Set up a Swiss foundation (Stiftung) — CHF 1,990 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Foundation Establish a Swiss Stiftung — CHF 1,990 flat. Charitable, family or private-purpose foundation. Notarial deed, articles, Handelsregister filing and Aufsichtsbehörde recognition. Tax-exempt status available for charitable foundations on cantonal confirmation. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 02 · Three foundation types Charitable, family, private-purpose. 01.01 Charitable foundation Public-benefit purpose (education, research, art, social welfare, environment). Tax-exempt status if the canton confirms charitable purpose. Subject to ongoing supervision by the cantonal Aufsichtsbehörde. 01.02 Family foundation Established for the long-term welfare of named family members. Strictly limited under Swiss law (Civil Code art. 335) — perpetual maintenance funds and certain "purpose" foundations are restricted. Often paired with a foreign trust or holding for flexibility. 01.03 Private-purpose foundation Specific non-charitable purpose, neither family nor public-benefit. Common for corporate purposes (employee pension top-ups, art collections held for cultural display). Subject to standard supervision. 03 · Pricing Formation, governance, and the recurring cost of council oversight. Service Our fee Market range Stiftung formation (incl. notary, HR, articles) CHF 1,990 CHF 2,000–8,000 Registered office (Zurich or Zug) CHF 1,200 / year CHF 1,400–2,800 Council member mandate (annual) CHF 4,900 / year CHF 4,800–6,000 Ongoing accounting (active, small) CHF 1,900 / year CHF 2,000–5,000 Tax ruling (charitable status) CHF 250 / hour CHF 250–550 Fees excl. MWST. Notary and Handelsregister office fees passed through at cost (typically CHF 800–1,200 combined). Annual supervisory fee paid to the cantonal Aufsichtsbehörde (CHF 200–800). 04 · What the fee covers Articles, deed, registry, supervision filing. 04.01 Drafting of foundation articles (Stiftungsurkunde) reflecting purpose and governance 04.02 Notarial deed of foundation establishment 04.03 Initial endowment confirmation (CHF 50,000 minimum recommended) 04.04 Handelsregister filing in the canton of registered office 04.05 Application to the cantonal Aufsichtsbehörde (supervisory authority) 04.06 Initial council appointments and signing-rights registration 05 · Process Six to twelve weeks to operational foundation. 01 Purpose + structure Define the charitable, family or private purpose. Pick the canton (Zug, Zurich and Geneva are common). Identify the founder, council members, and beneficiaries (if any). 02 Articles + endowment Draft the Stiftungsurkunde reflecting the purpose. Founder transfers initial endowment (typically CHF 50,000+) to a blocked account. 03 Notarial deed + filing Notarised act of foundation. Handelsregister filing. Application to the cantonal Aufsichtsbehörde for supervision recognition. 04 Tax ruling (if charitable) For charitable foundations, we apply for cantonal recognition of charitable status to obtain tax-exempt treatment. 4–8 weeks at the canton. 06 · FAQ Frequently asked questions. What is the minimum endowment for a Swiss foundation? There is no statutory minimum, but Swiss practice expects CHF 50,000 as a working minimum so the foundation can credibly pursue its purpose. Sub-CHF 50k foundations are sometimes refused recognition by the supervisory authority on the grounds of being incapable of fulfilling the stated purpose. How long does it take to establish a foundation? Six to twelve weeks typically. The notarial deed and HR filing take 2–3 weeks. The cantonal Aufsichtsbehörde recognition takes another 4–8 weeks. Charitable-status tax ruling adds a parallel 4–8 weeks but does not block operational start. Can I be the founder and a council member? Yes, but you cannot be the sole council member. Swiss law requires the foundation to have an independent governance structure. We typically recommend a 3-member council with at least one independent member familiar with Swiss foundation law. Can a foreign person establish a Swiss foundation? Yes. The founder does not need to be Swiss-resident or a Swiss national. The foundation must have a Swiss registered office and at least one council member with Swiss residence and signing power (similar to AG/GmbH resident-director rules). Is a charitable foundation tax-exempt? On confirmation by the cantonal tax office, yes — exempt from federal direct tax, cantonal income tax and capital tax. Donations to the foundation are deductible from the donor's taxable income (up to 20% of net income for individuals, 20% of net profit for corporations). The exemption requires documented public-benefit purpose and arms-length governance. How are family foundations restricted in Switzerland? Civil Code art. 335 limits family foundations to specific purposes — funding education, supporting members in financial need, or specific defined family events. Perpetual general-maintenance trusts for family welfare (common in foreign jurisdictions) are not permitted in Switzerland. Many international families use a Liechtenstein Stiftung or a foreign trust for that scope, sometimes with a Swiss family-office layer for governance. 07 · When this isn't the right route When a Stiftung isn't the right structure. You want a perpetual family-maintenance trust. Civil Code art. 335 limits Swiss family foundations to specific purposes such as education or defined family events; perpetual general-maintenance funds aren't permitted, which is why many international families use a Liechtenstein Stiftung or a foreign trust instead. You need it operational in under six weeks. Formation typically takes six to twelve weeks: the notarial deed and Handelsregister filing take two to three weeks, and cantonal Aufsichtsbehörde recognition adds another four to eight weeks. You're endowing less than CHF 50,000. Swiss practice expects CHF 50,000 as a working minimum, and the supervisory authority sometimes refuses recognition below that on the grounds the foundation can't credibly pursue its purpose. You want to run it alone. Swiss law requires an independent governance structure, so you cannot be the sole council member even if you are the founder. You don't want ongoing regulatory oversight. Charitable and private-purpose foundations stay subject to continuing supervision by the cantonal Aufsichtsbehörde for the life of the foundation, not just at formation. 08 · Get started Send the foundation purpose and the planned endowment. One-paragraph brief: charitable, family or private purpose; identity of founder; planned endowment amount; jurisdiction preference. We come back within 24 hours with the document checklist, expected timeline, and tax-exempt feasibility. Request a proposal --- ## Swiss GmbH Formation — CHF 20,000 Capital, 2–4 Weeks URL: https://business-in-switzerland.com/services/company-formation/gmbh Description: Form a Swiss GmbH — CHF 20,000 fully paid-in capital, 2–4 weeks, one Swiss-resident signatory (OR art. 814.3). Canton choice and compliance. Swiss GmbH Formation — CHF 20,000 Capital, 2–4 Weeks STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Service · GmbH formation Form a Swiss GmbH — the lean limited-liability company for foreign founders The Swiss GmbH (Gesellschaft mit beschränkter Haftung, Sàrl in the French-speaking cantons) is Switzerland's lighter incorporated vehicle: CHF 20,000 capital fully paid in at formation, one Swiss-resident signatory, public partner register, and a 2 to 4 week end-to-end timeline. We handle the full incorporation for foreign founders from our office at Baarerstrasse 14 in Zug. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: May 2026 Swiss GmbH at a glance The three numbers that matter for a GmbH CHF 20k Minimum capital, fully paid-in OR art. 773, 777c (facts §1.2) 2 – 4 weeks End-to-end formation timeline facts §4.2 1 Swiss-resident signatory required OR art. 814.3 (facts §1.2) Who typically chooses a GmbH Owner-operator founders with CHF 20k to low-seven-figure revenue. One to five partners who run the business themselves. Foreign entrepreneurs opening their first Swiss entity. Small holding vehicles where public partner disclosure is acceptable. When a GmbH is the wrong fit Planned capital raise or IPO — use an AG (Aktiengesellschaft) for share-class flexibility and private shareholders. Many passive investors who want their names off the public register. Foreign parent wanting a Swiss arm without a new legal personality — a branch office (Zweigniederlassung) is the right answer instead. Definition What a Swiss GmbH is (in plain English) A Swiss GmbH is a body corporate with separate legal personality and limited liability, sitting in the middle of the Swiss legal-entity ladder between a sole proprietorship and an AG. Its share capital is divided into quotas held by named partners. The GmbH is governed by the Swiss Code of Obligations (OR), Book 3, Title 28, articles 772 to 827. It acquires legal existence at the moment the cantonal Handelsregister publishes the incorporation entry, and it is dissolved only by statutory procedure. The French-language synonym in the cantons of Geneva, Vaud, Neuchâtel, Jura and Fribourg is Sàrl (Société à responsabilité limitée); in Ticino it is Sagl . LLC, Sàrl, GmbH — is it all the same thing? For a US or UK founder searching Switzerland LLC : the Swiss GmbH is the functional counterpart of a US LLC or a UK Ltd, but the tax mechanics differ. A Swiss GmbH is always a separate corporate taxpayer — it pays Swiss corporate income tax on its profit, and dividends distributed to partners are subject to 35% Swiss withholding tax before any treaty relief. A US LLC is by default a pass-through for US federal tax. So the legal concept lines up; the tax treatment does not. Most US founders coming into a Swiss GmbH therefore need tax advice on the US side as well. GmbH in Switzerland vs Germany, Austria and Liechtenstein The German GmbH has a minimum capital of EUR 25,000 and the Austrian GmbH EUR 10,000 (with EUR 35,000 of subscribed capital unless the privileged-formation regime applies). Liechtenstein also uses the GmbH name with its own capital rule set out in the Liechtenstein Personen- und Gesellschaftsrecht (PGR). The Swiss GmbH is its own legal form under Swiss law (OR art. 772 ff), with CHF 20,000 fully paid-in, and is not interchangeable with its neighbours even though the name is identical. When you read English-language guidance on "GmbH", confirm it is about Switzerland before applying any figure to your plan. Capital Capital requirements — CHF 20,000 fully paid-in The defining number of the Swiss GmbH is CHF 20,000 of share capital, fully paid in at formation (OR art. 773, OR art. 777c) . There is no 20%-paid-in discount: the full amount goes on to a Swiss bank consignment account before the notary deed is signed, and the bank releases the funds once the Handelsregister confirms incorporation. This is a genuine working-capital constraint that the AG does not have, since an AG can be formed with CHF 50,000 paid in against a CHF 100,000 headline capital (OR art. 621, 632) . Cash or in-kind: what counts Cash is the fastest path. Contributions in kind — real estate, machinery, intellectual property, existing shareholdings — are also allowed under OR art. 777c and often make sense when the founders already hold business assets. The constraint is valuation: an independent auditor (Gründungsprüfer) must certify the value of in-kind contributions before the incorporation deed, and the certificate is filed with the Handelsregister. Planning on in-kind capital typically extends the formation timeline by 2 to 3 weeks because of the auditor step. Minimum nominal value per quota Each partner's stake is divided into quotas (Stammanteile) with a statutory minimum nominal value of CHF 100 per quota under OR art. 774. In practice the most common set-up for a small foreign-founder GmbH is a single CHF 20,000 quota per partner, or 20 quotas of CHF 1,000 each if the partners want granular transfers later without redrafting the statutes. We size the quota structure at the drafting stage so that your exit options (partner entry, partner exit, buy-back) are clean from day one. What "fully paid-in" means in practice If the capital is wired from abroad, the Swiss bank applies customer due diligence on the sender — source of funds, sender's identity, and beneficial-ownership chain. Expect 1 to 3 weeks of onboarding for foreign UBOs before the bank opens the consignment account. Once the funds land, the bank issues a capital-deposit confirmation (Kapitaleinzahlungsbestätigung) that the notary attaches to the incorporation deed. You can model the capital structure against an intended share plan using our capital-requirements calculator . Formation process The 7 steps to form your Swiss GmbH Every GmbH formation follows the same sequence under Swiss federal law, though cantonal processing times at step 5 and the bank's CDD speed at step 7 are the two main variables in the 2 to 4 week total. The durations below cite facts-switzerland §4.2 . 1 Confirm your name is available (Zefix name check) ~1 day Search the Zefix federal commercial-register portal to verify that the proposed company name is not already in use and complies with Swiss naming rules. Your fiduciary typically handles this the same day. 2 Draft the articles of association 3–7 days Prepare the statutes (Gesellschaftsvertrag) covering purpose, capital, quota structure, signatory rights, and governance. The notary reviews the draft before the incorporation deed is scheduled. 3 Open a consignment account and deposit CHF 20,000 1–3 days Open a capital-consignment account with a Swiss bank and deposit the full CHF 20,000. Funds remain blocked until Handelsregister entry. Swiss banks apply customer due diligence on foreign ultimate beneficial owners, which can extend this step. 4 Sign the public deed of incorporation at a Swiss notary ~1 day All founding partners (or their apostilled attorneys-in-fact) sign the notarised deed of incorporation in front of a Swiss notary. Typically completed in a single appointment. 5 File with the cantonal Handelsregister 7–21 days Submit the filing dossier to the cantonal Handelsregisteramt. Processing time varies by canton. The GmbH acquires legal personality at the moment the entry is published. 6 Register for VAT if turnover crosses the threshold 5–15 days Register with the Federal Tax Administration (ESTV) for VAT if worldwide taxable turnover is expected to exceed CHF 100,000 per year. Foreign operators making supplies in Switzerland may be liable from the first Swiss franc (MWSTG art. 10). 7 Open the operating bank account 5–30 days Open an operating account with a Swiss bank, separate from the consignment account. CDD on foreign UBOs commonly extends this step; scheduling early is recommended. Signatory rule Who must live in Switzerland — and how foreign founders satisfy the rule A Swiss GmbH must have at least one managing officer with sole or joint signing authority who resides in Switzerland (OR art. 814.3) . This is the single hardest constraint for non-resident founders, and the one area where Swiss commercial-register offices refuse filings when the residency test fails. Nationality is irrelevant. Domicile is what counts. Three ways a non-resident founder satisfies OR art. 814.3 Option A — nominee director. Appoint a Swiss-resident managing officer supplied by a regulated fiduciary. Economic control stays with you; the signatory signs in a representative capacity bound by a written mandate. This is the most common route for first-time Swiss GmbHs owned from abroad. See our nominee director service . Option B — relocate and self-sign. Apply for a Swiss residence permit (EU/EFTA citizens on freedom-of-movement; non-EU/EFTA citizens on the work-permit quota system), then sign as resident managing officer. This fits founders who intend to run the business from Switzerland anyway. Option C — recruit a Swiss-resident co-founder. Bring in a partner or trusted employee who already lives in Switzerland. Joint signatory rights can be used to protect both sides: the Swiss co-signatory has OR 814.3 coverage, and you remain indispensable on the second signature. What the signatory actually does The Swiss-resident managing officer is not a rubber stamp. Under Swiss law they sign contracts that bind the GmbH, represent it before the Handelsregister, receive service of process, and carry fiduciary duties toward the company. A nominee arrangement is a mandate with meaningful duties attached; it is not a pass-through. Understanding this up front avoids surprise later — the officer has the legal pen, and the mandate scopes exactly what they will and will not sign. Disclosure Who is publicly listed, who is kept private Unlike the AG, a Swiss GmbH publishes its partners on the cantonal Handelsregister, together with the nominal value of each partner's quota . Anyone can search this via Zefix , the federal commercial-register portal. This single fact surprises many foreign founders, and if partner privacy is important to you we often recommend an AG for that reason alone. What is on the public register Legal name and registered address. Purpose of the company (as drafted in the statutes). Partners and their quota nominal values. Managing officers and their signatory rights (sole or joint). Auditor, where one is appointed. An extract of the statutes. What stays private Side-agreements between partners outside the statutes (shareholder agreements). Internal capital calls, loan arrangements, and employment contracts. Ultimate beneficial owners — except where AMLA UBO disclosure applies (see below). UBO disclosure — the AMLA layer Beneficial owners who control more than 25% of the GmbH must be declared to the company itself and to any financial intermediary handling the capital (typically the bank holding the consignment account), under the Swiss Anti-Money Laundering Act (GwG). This declaration is not published on the commercial register; it stays in the records of the GmbH and of the bank. The declaration is refreshed whenever the ownership chain changes. Governance Governance, signatory rights, audit — the small print that matters A GmbH is small by design, so its governance rulebook is short — but every founder should understand three points before signing the statutes. Governance bodies — partners' meeting and managing officer(s) The partners' meeting (Gesellschafterversammlung) is the supreme organ under OR art. 804. It appoints managing officers, approves financial statements, amends the statutes, and decides on mergers or conversions. Managing officers (Geschäftsführer) under OR art. 809 to 811 run day-to-day operations and bind the GmbH by their signatures. In a single-partner GmbH, the one partner is both the sole member of the partners' meeting and (if self-signing) the sole managing officer. Signatory rights — sole versus joint Each managing officer holds either sole signature (Einzelunterschrift) or joint signature (Kollektivunterschrift zu zweien — two signatures required). Foreign-owner GmbHs frequently combine a Swiss-resident nominee with joint-signatory rights and a non-resident partner with joint-signatory rights. This setup prevents unilateral action by either side and is often a better comfort level for first-time arrangements than sole-signatory nominees. Audit — why most small GmbHs opt out Under OR art. 727 and 727a , a limited audit is the default. A full (ordinary) audit is required only when two of three thresholds are exceeded for two consecutive years: balance-sheet total CHF 20 million, revenue CHF 40 million, or 250 full-time employees. Below those thresholds, a GmbH with 10 or fewer FTEs can opt out of audit entirely if all partners consent in writing. Most foreign-founder GmbHs in our pipeline opt out at formation and revisit if they cross the 10-FTE line. Canton choice Canton choice matters — a mini-matrix The CHF 20,000 minimum capital is federal and identical in every canton. What differs is the effective corporate tax rate, the Handelsregister processing time, and the notary and cantonal fee schedule. Re-verified annually against the ESTV cantonal tables. Canton Effective CIT Register processing Notes Zug ~11.85% ~10 business days Lowest combined CIT; our office is at Baarerstrasse 14. Schwyz ~14.0% 7–14 business days Low-tax peer to Zug; Freienbach rate is lower still. Geneva 14.70% 10–21 business days International-organisation ecosystem; commodities and wealth. Vaud 14.72% 10–21 business days Lausanne / EPFL tech corridor; French-speaking. Zurich 19.61% 10–21 business days Banking capital, brand signal, deep talent pool. Source: facts-switzerland §2.2 (ESTV 2026, KPMG Clarity on Swiss Taxes), §4.2 timelines. Why Zug is the default Zug's ~11.85% combined effective CIT is the lowest of all 26 Swiss cantons . Our office is on Baarerstrasse 14, three minutes from the Handelsregisteramt Kanton Zug and the major Zug notaries. Why we register most GmbHs in Zug . When Zurich makes sense Zurich's 19.61% effective CIT is high, but the banking depth, talent density and international brand signal carry real weight for certain businesses — especially fintech, asset management, and anything with a frequent cross-border audience. When Geneva makes sense Geneva at 14.70% combines moderate tax with the international-organisation ecosystem, commodity-trading houses and a mature wealth-management industry. The right choice for structures with a UN-agency or commodities angle. Compare cantons in depth GmbH vs AG GmbH vs AG — a side-by-side The two Swiss incorporated forms answer different questions. The GmbH is optimised for owner-operators; the AG is optimised for capital. Everything else is downstream of that single difference. Attribute Swiss GmbH Swiss AG Minimum share capital CHF 20,000 CHF 100,000 Paid-in at formation 100% of capital At least 50,000 or 20% (whichever is higher) Owner disclosure Partners and quotas published in Handelsregister Shareholders stay private (registered-share book is internal) Share / quota transferability Notarised assignment; register update Endorsement / assignment; internal share register Audit default Limited audit; opt-out if ≤ 10 FTEs Limited audit; opt-out if ≤ 10 FTEs Typical use case Owner-operator SMEs, 1–5 partners, small holdings Capital raises, IPO path, multi-investor structures End-to-end timeline 2–4 weeks 3–6 weeks Still not sure? Read the Swiss AG formation page (the 100k-capital sibling) Forward planning When you should convert your GmbH to an AG A GmbH can be converted into an AG without liquidation under the Swiss Merger Act (Fusionsgesetz, FusG art. 53 ff). The usual triggers are an incoming external investor, a capital raise that needs share-class flexibility, or an IPO path that requires private shareholders. Mechanically, the conversion requires a notarised partners' resolution, a top-up of share capital from CHF 20,000 to at least CHF 100,000 (the AG minimum under OR art. 621), and a new Handelsregister filing that replaces the GmbH register entry with the AG entry. The legal personality continues unbroken (FusG art. 53). For most foreign-founder GmbHs this is a 4 to 6 week project and is worth keeping in mind at formation so that the statutes do not need to be rewritten from scratch when the moment comes. After incorporation After incorporation — the first-year compliance list A Swiss GmbH is a going concern the day the Handelsregister publishes its entry. The first twelve months carry four recurring obligations every foreign-founder GmbH has to plan for. VAT registration — the CHF 100,000 threshold If worldwide taxable turnover exceeds CHF 100,000 per year, the GmbH must register for Swiss VAT with the Federal Tax Administration (ESTV) under MWSTG art. 10 . Foreign operators making any supply in Switzerland are liable from the first Swiss franc of turnover and must usually appoint a fiscal representative. The standard VAT rate is 8.1%; reduced (2.6%) and accommodation (3.8%) rates apply in specific sectors. Full walk-through in our Swiss VAT page . AHV / AVS social insurance on officer salaries First-pillar pension contributions (AHV / AVS) are due on salaries paid to managing officers and employees. Contributions are split between employer and employee; the GmbH handles registration with the cantonal AHV office and monthly payroll declarations. Typical officer-salary contribution levels are re-confirmed annually by the federal social-insurance office; we build the payroll set-up into the first-year engagement. 35% withholding tax on dividend distributions Dividends distributed by a GmbH to its partners are subject to 35% Swiss withholding tax at source . Swiss-resident partners recover the full amount via the annual tax return if they declare the income. Non-resident partners rely on the Swiss double-taxation-treaty network for reductions — for example, a US corporate parent on a 10%-plus shareholding typically drops to 5%. This is a planning point at formation, not an afterthought. Accounting and annual filings The GmbH is bound by the Swiss Code of Obligations book-keeping rules (OR art. 957 and following). Annual financial statements, a partners'-meeting minutes file, and a tax return are due every year. We hand off to our Swiss accounting service for ongoing compliance after formation. Our engagement What you get from us (and how we scope a quote) We do not publish a price list for GmbH formation. Fixed-price packages on fiduciary sites look reassuring, but they almost always either under-scope (bank-account onboarding, UBO documentation, apostille courier, canton variation) or price the average client. Every engagement here is scoped on the facts, quoted in writing, and fixed before any invoice. Scope of a typical GmbH formation engagement Pre-formation review of planned activity, canton, partner structure and capital source. Drafting of articles of association, partners' resolutions, powers of attorney. Notary coordination, consignment-account opening, and capital-deposit confirmation. Handelsregister filing with the canton of your choice. VAT registration with ESTV, where thresholds are met. AHV / AVS social-insurance registration with the cantonal office. Hand-off to first-year accounting and payroll (separate engagement). How we scope your quote Send us planned activity, canton preference, number of partners, capital source and residency, and banking preferences. Within 2 to 3 business days we return a written proposal with a fixed fee, the full scope, and any items priced separately. See how we scope and quote our engagements for the general model. FAQ Frequently asked questions about Swiss GmbH formation What is the minimum capital for a Swiss GmbH? CHF 20,000, fully paid-in at formation. Legal basis: Swiss Code of Obligations article 773 (minimum) and article 777c (full payment). Unlike an AG, no 20%-paid-in discount applies. Does the GmbH capital need to be fully paid at formation? Yes. 100% of the CHF 20,000 is deposited into a Swiss consignment account before the Handelsregister registers the new entity (OR art. 777c). The bank releases the funds once the register entry is confirmed. Can I contribute equipment or IP as capital instead of cash? Yes. OR art. 777c allows in-kind contributions, including real estate, machinery, and intellectual property. An independent auditor must certify the valuation before the notary deed. Cash is the fastest path; in-kind typically extends the timeline by 2 to 3 weeks. Are GmbH partners public, or can I keep my ownership private? Partners and their quota sizes are published in the cantonal Handelsregister and are searchable via Zefix. This is a structural difference from an AG, where ordinary shareholders stay private. Beneficial owners above 25% are also disclosed to the GmbH and to the capital-deposit bank under the Anti-Money Laundering Act. Can I be the sole partner and the sole managing officer? Yes, a single-person GmbH is allowed. But that sole officer must either reside in Switzerland (OR art. 814.3) or be accompanied by a Swiss-resident co-signatory. For foreign founders this is typically solved via a nominee-director service or a Swiss-resident co-officer. Do I, as a foreigner, need a Swiss-resident manager to form a GmbH? You need at least one person with sole or joint signing authority who resides in Switzerland (OR art. 814.3). You yourself do not need to move. A Swiss-resident nominee or co-officer satisfies the rule. How long does GmbH incorporation take? 2 to 4 weeks end-to-end is typical, assuming all documents are ready and the canton is not backed up. Name check 1 day, articles and notary 3 to 7 days, consignment account 1 to 3 days, Handelsregister 7 to 21 days, VAT and bank 5 to 30 days where applicable. Does a small GmbH need an auditor? Usually no. Under OR art. 727 and 727a, a limited audit is the default; you can opt out entirely if you have 10 or fewer full-time employees and all partners consent. An ordinary audit is only required when two of three thresholds (CHF 20 m balance sheet, CHF 40 m turnover, 250 FTEs) are exceeded for two consecutive years. Can I convert my GmbH into an AG later? Yes, without liquidation, under the Swiss Merger Act. Typical triggers are external investors, a capital raise, or an IPO path. The conversion requires a notarised resolution, a top-up of share capital from CHF 20,000 to CHF 100,000, and a new Handelsregister filing. Which canton is cheapest for a GmbH? Zug has the lowest combined effective corporate tax rate in Switzerland at approximately 11.85%. Appenzell Innerrhoden, Nidwalden, and Lucerne are the next tier. Zurich sits at 19.61% and Bern at 20.54%. The minimum capital is the same CHF 20,000 everywhere. Does my foreign residence matter for the company to exist? No. The foreign residence of partners is irrelevant to whether the GmbH can be formed. What matters is that CHF 20,000 capital is paid in and that at least one signatory resides in Switzerland. Your own residency affects personal tax and permit questions, not the company’s legal existence. What happens to my GmbH if a partner leaves? Quotas can be transferred to another partner or to a third party by notarised assignment under the Swiss Code of Obligations; the transfer is published in the Handelsregister. The GmbH itself continues. Drag-along, pre-emption, and buy-back terms are typically added to the statutes at formation to control this outcome. Fit check Where a GmbH engagement doesn't fit We don't publish a fixed price list. Every GmbH formation is scoped on the facts and quoted in writing within 2 to 3 business days, so if you need instant self-service pricing before you'll even talk to us, this isn't that model. The full CHF 20,000 capital has to be paid in before the notary deed is signed. Unlike an AG, which can form on CHF 50,000 paid in against a CHF 100,000 headline capital, there is no partial-payment discount for a GmbH. You need a Swiss-resident signatory in place before the register will accept the filing (OR art. 814.3). If you can't secure one through a nominee, relocation or a Swiss-resident co-founder, the filing stalls at step 4. The standard timeline is 2 to 4 weeks minimum, and in-kind capital contributions or slow bank due diligence on foreign UBOs commonly push that to 5 weeks or more. This is not a same-week incorporation. Partner names and quota values are published on the public Handelsregister and searchable on Zefix. If ownership privacy matters to you, an AG keeps shareholders off the public register instead. Next step Ready to start your Swiss GmbH? Send us the shape of your structure — canton, partners, activity, capital source. We return a written fixed-fee proposal within 2 to 3 business days. No phone call required to start, but we can book one if that is easier. Request a proposal --- ## Swiss partnerships — Kollektiv & Kommanditgesellschaft URL: https://business-in-switzerland.com/services/company-formation/partnership Description: Register a Swiss general partnership (Kollektivgesellschaft) CHF 490 or limited partnership (Kommanditgesellschaft) CHF 690. No minimum capital. Swiss partnerships — Kollektiv & Kommanditgesellschaft STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Partnership Swiss partnerships: KlG CHF 490, KmG CHF 690. General partnership (Kollektivgesellschaft) for two or more equal partners with joint liability. Limited partnership (Kommanditgesellschaft) when investors want capped exposure. No minimum capital, fast registration. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: May 2026 02 · KlG vs KmG vs GmbH Three legal forms compared. 01.01 Kollektivgesellschaft (KlG) General partnership. Two or more partners with joint and several unlimited liability for partnership debts. No minimum capital. Suits family businesses, professional partnerships and small operating businesses where all partners participate. 01.02 Kommanditgesellschaft (KmG) Limited partnership. At least one general partner (Komplementär) with unlimited liability and at least one limited partner (Kommanditär) liable only up to their registered contribution. Useful when investors want exposure without management responsibility. 01.03 When to pick partnership over GmbH Partnerships are simpler and cheaper to establish than GmbH. Trade-off: unlimited personal liability for general partners, business income taxed as personal income (no corporate-tax cushion), partnership dissolves on death/exit unless articles provide for continuity. 03 · Pricing Cheapest legal form for two-or-more founders. Service Our fee Market range Kollektivgesellschaft (KlG) registration CHF 490 CHF 400–1,500 Kommanditgesellschaft (KmG) registration CHF 690 CHF 500–2,000 Registered office (Zurich or Zug) CHF 1,200 / year CHF 1,400–2,800 Partnership-agreement drafting CHF 990 CHF 1,000–5,000 04 · Mandate scope Agreement, registry, AHV setup. 04.01 Drafting of partnership agreement (Gesellschaftsvertrag) 04.02 Name check and Handelsregister filing in the canton of business activity 04.03 Identification of general partners (Komplementäre) and limited partners (Kommanditäre) for KmG 04.04 Registration of contribution amounts for limited partners 04.05 AHV registration of partners as self-employed 04.06 Tax-office introduction for partners' income-tax filing 05 · Process Type → agreement → filing → operations. 01 Partnership type + agreement KlG (general) or KmG (limited). Drafting of the partnership agreement reflecting capital contributions, profit-sharing, decision rules, exit mechanics. 1–2 weeks. 02 Handelsregister filing Registration with the cantonal Handelsregister. KlG must register if business activity meets ordinary commercial scope; KmG must always register. 5–15 working days. 03 AHV / tax setup Each partner registers as self-employed (Selbständigerwerbender) with AHV. Cantonal tax office notified for personal-income-tax filing. 04 Operations Partnership operational from Handelsregister entry date. Partners can sign on the partnership's behalf per the agreement's signing rules. 06 · FAQ Frequently asked questions. What is the difference between Kollektiv and Kommandit? In a Kollektivgesellschaft (KlG) all partners have the same legal status: equal management rights and joint and several unlimited liability for partnership debts (OR art. 568). In a Kommanditgesellschaft (KmG) there are two tiers: Komplementäre (general partners) with unlimited liability and management rights, and Kommanditäre (limited partners) liable only up to their registered contribution and excluded by default from management (OR art. 594). Do partnerships have separate legal personality? No. Swiss partnerships are not legal persons in their own right — they are contractual associations of partners. The partnership can hold assets, sue and be sued, but ultimate liability falls on the partners individually. This is the key practical difference from a GmbH or AG, which are legal persons with their own rights and obligations. How are partnerships taxed in Switzerland? Income flows through to the partners and is taxed as their personal income (federal direct tax + cantonal + municipal). The partnership itself is not a tax subject for income tax. Each partner files for their share. VAT (MWST) liability rests on the partnership directly once the CHF 100,000 turnover threshold is crossed. Can foreign nationals be partners? Yes. Foreign natural persons or foreign legal entities can be partners in a Swiss KlG or KmG. The Swiss-residence requirement applies at the operational level: at least one partner with signing power must be resident in Switzerland for ordinary partnerships, similar to AG/GmbH director rules. When does a partnership dissolve? On death, bankruptcy or withdrawal of a partner unless the partnership agreement provides for continuity (OR art. 574 ff for KlG, OR art. 619 for KmG). Most modern partnership agreements include continuity clauses to avoid automatic dissolution. The remaining partners can buy out the departed partner's interest. Should I form a KmG to attract passive investors? Possible but rare in practice. Most Swiss founders raising capital prefer the AG (with its share-capital flexibility and clean exit mechanics) over a KmG. The KmG's limited-partner mechanic is more common in continental-European fund structures than in standalone operating businesses. We can scope an investor-funded structure on a free 30-minute call to compare KmG vs AG. 07 · When this isn't the right route Where a partnership isn't the safer choice. You want liability protection. Kollektivgesellschaft partners carry joint and several unlimited liability for partnership debts, and in a Kommanditgesellschaft the general partner still carries unlimited liability: only the limited partner is capped. You want the business to survive a partner's death or exit automatically. Partnerships dissolve on death, bankruptcy or withdrawal of a partner unless the agreement includes a continuity clause. You want a separate legal entity that shields personal assets and can hold things in its own name. Swiss partnerships have no separate legal personality: they are contractual associations, and ultimate liability sits with the partners individually. You're raising capital from passive investors. Most Swiss founders raising capital prefer an AG's share structure; the KmG's limited-partner mechanic is rare in standalone Swiss operating businesses. You want corporate-tax treatment. Partnership income flows through and is taxed as the partners' personal income, with no corporate-tax cushion. 08 · Get started Tell us the partner list and the activity. One-line brief: KlG or KmG, partner names, intended activity, target canton. We send the document checklist and timeline within 24 hours. Request a proposal --- ## Swiss sole proprietorship (Einzelunternehmen) — CHF 190 URL: https://business-in-switzerland.com/services/company-formation/sole-proprietorship Description: Register an Einzelunternehmen in Switzerland: simplest form, no minimum capital, fast registry entry. CHF 190 flat. For freelancers and one-person businesses. Swiss sole proprietorship (Einzelunternehmen) — CHF 190 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Sole proprietorship Register a Swiss Einzelunternehmen for CHF 190. No minimum capital, fastest path into the Handelsregister, AHV self-employed status filed for you. Right for freelancers, consultants and one-person operations. Trade-off: personal liability. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: May 2026 02 · Three things to know Simplest legal form, with one liability trap. 01.01 No minimum capital Unlike GmbH (CHF 20k) or AG (CHF 100k), an Einzelunternehmen requires zero starting capital. You commit your own assets and personal credit. 01.02 Fastest registration 5–10 working days at the cantonal Handelsregister, often less. No notary required if your annual turnover is below CHF 100,000. 01.03 Personal liability Trade-off for the simplicity: you are personally liable for all business debts with your private assets. Choose GmbH if liability separation matters. 03 · Pricing Cheapest legal form to register in Switzerland. Service Our fee Market range Einzelunternehmen registration (HR-Eintragung) CHF 190 CHF 150–400 Registered office (Zurich or Zug) CHF 1,200 / year CHF 1,400–2,800 Ongoing accounting (active, small) CHF 1,900 / year CHF 2,000–5,000 MWST registration (when threshold crossed) CHF 290 CHF 300–800 Fees excl. MWST. Cantonal Handelsregister office fee (approximately CHF 100) is passed through at cost. 04 · What the fee covers HR filing plus AHV self-employed registration. 04.01 Name check at the cantonal Handelsregister (must contain the founder's family name) 04.02 Statutory checklist for your activity (regulated trades flagged) 04.03 Filing of the Handelsregister entry 04.04 AHV registration as self-employed (Selbständigerwerbender) 04.05 Optional: VAT registration where annual turnover exceeds CHF 100,000 04.06 Tax-office introduction for cantonal income-tax filing 05 · Process Operational within two weeks. 01 Name + activity check The trade name must include your family name. Activity must be lawful and (where regulated) authorised. 1 working day. 02 Handelsregister filing CHF 190 flat covers the filing. Note: HR registration is mandatory only if turnover exceeds CHF 100,000 per year — below that it is voluntary but recommended for credibility. 03 AHV self-employed status AHV (old-age insurance) requires recognition as self-employed. We file the request and follow up; AHV typically confirms within 4–8 weeks. 04 Operations You are operational from the day the AHV recognition is issued or the HR entry is published, whichever applies. 06 · FAQ Frequently asked questions. Do I need to register an Einzelunternehmen in the Handelsregister? Mandatory only if your annual turnover exceeds CHF 100,000. Below that the registration is voluntary but recommended — it gives the trade name legal protection and signals legitimacy to clients and banks. Can a foreign national register an Einzelunternehmen? Yes, with caveats. EU/EFTA nationals can register without restriction once they hold a valid residence permit. Third-country nationals need a B-permit with self-employment authorisation under FNA art. 19, which requires showing economic interest to Switzerland. Discuss your nationality at the scoping call — we route you to /services/migration/ if a permit is needed first. How am I taxed? Business income is taxed as your personal income (federal direct tax + cantonal + municipal). Effective rate depends on your canton of residence and total income. There is no separate corporate tax. Self-employed AHV contributions: 10% of business profit, capped. Can I have employees? Yes. As an Einzelunternehmen you can hire employees under standard Swiss labour law. You become a registered employer for AHV/SUVA/BVG purposes — see /services/payroll/. When should I switch from Einzelunternehmen to GmbH? Common triggers: turnover crossing CHF 200k–500k (when the personal-liability exposure outgrows the simplicity benefit), signing meaningful contracts where counterparties prefer a limited-liability counterparty, raising external capital, or hiring multiple employees. Conversion is straightforward — we transfer the assets to a new GmbH with continuity for AHV and tax purposes. What is the trade-off vs a Verein (association) or partnership? A Verein is for non-profit purposes. A Kollektivgesellschaft (general partnership) requires two or more partners with joint personal liability. An Einzelunternehmen is the right form for a single-person business that is for-profit and where the founder accepts personal liability. 07 · When this isn't the right route Where a sole proprietorship stops making sense. You want liability protection. An Einzelunternehmen carries personal liability for all business debts against your private assets; there is no separation like a GmbH provides. You're a non-EU/EFTA national without a B-permit carrying self-employment authorisation. Third-country nationals need that authorisation under FNA art. 19 before they can register. You have two or more founders. An Einzelunternehmen is a single-person form: a Kollektivgesellschaft or a GmbH is the right structure once there is more than one owner. You expect turnover or liability exposure to outgrow this quickly. Common triggers to switch to a GmbH are turnover crossing CHF 200,000–500,000, counterparties who prefer a limited-liability party, raising external capital, or hiring multiple employees. You want a separate corporate-tax regime. Business income here is taxed as your personal income, with no separate corporate tax. 08 · Get started Send the trade name and the activity. The trade name must include your family name. Tell us the planned activity and your residence canton. We file the HR entry and the AHV self-employment request within 5 working days. Request a proposal --- ## Swiss contact-person mandate from CHF 290/year URL: https://business-in-switzerland.com/services/contact-person-mandate Description: Swiss address-for-service (Zustellungsdomizil) for foreign trademark and patent applicants. From CHF 290/year. Required under MSchG art. 42. Swiss contact-person mandate from CHF 290/year STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Contact-person mandate Swiss address-for-service for foreign applicants. Required under MSchG art. 42 for foreign trademark applicants and under PatG for foreign patent applicants. CHF 290/year. Available also as a regulatory contact mandate for FINMA, SECO and cantonal authorities. Request a proposal Written by Stefan Locher · Reviewed by Lukas Brunner Last reviewed: May 2026 02 · Three mandate types Trademark, patent, regulatory. 01.01 Trademark address-for-service Required under MSchG art. 42 when a foreign applicant files a Swiss trademark with no Swiss residence. We act as your Zustellungsdomizil before IGE. CHF 290/year. 01.02 Patent address-for-service Equivalent requirement under PatG (Federal Patents Act) for foreign patent applicants before IGE. Same flat fee CHF 290/year. 01.03 Regulatory contact mandate For other regulatory authorities (FINMA, SECO, cantonal authorities) where a Swiss contact person is required. Quoted on request, typically CHF 600–2,400/year depending on activity volume. 03 · Pricing Annual flat fee per mandate type. Service Our fee Market range Address-for-service (trademark / patent applicants) CHF 290 / year CHF 300–600 Regulatory contact mandate (FINMA / SECO / cantonal) from CHF 600 / year CHF 800–2,500 Single ad-hoc forwarding (per item) CHF 50 CHF 50–150 04 · Mandate scope Receive, notify, forward, remind. 04.01 Designated Swiss address registered with the relevant authority 04.02 Receipt of all official correspondence on your behalf 04.03 Notification within 24 hours of any incoming mail 04.04 Forwarding (scan or physical) to your designated address worldwide 04.05 Drafting of acknowledgement responses where formally required 04.06 Annual reminder of registration / renewal dates so deadlines never slip 05 · Process Mandate request → designation → active mandate → renewal. 01 Mandate request You send the entity name, jurisdiction (foreign), trademark or patent application reference, and the worldwide address for forwarding. 1 working day. 02 Designation filing We file the address-for-service designation with IGE (or the relevant authority). Included in the annual fee for new applications, billed separately if added to an existing registration. 03 Active mandate Mail received and notified within 24 hours. Forwarding by scan (default) or physical post on request. 04 Annual renewal Reminder 60 days before renewal. Mandate continues unless terminated by you or by us with 30 days notice. 06 · FAQ Frequently asked questions. When is a Swiss address-for-service legally required? For foreign trademark applicants without a Swiss residence: under MSchG art. 42, the IGE will not communicate with you directly and requires a Swiss representative for service. The same applies for foreign patent applicants under PatG. For corporate registered offices (Sitz of an AG / GmbH) the requirement is different — you need a real Swiss registered office, not just a service address (see /services/registered-address/). How does this differ from a registered office (Domizil)? A registered office (Sitz) is the legal address of a company under company law. A Zustellungsdomizil / address-for-service is purely the address an authority communicates with for a specific procedure (trademark, patent, regulatory). One is statutory infrastructure for the company itself; the other is a procedural anchor for a specific authority. Many foreign applicants need the address-for-service but no registered office (they have no Swiss company). Does CHF 290 cover all my trademark filings? CHF 290 per year covers one trademark application or registration. Additional trademarks under the same applicant are CHF 100 each per year (subject to a CHF 590 cap regardless of trademark count). For a foreign applicant managing 5+ Swiss marks the mandate makes sense via a portfolio retainer — quote on request. How fast do you forward incoming mail? Within 24 hours of receipt. Default is scan-and-email; physical forwarding is available at CHF 50 per item or as part of a higher-tier mandate. For time-sensitive deadlines (responses to office actions) we proactively flag the deadline so you don't miss it. What happens if I miss a deadline because of mandate failure? Our mandate carries professional liability cover. If a missed deadline is attributable to our error (delayed forwarding, failure to notify) we cover the replacement-filing cost and any extension fee. Genuine deadline-management failures by us are rare; in 2024–2025 we had zero such events across our mandate book. Can I appoint someone other than a lawyer as my address-for-service? Technically yes — Swiss law does not require the representative to be a lawyer. In practice, IGE and other authorities prefer a known professional address (lawyer, fiduciary or specialist firm). A casual address (private individual, mailbox service) carries higher risk of missed deadlines. 07 · When this isn't the right route Where this mandate isn't the right fit. You need a registered office for a company, not just a procedural address. A Zustellungsdomizil isn't a registered office (Domizil): for the legal seat of an AG or GmbH you need our registered-office service instead. You already have a Swiss residence. The mandate is only required for foreign applicants without Swiss residence under MSchG art. 42 or PatG. You're managing five or more Swiss trademarks under one applicant. The flat CHF 290 covers one mark; additional marks are CHF 100 each up to a CHF 590 cap, so a portfolio retainer is the right structure at that volume. You need a regulatory contact mandate for FINMA, SECO or a cantonal authority. That sits outside the CHF 290 trademark/patent flat fee and is quoted separately, typically from CHF 600 per year. You need physical mail as the default, not the exception. Standard forwarding is scan-and-email; physical post is available but costs extra per item. 08 · Get started Send the applicant name and the matter. One-line brief: applicant legal name, jurisdiction, trademark/patent reference (if existing), forwarding address. We confirm and file the designation within 24 hours. Request a proposal --- ## Swiss white-collar criminal defense from CHF 290/hour URL: https://business-in-switzerland.com/services/criminal-defense Description: Swiss criminal-law defense for businesses and executives: proceedings, internal investigations, compliance audits. Hourly CHF 290. Consultation CHF 490. Swiss white-collar criminal defense from CHF 290/hour STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Criminal defense White-collar criminal defense and internal investigations. Representation in Swiss criminal proceedings, structured internal investigations, and compliance audits. CHF 490 initial consultation, CHF 290/hour representation, internal investigations from CHF 4,900. Request a proposal Written by Lukas Brunner · Reviewed by Andreas Furrer Last reviewed: May 2026 02 · Three engagement tracks Defense, internal investigation, compliance audit. 01.01 Defense in criminal proceedings Representation when you or your company face criminal investigation or charges (StGB / Swiss Criminal Code, white-collar offenses, AMLA breaches). Hourly engagement at CHF 290. 01.02 Internal investigation Pre-emptive review when you suspect employee misconduct, fraud, sanctions breach, or AML failure. Documented investigation, witness interviews, evidence preservation, executive briefing. From CHF 4,900. 01.03 Compliance audit Review of compliance programs, policies, AML / sanctions / anti-bribery controls. Independent gap analysis with prioritised remediation plan. From CHF 2,900. 03 · Pricing Initial consultation, hourly defense, flat investigation. Service Our fee Market range Initial criminal-law consultation CHF 490 CHF 350–1,000 Representation in criminal proceedings (hourly) CHF 290 / hour CHF 300–550 Internal investigation from CHF 4,900 CHF 5,000–50,000 Compliance audit from CHF 2,900 CHF 3,000–15,000 All fees excl. MWST. Court fees and forensic-expert costs (where required) are passed through at cost. Initial consultation fee credited against subsequent engagement. 04 · Mandate scope Strategy, representation, written reports. 04.01 Strategic assessment and risk identification 04.02 Representation before public prosecutors and federal investigators 04.03 Drafting of statements, motions, appeals (StPO procedural framework) 04.04 Coordination with witness counsel and expert witnesses 04.05 Internal investigation plan, interviews, evidence preservation, written report 04.06 Compliance gap analysis with remediation roadmap 05 · Process Initial consultation → engagement → defense → resolution. 01 Initial consultation CHF 490 fixed. Confidential 60–90 minute meeting to assess the matter, identify risks and define defense strategy. 02 Engagement Written engagement letter setting scope, fee structure (hourly or flat for internal investigation), and confidentiality terms. Attorney-client privilege from this point forward. 03 Active defense / investigation Document review, witness preparation, drafting of submissions to the prosecutor, attendance at hearings. For internal investigations: interview programme, evidence preservation, executive briefings. 04 Resolution Settlement (if appropriate), trial defense, or report finalisation. For internal investigations: written report with findings, recommendations and remediation plan. 06 · FAQ Frequently asked questions. When does a Swiss criminal-law issue arise for my business? Most commonly: AML failures and reporting obligations under the Anti-Money Laundering Act, embezzlement or fraud (StGB art. 138 / 146), bribery and corruption (StGB art. 322 ff), tax-fraud allegations (DBG art. 186), and sanctions / export-control breaches. Many of these can lead to corporate criminal liability under StGB art. 102. What is corporate criminal liability in Switzerland? Under StGB art. 102 a company can be held criminally liable when an offense is committed in the conduct of business and cannot be attributed to a specific natural person, OR (for specific offenses including bribery, money laundering, terrorism financing) when the company has not taken all reasonable organisational measures to prevent the offense. Penalties: fines up to CHF 5 million. Are internal investigations protected by privilege? Limited. Swiss law does not have full common-law-style attorney-client privilege for internal investigations. Documents prepared by external counsel are generally protected, but interview minutes, working papers and final reports may be subject to disclosure to investigators in some circumstances. We design the investigation to maximise privilege protection where possible. How long does Swiss criminal proceedings take? Public-prosecutor investigation: 6–18 months typical. Trial: 3–9 months. Appeal: 6–12 months. White-collar matters with complex documentary evidence often run longer. Procedural milestones are set by the Code of Criminal Procedure (StPO). Should I cooperate with investigators or invoke silence? Depends on the role: if you're a witness or person providing information, cooperation is usually advisable; if you're a suspect (Beschuldigter), the right to remain silent applies and is often advisable until counsel has reviewed the file. We assess and advise immediately at the initial consultation. What does the initial CHF 490 consultation include? 60–90 minute confidential meeting. Review of the situation, identification of legal exposure, risk-ranking, and defense-strategy outline. You leave with a clear next-step plan, whether or not you decide to engage further. The fee is non-refundable but counts as credit toward subsequent billable work if you do engage. 07 · When this isn't the right route When this defense engagement isn't for you. You need guaranteed privilege protection for an internal investigation. Swiss law doesn't have full common-law-style attorney-client privilege for internal investigations; interview minutes and working papers may be subject to disclosure to investigators in some circumstances. You need resolution within weeks. Public-prosecutor investigations typically run 6 to 18 months, trial 3 to 9 months, and appeal 6 to 12 months. You want a fixed all-in price for court representation. Representation in proceedings is billed hourly at CHF 290/hour; only the initial consultation, internal investigations and compliance audits carry flat or from-fees. You expect the initial consultation fee refunded if you don't proceed. The CHF 490 fee is non-refundable, though it's credited toward subsequent billable work if you do engage. 08 · Get started Confidential first call. One-line message: nature of the matter (without sensitive detail), urgency level. We schedule a confidential CHF 490 initial consultation within 24 hours; same-day for urgent matters. Request a proposal --- ## Swiss debt collection (Inkasso) from CHF 190 URL: https://business-in-switzerland.com/services/debt-collection Description: Out-of-court Inkasso and Betreibungsverfahren (SchKG): payment demand CHF 190, Betreibungsbegehren CHF 290, Rechtsöffnung CHF 990. Recover unpaid invoices. Swiss debt collection (Inkasso) from CHF 190 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Debt collection Swiss Inkasso and Betreibung — recover unpaid invoices. From the first Mahnung at CHF 190, through the federal Betreibungsverfahren (SchKG) at CHF 290, to Rechtsöffnung in cantonal court from CHF 990. Most claims clear before court. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: May 2026 02 · Three escalation stages Mahnung → Betreibung → Rechtsöffnung. 01.01 Out-of-court reminder Formal Mahnung / payment demand on lawyer letterhead. Often clears the matter without further escalation. CHF 190 flat per debtor. 01.02 Betreibung (SchKG) Federal debt-enforcement procedure. We file the Betreibungsbegehren with the cantonal Betreibungsamt. The debtor receives a Zahlungsbefehl with 20-day payment window. CHF 290. 01.03 Rechtsöffnung in court When the debtor files an Rechtsvorschlag (objection), we obtain provisional or final Rechtsöffnung in the cantonal court. From CHF 990 plus office fees. 03 · Pricing Fixed-fee per stage. Hourly only above Rechtsöffnung. Service Our fee Market range Payment demand / Mahnung CHF 190 CHF 200–500 Betreibungsbegehren (SchKG) CHF 290 CHF 300–800 Rechtsöffnung (court) from CHF 990 CHF 1,000–3,000 Inkasso (out-of-court flat) from CHF 490 CHF 500–2,000 Litigation (hourly) CHF 250 / hour CHF 250–550 Fees excl. MWST. Betreibungsamt and court office fees are passed through at cost. The debtor bears all costs once Rechtsöffnung is granted (SchKG art. 68). 04 · What the fee covers Drafting, filing, tracking, escalation. 04.01 Review of the underlying invoice and contract 04.02 Mahnung drafted on lawyer letterhead with statutory references 04.03 Filing of the Betreibungsbegehren with the cantonal Betreibungsamt 04.04 Tracking of the Zahlungsbefehl and any objection (Rechtsvorschlag) 04.05 Drafting of the Rechtsöffnung petition for cantonal court 04.06 Status reporting at each stage with next-step recommendation 05 · Process Most matters clear at Mahnung or Zahlungsbefehl stage. 01 Mahnung Formal payment demand. 14-day deadline. Clears most matters where the debtor is solvent and disputing nothing. 02 Betreibung If unpaid, we file the Betreibungsbegehren. Debtor receives a Zahlungsbefehl with 20 days to pay or object. 03 Rechtsvorschlag If the debtor objects, the procedure is paused. We assess whether to seek Rechtsöffnung (clear evidence of debt) or move to ordinary court (disputed claim). 04 Rechtsöffnung / enforcement Court grants provisional or final Rechtsöffnung. Debtor has another 20 days to pay or trigger garnishment / seizure. 06 · FAQ Frequently asked questions. How is Swiss Betreibung different from court litigation? Betreibung under the Federal Debt Collection and Bankruptcy Act (SchKG) is a streamlined administrative procedure. The Betreibungsamt issues a Zahlungsbefehl on simple application, no proof of the debt is required at the filing stage. Court litigation is needed only if the debtor objects (Rechtsvorschlag) and the matter is genuinely disputed. Most claims clear at the Betreibung stage. How much does a Betreibung cost? Our fee is CHF 290 to file the Betreibungsbegehren. The Betreibungsamt charges a sliding-scale office fee depending on the claim size — typically CHF 30 to CHF 400. Total out-of-pocket on a CHF 50,000 claim is roughly CHF 350. The debtor ultimately bears these costs once Rechtsöffnung is granted. What happens if the debtor files a Rechtsvorschlag? The Betreibung pauses. To resume, you need either provisional Rechtsöffnung (provided the debt rests on a written acknowledgement, signed contract or invoice with delivery proof) or, for genuinely disputed claims, an ordinary judgment in court. We assess which path applies on a case basis. Can I collect a debt if the debtor is in another canton? Yes. The Betreibung is filed in the canton where the debtor is domiciled, but Swiss procedure is uniform federally. We file in any cantonal Betreibungsamt; the work and fees are the same. What if the debtor is abroad? Foreign debtors fall outside SchKG. Recovery requires either (a) a Swiss judgment that can be exported under the Lugano Convention or a bilateral treaty, or (b) initiating proceedings in the debtor's country. We advise on the most cost-effective route at the scoping call. Do you charge a percentage of the recovered amount? No. We work on flat fees per stage, and (above flat-fee work) at CHF 250 per hour. Percentage-of-recovery is illegal for lawyers in Switzerland under bar rules. Genuine collection agencies (non-lawyer Inkassobüros) sometimes charge percentage, but their procedural reach is limited. 07 · When this isn't the right route Where Betreibung isn't the answer. Your debtor is based abroad. Foreign debtors fall outside SchKG; recovery needs a Swiss judgment exported under the Lugano Convention or a bilateral treaty, or proceedings in the debtor's own country. You want a percentage-of-recovery fee. That's illegal for lawyers under Swiss bar rules: we work on flat fees per stage plus CHF 250/hour above that. Your claim lacks a written acknowledgement, signed contract or delivery-proof invoice. Provisional Rechtsöffnung needs that kind of clear evidence; without it, a genuinely disputed claim goes to ordinary court instead of the faster Rechtsöffnung route. The debtor is likely to dispute the claim. Once a Rechtsvorschlag (objection) is filed, the streamlined Betreibung procedure pauses and the case may need to move to ordinary litigation. 08 · Get started Send the invoice and the contract. Forward the unpaid invoice, the underlying contract or order confirmation, and any prior correspondence with the debtor. We confirm the recommended stage and fee within 24 hours. Request a proposal --- ## Employer of Record Switzerland — CHF 490/employee/month URL: https://business-in-switzerland.com/services/employer-of-record Description: Hire in Switzerland without a Swiss entity. Employer of Record: we are the legal employer, you manage the work. CHF 490 per employee per month. Employer of Record Switzerland — CHF 490/employee/month STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Employer of Record Hire in Switzerland without forming a Swiss entity. We become the legal employer; you direct the work. CHF 490 per employee per month, all-in: contract, AHV/SUVA/BVG, payroll, year-end. Useful when forming a subsidiary first is overkill. Request a proposal Written by Eva Schibli · Reviewed by Stefan Locher Last reviewed: May 2026 02 · When EOR fits Pre-incorporation, single specialist, or bridge. 01.01 Pre-incorporation You're testing the Swiss market and want to hire one or two specialists before committing to a Swiss entity. EOR removes the formation step from the critical path. 01.02 Single specialist You have a foreign group and need one Swiss-based specialist (engineer, country manager, sales lead). Forming a subsidiary for a single hire is overkill — EOR is right-sized. 01.03 Bridge / interim A 6–18 month bridge while a longer-term restructuring (subsidiary or branch) completes. EOR runs in parallel and switches off when your own entity is ready to take over the employment contract. 03 · Pricing One flat fee per employee per month. Service Our fee Market range Employer of Record (per employee per month) CHF 490 CHF 500–1,500 Onboarding / employment-contract drafting included CHF 500–1,500 Offboarding (termination handling) included CHF 500–1,500 Payroll cycle, statutory filings, year-end Lohnausweis included CHF 100–200/mo Employee gross salary, employer social-insurance contributions (~13–18% of gross), and benefits-in-kind passed through at cost. Total monthly cost ≈ gross × 1.20 + CHF 490 EOR fee. SECO recruitment-licence permit (where the EOR involves leasing) included in our compliance scope. 04 · What the fee covers Everything statutory between hire and exit. 04.01 Swiss-law-compliant employment contract drafted and signed by us as employer 04.02 AHV / SUVA / BVG registrations for the new hire 04.03 Quellensteuer (withholding) for non-resident employees without C-permit 04.04 Monthly Lohnabrechnung and bank-payment file 04.05 Year-end Lohnausweis and AHV reconciliation 04.06 Termination handling under Swiss labour law (notice periods, final settlement) 05 · Process Brief → contract → monthly cycle → exit. 01 Brief You send the role description, target salary, start date, work location. We confirm Swiss labour-law compliance and confirm the EOR mandate within 24 hours. 02 Contract + onboarding We draft the employment contract (you co-sign), register the employee with AHV/SUVA/BVG, set up payroll. 5–10 working days. 03 Monthly cycle You provide hours/variable inputs by the 25th. We run payroll, file declarations, and settle salary by the 28th. CHF 490 invoiced monthly per employee. 04 Off-boarding or transfer If you decide to incorporate, we transfer the employment contract to your own entity (continuity preserved for AHV / pension fund / seniority). 06 · FAQ Frequently asked questions. How is EOR different from staffing or contractor arrangements? In EOR we are the legal employer under a Swiss employment contract — fully compliant with Swiss labour law (Code of Obligations art. 319 ff). The employee is fully integrated into Swiss social-insurance schemes and you have Swiss-law direction over the work. A staffing agency rents you a worker who remains employed by the agency under separate rules. A contractor arrangement is service-purchase, not employment, and is risky if the activity has employment characteristics (Scheinselbständigkeit). Is the employee my employee or yours? Legally ours. Operationally yours. You direct the day-to-day work, set tasks, evaluate performance. We hold the contract, the social-insurance registration and the payroll obligations. The employee receives instructions from you and a Lohnausweis from us. Can the employee be foreign? Yes, with the standard Swiss permit caveats. EU/EFTA nationals can take up Swiss employment under the FZA agreement; third-country nationals need a B-permit subject to federal quota. We coordinate the migration mandate (see /services/migration/) where the employee needs a permit. How does the EOR end? Three ways. (1) Your own Swiss entity takes over the employment contract — we transfer with continuity for AHV, pension and seniority. (2) The employee resigns or is terminated — Swiss notice periods apply (1 month in the first year, 2 months years 2–9, 3 months thereafter, OR art. 335c). (3) The mandate ends by mutual agreement. What happens if there is a dispute with the employee? As legal employer we are the formal counterparty. We coordinate with you on substance (your operational view of the matter) and handle the formal process (warnings, terminations, Arbeitsgericht proceedings if it escalates). For most disputes the cost is included in the EOR fee; complex litigation is billed at CHF 250 per hour with prior agreement. What does CHF 490 actually cover? Everything statutory: contract, registrations, payroll cycle, social-insurance contributions handling, year-end paperwork, off-boarding. The employee's gross salary, employer social-insurance contributions (~13–18% of gross depending on canton and BVG plan), and any benefits-in-kind are passed through at cost on top of the CHF 490 fee. Total cost to you per employee = gross salary × ~1.20 + CHF 490. 07 · Not the right fit When EOR isn't the right route. You need to hire a full Swiss team, not one or two specialists: the three use cases above (pre-incorporation, single specialist, bridge) are sized for one or two hires, and forming your own entity is usually the better economics beyond that. Your hire is a third-country national who needs sponsorship: EOR removes the entity-formation step, not the permit step. Non-EU/EFTA hires still need a B-permit subject to the federal quota, coordinated separately through our migration mandate. You want to end the arrangement without notice: as the legal employer we're bound by Swiss notice periods (one month in year one, two months in years two to nine, three months after, OR art. 335c), even under an EOR contract. You expect to run this for years, not months: the bridge use case is scoped at six to eighteen months ahead of a subsidiary or branch taking over the employment contract, and EOR isn't built to be a permanent structure. 08 · Get started Send the role and the target salary. One-line brief: role title, target gross salary, start date, work canton, employee's nationality. We confirm scope, EOR fit and any migration steps within 24 hours. Request a proposal --- ## Swiss legal opinion — CHF 1,900 short, CHF 4,900 full URL: https://business-in-switzerland.com/services/legal-opinion Description: Written legal opinions on Swiss-law matters: short opinions up to 5 pages CHF 1,900, comprehensive CHF 4,900. For cross-border deals and regulatory filings. Swiss legal opinion — CHF 1,900 short, CHF 4,900 full STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Legal opinion A formal Swiss-law opinion, fixed-fee. Short opinions up to 5 pages at CHF 1,900. Comprehensive multi-issue opinions at CHF 4,900. Reliance language available. Signed firm letterhead, structured citations, clear conditional reasoning where required. Request a proposal Written by Andreas Furrer · Reviewed by Lukas Brunner Last reviewed: May 2026 02 · Three opinion tiers Short, comprehensive, reliance. 01.01 Short opinion Up to 5 pages. Single legal question with focused analysis. CHF 1,900 fixed. Typical use: enforceability of a clause, applicability of a specific Swiss-law rule, regulatory threshold check. 01.02 Comprehensive opinion Multi-issue analysis with structured legal reasoning, citation of relevant articles, and conclusions. CHF 4,900 fixed. Typical use: cross-border financing, M&A clean-opinion, FINMA regulatory positioning, complex tax-ruling support. 01.03 Reliance opinion Issued for use by a third party (counterparty, bank, regulator) who may rely on it. Comprehensive opinion + reliance language + signed firm letterhead. Quoted on request, typically CHF 5,900–7,900 depending on reliance scope. 03 · Pricing Flat fee per scope. Hourly above the comprehensive cap. Service Our fee Market range Legal opinion (short, up to 5 pages) CHF 1,900 CHF 2,000–5,000 Legal opinion (comprehensive) CHF 4,900 CHF 5,000–15,000 Hourly rate (above flat-fee scope) CHF 250 / hour CHF 250–550 04 · What every opinion contains Structure, citations, conclusions, signed letterhead. 04.01 Structured legal reasoning citing the relevant Swiss statutes and articles 04.02 Identification of factual assumptions on which the opinion rests 04.03 Conclusions stated with explicit qualifications and reservations 04.04 Signed firm letterhead, addressed to the recipient on the brief 04.05 One round of clarification questions before final issue 04.06 Translation into English (or German/French if requested) at no extra cost 05 · Process Brief → draft → clarification → final. 01 Brief Send the legal question, factual background, and the recipient. We confirm whether short or comprehensive scope applies. 02 Drafting Short: 5 working days. Comprehensive: 10–15 working days. Includes research and citation verification. 03 Clarification round You receive a draft for review. One round of factual corrections / scope clarifications included in the flat fee. 04 Final issue Signed letterhead version, dated, addressed to the recipient. Reliance language added if requested at brief stage. 06 · FAQ Frequently asked questions. When do I need a Swiss legal opinion versus general legal advice? A legal opinion is a formal written document that a third party can rely on. Counterparties, banks, regulators or auditors often request one to confirm a Swiss-law point before they accept a transaction or filing. General legal advice is informal — a memo or call between you and your lawyer. If a third party will read and rely on the analysis, you need an opinion. What is a "reliance opinion"? An opinion expressly addressed to and intended to be relied upon by a named third party. The third party can sue the issuer for negligent advice if the opinion is wrong. Because of the additional liability we charge a small premium and confirm coverage with our professional indemnity insurer before issue. Can you opine on foreign-law questions? No. Swiss bar rules and our professional indemnity scope cover Swiss-law opinions only. For foreign-law questions we coordinate with referral counsel in the relevant jurisdiction. The Swiss-law portion of a multi-jurisdictional opinion remains within our scope. How long is an opinion valid for? An opinion is dated and reflects the law at that date. Material legal change after issue can affect its validity. For matters where validity needs to extend over time (e.g., long-term financing or licence support), we add an "as of [date]" anchor and offer refresh opinions at 30–50% of the original fee depending on scope. Do you provide tax opinions? Limited tax opinions yes — Swiss withholding-tax positions, participation-exemption confirmations, and similar discrete points. For full tax-structuring opinions involving multi-step planning we coordinate with a tax-specialist firm. See /services/tax-ruling/ for cantonal tax-ruling support. What if the answer is "it depends"? We say so, with explicit conditional reasoning. A good opinion identifies which factual or legal contingencies drive different conclusions. Many fact-dependent matters are appropriately addressed with conditional opinions — that is what the comprehensive scope is built for. 07 · Not the right fit When a legal opinion isn't the right document. Your question involves foreign law: Swiss bar rules and our professional-indemnity cover extend to Swiss-law opinions only, so for foreign-law questions we coordinate with referral counsel in the relevant jurisdiction. You need multi-step tax-structuring advice: our opinion scope covers discrete Swiss tax points (withholding-tax positions, participation-exemption confirmations), and full tax-structuring involving multi-step planning goes to a tax-specialist engagement instead (see /services/tax-ruling/). You need it same-day or next-day: short opinions take 5 working days and comprehensive opinions take 10 to 15, before the one included clarification round. You need the opinion to stay valid indefinitely: it is dated to the law as of that day, material legal change afterwards can affect its validity, and a refresh opinion costs 30 to 50% of the original fee. 08 · Get started Send the question and the recipient. One-paragraph brief: the legal question, the factual background, and who will read the opinion. We confirm scope (short or comprehensive), reliance status, and timeline within the same business day. Request a proposal --- ## Swiss legal services — contracts & retainer from CHF 490 URL: https://business-in-switzerland.com/services/legal-services Description: Swiss legal services for foreign founders: contract review CHF 490, drafting CHF 990, retainer CHF 2,500. Hourly CHF 250. Free 30-minute initial consultation. Swiss legal services — contracts & retainer from CHF 490 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Legal services Swiss legal advice: flat-fee or retainer. Free 30-minute scoping call. Flat fees for review (CHF 490) and drafting (CHF 990). Hourly at CHF 250. Retainer at CHF 2,500/month for ongoing legal coverage. Request a proposal Written by Lukas Brunner · Reviewed by Andreas Furrer Last reviewed: May 2026 02 · Three engagement tracks Free scoping, then flat-fee or retainer. 01.01 Free initial consultation 30-minute scoping call. No bill. We confirm whether the matter fits a flat-fee scope or requires hourly engagement, and what to bring to the next call. 01.02 Flat-fee work Contract review CHF 490 (simple), contract drafting CHF 990, NDA/SLA/employment templates flat-quoted on request. Best for one-off deliverables with known scope. 01.03 Retainer mandate CHF 2,500 per month for ongoing access to the team — review, drafting, advisory, regulatory check-ins. Best for active operating entities with rolling legal needs. 03 · Pricing Free first call. Published rates after. Service Our fee Market range Initial consultation (30 min) free CHF 0–350 Hourly rate (lawyer) CHF 250 / hour CHF 250–550 Contract review (simple) CHF 490 CHF 500–1,500 Contract drafting CHF 990 CHF 1,000–5,000 Retainer (standard mandate) CHF 2,500 CHF 3,500–5,000 All fees excl. MWST. Retainer billed monthly in advance. Flat-fee deliverables include one round of revisions; subsequent rounds billed at hourly rate. 04 · Scope Commercial-law work, drafted to Swiss standard. 04.01 Drafting and review of commercial contracts (sales, services, supply, distribution) 04.02 Drafting and review of employment contracts under Swiss labour law (OR art. 319 ff) 04.03 Shareholder and partnership agreements 04.04 Non-disclosure and IP-assignment agreements 04.05 Statutes amendments and shareholder-meeting documentation 04.06 Advisory on Swiss commercial-law triggers (warranties, withdrawal rights, jurisdiction clauses) 05 · Process Free scoping → quote → deliverable → iteration. 01 Free scoping 30 minutes by call. We identify the matter, deliverable type, and applicable Swiss-law framework. 02 Quote Flat-fee for the deliverable, or hourly estimate. Written confirmation before any billable work begins. 03 Drafting / review Within 5 working days for simple flat-fee deliverables; longer for negotiated agreements. 04 Iteration One round of revisions included. Subsequent rounds at hourly rate, agreed up front. 06 · FAQ Frequently asked questions. What law governs Swiss commercial contracts? The Swiss Code of Obligations (OR / Obligationenrecht) is the foundational statute. Articles 1–183 cover general contract formation; specific contract types (sale, lease, employment, agency, mandate, surety) have their own dedicated articles. Cross-border contracts can opt into foreign law, subject to mandatory Swiss provisions on consumer and employment matters. Can you advise on contracts governed by foreign law? For pure document work (review, drafting) yes — most commercial contracts have similar mechanics across jurisdictions and we flag obvious Swiss-law mismatches. For litigation or regulatory advice in foreign jurisdictions we coordinate with local counsel and limit our scope to Swiss-law-side issues. How long does a flat-fee contract review take? Five working days from the time we receive the document and the brief. We deliver a redline with comments, summary of risk points, and a recommended-action checklist. Urgent turnaround (24–48 hours) is available at a 50% surcharge. When should I move from hourly to retainer? When recurring legal work exceeds about 8 hours per month at hourly rate (CHF 2,000+), the retainer becomes the cheaper option. It also gives priority response (24-hour acknowledgement) and includes routine document review without per-task quoting. Is the consultation really free? Yes — first 30-minute scoping call is at no charge. There is no obligation to engage afterwards. We deliberately keep this free so foreign founders can compare us with peers without a paywall barrier. Do you handle litigation? For contract disputes and ordinary civil matters yes, at CHF 250 per hour. For specialist litigation (criminal, IP enforcement, regulatory enforcement) we coordinate with referral counsel where the specialist track requires it. See /services/criminal-defense/ for white-collar criminal mandates. 07 · Not the right fit When this isn't the right engagement. Your matter is specialist litigation (criminal, IP enforcement, regulatory enforcement): that sits outside our hourly commercial-litigation scope and is routed to referral counsel (see /services/criminal-defense/ for white-collar mandates). You need advice or representation under foreign law: for pure document work we flag obvious Swiss-law mismatches, but litigation or regulatory advice in a foreign jurisdiction is coordinated with local counsel, not handled by us directly. Your contract is complex or non-template: the CHF 490 flat fee covers simple contract review only, and NDA, SLA and employment templates beyond that are quoted separately on request. You need it back the same day: standard flat-fee turnaround is 5 working days, and 24 to 48-hour delivery carries a 50% surcharge. 08 · Get started Tell us the matter. One paragraph: what document or matter, deadline, applicable law if known. We confirm scope and quote within the same business day, free of charge. Request a proposal --- ## Swiss Company Liquidation — Solvent Wind-Down of AG/GmbH URL: https://business-in-switzerland.com/services/liquidation Description: Solvent Swiss company liquidation for foreign-owned AG and GmbH. OR art. 736 to 746 process, 12-month creditor cooling period, tax clearance, deregistration. Swiss Company Liquidation — Solvent Wind-Down of AG/GmbH STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Service — lifecycle closure Swiss company liquidation — solvent wind-down for foreign-owned AG and GmbH. Close a Swiss company the right way: a nine-step, statute-driven process under OR art. 736 to 746 with a statutory 12-month creditor cooling period. English-language engagement from a Zug-based fiduciary. We run solvent liquidations only, not bankruptcy. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: June 2026 Scope Solvent liquidation, not bankruptcy. The single most important distinction on this page, surfaced first because SERPs routinely conflate the two. Swiss law draws a sharp line between solvent liquidation and bankruptcy . This page covers the former only. A solvent liquidation is the orderly wind-down of a company whose assets exceed its liabilities. It is the company’s own process, run by a liquidator the shareholders or partners appoint, under OR art. 736 to 746. It is a fiduciary service. Bankruptcy, Konkurs , is a separate insolvency proceeding under the Swiss Debt Enforcement and Bankruptcy Act (SchKG). It is opened by the court and administered by the cantonal Konkursamt, not by the company. When a Swiss company cannot pay its debts, the directors or liquidators are required to file for bankruptcy under OR art. 725 and 725a. We do not run bankruptcy proceedings; a Swiss insolvency counsel does. If you are unsure which path your company needs, the opening liquidation balance sheet (step 4 below) resolves the question. If that balance sheet discloses that assets are less than liabilities, the solvent-liquidation track halts and the matter is referred to the Konkursamt. Counsel before, not after, is the right call. At a glance In scope: OR art. 736 to 746 solvent liquidation of an AG or GmbH. Not in scope: Konkurs (SchKG) insolvency proceedings. Minimum timeline: 12 months, statutory (OR art. 745.2). Who runs it: a Swiss-resident liquidator the shareholders appoint (OR art. 740.3). Pricing: standard liquidation from CHF 2,900 flat. Liquidator-mandate annual: CHF 4,900. Hourly liquidation work CHF 250 above flat scope. Bankruptcy-procedure assistance CHF 290/hour. Why foreign owners close a Swiss company Five situations that bring you to this page. Purpose fulfilled A project vehicle, SPV or single-contract AG has completed the deal it was created for. Keeping it on the register costs more than closing it. Group restructuring The foreign parent is consolidating legal entities, or itself has been sold, and the Swiss subsidiary is no longer needed in the new map. Post-acquisition cleanup An acquired Swiss subsidiary is redundant after integration. Merger into the parent is one option; liquidation is the cleanest when there is nothing left to absorb. Dormant-entity drag A long-dormant AG or GmbH is still paying resident-director fees, annual accounts fees and cantonal minimum capital tax. Closure is often cheaper than another year of compliance. Holding-vehicle collapse A holding company has distributed its underlying assets to the parent or to shareholders. The empty shell is the last thing to close. Exit liquidity The founder has sold the operating business and is distributing the remaining reserves. The liquidation surplus mechanics (see below) are the tax event. The process The statutory backbone — OR art. 736 to 746. A nine-step sequence. Steps 1 to 4 are setup (roughly 6 to 8 weeks). Step 5 is the statutory 12-month creditor cooling period. Steps 6 to 9 run through that 12 months and conclude in the last 4 to 6 weeks. The nine-step sequence at a glance 01 Dissolution by shareholder resolution Shareholders or partners resolve to dissolve the company on one of the OR art. 736 grounds. Notarial deed for the AG general meeting; partner meeting for the GmbH. 2/3 majority threshold on both sides. 02 Appointing the liquidator One or more liquidators are appointed under OR art. 740. A majority must be domiciled in Switzerland. A natural person or a legal entity can serve; the outgoing director commonly continues. 03 Registering the dissolution in the Handelsregister HRegV art. 64 filing: dissolution resolution, liquidator appointment, signatures. The company name is extended by "in Liquidation" on all correspondence (OR art. 739.1). 04 Opening liquidation balance sheet Under OR art. 742, the liquidators prepare the opening liquidation balance sheet on a realisable-value basis, not going-concern cost. Solvency is reconfirmed. 05 Creditor call (Schuldenruf) and the 12-month cooling period Three SHAB publications of the creditor call (OR art. 745.1) plus direct letters to known creditors. A 1-year waiting period from the third publication must elapse before final distribution (OR art. 745.2). 06 Realising assets, settling liabilities, winding down operations During the 12 months: contract termination, employee wind-down, lease surrender, bank-account consolidation, data-retention compliance, known-creditor settlement (OR art. 743 to 744). 07 Tax clearance, cantonal, federal, VAT Cantonal tax-authority clearance letter, federal tax reconciled through the cantonal return, final VAT return and ESTV deregistration under MWSTG art. 14. 08 Final balance sheet and distribution to shareholders OR art. 746 final balance sheet, approved by the shareholder or partner meeting. Order of payment: remaining known creditors, reserve for contingent claims, share-capital repayment, reserves distribution with 35% withholding on the taxable component. 09 Deregistration from the Handelsregister HRegV art. 65 deletion. Zefix reflects the deletion within 1 to 2 business days. Legal personality extinguishes on publication of the deletion in SHAB. AG vs GmbH — same backbone, small differences OR art. 736 to 746 is written for the AG. OR art. 826 applies the same regime to the GmbH, with partner-meeting instead of general-meeting mechanics and one different majority threshold. The operational downstream is identical. Feature AG (Aktiengesellschaft) GmbH (Gesellschaft mit beschränkter Haftung) Resolving body General meeting of shareholders Partner meeting Majority threshold 2/3 of represented votes plus absolute majority of share-nominal values represented (OR art. 704.1 no. 8) 2/3 of represented votes (OR art. 808b) Notarisation Required (OR art. 647) Required (OR art. 808 cross-reference) Liquidator role title Liquidator(s) Liquidator(s) (same term) Downstream process OR art. 737 to 747 OR art. 826 → OR art. 737 to 747 See the full rules on Swiss AG formation rules and Swiss GmbH formation rules for the entity-specific capital and governance context that precedes liquidation. The minimum timeline is 12 months, not because of us, because of statute OR art. 745.2 requires a 1-year cooling period from the third SHAB publication of the creditor call before any final distribution to shareholders. Even the most administratively efficient liquidation cannot close faster than roughly 12 months. Our engagement controls the weeks either side of that statutory wait; the wait itself is not negotiable and any service promising a quicker close is either misreading the statute or quoting the simplified OR art. 745.3 path that applies only to very small, very clean estates. Statutory anchors The three numbers that shape every Swiss liquidation. 12 mo Minimum creditor cooling period OR art. 745.2 Majority Liquidators must be CH-domiciled OR art. 740, 718.4 10 yr Book retention after deletion OR art. 958f Step 1 Dissolution by shareholder resolution. The OR art. 736 grounds OR art. 736 enumerates the grounds for dissolution: expiry of the period fixed in the articles of association, a shareholder resolution recorded as a notarial deed, the opening of bankruptcy (not this page), a court order on statutorily foreseen grounds, a merger under the Swiss Merger Act, and other legally foreseen cases. The common path for a voluntary wind-down is the shareholder resolution, ground two. AG: 2/3 general-meeting resolution, notarised For an AG, OR art. 704.1 no. 8 requires a 2/3 majority of votes represented and an absolute majority of the share-nominal values represented. The resolution is recorded in a notarial deed pursuant to OR art. 647, because dissolution alters the articles of association. We draft the resolution, coordinate with the notary, and submit the deed to the cantonal Handelsregister. GmbH: 2/3 partner-meeting resolution, notarised For a GmbH, OR art. 808b requires a 2/3 majority of represented votes at the partner meeting. The partner-meeting formalities follow OR art. 808 and are notarised for consistency with the AG regime. The resolution is filed with the Handelsregister in the same way. What the resolution must say A clean resolution fixes the effective date of dissolution, identifies the liquidator or liquidators by name and signature authority, authorises Handelsregister and tax notifications, and addresses any shareholder authorisations relevant during the liquidation, for example on interim information rights. Nothing in the resolution should anticipate a final distribution before the statutory cooling period has run. Step 2 Appointing the liquidator. Who can be a liquidator OR art. 740.1 permits natural persons or legal persons as liquidators. Fiduciary firms acting through a named officer and individual fiduciaries are both common. There is no formal professional licence requirement, though the liability standard at OR art. 754 means the role is in practice held by experienced fiduciaries, not by ad-hoc appointees. The Swiss-resident requirement, OR art. 740.3 A majority of the appointed liquidators must be domiciled in Switzerland. A single non-Swiss-resident liquidator acting alone is not permissible. The rule mirrors the Swiss-resident-director rule that applied during the operating phase, OR art. 718.4 for the AG and OR art. 814.3 for the GmbH. Foreign-owned companies that used a nominee director during their lifetime usually retain the same arrangement through the liquidation. Nominee director as nominee liquidator The dominant operational pattern for foreign-owned wind-downs: the nominee director we appointed can transition to nominee liquidator, preserving the Treuhandvertrag through the entire liquidation period. That continuity matters: banks do not need to run new KYC on the liquidator, counterparties see the same signatory, and the record-custody obligation after deletion (see below) stays with one named fiduciary. See our Swiss-resident director services for the operating-phase context. Liquidator duties and personal liability OR art. 754 applies to liquidators by direct extension. A liquidator who negligently or intentionally breaches a duty, for example by distributing to shareholders before settling a known creditor, is personally liable to the affected party. Claims prescribe under OR art. 760, typically 5 years from knowledge and 10 years from breach. The diligence standard is that of a professional fiduciary. This is one reason the role is rarely taken by family members or friends of the founder. Step 3 Registering the dissolution in the Handelsregister. What gets filed Under HRegV art. 64, the liquidators file the notarised dissolution resolution, the appointment of the liquidators, the signatures of the liquidators, and any change in representative authority. The cantonal Handelsregisteramt enters the dissolution typically within 5 to 15 working days, faster in Zug, slightly slower in Zurich and Geneva. The name suffix "in Liquidation" OR art. 739.1 requires the company to extend its name by "in Liquidation", "en liquidation" or "in liquidazione" in all official correspondence. The addition applies from the Handelsregister entry of the dissolution onward and signals the liquidation status to banks, counterparties and authorities. What changes on the day dissolution is registered Legal personality continues: the company is not yet dissolved in the personality sense, merely in the operating sense. Banks must update their signatory records to reflect the liquidator. Counterparties must update their invoicing. Contracts continue until terminated by notice. The liquidation phase begins the day the Handelsregister entry is published in SHAB. Step 4 Opening liquidation balance sheet. Going-concern to liquidation accounting basis Under OR art. 742, the liquidators prepare an opening liquidation balance sheet. The accounting basis shifts from going-concern (historical cost, depreciation over useful life) to liquidation basis (realisable value, accelerated recognition of costs). Intangible assets are typically impaired, prepaid expenses accelerated, and provisions revisited. This is an accounting policy change that our final accounts and tax returns engagement handles alongside the liquidator role. What must be disclosed The opening balance sheet lists assets at realisable value, liabilities including contingent obligations, estimated liquidation costs, and the expected surplus or shortfall. It is disclosed to shareholders, and under OR art. 742.2 it is provided to creditors on request. Solvency confirmation The opening balance sheet must demonstrate that the company is solvent. If it discloses that assets are worth less than liabilities, the liquidators are required to file for bankruptcy under OR art. 725a. That filing ends the solvent-liquidation track and transfers the matter to the cantonal Konkursamt. This is the critical reason the opening balance sheet is prepared with the same diligence as a statutory audit: it determines which statutory track applies. Step 5 The creditor call (Schuldenruf) and the 12-month cooling period. What OR art. 745 requires The liquidators publish a creditor call in the Swiss Official Commercial Gazette, SHAB ( shab.ch ), three times, commonly once a week for three weeks, inviting creditors to register their claims with the liquidators. Known creditors must in addition be notified by direct letter under OR art. 745.1 second sentence. The liquidators maintain a claims register and evaluate each submission. The 1-year waiting period, OR art. 745.2 Final distribution to shareholders cannot occur until 1 year has elapsed from the third SHAB publication. The statutory purpose is creditor protection: creditors who may not have been known to the company have time to come forward. The period runs regardless of how quickly the company’s operational wind-down completes. Can the 12 months be shortened? The OR art. 745.3 expert-attestation path OR art. 745.3 permits an earlier distribution if an expert attestation confirms that all debts are settled and that the early distribution does not prejudice creditors. In practice the path is used for very small, very clean estates with no contingent exposure. For most foreign-owned AG and GmbH wind-downs, counsel advises running the full 12 months. The procedural comfort of the statutory cooling period is usually worth more than the time saved. What happens if a creditor surfaces after the Schuldenruf but before deletion Known claims are settled. Unknown claims that surface during the cooling period are settled from the remaining assets. After deletion, very-late claims are rare given three SHAB publications plus direct letters to known creditors; when they do arise, the remedy typically runs against the former shareholders for distributions received, not against the former company, which no longer exists. Starting a wind-down this quarter? The 12-month clock starts the day the Schuldenruf is published. If your plan is to close the Swiss entity within the calendar year, the dissolution resolution and the SHAB creditor call should be filed in the first quarter. We scope the sequence on a 30-minute call and send a written proposal within two business days. Request a proposal Step 6 Realising assets, settling liabilities, winding down operations. During the 12-month cooling period, the liquidators run the operational wind-down in parallel with the statutory wait. OR art. 743 and 744 frame the work: conclude current business, realise assets, pay known creditors. Five practical workstreams recur in every engagement. Contract termination and counterparty notice Service agreements, supplier contracts and SaaS subscriptions are terminated on their contractual notice periods. Counterparties are informed of the liquidation status in writing. Assignments of intellectual property, customer data and licences are executed where the group is retaining them elsewhere. Employees, OR art. 335 and 337 Statutory notice periods apply to all employment contracts. Final payslips, salary certificates, AHV/AVS and BVG/LPP final filings are prepared. Where the wind-down crosses the mass-dismissal threshold, OR art. 335d to 335g consultation rules apply and add calendar time. Our final accounts and tax returns handoff covers the payroll closeout. Real estate, leases, and physical assets Office leases are surrendered on their break clauses or assigned to another group entity. Furniture and equipment are sold, redistributed within the group, or disposed of. Keys are returned. IT decommissioning is sequenced so that cantonal and ESTV authorities can still reach the company during tax-clearance correspondence. Bank accounts Operating accounts are closed progressively and consolidated into a single liquidation account. Interim balances sit there pending the final distribution. Banks cooperate provided the liquidator is registered in the Handelsregister with the appropriate signature authority. Data retention and GDPR / FADP compliance Customer-data handover, vendor data-processing-agreement termination and data-protection-officer closeout where applicable. The 10-year record-retention obligation (OR art. 958f, see below) continues past deletion; data held under retention rules is separated from data deleted at wind-down. Step 7 Tax clearance — cantonal, federal, VAT. Cantonal tax clearance The cantonal tax authority issues a letter confirming that no open corporate or capital-tax obligations remain. Each canton has its own form and timeline. Typical turnaround is 4 to 10 weeks depending on canton workload. See the cantonal procedural notes below for Zug, Zurich and Geneva specifics. Federal direct tax In most cantons the cantonal clearance covers federal direct tax as well, because cantonal authorities collect federal direct tax on ESTV’s behalf. No separate formal federal certificate is issued in most cantons. VAT deregistration under MWSTG art. 14 The company’s VAT liability continues until the deregistration from the ESTV VAT register takes effect under MWSTG art. 14. A final VAT return covering the wind-down period must be filed. The VAT number is cancelled typically within a few weeks of the final return, subject to ESTV confirming no open obligations. Withholding tax on the liquidation surplus If the final distribution contains reserves beyond a repayment of share capital, Swiss withholding tax at 35% under the Verrechnungssteuergesetz applies to the taxable component. The liquidator files the VStG return and remits the tax. Shareholders claim refund or treaty reduction separately. Tax treatment is covered in its own section below. Step 8 Final balance sheet and distribution to shareholders. Preparing the final balance sheet Once all known liabilities are settled and the 12-month cooling period has elapsed, the liquidators prepare the final balance sheet under OR art. 746. The shareholder or partner meeting approves it and discharges the liquidators. The final accounts are the basis for the final tax return and the deregistration filing. Order of distribution Payments are made in a strict order. First, any remaining known creditors are paid in full. Second, reserves are set aside for contingent or unknown claims where the liquidators consider such a reserve prudent. Third, share capital is repaid to the shareholders pro rata; this component is exempt from Swiss withholding tax. Fourth, the surplus reserves (retained earnings and capital surplus above share capital) are distributed pro rata; this component is subject to 35% withholding tax under VStG. Withholding tax filing on the surplus distribution The liquidator files the VStG return and remits 35% of the taxable component to ESTV. Swiss-resident shareholders reclaim the tax through their personal or corporate annual tax return. Foreign shareholders claim a treaty-based reduction or refund under the applicable double tax agreement. Swiss-corporate shareholders with qualifying participations of 10% or more or CHF 1 million market value benefit from the participation relief under DBG art. 69 to 70. Step 9 Deregistration from the Handelsregister. What the liquidators file The deregistration package under HRegV art. 65 comprises a liquidators’ declaration that the liquidation is complete, the final balance sheet, the cantonal and VAT clearance certificates, proof of the SHAB Schuldenruf publications, and the shareholder or partner resolution approving the final balance sheet and discharging the liquidators. When legal personality ends The company’s legal personality extinguishes on the date the Handelsregister enters the deletion and publishes it in SHAB. Zefix, the federal commercial-register portal, reflects the deletion within 1 to 2 business days. From that day the company no longer exists as a legal person. Practical consequences Any remaining bank balance is distributed to shareholders before the deletion is filed, because the account cannot be operated after the deletion. Post-deletion, the former liquidator retains the 10-year book-retention duty and may be contacted by tax authorities for information requests within that window. After deregistration 10-year book retention and residual risks. 10-year book retention, OR art. 958f The books, vouchers, annual accounts and liquidation records must be retained for 10 years after the company’s deletion, under OR art. 958f. Electronic retention is permitted if the records remain readable, unaltered and retrievable throughout the period. The duty falls on the former liquidator or on a designated custodian. Engaging us as fiduciary typically includes this post-deletion record custody as a standard part of the scope. Liquidator personal liability, OR art. 754 The liquidator remains personally exposed for intentional or negligent breach of duty during the liquidation. Claims survive the company’s deletion and prescribe under OR art. 760, typically 5 years from knowledge of the breach and 10 years from the breach itself. Exposure is uncommon when the process is run carefully, but it is not extinguished by the deletion and is a reason engagement letters are precise about scope, reliance and documentation. Very-late creditor claims Realistic frequency is near zero after three SHAB publications plus direct letters to known creditors. When a claim does surface post-deletion, the remedy typically runs against the former shareholders for distributions received, not against the former company. This is a creditor-protection policy rather than a routine exposure. Tax treatment Tax treatment of the liquidation surplus. The single most-queried liquidation question: how is the surplus taxed? Four facts cover it. Share-capital repayment vs reserves distribution Repayment of share capital, that is, the return of the shareholder’s original subscribed investment, is exempt from Swiss withholding tax. Distribution of accumulated reserves, meaning retained earnings plus any capital surplus above share capital, is subject to 35% Swiss withholding tax under VStG. The liquidator identifies the split on the final balance sheet and in the VStG return. Foreign shareholders and DTA treaty reductions Swiss double tax agreements typically reduce the withholding rate on treaty-qualifying dividends to 0 percent, 5 percent, 10 percent or 15 percent depending on shareholding size and residence country (facts-switzerland §2.4, §7.1). Liquidation-surplus distributions are treated as dividends for treaty purposes in most Swiss treaties. Repayments of share capital and of formally booked capital contribution reserves (KER / agio) are exempt from the 35 percent withholding under VStG art. 5 para. 1bis (Capital Contribution Principle, in force since 1 January 2011). The foreign shareholder files a treaty-refund claim on the ESTV form applicable to the treaty partner after the distribution. Swiss-corporate shareholders and participation relief If the shareholder is another Swiss company holding a qualifying participation of 10% or more or CHF 1 million in market value, the participation relief under DBG art. 69 to 70 reduces federal tax on the liquidation gain close to zero at the shareholder level. Cantonal equivalents mirror the federal rule in most cantons. Reporting procedure for qualifying intercompany distributions For qualifying intercompany distributions, a reporting procedure (Meldeverfahren) can replace the cash remittance of the 35 percent withholding tax with a reporting obligation on the shareholder side. This is the typical path for distributions to qualifying Swiss parent companies (participation of at least 10 percent of capital or voting rights, or market value of at least CHF 1,000,000 — DBG art. 69–70 post-STAF, in force since 1 January 2020) and to treaty-partner parent companies that meet the form thresholds. The specific ESTV form depends on the treaty partner and the shareholder type. Before you liquidate Alternatives — dormancy, merger, share sale. Not every searcher on this page should in fact liquidate. Three alternatives are worth thinking through before the dissolution resolution is signed. Dormancy — keep the shell alive If there is a realistic chance the company will be reactivated within the next two to three years, dormancy preserves it at a low ongoing compliance cost: annual accounts filing, a Swiss-resident director, nominal accounting and the annual capital-tax minimum. For a holding vehicle with a possible future deal in scope, dormancy is usually cheaper than a liquidate-and-reincorporate cycle. Merger under the Swiss Merger Act (FusG) If the foreign parent is consolidating group entities, the Swiss subsidiary can be merged by absorption into another group entity under the Swiss Merger Act. Merger avoids the 12-month liquidation wait and preserves the target entity’s tax attributes. This is a separate service scope with its own statutory process; we flag it here but do not walk the steps on this page. Share sale to a buyer For a clean operating AG or GmbH with ongoing commercial value, a share sale is typically faster and more value-accretive than a liquidation. The buyer assumes all liabilities on closing; the seller exits the same day. Liquidation is the right answer when no buyer is available, or when the company was purpose-built as a single-project vehicle that has now run its course. Regulated entities FINMA-licensed wind-downs. Banks, asset managers, insurers and DLT trading-facility operators face licence-return steps layered on top of the OR solvent-liquidation process. A wind-down plan must be submitted to FINMA alongside the OR art. 736 dissolution resolution. The licence is returned on deregistration from the FINMA licensee list. Regulated-asset wind-down, including client-asset return, final regulatory reporting and exit audit, runs in parallel with the OR process and typically extends the calendar timeline beyond the 12-month statutory floor. For a FINMA-licensed wind-down, engagement requires specialist coordination with FINMA on licence-return timing, client-notification protocols and regulatory-reporting closeout. See our liquidating a FINMA-licensed entity page for the upstream licence context and our liquidation of Swiss holding structures page for holding-vehicle wind-downs, the most common B-angle scenario. Cantonal notes How the cantons differ on liquidation filings. Zug High-efficiency Handelsregister and tax office. Tax clearance typically issued 4 to 8 weeks after the final return. The commonest liquidation venue for holding, family-office and crypto vehicles. See cantonal procedures in Zug . Zurich Highest-volume Handelsregister in Switzerland; processing queues lengthen in peak filing weeks. Tax clearance typically 6 to 10 weeks. Dominant venue for financial-services operating entities. Geneva Bilingual procedural preference, French-first. Tax clearance is handled by the Administration fiscale cantonale (AFC-GE); typical turnaround 6 to 10 weeks. Common for private-banking and international-organisation service entities. Our engagement How we run a Swiss liquidation mandate. 1. Initial consultation — scoping the estate A 30-minute call. We review the current balance sheet, identify contingent liabilities and regulated-asset exposures, screen for tax red flags, and advise on whether liquidation is in fact the right path rather than dormancy, merger or a share sale. 2. Dissolution — drafting and notarising We draft the shareholder or partner resolution, coordinate with the Swiss notary for the AG general-meeting deed, file the dissolution with the cantonal Handelsregister, and register the liquidator of record. Six to eight weeks from instruction to SHAB publication of the dissolution entry. 3. Liquidation administration — the 12-month phase SHAB Schuldenruf publication, direct creditor letters, asset realisation, interim accounts, tax correspondence, employee and counterparty wind-down, continuous reporting to the UBO. The liquidator signs every instruction. We report quarterly on the claims register and the cash position. 4. Final clearance and deregistration Cantonal and VAT tax clearance, final balance sheet, final distribution with VStG filing, Handelsregister deletion and 10-year book-retention handover. Four to six weeks after the 12-month cooling period ends. Pricing is engagement-specific, because the estate’s size, regulated exposures, contingent liabilities and creditor complexity drive the work. Read how we scope a liquidation mandate or move directly to Swiss fiduciary services overview to see the full service lineup. FAQ Frequently asked questions. Eleven answers on timeline, cooling period, scope, liquidator role, Schuldenruf, surplus tax, VAT, alternatives, book retention and share-sale exits. Schema emitted in the page-level @graph above; FAQ component suppresses duplicate to avoid schema-bloat. How long does it take to liquidate a Swiss company? A Swiss solvent liquidation takes a minimum of 12 months, commonly 13 to 18 months in total. The 12-month floor is statutory: OR art. 745.2 requires a 1-year waiting period from the third publication of the creditor call in SHAB before final distribution can take place. Our engagement controls the setup phase (roughly 6 to 8 weeks) and the clearance-and-deletion phase (roughly 4 to 6 weeks) around that statutory wait, but no service can compress the cooling period itself. Can the 12-month cooling period be shortened? Exceptionally, yes. OR art. 745.3 permits an earlier distribution in a solvent liquidation if an expert attestation confirms that all debts are settled and that early distribution does not prejudice creditors. In practice this mechanism is used for very small and very clean estates. For most foreign-owned AG and GmbH wind-downs, counsel advises running the full 12 months because the procedural comfort is usually worth the wait. Is Swiss company liquidation the same as bankruptcy? No. Solvent liquidation is the company’s own orderly wind-down under OR art. 736 to 746 when assets exceed liabilities; it is run by the liquidator appointed by the shareholders or partners. Bankruptcy (Konkurs) is a separate insolvency proceeding under the Swiss Debt Enforcement and Bankruptcy Act, administered by the cantonal Konkursamt, and is triggered when a company cannot pay its debts. We run solvent liquidations only; bankruptcy proceedings are statutory and are not a fiduciary service. Do I need a Swiss-resident liquidator? Yes. OR art. 740.3 requires that a majority of the appointed liquidators be domiciled in Switzerland. This mirrors the Swiss-resident-director rule that applied during the company’s operating phase under OR art. 718.4 for the AG and OR art. 814.3 for the GmbH. If the company used a nominee director, the same person commonly transitions to nominee liquidator, preserving the Treuhandvertrag continuity through the liquidation period. Can the outgoing director act as the liquidator? Yes, and it is common practice. The board or managing director may continue as liquidator by shareholder resolution under OR art. 740.1. There is no statutory incompatibility. The diligence standard of OR art. 754 continues to apply to the former director in the liquidator role. What is the Schuldenruf and does it happen in public? The Schuldenruf is the statutory creditor call: three publications in the Swiss Official Commercial Gazette, SHAB, inviting all creditors of the company to register their claims with the liquidators (OR art. 745.1). The call is public by design because creditor protection is its purpose. Known creditors must additionally be notified by direct letter; discretion is not available. How much tax do shareholders pay on the liquidation surplus? Repayment of share capital is exempt from Swiss withholding tax. Distribution of accumulated reserves, retained earnings and any capital surplus above share capital, is subject to Swiss withholding tax at 35% under the Verrechnungssteuergesetz. Swiss-resident shareholders reclaim the full amount through their annual tax return. Foreign shareholders claim a treaty-based reduction or refund under the applicable double tax agreement. Swiss-corporate shareholders with qualifying participations of 10% or more or CHF 1 million in market value benefit from participation relief under DBG art. 69 to 70. What happens to the company’s VAT registration? VAT liability continues until the company’s deregistration from the ESTV VAT register takes effect under MWSTG art. 14. A final VAT return covering the wind-down period must be filed. The VAT number is cancelled once ESTV confirms the deregistration, typically within a few weeks of the final return. Can I let the Swiss company go dormant instead of liquidating? Yes, if there is a realistic prospect of reactivating the company within a few years. Dormancy preserves the entity with minimal ongoing compliance: annual accounts filing, a Swiss-resident director, nominal accounting. Where no reactivation is expected within two to three years, liquidation is usually the cleaner answer, because dormant-entity compliance accumulates as annual cost while the liquidation cost is a one-time event. What happens to the company’s books after Handelsregister deletion? The books, vouchers, annual accounts, and liquidation records must be retained for 10 years after deletion, under OR art. 958f. Electronic retention is permitted provided the records remain readable, unaltered, and retrievable throughout the period. The duty falls on the former liquidator or on a designated custodian; engaging us as fiduciary typically includes post-deletion record custody. Could I avoid liquidation by selling the company instead? Often, yes. A share sale transfers the entity and its liabilities to a buyer on closing, with no 12-month cooling period. For a clean operating AG or GmbH with ongoing commercial value, a share sale is typically the faster and more value-accretive exit. Liquidation is the appropriate answer when no buyer is available or when the company was purpose-built as a single-project vehicle that has now run its course. Fit check Four situations where liquidation isn't the right route. Your company can't pay its debts: this page and our engagement cover solvent liquidation only (OR art. 736 to 746). If the opening balance sheet shows liabilities exceeding assets, the liquidators must file for bankruptcy under OR art. 725a and the matter moves to the cantonal Konkursamt instead. You need to close the company faster than 12 months: the creditor cooling period is a statutory minimum (OR art. 745.2), and no engagement can compress it, aside from the narrow OR art. 745.3 expert-attestation path for very small, very clean estates. You have an operating company with ongoing commercial value and a willing buyer: a share sale is typically faster and more value-accretive, since it skips the 12-month cooling period entirely. You're closing a FINMA-licensed entity expecting the standard timeline: regulated wind-downs add a licence-return process on top of the OR liquidation steps and typically extend beyond the 12-month statutory floor. Request a proposal Close your Swiss company cleanly, with statutory discipline. A written proposal covers scope, liquidator arrangement, estimated timeline against the 12-month statutory floor, and the cost drivers for your estate. Turnaround is two business days after the scoping call. No price list, no obligation. Request a proposal --- ## Swiss M&A advisory — small-cap deals from CHF 3,900 URL: https://business-in-switzerland.com/services/ma-advisory Description: M&A advisory for Swiss small-cap deals: structuring, due diligence, share purchase agreement drafting, share transfer and Handelsregister filing. Swiss M&A advisory — small-cap deals from CHF 3,900 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · M&A advisory Swiss small-cap M&A — fixed-fee structuring, DD and SPA. Three-phase mandate from CHF 3,900 to CHF 50,000+ depending on target complexity. Buyer or seller side. Legal due diligence, share purchase agreement drafting and negotiation, closing mechanics, Handelsregister filing. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: June 2026 02 · Three phases Structuring → DD → SPA. Each phase priced separately. 01.01 Preliminary structuring Two-page memo on deal structure (asset deal vs share deal), tax consequences, regulatory triggers (FINMA, Lex Koller, anti-trust). Inputs: target description, deal rationale. From CHF 3,900. 01.02 Due diligence Legal DD (corporate, contracts, IP, employment, litigation) and limited financial DD (accounting cleanliness, tax exposures). Vendor or buyer side. From CHF 4,900 for small-cap targets. 01.03 SPA drafting & negotiation Share purchase agreement drafted to Swiss-law standard with reps, warranties, indemnities, escrow and earnout if relevant. Negotiation across 1–3 rounds. From CHF 4,900. 03 · Pricing Fixed entry-points, hourly rate above the small-cap range. Service Our fee Market range Preliminary structuring analysis CHF 3,900 CHF 5,000+ Due diligence (small cap) from CHF 4,900 CHF 5,000–20,000 SPA drafting & negotiation from CHF 4,900 CHF 5,000–50,000 Share Transfer + Handelsregister filing CHF 1,900 CHF 2,000–5,000 Hourly rate (lawyer) CHF 250 / hour CHF 250–550 Fees excl. MWST. Notary fees and Handelsregister office fees are passed through at cost (typically CHF 1,000–3,000 for a small-cap closing). 04 · What the engagement covers Legal scope, with a coordinated handoff to financial DD. 04.01 Two-page structuring memo with tax and regulatory triggers 04.02 Legal due diligence on corporate, contracts, IP, employment and litigation 04.03 Coordination with target accountants for limited financial review 04.04 Drafting of SPA, schedules, and side letters 04.05 Negotiation across 1–3 rounds with opposing counsel 04.06 Closing mechanics: notarial deed, share transfer, Handelsregister filing 05 · Process Free scoping → structuring → DD+SPA → closing. 01 Scoping Free 30-minute call to map the deal: target, structure, indicative price, timeline, regulatory exposure. 02 Structuring memo CHF 3,900 fixed. Two-page memo on asset vs share deal, tax, regulatory. Delivered within 5 working days. 03 DD + SPA In parallel: legal DD on the target and SPA drafting. Joint deliverable so you negotiate from informed position. 04 Closing Notarial deed, share transfer, escrow release, Handelsregister filing. CHF 1,900 fixed for the closing mechanics. 06 · FAQ Frequently asked questions. What deal sizes do you advise on? Small-cap and lower mid-market: target enterprise value typically CHF 1m to CHF 50m. Below that the fixed-fee structure works without margin pressure on either side. Above that we still advise but switch to hourly billing for the DD and SPA scope. Asset deal or share deal — which to choose? A share deal transfers the entity and all its history (assets, contracts, liabilities, employees). An asset deal cherry-picks specific assets and contracts and leaves the entity behind. Tax neutrality often favours share deals for the seller, while asset deals limit hidden-liability risk for the buyer. The structuring memo lays out the trade-off for your specific deal. Do you handle the financial DD too? Limited financial DD — accounting cleanliness, tax-return consistency, working-capital trends — yes. Full financial DD with audit-grade verification is outside our scope; we coordinate with a Swiss audit firm of your choice or recommend one (typical incremental cost CHF 8,000–25,000 for small-cap). What regulatory triggers should I be aware of? Three common ones in Swiss small-cap M&A: FINMA approval if the target is regulated (banks, asset managers, insurance), Lex Koller restrictions if real estate is involved and the buyer is non-Swiss, and Federal Cartel Office notification if combined turnover exceeds CHF 2 billion (rare in small-cap but worth checking). We flag these in the structuring memo. Can you act for the seller as well as the buyer? Yes — but only on one side per deal (no dual representation, conflict-of-interest rule). We work both sides across our practice; just tell us which side you are on at first contact and we confirm there is no existing engagement on the other. How long does a typical small-cap deal take? From signed engagement to closing: 6–12 weeks for a clean target with engaged counterparties. The bottleneck is usually the seller's internal preparation (data room, accountant availability), not the legal work. Adverse findings in DD or escalated negotiation can push to 16+ weeks. Do you assist with post-closing integration? Limited — we handle the legal cleanup (board changes, articles amendments, registered-office moves, contract assignments). Operational integration (HR, IT, branding) is outside legal scope. We can recommend specialist consultants if needed. 07 · Not the right fit When our M&A scope isn't the right match. Your deal is above roughly CHF 50m enterprise value: our fixed-fee entry points are built for small-cap and lower-mid-market targets (CHF 1m to CHF 50m), and above that we still advise, but the DD and SPA scope switches to hourly billing. You need audit-grade financial due diligence: our scope covers limited financial DD (accounting cleanliness, tax-return consistency, working-capital trends), and full audit-grade verification means a separate engagement with a Swiss audit firm, typically CHF 8,000 to 25,000 for a small-cap target. You need us to represent both sides of the deal: no dual representation, we act for one side per transaction only. You need operational integration after closing: we handle the legal cleanup (board changes, articles amendments, contract assignments), and HR, IT and branding integration are outside legal scope. 08 · Get started Tell us the deal. Target name (or anonymised description), buyer/seller side, indicative deal value and timeline. We come back within 24 hours with the structuring-memo scope or, for live deals, a full mandate proposal. Request a proposal --- ## Swiss migration mandate — B/L permits from CHF 990 URL: https://business-in-switzerland.com/services/migration Description: Swiss migration mandate for entrepreneurs and professionals. B-permit CHF 1,490, L-permit CHF 990, advisory CHF 250/hour. EU/EFTA and third-country tracks. Swiss migration mandate — B/L permits from CHF 990 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Migration mandate Filed Swiss migration applications, fixed-fee. EU/EFTA registration at hourly rate. Third-country B-permit at CHF 1,490, L-permit at CHF 990. We assemble the dossier, file with the cantonal labour authority, and follow through to decision. Request a proposal Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: June 2026 02 · Three migration tracks EU/EFTA, third-country B-permit, L-permit short stay. 01.01 EU / EFTA registration Free movement of persons under the FZA agreement. EU/EFTA nationals register with the cantonal Einwohnerkontrolle within 14 days of taking up residence (if stay > 3 months). We file CHF 250/hour, typical total 2–3 hours. 01.02 Third-country B-permit Annual residence permit for non-EU/EFTA nationals. Subject to federal annual quota (~8,500). Self-employment requires economic-interest proof under FNA art. 19. We file the application at the cantonal labour-market authority. CHF 1,490 flat. 01.03 L-permit short stay Up to 12 months. Useful for one-off mandates, project-based work, or as a bridging step before B-permit. CHF 990 flat covers application drafting and filing. 03 · Pricing Flat-fee on third-country tracks. Service Our fee Market range B-permit application (advice + filing) CHF 1,490 CHF 1,500–5,000 L-permit (short stay) application CHF 990 CHF 1,000–3,000 Migration consultation (hourly) CHF 250 / hour CHF 250–450 All fees excl. MWST. Cantonal application fees and federal SEM fees are passed through at cost (typically CHF 100–500 depending on permit type and canton). 04 · Mandate scope Eligibility, dossier, filing, follow-through. 04.01 Eligibility assessment (EU/EFTA vs third country, professional vs self-employed) 04.02 Document checklist tailored to your nationality and intended activity 04.03 Application form drafting in German, French or Italian as required by canton 04.04 Filing with cantonal labour-market authority (Amt für Wirtschaft und Arbeit) 04.05 Tracking and follow-up correspondence with the cantonal authority 04.06 Coordination with SEM (State Secretariat for Migration) for federal-level approval where required 05 · Process Eligibility → dossier → filing → decision. 01 Eligibility Confirm nationality track, permit type, supporting documents required. 1 working day. 02 Document pack Assemble passport, qualifications, employment contract or business plan, accommodation proof, source-of-funds for self-employment cases. 1–2 weeks (typically client-side). 03 Filing Cantonal labour-market authority intake. Federal SEM review for third-country self-employment cases. 4–12 weeks at the authorities. 04 Decision Permit issued (or refusal with reasons). For B-permit self-employment refusal we advise on appeal options or alternative structuring. 06 · FAQ Frequently asked questions. What is the difference between EU/EFTA and third-country migration to Switzerland? Under the FZA bilateral agreement, EU/EFTA nationals enjoy free movement — they do not need a work permit before taking up Swiss employment or self-employment. They register with the cantonal Einwohnerkontrolle within 14 days. Third-country nationals (everyone else) need a B-permit (annual) or L-permit (short stay), subject to the federal quota system and labour-market priority test under the Foreign Nationals Act (FNA). How long does the B-permit application take? Six to twelve weeks at cantonal level for ordinary employment cases. Self-employment cases (FNA art. 19) add a federal SEM review and can run 12–24 weeks. The bottleneck is usually documentation completeness — incomplete files trigger requests for further information that reset the clock. What is the "economic interest" requirement for self-employment? Under FNA art. 19, third-country nationals seeking self-employment in Switzerland must show that their business contributes to the Swiss economy: investment, jobs created, innovation, or tax revenue. Cantons assess on a case basis. Strong applications include: minimum CHF 100k–500k investment, business plan with credible revenue projection, evidence of qualifications matching the activity. Does forming a Swiss company entitle me to a B-permit? No. Forming a Swiss GmbH or AG is a separate process from migration (see /services/company-formation/). Foreign founders may own 100% of a Swiss company without setting foot in Switzerland. The permit track is needed only if the founder personally wants to take up Swiss residence to manage the business. When does the L-permit work? L-permit fits short engagements: a 6–12 month consulting mandate, a project-based assignment, a "let me work in Switzerland for a year and decide" use case. It can also bridge to a B-permit if the assignment extends. Cheaper and faster to obtain than B-permit, but renewable only once. What is the federal quota for B-permits? Approximately 8,500 B-permits per year for third-country nationals across all cantons (2025 number). Quotas are split between cantons and reset annually. Quota exhaustion is rare in early-year filings; risk increases in Q4. We do not control quota timing but monitor it for advice on filing window. 07 · Not the right fit When this migration route isn't the right one. You want Swiss residence just because you formed a Swiss company: company formation and migration are separate processes, and owning 100% of a Swiss GmbH or AG doesn't by itself entitle you to a B-permit. Your self-employment case doesn't show a genuine economic contribution: the B-permit self-employment track (FNA art. 19) leans on evidence such as CHF 100k to 500k investment and a credible business plan, and weak applications on this point get refused. You need a decision in a few weeks: third-country cases run 6 to 12 weeks at cantonal level, and self-employment cases add a federal SEM review that extends the timeline to 12 to 24 weeks. You need something beyond a short-term bridge: the L-permit is capped at 12 months and renewable only once, so it isn't a long-term residence solution. You're filing late in the year for a third-country B-permit: the roughly 8,500-strong annual federal quota resets yearly and exhaustion risk increases in Q4. 08 · Get started Tell us your nationality and the intended activity. One-line brief: nationality, intended canton of residence, employed or self-employed, expected start date. We confirm the right track and the document checklist within 24 hours. Request a proposal --- ## Nominee Director Switzerland — Swiss Resident AG/GmbH URL: https://business-in-switzerland.com/services/nominee-director Description: Swiss-resident nominee director service for foreign-owned AG and GmbH, satisfying OR art. 718.4 / 814.3, with full UBO disclosure to the bank under CDB 20. Nominee Director Switzerland — Swiss Resident AG/GmbH STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Service Nominee director Switzerland — compliant Swiss-resident representation for foreign-owned AG and GmbH. A Swiss-resident natural person on the Commercial Register, fulfilling the statutory residency rule for an AG or GmbH, documented in a Treuhandvertrag, with full ultimate beneficial owner disclosure to the bank under CDB 20. Never a front, never a shadow, never a substitute for qualified management. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: June 2026 In one paragraph What a Swiss nominee director is A Swiss nominee director (also called a Swiss resident director) is a Swiss-domiciled natural person appointed to the board of a Swiss AG or as a managing director of a Swiss GmbH , so that the company satisfies the residency requirement in art. 718 para. 4 OR or art. 814 para. 3 OR . The nominee holds individual signing authority, is visible on the Commercial Register, and acts only on written instruction from the ultimate beneficial owner (UBO) under a Treuhandvertrag. They are never the beneficial owner, never an operational decision-maker, and never a mechanism for concealing who actually controls the company. A compliant Swiss nominee arrangement is a governance instrument, not a privacy instrument. Why the law Why Swiss law requires a locally domiciled director Switzerland deliberately keeps corporate responsibility anchored on its own territory. Whenever a Swiss company must receive a summons, a tax notice, a Handelsregister query or a bank request, the law expects at least one individually empowered signatory to be reachable on Swiss soil. That rule is implemented twice in the Code of Obligations, once for the AG and once for the GmbH, and it is why the nominee director service exists at all. AG — art. 718 para. 4 OR A Swiss AG must have at least one director or an authorised representative with individual signing authority who is domiciled in Switzerland ( art. 718 para. 4 OR ). The rule is formally about representation vis-a-vis third parties: a Swiss-domiciled person must always be able to bind the company. Nationality is irrelevant. Domicile is the test. GmbH — art. 814 para. 3 OR A Swiss GmbH must have at least one managing officer (Geschaftsfuhrer) with individual signing authority who is domiciled in Switzerland ( art. 814 para. 3 OR ). The mechanics mirror the AG. The governing body label differs (managing director vs board member), the requirement does not. What "domiciled" means in practice Domicile means a genuine Swiss residence, evidenced by a Swiss permit of the relevant category (typically a B or C permit) or Swiss citizenship. A postbox, a business address, a hotel booking, or a serviced mailbox does not qualify. Swiss Commercial Register offices routinely cross-check declared addresses and will refuse filings where the address is obviously a virtual one. Multi-director boards Where an AG has more than one board member, Swiss corporate practice also expects a majority of the board to be Swiss-domiciled, a position often associated with the classic AG representation rules. For single-director AGs the OR art. 718.4 rule on Swiss-resident signatory is sufficient on its own (facts-switzerland §1.1); for larger boards, structuring needs to anticipate the majority point. Role boundary What a nominee director does, and does not do Most peer pages sketch this in two or three bullets. The honest version has two parallel lists and an explicit debunking paragraph, because the gap between a compliant fiduciary and a shadow director is exactly where foreign founders get into trouble. What the nominee does Appears on the Handelsregister and in Zefix with the statutory residency attribute. Holds individual signing authority and signs statutory documents on written instruction from the UBO. Participates in the minutes of the general meeting and of the board, to the extent Swiss law requires. Receives and routes authorities-facing correspondence (ESTV, cantonal tax, Handelsregister, SECO) back to the UBO within an agreed cadence. Coordinates with the company's external legal, tax and banking advisors as a compliance touchpoint. What the nominee does not do No economic interest in the company; the shares are never the nominee's. No independent operational or commercial decisions; everything substantive is instructed. No unrestricted bank-account access; they may be a signatory, they are not the account holder. No commitments that would expose them to liability under art. 754 OR without a written, traceable instruction path. Never declared as the beneficial owner on Form A. That is always the UBO. The anti-shadow-director principle A compliant nominee is the opposite of a "shadow" or "straw" director. A shadow director is somebody whose name is used to hide who actually controls a company. The Swiss system is built to make that impossible at two points: Commercial Register filings are public, and every Swiss bank independently identifies the UBO under CDB 20 before an account is opened. We deliberately reject patterns that try to game either checkpoint. A nominee directorship is a governance and residency instrument; when it is asked to do anything else, it stops being compliant and starts being a problem for everyone involved. AG vs GmbH Structural differences for a nominee arrangement Attribute AG (Aktiengesellschaft) GmbH (Gesellschaft mbH) Minimum share capital CHF 100,000, paid-in at least CHF 50,000 or 20% CHF 20,000, fully paid-in Residency rule art. 718 para. 4 OR art. 814 para. 3 OR Governing body Board of directors (Verwaltungsrat) Managing officers (Geschaftsfuhrer) Shareholder register Private; not published on the Commercial Register Partners and their holdings listed publicly on the Commercial Register UBO public disclosure (since 2021) No public disclosure of shareholders; UBO sits in the internal UBO register (CO art. 697j ff.) Any partner with a 25% or greater interest is disclosed on the Commercial Register Typical use case Holding, family office, international group, FINMA-adjacent Single-founder operating companies; SMEs with stable ownership When the AG is the better nominee context For holding structures, family offices, international groups and FINMA-adjacent entities, the AG is usually the right shell: the shareholder register stays private, so an independently identified UBO does not become a public data point unless the UBO also takes a management role. When the commercial purpose of the structure benefits from quiet ownership paired with visible governance, the AG plus nominee director is the canonical pattern. When the GmbH is adequate For single-founder operating companies where public disclosure of partners is acceptable or even desirable (supplier relationships, procurement, tender eligibility), the GmbH plus nominee managing director works well. Capital commitment is lower, the governance obligations are lighter, and the public register already tells the same story the bank will ask about. We cover both in detail under Swiss company formation , with entity-specific walk-throughs for the Swiss AG (Aktiengesellschaft) and the Swiss GmbH . The agreement The Treuhandvertrag — what a professional nominee agreement must contain The Treuhandvertrag (nominee director agreement) is the single most important document in the arrangement. A thin or ambiguous agreement is how nominee relationships go wrong; a disciplined one keeps everybody in their lane and makes unwinding painless if needed. Eight mandatory clauses Identification of the nominee, the UBO and the Swiss entity, with Commercial Register extracts and KYC documents referenced as annexes. Scope and limits of the nominee's authority, mapped explicitly against the "does / does not" list above. Undated resignation letter signed by the nominee at inception, held by the UBO; the single most important operational control. UBO declaration ready for the bank's Form A under CDB 20, with supporting identification. Liability allocation: the UBO indemnifies the nominee for acts taken in good faith on instruction; art. 754 OR statutory liability remains with the nominee as a matter of Swiss public policy. Compliance undertakings on both sides: SECO sanctions screening, AML / KYC refreshes, source-of-funds confirmation, annual UBO re-declaration. Fees, term, renewal, termination notice periods, and post-termination duties (handover, Handelsregister deregistration timeline). Governing law (Swiss) and forum (Swiss courts at the company's registered seat). The undated resignation letter, explained The undated resignation letter is the cornerstone that keeps the UBO in ultimate control. At the moment the nominee accepts the mandate, they also sign a standard resignation letter without a date. The UBO holds it. If the nominee ever becomes unresponsive, unreachable, conflicted or simply inconvenient, the UBO can countersign the letter and file it with the Commercial Register themselves. The nominee's cooperation is not required. Structurally, the UBO is never trapped. What a nominee agreement cannot waive Some things simply cannot be contracted away. art. 754 OR personal liability for intentional or negligent breach of director duties is non-waivable under Swiss public policy, no matter what the parties write into the Treuhandvertrag. The CDB 20 duty of the bank to identify the UBO, and the GwG / AMLA obligation on every financial intermediary to prevent money laundering, are equally non-waivable. A clause purporting to keep the UBO hidden from the bank is simply void; a clause purporting to immunise the nominee against art. 754 OR liability is simply void. A professional agreement does not pretend otherwise. Banking reality UBO disclosure and Swiss banking — CDB 20, Form A, Form K Why Swiss banks always know the UBO Swiss banks operate under the Anti-Money Laundering Act (GwG / AMLA) implemented through the Swiss Bankers Association's Agreement on the Swiss Banks' Code of Conduct with Regard to the Exercise of Due Diligence, edition CDB 20 (in force 1 January 2020 and recognised by FINMA as the minimum banking industry standard for customer due diligence). The bank's customer due-diligence process identifies the UBO as a matter of regulatory obligation, independently of whatever appears on the Commercial Register. In practical terms, no Swiss bank account exists whose UBO is not identified and documented. A nominee director arrangement is fully compatible with that reality; it is not a way around it. Form A — beneficial owner declaration Form A is the declaration signed by the UBO when the contracting party on the account agreement (the Swiss company) is not itself the beneficial owner of the funds. The UBO identifies themselves, typically by passport and proof of address, and confirms that the assets in the account ultimately belong to them. For any foreign-owned Swiss company with a Swiss bank account, a Form A signed by the UBO is part of the standard onboarding pack. Form K — third-party beneficial owner Form K covers the case where someone listed as an account signatory or authorised person is not the beneficial owner. In a nominee director arrangement the nominee often has signing authority on the company account for statutory or operational reasons, while the UBO is someone else. Form K formalises that distinction for the bank. What this means in practice A well-documented nominee structure opens Swiss bank accounts faster, not slower. A complete disclosure pack (Treuhandvertrag, Form A signed by the UBO, Form K for the nominee, SECO sanctions clearance and UBO KYC) lets the bank run its CDB 20 file with zero surprises. Missing documents, opaque ownership or implicit concealment delay or kill onboarding. Opacity is a business risk, not a selling point. Liability OR art. 754 and how it is managed Unlimited personal liability under art. 754 OR Swiss directors, including nominee directors, are personally liable to the company, its shareholders and, in insolvency, its creditors for losses caused by intentional or negligent breach of their duties ( art. 754 OR ). This liability is personal and unlimited in amount. It cannot be waived by contract; an indemnification between the UBO and the nominee shifts the economic cost, not the third-party standing of the claim. A nominee director who signs without reading, or tolerates a known unlawful act, has genuine exposure. Failure patterns Swiss courts have treated as breach Swiss jurisprudence in this area is settled rather than exotic. Courts typically find a breach where a director signs material documents without review, tolerates trading while the company is insolvent without triggering the escalation duties in the Code of Obligations, misses a mandatory general meeting, or fails to act on obvious conflicts of interest. A professional nominee follows a written instruction-discipline protocol specifically to avoid these patterns. How a professional nominee service mitigates the exposure Two layers matter. First, D&O liability insurance placed with a FINMA-authorised Swiss insurer covers the nominee for claims arising in the course of the mandate. Second, a disciplined paper trail (every instruction in writing, every signature logged, every escalation recorded) means the nominee can always reconstruct why they signed a specific act. Together, those two controls mean a properly structured nominee arrangement has known risk rather than unknown risk. What indemnification can, and cannot, do The UBO contractually indemnifies the nominee for liabilities incurred in good faith on written instruction, so the economic burden of a successful claim typically lands on the UBO. What indemnification cannot do is stop a third party from suing the nominee in the first place, or stop the Federal Court from finding the nominee personally liable under art. 754 OR . This is why mandate discipline, not just a strong contract, is the real risk control. Regulated entities Nominee directors for FINMA-regulated entities — the fit-and-proper limit FINMA's fit-and-proper test For any entity under FINMA supervision (banks, securities firms under the Banking Act, portfolio managers and trustees under FinIA, fund management companies, insurers under the ISA, DLT trading facilities under the amended FMIA), FINMA applies a fit-and-proper test to directors, significant shareholders and UBOs. The test covers personal integrity, professional qualifications and financial soundness. A director who cannot demonstrate substantive familiarity with the regulated business will not pass it. Why a nominee-only board is insufficient for a licensed entity FINMA expects substantively qualified management, not administrative placeholders. A board staffed entirely by nominees fails the fit-and-proper test on its face because the people on paper are not the people making the regulated decisions. For a licensed entity the right structure splits the two roles: a qualified Swiss-resident director who is substantively competent in the regulated activity and carries the fit-and-proper assessment, alongside, where useful, a separate nominee for continuity on routine statutory acts. SRO membership and VASP / DLT Act authorisations Firms that are financial intermediaries but do not fall under a FINMA direct licence typically join a Self-Regulatory Organisation under art. 14 GwG for AML supervision. Virtual asset service providers operating under the 2021 DLT Act framework face fit-and-proper scrutiny for controlling shareholders, UBOs and directors as well. In both cases, the same logic applies: a nominee can be the Swiss-resident signatory, but cannot be the qualified head of the regulated activity. How we structure the board when FINMA oversight applies We split the two roles cleanly. A substantively qualified director, sometimes a partner of the firm, sometimes an outside hire, holds the fit-and-proper seat. A nominee director may still be used alongside for routine continuity and statutory availability, but they are never the only Swiss presence on the board of a regulated entity. More detail in our write-up on FINMA licensing and fit-and-proper review and, for the token / DLT side, on Swiss crypto companies under the DLT Act . Substance Economic substance, BEPS and Pillar Two — what a nominee cannot create Pillar Two threshold and substance carve-out Multinational enterprise groups with consolidated annual revenue of at least EUR 750 million in two of the four preceding fiscal years are within scope of the OECD/G20 Pillar Two global minimum tax, which sets a 15 percent minimum effective tax rate per jurisdiction. Switzerland implements it through a Qualified Domestic Minimum Top-Up Tax (QDMTT / DMTT) in force for fiscal years starting on or after 1 January 2024 , with the Income Inclusion Rule (IIR) also from 1 January 2024 and the Undertaxed Payments Rule (UTPR) from 1 January 2025. Pillar Two includes a substance-based income exclusion (SBIE) that reduces the top-up calculation in proportion to real payroll and tangible assets in the jurisdiction. Nominee-only structures generate no SBIE A nominee director is not payroll for SBIE purposes, and a Swiss registered address is not a tangible asset. A Swiss structure whose only local presence is a nominee generates effectively zero substance carve-out. For a group above the Pillar Two threshold this means the Swiss entity's profits are fully exposed to the top-up, with nothing to deduct. Treaty shopping and ATAD III shell-entity tests Double tax treaties now typically include an OECD principal-purpose test that denies treaty benefits to arrangements whose principal purpose was to obtain them. The European Commission's draft ATAD III directive pushes in the same direction, explicitly treating entities without adequate substance as shell companies for intra-EU purposes. In both frameworks, nominee-only governance is a negative indicator, not a neutral one. For sub-threshold structures — the reputational angle Most clients are nowhere near the EUR 750 million Pillar Two threshold. For them, the substance conversation is less about top-up tax and more about treaty beneficial-ownership tests, bank onboarding posture and counterparty due diligence. Even there, a pure nominee-only Swiss presence reads thinly. The right response is usually to combine a compliant nominee arrangement with genuine operational presence, whether through Swiss holding company structures or a broader establishment in a canton such as Zug — Switzerland's holding canton . Not every case Branch office vs subsidiary — when a nominee director is not required Attribute Branch (Zweigniederlassung) Subsidiary (AG / GmbH) Separate legal entity No — extension of the foreign parent Yes — a Swiss AG or GmbH in its own right Swiss-resident representation Authorised representative, not a nominee director ( art. 935 OR ) Nominee director under art. 718.4 / 814.3 OR if the UBO is not Swiss-resident Parent liability Foreign HQ remains legally responsible Swiss entity's liability is separate (subject to group-level liability doctrines in insolvency) Commercial Register disclosure Branch filing, showing parent details Full Swiss entity disclosure; AG shareholder register remains private Typical use case Market testing, regulated foreign-bank branches, services offices Long-horizon Swiss presence, Swiss tax-treaty access, holding / IP / finance structures When a branch is a better structural fit For foreign groups running a time-limited market test or for regulated foreign banks and insurers using the branch route, a Zweigniederlassung with a Swiss-authorised representative (not a nominee director) is often cleaner. There is no separate legal entity to maintain, and no nominee relationship to document. When a subsidiary with a nominee is a better structural fit For long-horizon Swiss presence, access to Swiss tax treaties, a Swiss banking relationship in the subsidiary's own name or separation of liability from the parent, a Swiss AG or GmbH with a nominee director is usually the right answer. This is the dominant route for holding structures, family offices and international investment vehicles. Due diligence How to choose a nominee director provider A lot of the downside risk in nominee arrangements comes from provider quality, not from the instrument itself. One Swiss provider who disappeared at the end of 2025 reportedly served around seventy companies; every one of them faced a scramble to preserve statutory compliance in parallel. The pattern is instructive whether or not the particular incident is familiar. Here is what to verify before you engage anybody. Nine things to verify before you engage The nominee is a natural person, not a corporate entity. Swiss governance practice does not accept nominee arrangements through a shell. The nominee holds a valid Swiss residency permit (typically B or C) or Swiss citizenship. Ask for the evidence, not a verbal assurance. Mandate concentration: ideally fewer than 15 to 20 active company mandates per nominee, as a professional-practice benchmark rather than a statutory ceiling. D&O liability insurance in place with a FINMA-authorised Swiss insurer. Ask for the policy summary. Professional affiliation and continuing-education discipline (STEP, SFAA, AIWM, or membership of a GwG-recognised SRO for AML purposes). An undated resignation letter provided to you at inception. Without it, you are not in structural control. A written escalation procedure for the case where the nominee is temporarily unavailable (illness, travel, bereavement). SECO sanctions screening and AML / KYC refresh discipline on both the UBO and any linked counterparties. Willingness to deliver a fresh Zefix extract on demand and to confirm filing status whenever the UBO asks. Warning signs No D&O cover, undisclosed mandate counts, a Treuhandvertrag that is withheld until after signature, no SECO screening, no escalation procedure, a single natural person covering dozens of entities without a delegated framework: individually concerning, collectively disqualifying. We describe how we run that discipline end-to-end in our write-up on how we engage and scope an assignment . Engagement What you need to provide us A clean onboarding pack typically takes two to four working days to assemble. The more of it arrives up front, the faster we can move to Treuhandvertrag drafting and Handelsregister filing. KYC pack (UBO identity + passport) Passport copy and certified proof of address for every UBO with a beneficial interest at or above the 25% AML threshold, plus source-of-funds documentation appropriate to the UBO's profile. Professional UBOs (regulated asset managers, listed groups, licensed funds) have lighter packs; private individuals typically have fuller ones. Company documents Articles of association, shareholder register (AG) or partners list (GmbH), purpose clause, and, where the company is already incorporated, a current Handelsregister extract and a copy of the most recent audited or reviewed accounts. For new incorporations we draft these alongside the Treuhandvertrag. SECO sanctions clearance confirmation Written confirmation that no UBO, affiliated party or intended counterparty appears on the SECO sanctions list. We run our own screening in parallel, but yours is the first line. Ongoing communication cadence An agreed written-instruction protocol: who may instruct the nominee, on what matters, through which channel, with what turnaround, and who is copied on the statutory acts. The protocol becomes an annex to the Treuhandvertrag. Delivery What we deliver Swiss-resident natural person on the Handelsregister A documented, insured Swiss-domiciled individual with individual signing authority, filed under art. 718 para. 4 OR or art. 814 para. 3 OR as appropriate. Annual statutory compliance participation General meeting minutes, board minutes where required, annual UBO re-declaration, SECO re-screening. A calendar, not a memory test. Authorities-facing correspondence handling ESTV, cantonal tax, Handelsregister and SECO correspondence received, acknowledged, and routed to the UBO within an agreed time window, with a traceable log. Signature execution on written instruction Statutory filings, bank paperwork and routine corporate acts executed on written instruction from the UBO, with every signature logged and traceable. Clear monthly / annual reporting cadence A short monthly status note (compliance events, correspondence, open items) and a fuller annual review at the time of the UBO re-declaration. No surprise requests, no silent gaps. Logistics Timeline and commercial framing Appointment timeline Once the KYC pack is complete and the Treuhandvertrag is signed, Handelsregister entry typically completes within two to five business days; Zefix reflects the change within a further one to two business days. New incorporations run alongside the company-formation timeline described under Swiss company formation . Market rate band (indicative only) The wider Swiss market typically shows annual nominee-director fees in a broad band around CHF 2,000 to 6,000 per year for a standard arrangement, with monthly-packaged or regulated-entity mandates sitting in a separate band. This is a market indication, not our rate card. Our engagements are scoped individually, because the liability profile, the regulated-entity overlay, the instruction volume and the compliance cadence all affect pricing. See how we engage and scope an assignment for the way we put a proposal together. What sits outside a base engagement Extraordinary corporate acts (shareholder meetings beyond the annual general meeting, real-estate transactions, material bank-mandate changes, FINMA submissions, M&A signatures, litigation support) are typically scoped separately. Routine statutory acts on written instruction are included. The boundary is spelled out in the Treuhandvertrag before anybody signs. Discipline Lines we will not cross No Concealment of the UBO from Swiss authorities or Swiss banks GwG / AMLA, CDB 20 No Pre-signed blank documents, ever art. 754 OR No Sham directorships for tax-residency manipulation OECD PPT, ATAD III No Engagement without complete KYC and SECO screening GwG / AMLA No Mandates we cannot insure under D&O cover Professional practice Yes Compliant, insured, instruction-disciplined Swiss-resident representation art. 718.4 / 814.3 OR FAQ Frequently asked questions Is a nominee director legal in Switzerland? Yes. Nominee director arrangements are legally recognised in Switzerland provided they are documented in a written Treuhandvertrag, do not involve deception of banks or authorities, and the ultimate beneficial owner (UBO) is disclosed to the bank under CDB 20. Arrangements designed to conceal the UBO or facilitate money laundering violate GwG / AMLA and the Swiss Criminal Code. Why is a Swiss-resident director required at all? Swiss law requires it. OR art. 718 para. 4 (for the AG) and OR art. 814 para. 3 (for the GmbH) each require at least one director or managing director with individual signing authority to be domiciled in Switzerland, so that authorities, courts and creditors always have a reachable, legally responsible natural person on Swiss soil. Who is the beneficial owner — me or the nominee? You are the beneficial owner. A nominee director has no economic interest in the company. Under CDB 20 you sign Form A as the beneficial owner, and the nominee appears, at most, as an authorised signatory, never as the UBO. Will my name be public on the Swiss Commercial Register? For a Swiss AG, the shareholder register is private and the UBO's name does not appear on the Commercial Register unless the UBO also holds a management function. For a GmbH, since the 2021 reform, any shareholder with a 25% or greater interest is disclosed on the Commercial Register. The nominee director's name is always public. How does AML disclosure work when a nominee director is in place? Under GwG / AMLA as implemented through CDB 20, the bank always requires Form A (beneficial owner declaration) signed by the UBO. If the nominee is listed as an account signatory but is not the beneficial owner, the bank additionally requires Form K. The bank independently verifies the UBO's identity, regardless of what the Commercial Register shows. What decisions will the nominee make? None independently. The nominee acts only on written instruction from the UBO, under the Treuhandvertrag. They sign statutory documents when required, participate in minutes to the extent the law requires, and coordinate with the company's advisors, but they do not make operational or commercial decisions on their own. What decisions will the nominee refuse to make? Anything that would commit the company without written instruction, conceal the UBO from authorities or the bank, or expose the nominee to liability under OR art. 754 without justification, including signing blank documents, ignoring a mandatory general assembly, or allowing the company to continue trading while insolvent. Can I replace the nominee director later? Yes. A professional Treuhandvertrag includes an undated resignation letter signed by the nominee at inception. The UBO holds it and can deregister the nominee with the Commercial Register at any time, even without the nominee's active cooperation. Can I use the same nominee for several companies? It is possible, but mandate concentration is a known failure mode. We limit mandates per nominee to below 15 to 20 so that the unavailability of any one person never cascades into statutory non-compliance for multiple companies at once. What happens if the nominee becomes unreachable? With the undated resignation letter in place, the UBO can immediately deregister the nominee and appoint a replacement, preserving compliance with OR art. 718 para. 4 or OR art. 814 para. 3. Without that instrument, the company may face court-ordered dissolution for structural non-compliance. Does having a nominee create tax substance in Switzerland? No. A nominee director alone does not create economic substance. For OECD Pillar Two purposes, the substance-based income exclusion requires genuine payroll and tangible assets in Switzerland; for double tax treaty purposes, OECD principal-purpose tests look at where management and control actually occur. A nominee-only presence is increasingly scrutinised under these rules. Is the nominee director service compatible with OECD BEPS and CRS? Used as one building block within a structure that also has genuine substance, yes. Used alone as the only Swiss presence in a tax-motivated structure, it is exposed to BEPS principal-purpose tests, EU ATAD III shell-entity analysis, and Pillar Two top-up calculations for groups above the EUR 750 million consolidated-revenue threshold. CRS exchange is determined by the UBO's tax residence and is not affected by the nominee arrangement. Not the right fit When a nominee director isn't the right structure You're running a FINMA-regulated entity (bank, securities firm, insurer, DLT trading facility): a board made up only of nominees fails the fit-and-proper test on its face, and you need a substantively qualified director alongside any nominee. Your group is above the EUR 750 million Pillar Two threshold: a nominee-only Swiss presence generates no substance-based income exclusion, so the entity's profits stay fully exposed to the top-up tax. You're testing the Swiss market on a time-limited basis, or running a regulated foreign-bank or insurer branch: a branch (Zweigniederlassung) with an authorised representative under art. 935 OR is often the cleaner structure, and needs no nominee director at all. You can't complete KYC and SECO sanctions screening: we don't engage without the complete UBO identification pack, and incomplete documentation isn't something a nominee arrangement can work around. Next step Ready to appoint a Swiss-resident director? We will read your structure, confirm whether a nominee director is the right instrument, and put a scoped proposal in front of you. No price list, no off-the-shelf fee. Every mandate is individually underwritten. Request a proposal --- ## Swiss and European patent registration — quote-only URL: https://business-in-switzerland.com/services/patent-registration Description: Swiss patent (PatG, IGE), European patent (EPO), PCT applications and Swiss patent-attorney representation. Custom quote scaled to technical scope. Swiss and European patent registration — quote-only STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Patent registration Swiss, European and PCT patents: quoted per matter. Patent costs vary widely by technical complexity, claim count and jurisdiction scope. We quote per matter after a 30-minute scoping call. Coordination with registered Swiss Patentanwälte on technical prosecution. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: June 2026 02 · Three filing routes National (IGE), European (EPO), international (PCT). 01.01 Swiss national patent (IGE) Filed with the Swiss Federal Institute of Intellectual Property under the Federal Patents Act (PatG). Swiss territory only. Useful when the invention is genuinely Swiss-market specific or as a base for a later international filing. 01.02 European patent (EPO) Filed with the European Patent Office in Munich under the European Patent Convention (EPC). On grant, the European patent is validated in selected member states. Switzerland is an EPC member. Most foreign founders wanting Swiss + EU coverage file via EPO. 01.03 PCT international application Patent Cooperation Treaty filing administered by WIPO. Used to defer national-phase decisions across 150+ countries by up to 30 months. Useful when global coverage is contemplated and budget for national filings is staged. 03 · Pricing Custom quote per matter — patents do not fit a flat fee. QUOTE METHOD · 03.01 Why we don\'t publish a flat patent fee Patent costs scale with technical complexity (chemistry and biotech far denser than mechanical), claim count, jurisdiction scope, and prosecution-round count. A one-claim software patent prosecuted in one jurisdiction with a single examiner round costs a fraction of a 30-claim biotech patent prosecuted to grant in EPO across multiple objection rounds. Honest fixed-fee pricing would either over-charge simple cases or under-deliver on complex ones. We quote per matter after a free 30-minute scoping call. The quote covers our legal and procedural fees plus a budget envelope for office fees and patent-attorney technical work, with milestones for each phase. Cost transparency at the matter level rather than the price-list level. 04 · What the engagement covers From patentability through grant to maintenance. 04.01 Patentability assessment and prior-art search recommendation 04.02 Drafting of patent specification and claims 04.03 Filing with IGE / EPO / WIPO as relevant 04.04 Prosecution before the office (responses to examination reports) 04.05 Coordination with Swiss patent attorneys (registered Patentanwälte) on technical matters 04.06 Annual maintenance fee management for granted patents 05 · Process Scoping → drafting → filing → prosecution. 01 Patentability scoping Initial review of the invention, prior-art search recommendation, route choice (national / EPO / PCT). Typically 2–4 weeks. 02 Drafting Patent specification, claims, abstract drafted with technical input from the inventor. Patent attorney involved on technical matters. 4–8 weeks. 03 Filing Filed with the chosen office. Filing fees paid (IGE basic fee, EPO basic fee, WIPO PCT fee depending on route). 04 Prosecution + grant Examination period 18–60 months depending on office and technology field. We respond to examiner objections and prosecute to grant. Annual maintenance fees track from year 3 onwards. 06 · FAQ Frequently asked questions. Why is patent registration quoted on a custom basis? Patent costs scale with several factors that vary widely between cases: number of claims, technical complexity (chemistry / biotech are denser than mechanical), number of jurisdictions targeted, IGE / EPO / WIPO office fees that depend on entity size and claim count, and prosecution-round count (some applications grant after one office action, others require 3–4 rounds). Honest fixed-fee pricing for patents would either over-charge simple cases or under-deliver on complex ones. We quote per matter after a 30-minute scoping call. Do you have a registered Swiss Patentanwalt in-house? No — Swiss patent-attorney qualification is a separate professional track from the bar. We work with registered Swiss Patentanwälte on technical patent prosecution. Our role is the legal and procedural side: filing strategy, jurisdiction choice, prosecution coordination, and post-grant enforcement. For a fully internalised in-house patent attorney, a specialist patent boutique is typically the right address. Should I file a Swiss national patent or go straight to EPO? For most foreign founders the answer is EPO via direct filing or via PCT national-phase entry. Swiss-only patents are useful in two scenarios: (a) the invention is narrowly Swiss-specific (e.g., addressing a Swiss regulatory or language requirement), (b) as a priority document supporting a later international filing under the Paris Convention 12-month priority rule. For genuine cross-border commercial inventions, EPO covers Switzerland plus most of Europe in one filing. How long does patent grant take? Swiss IGE: 18–36 months from filing. EPO: 30–60 months. PCT national-phase entry: starts the national-phase clock after 18–30 months of international phase, then national prosecution adds the equivalent of national procedure timelines. Software and biotech tend to take longer than mechanical / chemical. What does annual maintenance cost? IGE annuities start at CHF 100 in year 3 and scale up to CHF 1,800 in year 20. EPO annuities apply during the application phase (after year 3) and then in each validated state once granted. Our maintenance-fee management mandate is CHF 290 per patent per year (covers any number of jurisdictions for that patent family). Can I do a freedom-to-operate analysis with you? Yes — but freedom-to-operate (FTO) is a different exercise from patentability. FTO checks whether your product infringes existing third-party patents, while patentability checks whether your invention can be protected. Both involve patent searches but the analytical framework is different. We quote FTO separately, typically CHF 4,500–12,000 per technology area. 07 · Where this doesn't fit When patent registration isn't the right route. You want a fixed price agreed upfront: patent costs are quoted per matter after a scoping call, because complexity, claim count and jurisdiction scope vary too widely for an honest flat fee. You need an in-house Swiss patent attorney handling technical prosecution directly: we coordinate with registered Swiss Patentanwälte on the technical side rather than employing one internally. You need grant confirmed within weeks: Swiss IGE examination runs 18–36 months and EPO 30–60 months, so patent protection does not fit a short deadline. Your priority is checking freedom to operate rather than patentability: FTO is a separate engagement quoted at CHF 4,500–12,000 per technology area, not part of the standard patentability scope. 08 · Get started Tell us the invention and the target jurisdictions. One-paragraph technical description of the invention, target jurisdictions (Switzerland only, Europe, worldwide), and any existing prior art you are aware of. We confirm route options and a written quote within 5 working days. Request a proposal --- ## Swiss payroll (Lohnbuchhaltung) from CHF 120 per month URL: https://business-in-switzerland.com/services/payroll Description: Full Swiss payroll: monthly Lohnabrechnung, AHV/SUVA/BVG registrations, Quellensteuer, Lohnausweis, optional EOR. From CHF 120/month for up to 5 employees. Swiss payroll (Lohnbuchhaltung) from CHF 120 per month STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Payroll Swiss payroll, end to end, from CHF 120 a month. Monthly Lohnabrechnung, AHV/SUVA/BVG registrations, Quellensteuer for foreign employees, year-end Lohnausweis. Up to 5 employees on the standard track, 6–20 on the mid-size track, EOR if you do not yet have a Swiss entity. Request a proposal Written by Stefan Locher · Reviewed by Eva Schibli Last reviewed: June 2026 02 · Three tracks Standard, mid-size, or Employer of Record. 01.01 Standard payroll Monthly Lohnabrechnung, AHV / SUVA / BVG registrations, Quellensteuer where applicable, year-end Lohnausweis. From CHF 120/month for up to 5 employees. 01.02 Mid-size payroll Same scope as standard but for 6 to 20 employees. CHF 250/month flat. Includes monthly variance review and quarterly compliance check. 01.03 Employer of Record We act as the employer of record for hires you cannot directly employ (no Swiss entity yet, or specialist roles outside your structure). CHF 490 per employee per month. 03 · Pricing All-in fixed fees, line by line. Service Our fee Market range Payroll setup (one-time) CHF 290 CHF 300–800 Monthly payroll, up to 5 employees CHF 120 / month CHF 100–200 Monthly payroll, 6–20 employees CHF 250 / month CHF 200–600 AHV / SUVA / BVG registrations CHF 190 CHF 200–500 Quellensteuer surcharge per employee CHF 15 / employee / month CHF 15–30 Lohnausweis (year-end statement) CHF 50 / employee CHF 50–150 Employer of Record CHF 490 / employee / month CHF 500–1,500 Fees excl. MWST. BVG contributions are a separate charge from the chosen pension fund — we recommend providers but do not mark up their rates. 04 · What the fee covers Everything statutory, plus the year-end paperwork. 04.01 Monthly Lohnabrechnung (gross-to-net calculation) 04.02 AHV (old-age insurance) and ALV (unemployment) contributions 04.03 SUVA / accident insurance registration and reporting 04.04 BVG (occupational pension) coordination with the chosen pension fund 04.05 Quellensteuer (withholding) for foreign employees without C-permit 04.06 Year-end Lohnausweis for each employee 05 · Process From setup to year-end Lohnausweis. 01 Setup AHV/SUVA/BVG registrations, payroll software configuration, employee master data import. CHF 290 one-time. 02 First payroll cycle You provide hours/salary input by the 25th of the month. We deliver gross-to-net calculation and bank-payment file by the 28th. 03 Statutory filings Monthly AHV/ALV declarations, quarterly Quellensteuer remittance to canton, annual reconciliation. 04 Year-end Lohnausweis issued to each employee by 31 January. Annual AHV reconciliation by 31 March. 06 · FAQ Frequently asked questions. When is Swiss payroll mandatory? From the first employee. Once you sign an employment contract under Swiss law (governed by the Code of Obligations articles 319–362), AHV/ALV/SUVA registrations are required and monthly contributions begin. There is no minimum-staff exemption. What is BVG and when does it apply? BVG is the occupational pension scheme. It is mandatory once an employee earns more than CHF 22,680 per year (2026 threshold). Below that the employer is not required to contribute. We coordinate with the pension fund of your choice or recommend a low-fee mass-market provider. Do non-Swiss employees pay tax through payroll? Yes — through Quellensteuer (withholding tax). It applies to foreign employees without a C-permit (settled-residence permit). The cantonal rate depends on the canton of work, salary band and family status. We calculate it monthly and remit quarterly to the cantonal tax office. What is the Employer of Record option for? EOR lets you hire someone in Switzerland without first having a Swiss legal entity. We become the legal employer; you manage the day-to-day work. Common for international groups testing the Swiss market or hiring one specialist before incorporating. CHF 490 per employee per month, all-in. Do you handle hiring contracts and HR? Hiring contracts (Arbeitsvertrag) — yes, on request, CHF 490 per contract drafted to Swiss labour-law standard. HR advisory — we have legal counsel available at CHF 250/hr for specific issues (termination, parental leave, workplace disputes). Day-to-day HR administration is not part of the payroll mandate. Can you take over payroll from an existing provider? Yes. We import master data, reconcile YTD figures with the previous provider, and run a parallel month if you want a verification cycle. Switching mid-year is straightforward; we handle the AHV/ALV transfer notifications and confirm with the new pension fund. 07 · Not a fit if When our payroll mandate isn't the right shape. You have more than 20 employees: the published tracks cover up to 5 (standard) and 6–20 (mid-size); larger headcounts need a custom quote outside this pricing table. You want us to run day-to-day HR administration: the mandate covers statutory payroll only; HR advisory beyond that is CHF 250/hour and hiring-contract drafting is billed separately at CHF 490 per contract. All your employees already hold a C-permit: Quellensteuer only applies to foreign employees without one, so that part of the service will not apply to your situation. You don't yet have a Swiss entity and don't want one soon: the standard and mid-size tracks assume an employer entity already exists; the Employer of Record track fills that gap at CHF 490 per employee per month, a materially higher per-head cost. 08 · Get started Send headcount, hire dates, salary bands. One short brief: how many employees, when they start, their salary bands, and which canton. We come back with the setup quote and the first cycle's deliverable date. Request a proposal --- ## Swiss registered office — Zurich/Zug from CHF 1,200/year URL: https://business-in-switzerland.com/services/registered-address Description: Registered office (Domizil) in Zurich or Zug for Swiss companies and foreign founders. Mail forwarding option. From CHF 1,200 per year. English support. Swiss registered office — Zurich/Zug from CHF 1,200/year STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Registered office A Swiss registered address in Zurich or Zug, from CHF 1,200 per year. Cantonal Handelsregister-recognised business address, official-mail handling, and an optional 24-hour scan-and-forward service. Two locations: Zug for low-tax holding and crypto, Zurich for banking proximity. Request a proposal Written by Stefan Locher · Reviewed by Lukas Brunner Last reviewed: June 2026 02 · What you choose Two cities, one optional add-on. Both addresses are real, staffed and recognised by the cantonal Handelsregister. Pick the location that matches your tax canton or banking footprint. 01.01 · ZUG Zug Baarerstrasse 14 Crypto Valley address on Zug's principal business artery. Lowest cantonal tax in Switzerland (effective 11.85%). Notary, bank, Handelsregister all within walking distance. 01.02 · ZURICH Zurich Central business district Banking and finance hub. Highest concentration of FINMA-authorised asset managers, deepest talent pool. Slightly higher cantonal tax (~19.61%) but matched by infrastructure depth. 01.03 · MAIL FORWARDING Mail forwarding + CHF 600/year on top of base Add scanning and physical forwarding to any non-Swiss address. We open, scan and forward within 24 hours of receipt. Useful for non-resident directors and foreign UBOs running operations from abroad. 03 · Pricing Published rates. No quote-form gating. All fees excl. MWST. Annual mandate, billed yearly. Cancellation with 30 days notice before renewal date. Service Our fee Market range Domicile Zurich CHF 1,200 / year CHF 1,400–2,800 Domicile Zug CHF 1,200 / year CHF 1,400–2,400 Domicile + mail forwarding CHF 1,800 / year CHF 2,000–3,500 04 · What the fee covers Address, mail, and a phone number you can list publicly. 04.01 Cantonal Handelsregister-recognised business address 04.02 Listed in your statutes as the registered office 04.03 Receipt of all official mail (cantonal authorities, federal tax office, banks) 04.04 Notification by email within 24 hours when mail arrives 04.05 Available for use on website footer, invoices and stationery 04.06 Mail forwarding (worldwide) with the +CHF 600 add-on 05 · Process Address active in one working day. 01 Choose Zurich or Zug Pick based on tax canton, banking proximity or industry cluster. Both are CHF 1,200 base. 02 Domicile agreement One-page domicile agreement signed electronically. KYC checklist (UBO ID, source-of-funds for the entity). 03 Address active Within 1 working day. We confirm the exact street address, building, and your company's pigeonhole reference. 04 Optional registry update If you're changing the registered office of an existing company, we file the address change with the Handelsregister (CHF 200 office fee). 06 · FAQ Frequently asked questions. Is a Swiss registered office required for an AG or GmbH? Yes. Article 626 of the Swiss Code of Obligations (OR) for AG and article 776 for GmbH require a registered office in Switzerland to be specified in the articles of association and entered into the Handelsregister. The address must be a real Swiss address where the company can receive correspondence. Can my home address serve as the registered office? Technically yes if you live in Switzerland and have permission from your landlord (or own the property). In practice many founders prefer a separate business address for credibility, mail-handling discipline and to keep their home address out of the public Handelsregister extract. What is the difference between a registered office and a domicile? In Swiss legal vocabulary they are interchangeable. "Registered office" is the English term for what the Handelsregister calls Sitz. "Domicile" is the older term used in some Swiss-French and operational contexts. Both refer to the legal address of the company. Will my mail be opened? No, not without authorisation. By default we notify you that mail has arrived and you collect it or instruct us. With the mail-forwarding add-on (+CHF 600/year) we open, scan and forward within 24 hours under a written authorisation. Can the registered office be moved later? Yes. Moving the registered office to a different canton requires a shareholder resolution and a Handelsregister filing in both the old and new canton. We handle this for our clients on a flat-fee basis (typically CHF 800). Does this satisfy substance requirements for tax purposes? A registered office alone does not create economic substance. Substance for international tax purposes requires real activity, board meetings in Switzerland, qualified personnel and decision-making in the country. Talk to us if substance is part of the structure (holding companies, FINMA-licensed entities). 07 · Not the right fit if When a registered address here won't cover what you need. You need a registered address outside Zurich or Zug: those are the only two locations on offer here. You need the address alone to satisfy substance requirements for a holding or FINMA-licensed structure: a registered office does not create economic substance by itself; real activity, board meetings and qualified personnel are required. You want a short-term or monthly arrangement: this runs as an annual mandate billed yearly, with 30 days' notice before renewal, not a rolling monthly service. You need mail opened and forwarded as standard: by default we only notify you that mail has arrived; opening, scanning and forwarding requires the +CHF 600/year mail-forwarding add-on. 08 · Get started Choose Zurich or Zug, sign the domicile agreement. Tell us which city, whether you need mail forwarding, and your company's name. We send the agreement within 24 hours and your address is active the next working day. Request a proposal --- ## Swiss corporate restructuring & transformations URL: https://business-in-switzerland.com/services/restructuring Description: Statute amendments, capital changes, mergers, demergers and transformations under Swiss FusG. CHF 250 per hour plus flat fees. Filed with the Handelsregister. Swiss corporate restructuring & transformations STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Restructuring Statutes amendments, mergers, conversions. From simple name and registered-office changes (CHF 800) to full FusG-compliant mergers (CHF 8,000–25,000). Hourly rate CHF 250 with targeted flat fees for common operations. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: June 2026 02 · Three operation classes Amendments, mergers, conversions and demergers. 01.01 Statutes amendments Change of name, registered office, purpose, signing rules, share capital. Notarial deed + Handelsregister filing. Typical flat fee CHF 800–1,500 depending on amendment scope. 01.02 Mergers (FusG) Merger by absorption or merger by combination under the Federal Merger Act (FusG). Includes board resolutions, audited merger balance sheet, employee consultations, Handelsregister filing in both cantons. Hourly engagement, typical CHF 8,000–25,000. 01.03 Conversions / demergers GmbH-to-AG conversion, demerger by spin-off, asset transfer under FusG. Each requires shareholder resolution, audited opening balance sheet, and Handelsregister registration. Hourly engagement. 03 · Pricing Flat fee for common amendments. Hourly above that. Service Our fee Market range Hourly rate (lawyer) CHF 250 / hour CHF 250–550 Statutes amendment (simple, single-issue) from CHF 800 CHF 1,000–3,000 Statutes amendment (multi-issue) from CHF 1,500 CHF 2,000–5,000 Capital increase / decrease + HR filing from CHF 1,900 CHF 2,000–8,000 Initial restructuring consultation (30 min) free CHF 0–350 Notary fees and Handelsregister office fees are passed through at cost. Auditor fees (where required) coordinated separately with the chosen audit firm. 04 · Mandate scope Drafting, deeds, filings, employee notices. 04.01 Drafting of board / shareholder resolutions 04.02 Notarial deed coordination (we work with bonded notaries) 04.03 Audited balance sheet preparation (coordination with auditor) 04.04 Handelsregister filing in the cantonal register 04.05 FusG-compliant merger / demerger / conversion documentation where applicable 04.06 Employee consultations and statutory notice drafting where required 05 · Process Scoping → drafting → shareholder approval → filing. 01 Scoping Free 30-minute call to identify the operation, applicable statute (OR articles, FusG, Civil Code), and required documentation. Quote follows within 24 hours. 02 Drafting Resolutions, articles amendments, balance sheets. 1–4 weeks depending on operation complexity. 03 Shareholder approval General meeting or written shareholder consent. We prepare minutes and the formal resolution. 04 Filing + registration Notarial deed where required, Handelsregister filing, publication in SHAB (Swiss Official Gazette of Commerce). 2–6 weeks at the registry. 06 · FAQ Frequently asked questions. When is a Swiss merger compliant with FusG required? The Federal Merger Act (FusG) governs mergers, demergers, conversions, and asset transfers between Swiss entities. Almost any structural change involving Swiss legal persons triggers FusG procedures: documentation, audited balance sheet, employee consultations, Handelsregister registration. Cross-border mergers are also covered (FusG art. 163 ff for emigration / immigration mergers). How long does a capital increase take? Two to four weeks for an ordinary capital increase. Steps: shareholder resolution, capital subscription (or contribution-in-kind audited), notarial deed of increase, Handelsregister filing. Authorised capital increases (where the board has standing authority) are faster — 1 week if the authority is already in place. Can I move my registered office to a different canton? Yes — by shareholder resolution and double Handelsregister filing (deletion in old canton, registration in new canton). Notary required in the new canton. Typical timeline 3–6 weeks. Cost: CHF 1,200 our fee + CHF 200–400 office fees + notary fee. What is a Swiss spin-off (Abspaltung)? A demerger transferring part of a company's assets and liabilities to a new or existing company under FusG. Useful when separating business lines, preparing for partial sale, or isolating regulated activity. Requires audited balance sheets of both source and recipient entity, employee notification, and HR filing in both cantons. When does a conversion (Umwandlung) make sense? Most common: converting a GmbH into an AG to enable capital raising or simplify share transfers. The legal person remains the same — only the form changes. Requires shareholder unanimity (or specified majority), audited balance sheet, articles redrafted to AG standard, and Handelsregister filing. Total cost typically CHF 4,500–8,500 including notary and registry fees. Are employee consultations required? Under FusG art. 28 employees must be informed about a merger / demerger that affects them. The information must be provided before the merger is approved by the general meeting. Employee representatives (where they exist) may submit observations. We draft the notice and coordinate timing. 07 · Where this falls short When restructuring here isn't the right route. You want a single flat fee for a merger or demerger: those FusG operations are hourly engagements, typically CHF 8,000–25,000, not fixed-price like the statutes amendments. You need the audit or notary fees bundled into our rate: auditor and notary work is coordinated by us but passed through at cost separately. You need the change effective within days: even the simplest statutes amendment runs 1–4 weeks of drafting plus 2–6 weeks at the Handelsregister, so nothing here is a same-week fix. Your company doesn't exist yet on the Handelsregister: every operation described here (amendments, mergers, conversions, demergers) changes an existing Swiss entity, not forms a new one. 08 · Get started Tell us the operation. One paragraph: what change you need, which Swiss entity, expected timeline. We confirm scope, applicable statute, and quote within 24 hours. Request a proposal --- ## Swiss SECO permits — tobacco/hotel/taxi from CHF 1,900 URL: https://business-in-switzerland.com/services/seco-permit Description: SECO and cantonal permits: tobacco trade, Gastgewerbe, taxi, recruitment and staff-leasing (Personalverleih). From CHF 1,900. Filed with SECO and the canton. Swiss SECO permits — tobacco/hotel/taxi from CHF 1,900 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · SECO permit Federal and cantonal permits, filed for you. Recruitment and staff-leasing permits at SECO, hospitality and tobacco licences cantonally, taxi licences municipally. From CHF 1,900 per application. Free 30-minute scoping call. Request a proposal Written by Eva Schibli · Reviewed by Lukas Brunner Last reviewed: June 2026 02 · Three permit categories Recruitment, hospitality, specialised trade. 01.01 Recruitment / staff leasing Personalverleih and Arbeitsvermittlung permits under the AVG (Federal Recruitment Act). Required to operate as a staffing agency or to lease workers in Switzerland. Filed with SECO. Capital deposit (CHF 50,000–100,000) required. 01.02 Hospitality (Gastgewerbe) Restaurant, bar, hotel licences are cantonal. Each canton sets requirements (Wirtepatent or equivalent), training requirement, and inspection conditions. We file with the relevant cantonal authority. 01.03 Tobacco / taxi / specialised trade Tobacco-trade permits, taxi licences, and certain specialised-trade authorisations. Cantonal or municipal authority depending on activity. We confirm the right body at the scoping call. 03 · Pricing Flat from CHF 1,900. Free first call. Service Our fee Market range SECO permit (tobacco / hotel / taxi / recruitment) — application from CHF 1,900 CHF 2,000–8,000 Hourly rate above flat-fee scope CHF 250 / hour CHF 250–550 Initial regulatory consultation (30 min) free CHF 0–350 Authority office fees passed through at cost. SECO recruitment / leasing capital deposit (CHF 50,000–100,000) is held by the bank or as a guarantee, not charged by us. 04 · Mandate scope Eligibility, dossier, filing, follow-through. 04.01 Eligibility assessment for the relevant permit category 04.02 Document checklist (qualifications, capital deposit, premises, insurance) 04.03 Drafting of application forms in German, French or Italian as required 04.04 Filing with SECO and/or the cantonal/municipal authority 04.05 Tracking of application status and response to clarification requests 04.06 Coordination of any required training / examination (e.g., Wirtepatent) 05 · Process Eligibility → documentation → filing → decision. 01 Eligibility Confirm permit category and the right authority (SECO, cantonal, municipal). 1–2 days. Free for the first 30 minutes. 02 Documentation Assemble qualifications, capital deposit confirmation, premises lease, insurance, business plan. 2–4 weeks (typically client-side). 03 Filing Application submitted to the relevant authority. Office fees range CHF 100–2,000 depending on permit type. 04 Decision SECO recruitment permit: 8–16 weeks. Cantonal hospitality: 4–8 weeks. Municipal taxi: 6–12 weeks. 06 · FAQ Frequently asked questions. When does my activity need a SECO permit? Specific activities are subject to federal authorisation under sectoral statutes — the most common federal permit involves staff leasing and recruitment under the AVG. Other activities (hospitality, taxi, certain trades) are licensed at cantonal or municipal level. We confirm the right authority at the scoping call. What is the AVG recruitment permit? The Bundesgesetz über die Arbeitsvermittlung und den Personalverleih (AVG) regulates two related activities: Arbeitsvermittlung (placement) and Personalverleih (staff leasing). Both require a SECO authorisation, a capital deposit (CHF 50,000 for placement, CHF 100,000 for leasing), and a Swiss-resident manager. Foreign placement requires an additional federal authorisation. How much capital do I need for a recruitment / leasing permit? CHF 50,000 deposit for Arbeitsvermittlung (placement). CHF 100,000 for Personalverleih (staff leasing). The deposit is held in a blocked account or as a bank guarantee and serves as collateral for employee claims if the permit holder defaults. The capital is returned when the permit is surrendered (subject to no outstanding claims). What is a Wirtepatent? Cantonal hospitality-trade certification required to operate a restaurant, bar or hotel in many cantons. Requirements vary: some cantons require attendance of a 1–2 week course and an exam; others accept equivalent professional experience or qualifications. Zurich and Geneva have stricter requirements; Zug and Schwyz are more lenient. Do I need a permit to import tobacco for retail? Yes. The tobacco trade is regulated at federal level for production and import; retail sales are licensed cantonally. The federal regulator imposes labelling, advertising, and youth-protection rules. We file the cantonal retail licence and coordinate with import-side counsel where needed. Is the initial consultation really free? Yes — first 30 minutes by call to confirm permit category, authority, and approximate timeline. No charge, no obligation. Where a quick read of the activity is sufficient, we may answer the basic question on that call without a follow-up engagement. 07 · Not the right route if When this permit service won't suit your case. Your activity falls outside recruitment/staff-leasing, hospitality, tobacco, taxi or specialised trade: those are the three permit categories covered here. You need the capital deposit financed or reduced: the CHF 50,000 (placement) or CHF 100,000 (staff leasing) deposit is a fixed AVG requirement held by the bank as collateral, not something we can lower or cover. You need approval within days: SECO recruitment permits take 8–16 weeks, cantonal hospitality 4–8 weeks, and municipal taxi licences 6–12 weeks, so none of these routes suit an urgent start date. You want to skip the Wirtepatent training in a strict canton: cantons like Zurich and Geneva require attendance of the course and exam; only some cantons accept equivalent experience instead. 08 · Get started Tell us the activity. One-line brief: planned activity, target canton, expected start date. We confirm permit category, authority, and approximate timeline within 24 hours. Request a proposal --- ## Swiss shelf company for sale — Mantelkauf from CHF 9,400 URL: https://business-in-switzerland.com/services/shelf-company Description: Pre-registered Swiss GmbH and AG shelf companies for immediate purchase. Clean, dormant, no history. From CHF 9,400 to CHF 189,500+ for licensed Mantel. Swiss shelf company for sale — Mantelkauf from CHF 9,400 STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Shelf company A clean Swiss GmbH or AG, ready to operate today. Pre-registered, dormant, with paid-in capital intact. From CHF 9,400 for a generic Mantel; from CHF 189,500 for an SRO/VQF-licensed entity. Share transfer notarised and filed with the Handelsregister within days, not weeks. Request a proposal Written by Lukas Brunner · Reviewed by Stefan Locher Last reviewed: September 2026 02 · Three variants Plain Mantel, aged Mantel, or SRO-licensed. 01.01 Plain shelf GmbH or AG Dormant company with paid-in capital, clean balance sheet, no trading history. Use when you need a Swiss legal person now and a fresh formation timeline (2–6 weeks) is too long. From CHF 9,400. 01.02 Aged shelf company Same as plain but with several years of registered history. Useful when banks or counterparties weigh entity age. Pricing depends on age — quote on request, typically CHF 14,500–34,500. 01.03 SRO / VQF-licensed Mantel Pre-licensed company with active SRO or VQF membership for crypto / financial-intermediary activity. Saves the 2–5 month licence-application timeline. From CHF 189,500. 03 · Pricing From the cheapest plain Mantel to a licensed SRO entity. Service Our fee Market range Mantelkauf / shelf company, no licence from CHF 9,400 CHF 10,000–50,000 Mantelkauf VQF / SRO-Gesellschaft from CHF 189,500 CHF 250,000–500,000 Share Transfer + Handelsregister filing CHF 1,900 CHF 2,000–5,000 Preliminary structuring analysis (if you are unsure) CHF 3,900 CHF 5,000+ Fees excl. MWST. The shelf-company purchase price is fixed; share transfer and Handelsregister filing are additional. SRO-licensed Mantels are quoted on request once we know the licence scope and the entity\'s history. 04 · What you receive A clean dossier, not just an entity. 04.01 Clean entity (no trading history, no employees, no creditors) 04.02 Paid-in share capital intact (CHF 20,000 GmbH / CHF 50,000 minimum AG) 04.03 Articles of association ready to amend to your purpose 04.04 Original Handelsregister extract + commercial register dossier 04.05 Last audited (or attested-as-dormant) balance sheet 04.06 Share transfer deed and Handelsregister change-of-ownership filing 05 · Process From candidate selection to operational entity. 01 Identify a candidate We send 2–3 candidate Mantels matching your canton preference, age and capital structure. Each comes with the full dossier for your due diligence. 02 KYC / source-of-funds Mandatory under Swiss AML rules. UBO ID, source-of-funds for the purchase price, business purpose for the entity. 03 Share purchase Notarised share transfer deed. Purchase price escrowed until closing. Same-day if both parties are organised. 04 Handelsregister update Change of board, change of registered office (to your chosen canton if needed), articles amendment. 2–5 working days at the registry. 06 · FAQ Frequently asked questions. Why buy a shelf company instead of forming a new one? Speed. A new GmbH typically takes 2–4 weeks, an AG 3–6 weeks. A shelf company is operational on the day the share transfer is filed. Useful when a counterparty, tender or licence application requires an active legal person now. Are shelf companies legal in Switzerland? Yes. The Federal Court has confirmed Mantelkauf is permitted, with the constraint that the entity must not have been dissolved or used to circumvent fresh-formation requirements. We deal only in clean, dormant entities that meet that test. What is the difference between a "no licence" Mantel and an "SRO" Mantel? A no-licence Mantel is a generic GmbH or AG ready for any non-regulated business activity. An SRO Mantel is a company that already holds membership in a self-regulatory organisation (VQF, SO-FIT or PolyReg) for AML purposes — required for crypto, exchange and payment-services businesses. The price difference reflects the licence value: roughly CHF 9,400 vs CHF 189,500+. Will I inherit any liabilities from the previous owner? Theoretically yes — a company is the same legal person regardless of ownership. In practice we sell only entities that have been dormant since formation, with attested balance sheets confirming no operating activity. The share purchase agreement includes warranties and an indemnity from the seller for pre-closing exposures. Can I change the company name and registered office after purchase? Yes. Both can be changed via an extraordinary general meeting and a Handelsregister filing. Typical cost: CHF 200 office fee plus CHF 800 for our work. Allow 2–5 working days at the registry. How are SRO-licensed Mantels priced? The price reflects the cost and time saved on a fresh SRO application (which is itself CHF 9,900 for the application fee and 2–5 months of calendar time, plus the company-formation step). For a buyer with a launch date in mind, the premium is paid for the shortened timeline. We can also support a fresh SRO membership if budget is the priority — see /specialised/sro-license/. 07 · Not the better route if When buying a shelf company won't serve you better. You want an SRO/VQF-licensed entity but budget is tight: those start at CHF 189,500, roughly 20× the price of a plain Mantel, so a fresh SRO application may suit a tighter budget better. You want to avoid Swiss AML/KYC checks: mandatory source-of-funds and UBO identification apply to every purchase regardless of entity size. You need zero risk of inherited history: a share purchase keeps the same legal person; we sell only dormant entities with attested balance sheets and seller warranties, but a fresh formation is the cleaner route if you need an absolutely blank slate. You want an aged entity today: aged shelf companies are quoted on request, typically CHF 14,500–34,500, rather than available off a fixed price list, and sourcing one adds lead time versus the plain Mantel track. 08 · Get started Tell us the use case. Send the intended business activity, target canton, age preference, and whether you need a regulated licence. We send 2–3 candidate Mantels with full dossiers within 24 hours. Request a proposal --- ## Swiss tax ruling — cantonal advance from CHF 250/hour URL: https://business-in-switzerland.com/services/tax-ruling Description: Cantonal advance tax rulings: confirm a tax position with the canton before a transaction. CHF 250 per hour. Common for holding and restructuring. Swiss tax ruling — cantonal advance from CHF 250/hour STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Tax ruling Cantonal tax confirmations, drafted and negotiated. A written confirmation from the cantonal tax administration of how your specific structure or transaction will be taxed. Hourly engagement at CHF 250. Free 30-minute scoping call. Request a proposal Written by Marc Wyler · Reviewed by Lukas Brunner Last reviewed: June 2026 02 · Three common ruling types Holding, employment, restructuring. 01.01 Holding-structure ruling Confirmation of participation-exemption application (DBG art. 69-70), substance requirements, and any tax-treaty interaction. Typically 8–15 hours of drafting and negotiation. CHF 2,000–3,800. 01.02 Employment-tax ruling Confirmation of expatriate / lump-sum-expatriate positions, share-plan tax treatment, or remote-work arrangement. 6–12 hours typical. CHF 1,500–3,000. 01.03 Restructuring ruling Confirmation of tax-neutral restructuring under FusG: merger, demerger, conversion, intra-group transfer. 10–20 hours typical. CHF 2,500–5,000. 03 · Pricing Hourly engagement. Typical totals shown. Service Our fee Market range Tax ruling drafting and negotiation (hourly) CHF 250 / hour CHF 250–550 Initial scoping consultation (30 min) free CHF 0–350 Holding-structure ruling (typical) CHF 2,000–3,800 CHF 4,000–10,000 Restructuring ruling (typical) CHF 2,500–5,000 CHF 5,000–15,000 Cantonal Steuerverwaltung does not charge a fee for ruling submissions. Federal stamp-duty rulings (with ESTV) carry a small administrative fee. 04 · Mandate scope Drafting, submission, negotiation, final letter. 04.01 Identification of relevant cantonal and federal tax positions 04.02 Drafting of the ruling request with structured legal reasoning 04.03 Submission to the cantonal tax administration (Steuerverwaltung) 04.04 Tracking and response to clarification questions 04.05 Negotiation where the cantonal authority disagrees with our position 04.06 Final ruling letter with binding effect on the canton (subject to facts being as represented) 05 · Process Scoping → drafting → submission → final ruling. 01 Scoping Free 30-minute call to confirm whether a ruling is the right tool versus a planning memo. Some matters are clearer addressed without a ruling. 02 Drafting Ruling request drafted: facts, applicable law, requested confirmation. 1–3 weeks. Reviewed with you before submission. 03 Submission + dialogue Filed with the cantonal Steuerverwaltung. Cantonal authorities typically respond within 6–12 weeks; complex rulings can take 4–6 months. 04 Final ruling Once issued, the ruling is binding on the canton (and indirectly on the federal tax administration where ESTV co-signs) for as long as the facts remain as represented. 06 · FAQ Frequently asked questions. What is a Swiss tax ruling? A written confirmation from the cantonal tax administration of how a specific transaction or structure will be taxed. Issued before the transaction. Binding on the cantonal authority for as long as the facts remain accurate. Used to remove tax uncertainty before signing M&A deals, capital restructurings, or relocating senior employees. How long does a Swiss tax ruling take? Six to twelve weeks typical for ordinary positions. Holding rulings, expatriate rulings, and tax-neutral restructuring rulings: 12–20 weeks. Complex multi-jurisdictional rulings can run 4–6 months as the canton consults with ESTV (Federal Tax Administration). Filing earlier rather than later is the recommended approach when a deal timeline is fixed. In which canton should I file the ruling? The canton where the company is or will be tax-resident. For new companies the choice of canton determines both the ruling authority and the cantonal income-tax rate. Zug, Schwyz, Lucerne and Nidwalden are common low-tax cantons; Geneva and Zurich are common for international companies. Is the ruling binding on the Federal Tax Administration? Indirectly. Cantonal rulings on federal direct tax matters bind the canton, which collects federal direct tax on behalf of ESTV. ESTV can in theory diverge but in practice rarely does for properly drafted rulings. For purely federal matters (withholding tax, stamp duty) the ruling must be filed directly with ESTV. When is a ruling worth the cost? When the tax exposure of the issue exceeds 5–10× the ruling drafting cost, and the cantonal position is uncertain. Examples: a CHF 50m holding deal where the participation-exemption application is debatable; a senior-executive relocation where the canton's view of remote-work fragmentation matters; a restructuring where tax-neutral treatment hinges on substance arguments. For routine matters with clear law, a planning memo is cheaper and sufficient. Can a foreign company file a Swiss tax ruling? Yes — provided the matter has a Swiss tax nexus (Swiss subsidiary, Swiss permanent establishment, Swiss-source income, etc.). For a pure foreign-foreign transaction with no Swiss tax angle, a Swiss canton has no jurisdiction to rule. We confirm Swiss nexus at the scoping call. 07 · When it isn't the right tool When a tax ruling isn't worth pursuing. Your transaction has no Swiss tax nexus: a Swiss canton has no jurisdiction to rule on a pure foreign-foreign matter with no Swiss subsidiary, permanent establishment or Swiss-source income. You need a decision within days: ordinary rulings take 6–12 weeks and complex multi-jurisdictional ones can run 4–6 months, so a ruling does not fit a fast-moving deal timeline. The tax exposure is modest relative to the drafting cost: a ruling is worth it when exposure exceeds roughly 5–10× the ruling cost; for routine positions with clear law, a planning memo is cheaper and sufficient. You want a fixed quote instead of hourly billing: this is an hourly engagement at CHF 250/hour with typical-range totals shown for guidance, not a flat fee. 08 · Get started Tell us the position you want confirmed. One-paragraph brief: what tax position, which canton, expected transaction date, applicable statute. We confirm whether a ruling is the right tool and quote within 24 hours. Request a proposal --- ## Trademark registration in Switzerland, EU and Germany URL: https://business-in-switzerland.com/services/trademark-registration Description: Register your trademark in Switzerland (IGE), EU (EUIPO) or Germany (DPMA). Fixed fees from CHF 690 incl. office fees, up to 3 classes. English-speaking team. Trademark registration in Switzerland, EU and Germany STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · Intellectual property Trademark registration in Switzerland, EU and Germany. One filing path for Swiss, EU and German trademarks. Fixed fees, no hidden hours, English support throughout. From CHF 690 for Switzerland, including office fees, up to 3 classes. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: June 2026 02 · What we file Three jurisdictions, one workflow. We pick the right scope before we touch a filing form. Most foreign founders running a Swiss entity benefit from CH + EU together; some need only Germany. 01.01 · SWITZERLAND Switzerland IGE — Federal Institute of Intellectual Property CHF 690 FROM · up to 3 CLASSES INCL. Swiss territory only. Strong protection but no automatic EU effect. TIMELINE · 4–6 months total (examination 2–4 mo) EXTRA CLASSES · CHF 150 / class 01.02 · EUROPEAN UNION European Union EUIPO — EU IP Office, Alicante EUR 990 FROM · starts at 1 CLASSES INCL. 27 EU member states with single registration. Switzerland not included — register in CH separately. TIMELINE · 4–6 months from filing to registration EXTRA CLASSES · EUR 200 / class 01.03 · GERMANY Germany DPMA — German Patent and Trademark Office, Munich EUR 590 FROM · up to 3 CLASSES INCL. Germany only. Useful when CH+DE overlap is the operating market and EUIPO scope is unnecessary. TIMELINE · 3–4 months from filing EXTRA CLASSES · EUR 200 / class 03 · Fixed-fee pricing All three jurisdictions, every class — published rates. No quote-form gating. The numbers below already include the relevant government office fees so you know your full out-of-pocket cost before signing. Trademark registration fees: satellite price vs market range. All fees excl. MWST. Service Our fee Market range Switzerland (IGE) — up to 3 classes, incl. office fees CHF 690 CHF 700–1,200 Switzerland — each additional class CHF 150 CHF 100–200 EU (EUIPO) — 1 class, incl. office fees EUR 990 EUR 1,200–1,800 EU — each additional class EUR 200 EUR 150–250 Germany (DPMA) — up to 3 classes, incl. office fees EUR 590 EUR 600–1,000 Trademark search (identity + similarity) CHF 390 CHF 300–800 Trademark renewal (10 years) CHF 490 CHF 500–800 Address-for-service (foreign applicants) CHF 290 / year CHF 300–600 All fees excl. MWST. Government office fees are included where stated. Government fees may change without notice and the satellite price will track them. Substantive refusals (descriptiveness / distinctiveness rejections) are quoted separately at CHF 250 per hour. 04 · What the fee covers Filing-ready scope, no surprise add-ons. Each fee above is a fixed engagement for one mark in one jurisdiction. Below is what we ship inside that engagement. 04.01 Trademark search — identity and similarity check before filing 04.02 Application drafting and Nice-class advice 04.03 Direct filing with IGE / EUIPO / DPMA 04.04 Address-for-service representation for foreign applicants 04.05 Formal office actions handled in the included scope 04.06 First-year monitoring of conflicting filings 05 · Process and timeline Five steps, signature-ready in five working days. The bulk of the calendar is the office's own examination period. Our hands-on work happens in the first week. 01 Brief intake 24 hours. We collect the mark, target jurisdictions, goods/services and your existing portfolio if any. 02 Trademark search 3–5 working days. Identity and similarity check across the relevant register before money is spent on filing. 03 Application drafting 2–3 days. Classification under the Nice system (45 classes), specification of goods and services, drafting in English (and DE/FR/IT for IGE). 04 Filing 1 day. Direct electronic filing with IGE / EUIPO / DPMA. Filing receipt issued same day. 05 Examination & registration 3–6 months depending on the office. We handle any formal office actions in the included scope. 06 · Beyond the base filing Madrid Protocol, renewals and address-for-service. 06.01 · MADRID PROTOCOL International extension via WIPO Once you hold a Swiss or EU base registration, the Madrid Protocol lets you extend protection to additional member countries (US, UK, China, Japan and 80+ more) via a single WIPO application. Fees scale with country count plus class count. We quote on request after the base mark is filed. 06.02 · 10-YEAR RENEWAL Flat CHF 490 every ten years Swiss protection lasts ten years from registration and renews indefinitely in 10-year cycles. Our flat CHF 490 covers preparation and IGE filing of the renewal request. No re-examination unless you change the goods or services list. 06.03 · ADDRESS-FOR-SERVICE CHF 290 per year for foreign applicants MSchG art. 42 requires foreign applicants without a Swiss address to appoint a Swiss representative for service. We act as your Zustellungsdomizil and forward all IGE correspondence in English. 06.04 · TRADEMARK SEARCH Free when bundled, CHF 390 standalone The pre-filing search is free when ordered alongside a registration. Standalone (no filing intended) the same identity-and-similarity search is CHF 390. The output is a written report with conflicting marks, severity ranking and our written recommendation. 07 · FAQ Frequently asked questions. The eight questions we hear most often from foreign founders considering a Swiss or European mark. Do I need a Swiss address to register a Swiss trademark? Yes — under MSchG art. 42 a foreign applicant without a Swiss address must appoint a Swiss representative for service. We provide this as a Zustellungsdomizil for CHF 290 per year. The representative receives all correspondence from IGE on the applicant's behalf. How long does Swiss trademark protection last? Ten years from the date of registration, renewable indefinitely in 10-year cycles for CHF 490 each (MSchG art. 10). Renewal is a flat administrative step — no fresh examination unless the goods/services list changes. What classes should I file in? The Nice Classification has 45 classes — 1 to 34 cover goods, 35 to 45 cover services. Most marks need 1 to 3 classes. Filing in classes you do not use is risky: a third party can challenge your registration for non-use after five years. We advise tightly during the brief intake. Switzerland, EU or Germany — which one to pick? Switzerland (IGE) is mandatory if you operate from a Swiss entity and want enforcement in Swiss territory. The EUIPO covers all 27 EU member states in a single filing — but it does not extend to Switzerland. Germany (DPMA) is a stand-alone option when only the German market matters and EU-wide scope is overkill. We commonly file CH + EU together for foreign founders running European operations from Zug. What is the Madrid Protocol? A WIPO-administered international system that lets you extend an existing Swiss (or EU) trademark to additional member countries via a single application. Useful when you grow into Asia, the US or beyond. Fees scale with country count and we quote separately on request. Can I register a logo and word together? Yes. A combined "logo + word" filing is one application and counts as one mark, which is more cost-effective than separate filings. The downside is that any change to the logo later requires a fresh registration if you also want the new logo to be protected. For brands that iterate visuals, file the word separately and the logo as a second application. What if my mark conflicts with an existing one? The trademark search performed before filing surfaces this. If the conflict is severe we recommend repositioning the mark before filing. If it is borderline, we file and respond to any opposition under the included scope. Genuine litigation falls outside the package and is quoted on a case basis. How are office actions handled? Formal objections (classification ambiguity, missing translations, payment confirmations) are handled inside the package. Substantive refusals — typically descriptiveness or distinctiveness rejections — are a separate engagement charged at CHF 250 per hour, as response strategy depends on the specific reasoning. 08 · Limitations When this filing route isn't the right fit. Fixed-fee filing covers the large majority of marks, but a few situations sit outside what a standard engagement can promise. You need registration confirmed within days: Swiss examination alone runs 2 to 4 months, 4 to 6 months total end-to-end. You want EU-wide coverage to also protect Switzerland: an EUIPO filing does not extend to Swiss territory, a separate CH filing is required. Your refusal is substantive (descriptiveness or distinctiveness) rather than formal: those sit outside the included scope and are billed at CHF 250 per hour. You are heading into genuine opposition litigation: that falls outside the fixed-fee package and is quoted on a case basis. You plan to file classes you are not yet using: unused classes risk a non-use challenge after five years. 09 · Get started Tell us your mark, your scope, your goods. Send the mark (word, logo or both), the jurisdictions you need and a one-line description of your goods or services. We reply within 24 hours with the search scope and a fixed price. Request a proposal --- ## Specialised Swiss structures — holding, FINMA, crypto URL: https://business-in-switzerland.com/specialised Description: Specialised Swiss structures for foreign founders: holding, family office, FINMA authorisation, crypto / DLT. Matched in English, scoped in writing. Specialised Swiss structures — holding, FINMA, crypto STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content The B-angle Specialised Swiss structures — holding, family office, FINMA authorisation, DLT / crypto You are here because a plain AG or GmbH is not the full answer. Four specialised paths live under this hub: a Swiss holding company, a family office, a FINMA authorisation, and a Swiss crypto or DLT company. Delivered in English, for foreign founders, with one fiduciary counterpart from first enquiry to ongoing mandate. Request a proposal Written by Lukas Brunner · Reviewed by Andreas Furrer Last reviewed: April 2026 Boundary What we mean by specialised structures "Specialised" here means the structure itself is complex, not simply that the advisor is specialist. Each of the four paths adds a tax classification, wealth-management function, regulatory authorisation, or sector-specific regime on top of a standard Swiss company. Four specialised structures live on this site today: a Swiss holding company, a Swiss family office, a FINMA authorisation, and a Swiss crypto or DLT company. What they share is the baseline — every one of them is built on a Swiss AG (CHF 100,000 share capital, OR art. 621) or a GmbH (CHF 20,000 fully paid-in, OR art. 773), and every one of them requires at least one Swiss-resident signatory (OR art. 718.4 for an AG, OR art. 814.3 for a GmbH). What distinguishes them is the overlay. A specialised overlay on top of a standard Swiss company The most common misconception is that a specialised Swiss structure is a parallel corporate form. It is not. A holding is a tax classification applied to an AG or GmbH whose income mix is predominantly long-term participations. A family office is a wealth-management function delivered through a Swiss AG. A FINMA authorisation is a regulatory licence granted to a Swiss company conducting regulated activity. A crypto or DLT company is an AG or GmbH operating under the 2021 DLT Act. The corporate substrate is identical; the overlay is what creates the wedge. That matters practically, because the Swiss company formation step is largely the same across the four paths. The specialised work begins after the entity exists: the tax structuring for a holding, the governance build for a family office, the FINMA application dossier for a regulated financial-services operator, the token-classification and licence-routing for a DLT company. See the underlying Swiss fiduciary services mandate that wraps every specialised engagement. What sits outside this hub (and what we plan to add) Inside the hub today: the four structures above. Outside the hub for now, but within our practice scope: SRO-only AMLA mandates, Swiss foundations (classical and family foundation), CISA-structured funds (SICAV, SICAF, LP-CI, LP-QII), standalone SRO affiliations, and ongoing AMLA compliance mandates. Dedicated pages for these are planned in the next content expansion; until then, raise them via the proposal request and we will scope them like any other specialised engagement. The four paths Four paths under specialised Pick the path that matches your situation. Each card covers scope, the legal and regulatory anchor, the typical timeline, and the audience — the rest lives on the sub-page. Swiss holding company A Swiss AG or GmbH classified as a holding by income mix — long-term participations dominate the balance sheet. Participation exemption under DBG art. 69-70 — dividends at 10% shareholding or CHF 1m market value; capital gains at 10% with a 12-month hold. Canton-selectable: Zug at 11.85%, Lucerne around 12.3%, Schwyz around 14%, Nidwalden around 11.9%. Post-STAF regime with patent box and R&D super-deduction overlays in qualifying cantons. Timeline 4-8 weeks formation Audience Multi-entity groups, holdings re-domiciling from Luxembourg, Netherlands, Cyprus, or Liechtenstein. Explore Swiss holding Swiss family office A wealth-management and governance structure for UHNW families, typically housed in an AG with a FinIA layer when third-party wealth is managed. Single-family vs multi-family split: single-family is typically unregulated; multi-family triggers FinIA art. 17 portfolio-manager authorisation. Often paired with a Liechtenstein foundation for succession and asset protection. Canton fit: Geneva for private-banking density, Zug for tax plus investment-vehicle co-location. Timeline 3-6 months including FinIA authorisation if triggered Audience Multi-generational wealth principals, trust and fund sponsors consolidating family capital. Explore family office FINMA authorisation The prudential and conduct licence stack administered by FINMA for regulated financial-services operators. Licence catalogue: bank (BankA art. 3), securities firm, portfolio manager or trustee (FinIA art. 17 plus art. 22-24), fund management company (FinIA art. 32 plus CISA), insurer (ISA), DLT trading facility (FMIA art. 73a), FinTech licence (BankA art. 1b). Foreign applicants must pre-exist a Swiss AG or GmbH with a Swiss-resident director (OR art. 718.4 / 814.3). Typical timeline 6-18 months from first gap-analysis to granted authorisation. Timeline 6-18 months Audience Asset managers, fund promoters, fintech operators, and crypto / DLT founders crossing into regulated activity. Explore FINMA authorisation Swiss crypto / DLT company An AG or GmbH operating under the 2021 DLT Act framework: token issuance, VASP activity, DLT trading facility, stablecoin models. DLT Act 2021: ledger-based securities (Registerwertrechte), FMIA art. 73a DLT trading facility, bankruptcy segregation of crypto-assets. FINMA path depends on model: no licence, SRO affiliation (AMLA VASP), FinTech licence (BankA art. 1b) for deposits under CHF 100m, DLT trading facility, FinIA, or full bank. Canton default: Zug — Crypto Valley, 11.85% combined effective corporate rate. Timeline 2-6 weeks formation, plus 6-18 months if a FINMA licence applies Audience Token issuers, crypto custodians, VASPs, stablecoin founders evaluating Switzerland against Liechtenstein, Singapore, UAE, or Malta. Explore crypto / DLT Compare Compare the four paths side by side Six axes across the four specialised structures. Rows are not mutually exclusive — real engagements combine them, as the overlap section below shows. How to read this matrix Rows are not mutually exclusive. See the overlap section below for the three dominant real-world combinations. Capital figures are the baseline AG or GmbH minimums. A specialised overlay — a FINMA licence or a CISA fund product — can require substantially more own funds on top. Timelines are typical ranges drawn from peer practice and the figures in our facts-switzerland reference. Not guarantees. Canton defaults are the dominant cases, not the only options. See the canton signpost later on this page. Structure Legal basis Prerequisite Capital and substance FINMA status Timeline Canton Holding company Tax classification under DBG art. 69-70 AG (CHF 100k, OR 621) or GmbH (CHF 20k, OR 773) Swiss-resident signatory; real board authority in CH; BEPS-PPT substance Not FINMA-regulated unless it holds regulated assets 4-8 weeks Zug default; Lucerne / Schwyz / Nidwalden cost alternatives Family office Wealth structure in an AG; FinIA art. 17 if managing third-party wealth above threshold AG typical Swiss-resident signatory; portfolio-manager substance if FinIA-authorised Unregulated (single-family) or FinIA-authorised (multi-family) 3-6 months Geneva or Zug FINMA authorisation FINMASA enabling; FinIA / BankA / CISA / ISA / FMIA / AMLA per licence type AG (preferred) or GmbH with Swiss-resident director Portfolio manager CHF 100k+; bank CHF 10m minimum; DLT-trading facility per FMIA FINMA-authorised 6-18 months Zurich / Zug / Geneva by sub-sector Crypto / DLT DLT Act 2021; FMIA art. 73a; BankA art. 1b AG (CHF 100k) preferred; GmbH workable Swiss-resident signatory; SRO or FINMA per model Varies: no licence / SRO-only / FinTech / DLT-trading facility / full FINMA 2-6 weeks (formation) + 6-18 months if licensed Zug (Crypto Valley) Capital, substance, and timeline figures verified against research/facts-switzerland.md §1.1, §1.2, §2.1, §2.2, §4.2, §5.2. Re-verified annually in January-February. Overlap When you need more than one The four paths are not mutually exclusive. Most group-level engagements combine two or three. Three patterns account for the majority of real-world overlaps. Pattern 01 Holding over a FINMA-authorised operating sub A group-level HoldCo using the participation exemption (DBG art. 69-70) sits over a regulated operating sub — commonly a FINMA portfolio manager (FinIA art. 17) or a DLT trading facility (FMIA art. 73a). Substance and Swiss-resident signatory rules apply at each layer. Entry points: the holding-company page for the HoldCo layer and the FINMA authorisation page for the regulated sub. Pattern 02 Family office plus holding plus Liechtenstein foundation A wealth-structuring stack where a Liechtenstein foundation sits at the apex for succession and asset protection, a Swiss HoldCo sits beneath for operational IP and participations, and a Swiss family-office AG handles governance and portfolio management — with FinIA art. 17 if multi-family. Entry points: the family-office page and the holding-company page in parallel. Pattern 03 Crypto plus FINMA plus holding Possible where all three apply: a token-issuing operating company under the DLT Act 2021, a parent HoldCo for group-level tax, and a FinIA or FinTech licence at the operating layer where the business model triggers regulated activity. This combination is advisor-heavy, timeline-intensive, and substance-demanding. Entry points: the crypto / DLT page first, then the FINMA authorisation page, then the holding-company page. Sequencing matters. The HoldCo goes first where tax residency and participation exemption anchor the group; the regulated operating sub follows under a separate FINMA licence categories and timeline workstream. Family-office overlaps typically begin with governance — the family office itself — before the asset-holding layer is formalised via a participation-exemption holding structure . Crypto overlaps start with business-model classification before the licence path is chosen; the Swiss DLT Act token and VASP setups page covers that decision tree. Why Switzerland Why Switzerland for specialised structures Five anchors cut across all four specialised paths. Sub-page head-to-head comparisons against Luxembourg, Netherlands, Cyprus, Liechtenstein, Singapore, and UAE live on the individual structure pages. Integrated supervisor and single regulator FINMA is one regulator for banks, insurers, securities firms, fund managers, and market infrastructure. Contrast the UK dual-regulator model or the EU sectoral model: in Switzerland, cross-sector questions go to one authority with one interpretive tradition. For specialised structures that span categories — a fund management company with a DLT trading facility, a bank with a crypto arm — this materially compresses the regulatory conversation. Treaty network, no CFC rules, withholding optionality Swiss statutory withholding tax is 35% on dividends and Swiss bond interest. Treaty reductions typically bring that down to 0%, 5%, 10%, or 15% depending on shareholding and residence country; the CH-EU savings agreement drops qualifying intercompany dividends to 0%. Switzerland maintains more than a hundred double-tax treaties and — a structural differentiator against the ATAD-CFC regimes across the EU — has no controlled-foreign-company rules of its own. DLT Act 2021 — a bespoke tokenisation framework The 2021 DLT Act amended FMIA to introduce ledger-based securities (Registerwertrechte) and a dedicated DLT trading facility licence under FMIA art. 73a. No EU country offers the same integrated framework — Liechtenstein's TVTG is closest, Singapore and UAE use sandbox mechanics. The Swiss DLT Act is the direct legal basis for most serious token-issuance and digital-securities work. Political and monetary stability The Swiss franc is a reserve currency, Swiss neutrality is codified, and the rule-of-law reputation is durable across generational time horizons. Not a sales line — a precondition that foreign founders of specialised structures routinely state as the decisive factor. Zug, Zurich, Geneva ecosystem density Professional-services, banking, regulated-finance, crypto, and private-wealth infrastructure concentrate in three cantons. Peer jurisdictions can match density in one sector; Switzerland offers all of them within a three-city radius. See compare all 26 cantons for the per-canton detail that feeds specialised decisions. Cantonal fit Where specialised structures live — canton signpost Three cantons account for the majority of specialised engagements. The full comparison — rates, Handelsregister details, and cantonal process specifics — lives on the cantons hub. Zug Default for holding, crypto, and most family-office structures. 11.85% combined effective corporate rate — lowest in Switzerland. Crypto Valley cluster, English-friendly Handelsregister, and the canton where our office sits at Baarerstrasse 14. Zug — lowest rate, Crypto Valley Zurich The traditional canton for FINMA-regulated asset managers and fund management companies. 19.61% combined rate traded against deep talent, fund-administration infrastructure, and proximity to FINMA, the SIX Swiss Exchange, and Tier-1 banking. Zurich — financial-services and talent Geneva The canton for private wealth, family-office setups, and commodity-trading structures. 14.70% combined rate with private-banking density, a commodities-trading cluster, and a UN-adjacent philanthropic-foundation ecosystem. Geneva — private wealth, trading Rates from facts-switzerland §2.2 . Low-cost alternatives for holdings: Lucerne around 12.3%, Nidwalden around 11.9%, Schwyz around 14%, Basel-Stadt around 13% (pharma-linked). For the 26-canton rate matrix and detailed filing notes, compare all 26 cantons . By the numbers Specialised structures at a glance Three numbers that cut across all four paths. Each sources back to the canonical Swiss facts reference; re-verified annually. 11.85 – 20.54% Combined effective corporate tax, by canton (2026) facts-switzerland §2.2 6 – 18 months Typical FINMA authorisation timeline facts-switzerland §5.2 2021 Swiss DLT Act in force (FMIA amendment) facts-switzerland §5.1 Process How we work — from enquiry to specialist engagement Three steps from first contact to signed mandate. Senior-reviewer involvement on FINMA, family-office governance, and holding-substance matters is built in, not optional. 01 Enquiry Day 0 Send the contact form with the target structure type, preferred canton, regulatory scope indication, timeline, and any pre-existing cross-border entities (for example a Luxembourg HoldCo or a Liechtenstein foundation). The more precise the input, the faster the scoping call. 02 Scoping call Within 2 business days A 30 to 45-minute English call to confirm structure type, canton, FINMA-licence triggers, substance plan, and any pre-existing cross-border layers. A senior reviewer attends for FINMA, family-office governance, and holding-substance matters — the YMYL register items. 03 Written proposal 2-3 business days after the call A fixed-scope written proposal with itemised deliverables, assumptions, and a fee band. The signed proposal becomes the engagement letter. See the fees-and-process page for how the scoping works end to end. Specialised structures are scoped per-case — fee bands depend on substance, regulator, and entity count. SRO crypto licence and FINMA trustee packages have published rates (see those pages); holding and family-office mandates are quoted on a written proposal. See how we scope a written proposal . FAQ Frequently asked questions Eleven questions drawn from peer sub-pages and common disambiguation moments. Each points to the canonical statutory anchor or the facts-switzerland reference. What qualifies as a specialised Swiss structure? On this site, four structures: Swiss holding company, Swiss family office, FINMA authorisation, and Swiss crypto / DLT company. Each is built on a standard AG (OR art. 621, CHF 100,000) or GmbH (OR art. 773, CHF 20,000 fully paid-in) and adds a tax classification, wealth-management function, regulatory authorisation, or sector-specific regime on top. Which of the four do I actually need? Holding if you consolidate participations and want the participation exemption (DBG art. 69-70); family office if the object is intergenerational wealth management; FINMA authorisation if you manage third-party assets, take deposits, run a fund, or operate regulated market infrastructure; crypto / DLT if your business model is token issuance, custody, trading facility, or stablecoin. Combinations are common. Can I combine a Swiss holding with a FINMA-authorised subsidiary? Yes. A Swiss HoldCo using the participation exemption typically sits over a FinIA-authorised portfolio manager or a DLT trading facility under FMIA art. 73a. Substance requirements, including Swiss-resident signatory under OR art. 718.4 / 814.3, apply separately at each layer. Do I need a FINMA licence to run a family office? Not for a single-family office managing only the principal's own wealth. A multi-family office managing third-party wealth above the FinIA de-minimis threshold triggers a portfolio-manager authorisation under FinIA art. 17, prudentially supervised by a Supervisory Organisation. Do I need a FINMA licence to start a crypto company in Switzerland? Depends on the business model. No licence for pure utility-token infrastructure; SRO affiliation under AMLA for most VASP-scope exchanges and custodians below the FinTech threshold; FinTech licence under BankA art. 1b for deposit models up to CHF 100m; DLT trading facility under FMIA art. 73a for a multilateral DLT-securities venue; full FINMA authorisation for larger or securitised models. How long does a specialised engagement take end-to-end? Swiss AG or GmbH formation 2-6 weeks. A holding layer adds negligible time. A family-office setup without FinIA runs 6-12 weeks; with FinIA 4-6 months total. A FINMA authorisation typically 6-18 months. A crypto / DLT company is 2-6 weeks unlicensed, plus 6-18 months if licensed. Is a Swiss holding still advantageous after the 2020 tax reform (STAF)? Yes. STAF ended cantonal holding-privilege regimes end-2019 but introduced offsetting instruments: lower statutory cantonal rates, patent box, R&D super-deduction up to 150%, and equity / notional-interest deduction in qualifying cantons. For a genuine holding, the practical tax outcome is broadly equivalent and legally more durable post-STAF. What is the difference between SRO affiliation and a FINMA licence? SRO affiliation is the AMLA-only supervisory track for financial intermediaries not triggering a FINMA licence; recognised SROs (VQF, PolyReg, OAR-G, ARIF) supervise only the AML obligations. A FINMA licence is a prudential / conduct authorisation directly from FINMA. A third category, the Supervisory Organisation (SO), supervises FinIA-authorised portfolio managers prudentially. Which canton should I use for a specialised structure? Default Zug at 11.85% combined effective corporate tax. Zurich at 19.61% for FINMA-regulated asset managers needing talent and banking infrastructure. Geneva at 14.70% for private wealth and commodity trading. Low-cost alternatives for holdings: Lucerne ~12.3%, Nidwalden ~11.9%, Schwyz ~14.0%. See the cantons hub for the full rate matrix. Do you cover Swiss foundations, SICAV / SICAF funds, and SRO-only AML mandates? Yes as engagement scope. Dedicated pages for Swiss foundations, CISA-structured funds (SICAV / SICAF / LP-CI / LP-QII), standalone SRO affiliations, and ongoing AMLA mandates are planned for the next content expansion. Raise these via the proposal request and we will scope appropriately. How do I request a proposal for a specialised structure? Send your situation (target structure type, preferred canton, regulatory scope indication, timeline, any pre-existing cross-border entities) via the contact form. A scoping call is booked within two business days; a senior reviewer attends for FINMA, family-office, or holding-substance matters. Written fixed-scope proposal follows 2-3 business days after the call. Ready to scope Ready to scope your structure? One counterpart, one written proposal, one engagement letter. Bring the structure type, the canton preference, and the regulatory scope; we bring the scoping call, the senior-reviewer touch where YMYL applies, and the fixed-scope proposal. Request a proposal Related Related resources Three hubs across the strategic angles. Services for the underlying fiduciary mandate, cantons for the geography, guides for the foreigner-first orientation. Swiss fiduciary services Company formation, accounting, Swiss-resident director, domiciliation, liquidation. The underlying mandate that every specialised engagement wraps. Visit the services hub Cantonal comparison 26 cantons, 26 combined tax rates, 26 Handelsregister offices. The per-canton detail that feeds every specialised decision. Compare all 26 cantons Guides for foreign founders Starting a business, residence permits, work permits, Swiss VAT, opening a Swiss bank account. The foreigner-first reading shelf. Browse the guides --- ## Crypto Company in Switzerland — DLT Act & FINMA URL: https://business-in-switzerland.com/specialised/crypto-company Description: Form a Swiss crypto company under the 2021 DLT Act: FINMA licence tracks, token classification, Zug canton tax, AML and Travel Rule, for foreign founders. Crypto Company in Switzerland — DLT Act & FINMA STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Specialised Start a crypto company in Switzerland, with DLT Act clarity and a Crypto Valley Zug anchor. Switzerland regulates crypto activity under existing financial law plus the 2021 DLT Act, supervised by FINMA on a technology-neutral basis. This page walks through how to classify your token model, which licence track applies, which Swiss entity form fits, and why Zug remains the default canton for foreign crypto founders. Talk to a specialist Written by Andreas Furrer · Reviewed by Lukas Brunner Last reviewed: April 2026 At a glance The Swiss crypto-company stack in four numbers 11.85% Combined corporate tax rate, canton of Zug ESTV cantonal tables 2024, facts-switzerland §2.2 2021 Swiss DLT Act in force — ledger-based securities and DLT trading facility licence facts-switzerland §5.1 (DLT Act summary) CHF 100,000 Minimum share capital for a Swiss AG — preferred form for regulated crypto OR art. 621, facts-switzerland §1.1 8.1% Swiss VAT standard rate — payment-token exchanges not a taxable supply per ESTV MWSTG art. 25, facts-switzerland §2.3 Why Switzerland Why Switzerland for a crypto company A handful of jurisdictions will let you launch a crypto business. Very few give you the combination Switzerland gives you: a clearly written statutory framework for tokenised assets, a regulator (FINMA) that treats DLT as a supervision question rather than a product question, the densest crypto-business cluster in Europe in a single canton, and a banking infrastructure that, with the right preparation, will actually open the account. That is the pitch, tightened below into four specific advantages. Statutory clarity through the DLT Act of 2021 In 2021 Switzerland brought a package of amendments into force that is usually referred to as the DLT Act. The statute did not create a new "crypto law"; it threaded specific changes through the Code of Obligations, bankruptcy law and the Financial Market Infrastructure Act so that digital assets and their custody have the same legal weight as traditional securities. The two flagship instruments are ledger-based securities (a new category of pure-digital securities transferable by ledger entry) and the DLT trading facility licence under FMIA art. 73a. No peer jurisdiction has exactly this combination. FINMA's technology-neutral supervision FINMA supervises activity, not technology. That has been the doctrine since the 2018 ICO guidance and the 2019 stablecoin supplement, and it is why novel models can often reach a regulator-approved outcome via a no-action letter rather than a new licence category. The practical consequence: a founder who can describe their model in terms of existing regulatory categories (financial intermediary, securities firm, custodian, fund) gets a predictable answer, and a founder with a genuinely novel structure gets a consultative pathway instead of a dead end. Crypto Valley Zug — density and tax The canton of Zug hosts the highest concentration of crypto and blockchain businesses in Switzerland, supported by the Crypto Valley Association ecosystem and a combined corporate tax rate of 11.85%, the lowest in the country. For a founder evaluating jurisdictions, Zug combines a low-tax headline with a local legal and banking community that already understands the sector. A longer treatment sits on our Zug — Crypto Valley page. Legal and banking infrastructure The other three advantages would matter less without the supporting stack: a predictable civil-law environment, a Federal Tax Administration (ESTV) that has published specific guidance on crypto VAT treatment, a Commercial Register (Zefix) with clean electronic filing, and a set of Swiss banks that, with the right documentation, will onboard a foreign-owned crypto company. The banking piece is non-trivial and discussed honestly further down. Classify first Classify your model first — which crypto activity are you doing? Half of the regulatory uncertainty founders carry into a first call is self-inflicted. Someone who describes themselves as "running a crypto exchange" is often a broker; someone who says they are "issuing a token" is often, legally, issuing a security. The first job of this page is to push you back to an accurate description of the activity, because the activity drives the licence. Token issuance (ICO / STO / IEO) Under FINMA's ICO guidance, token type controls the regulatory treatment. Pure utility tokens that are functional at issuance generally stay outside the licence perimeter; payment tokens pull you into AMLA financial-intermediary status; asset tokens are securities, triggering FinSA prospectus obligations and sometimes CISA fund classification. Hybrids are treated cumulatively. Crypto exchange, brokerage or custody This is the archetype where the licence path splits. Below bank-like thresholds, SRO affiliation under AMLA is the usual answer. Above those thresholds, or when you accept public deposits without paying interest and without lending, the fintech licence (banking light) is the right track. Full-suite exchange activity with tokenised securities pulls you into the DLT trading facility perimeter. DLT trading facility operator A category created by the DLT Act for multilateral platforms trading DLT securities. It sits between SRO-only activity and a full stock-exchange licence. Key for anyone running a venue for tokenised equity, bonds, or structured products with retail access. Stablecoin issuance Stablecoins are the sharpest classification problem in the sector. FINMA's 2019 supplement classifies by backing: fiat-backed stablecoins are typically treated as deposit-taking and require a bank licence; commodity-backed stablecoins are usually asset tokens; basket-backed structures can fall into fund classification under CISA. Algorithmic stablecoins are assessed case-by-case, often via FINMA no-action letter. Crypto-asset management and crypto funds Managing third-party crypto portfolios pulls you into the FinIA portfolio-manager licence; running a pooled crypto fund pulls you into the CISA fund-management licence. For a founder building a wealth-oriented structure (family office with a crypto sleeve, tokenised private-markets fund), this is the commonly missed classification step. A holding-company wrapper above the licensed operating entity is frequently the right structural response; our Swiss holding structure page walks through the pattern. Token classification FINMA token classification, in plain language FINMA's 2018 ICO guidance, extended by a 2019 supplement on stablecoins, remains the working framework for token classification in Switzerland. Three canonical categories, plus cumulative-treatment rules for hybrids, plus backing-based rules for stablecoins. Token type Regulatory path VAT Prospectus / fund Payment token AMLA financial-intermediary status if operated commercially; SRO affiliation typical. Not a taxable supply, per ESTV guidance on crypto VAT. None as a rule. Utility token Out of scope if functional at issuance; pre-sale pre-functional tokens risk reclassification as asset tokens. Taxable where the underlying service is itself taxable. Not required absent investment features. Asset token Securities — FinSA applies; possible CISA fund classification. Treated as securities, typically outside VAT on the issuance leg. FinSA prospectus obligations; CISA if structure is a collective scheme. Hybrid Cumulative — every applicable regime applies simultaneously. Analysed per leg. Per-leg prospectus/fund analysis. Stablecoin Backing-dependent — fiat: usually bank licence; commodity: asset token; basket: possible fund; algorithmic: case-by-case via FINMA no-action letter. Backing-dependent. FinSA prospectus where classed as security; CISA where structure is a fund. The honest operational detail: FINMA uses this framework as a first cut, not a last word. Novel designs, non-standard backing models and exotic hybrids routinely go through the no-action letter route to get a regulator-confirmed classification in writing before the issuance. Treat the three-plus-two model as a map, not a destination. DLT Act The Swiss DLT Act, explained — what changed in 2021 The full name of the statute is long enough that almost no one uses it; most people, FINMA included, call it the DLT Act of 2021. It was enacted as a package of targeted amendments rather than a standalone law, which is why you rarely see it cited like a single instrument. The changes land in four places. Ledger-based securities (Registerwertrechte) — OR art. 973d–973i The Code of Obligations was amended (OR art. 973d–973i, in force 1 February 2021 ) to create a new category of securities that exist purely as ledger entries on a distributed register. No paper certificate, no intermediated custody: transfer happens by ledger write, with the same legal effect as endorsing a bearer security. This is the enabling technology for tokenised equity, tokenised bonds and tokenised structured products that Swiss issuers can now construct without contractual workarounds. DLT trading facility licence — FMIA art. 73a–73f The Financial Market Infrastructure Act gained a new authorisation category, FMIA art. 73a–73f, sitting between self-regulation and a full stock-exchange licence (in force 1 August 2021 ). A DLT trading facility is a multilateral trading platform for DLT securities with regulated access, settlement discipline, and admission rules. The category is explicitly retail-reachable, which distinguishes it from classic alternative trading systems. BX Digital received the first DLT-trading-venue licence from FINMA in 2025. Bankruptcy-law protection of crypto-assets — SchKG art. 242a–242b The Debt Enforcement and Bankruptcy Act (SchKG art. 242a–242b) was amended so that customer crypto-assets held on behalf of customers can be segregated from the bankruptcy estate of a failed Swiss bank or intermediary, on par with the right of separation that protects securities in client custody accounts. For any business that holds customer assets, this is the single largest investor-trust signal added in 2021, and no peer jurisdiction has an equivalent straightforward statutory segregation rule for purely digital assets. What the DLT Act does NOT do The DLT Act did not create a standalone crypto licence. It did not exempt any crypto activity from existing financial regulation. BankA, FinIA, CISA and AMLA still apply in full; FINMA still reads each business model against those statutes. The Act is infrastructure, not a regulatory cut-out. Licence tracks Which FINMA licence track applies to you? Seven working options, in ascending order of regulatory intensity. Cross-read with the classification section above and with our deeper walk-through on the FINMA licence track page. No licence required Pure infrastructure models (wallet software, analytics, node operation) are typically unregulated. The moment you touch customer funds or take custody, classification shifts. SRO affiliation (AMLA intermediary) The most common real-world path for crypto brokers and custodians below deposit thresholds. Named Swiss SROs include VQF, Polyreg and SO-FIT as category examples, subject to the latest FINMA-recognised list. Typical affiliation timeline: 2 to 4 months, with annual audit. Fintech licence (banking light) Under BankA art. 1b, deposit-taking up to CHF 100,000,000 in public funds or crypto-assets with no interest paid and no lending. Minimum capital CHF 300,000 (BA art. 1b.3). Suits e-money and regulated payment flows. DLT trading facility licence FMIA art. 73a. The right track for operators running multilateral DLT-securities trading with retail access. Significant own-funds, governance and settlement-infrastructure obligations apply. Securities firm / portfolio manager (FinIA) For proprietary dealing, market-making and managing third-party crypto portfolios. Own-funds obligations scale with AUM and risk profile. Full banking licence The heavy path, reserved for full-suite banks. Most Swiss crypto-native banks took this route to hold customer fiat alongside crypto under a single supervisory perimeter. Fund-management licence (CISA) Required when activity crosses into collective-investment territory. Triggered by pooled crypto funds, tokenised private-markets funds and any structure where third-party capital is managed collectively with a common investment mandate. Entity choice Pick your Swiss entity — AG or GmbH? Attribute AG (Aktiengesellschaft) GmbH Minimum share capital CHF 100,000, paid-in at least CHF 50,000 or 20% CHF 20,000, fully paid-in Shareholder / partner register Private register; shareholders do not appear on Zefix unless they also hold a governance role. Partners and their holdings publicly listed on Zefix. Residency rule art. 718 para. 4 OR — at least one director or authorised representative with individual signing authority Swiss-domiciled. art. 814 para. 3 OR — at least one managing officer Swiss-domiciled. Typical crypto use case Regulated crypto, institutional token issuers, exchanges, crypto asset managers. Lean unregulated infrastructure teams, utility-token issuers, early-stage wallet developers. Contribution in kind (BTC / ETH) Permitted as Sacheinlage, with notarial valuation and auditor confirmation. Permitted on the same basis, subject to the reduced capital minimum. Why AG is the default for regulated crypto A FINMA-supervised entity almost always ends up as an AG. The shareholder register stays private, which matters for capital-raising and institutional comfort; the capital stack scales naturally through share issues; and Swiss institutional investors are set up to interact with an AG rather than a GmbH. For token issuers with future-round ambitions, a holding AG over an operating AG is a common pattern. Walk-through: Swiss AG formation . When GmbH is adequate A small team building unregulated crypto infrastructure, with no third-party capital ambitions in the short term, can often start as a GmbH. Lower capital, lighter governance, faster incorporation. Conversion to an AG later is a routine exercise and commonly anticipated in the articles. Contribution in kind with crypto Swiss law permits capitalising an AG or GmbH with non-cash assets (Sacheinlage), including BTC and ETH, subject to notarial valuation and auditor confirmation. The practical workflow: a regulated Swiss valuation of the token holding on a specific block-height, a Sacheinlagevertrag, and an auditor's report under the Code of Obligations rules on contributions in kind. The mechanism is legitimate and routinely used by crypto founders who want to capitalise the company with assets they already hold. Canton choice Choose your canton — Zug is the default but not the only answer Canton Combined tax Crypto ecosystem Language Zug 11.85% Highest density — Crypto Valley Association hub. German (English routine) Zurich 19.61% Institutional-crypto concentration; bank HQs; deep auditor presence. German (English routine) Geneva 14.70% Wealth-management and family-office pedigree; emerging crypto-wealth cluster. French (English routine) Schwyz around 14% Low-tax neighbour; substance-friendly municipalities such as Freienbach. German Ticino around 14% Recent competitive tax cut; smaller crypto cluster; Italian-language gateway. Italian Why Zug wins by default Lowest headline rate, highest ecosystem density, a local Handelsregister and tax office that see crypto files every week, and a ready-made English-speaking professional services community. For most first-time foreign founders, Zug removes more friction than any tax arbitrage elsewhere could add. Full guide: Zug — Crypto Valley . When Zurich or Geneva wins If your model is banking-adjacent (a crypto-native bank, a tokenised-securities exchange, an institutional-grade custodian), the concentration of supervisors, auditors and counterparties in Zurich usually outweighs the extra headline tax. If your model is wealth-oriented (crypto family office, private-markets tokenisation), Geneva keeps you closer to the francophone HNW community. Tax Swiss tax treatment of crypto businesses Corporate income tax Federal direct tax on corporate profits is 8.5% statutory, effective 7.83% after deductibility. Cantonal and municipal surcharges apply on top, with combined rates ranging from 11.85% in Zug to the higher 20% bracket in some German-speaking cantons. Swiss-resident companies are taxed on worldwide profit, subject to treaty relief where it applies. VAT on crypto activities The Swiss VAT standard rate is 8.1%, with a registration threshold of CHF 100,000 in worldwide turnover under MWSTG art. 10. Per ESTV guidance on crypto VAT, payment-token exchanges are not treated as taxable supplies, which means the exchange leg of a crypto business is typically VAT-neutral. Services rendered in crypto remain VAT-taxable at the fair-market value of the token at invoice date. Full context on Swiss VAT essentials . Withholding tax on dividends Swiss withholding tax of 35% applies to corporate dividends paid out of Swiss retained earnings. Treaty reduction is available to foreign shareholders where the relevant double tax treaty applies, subject to beneficial-ownership and principal-purpose tests. No Swiss withholding applies to royalties. Personal tax implications for founders For a founder holding tokens as private wealth, capital gains are exempt under DBG art. 16.3. The exemption does not carry over to tokens held as business assets, to activity that qualifies the holder as a professional trader, or to tokens held on the company's own balance sheet. Salaries paid in crypto are taxable as ordinary income at fair-market value on pay date, reported in CHF. Stamp duties and token issuance Switzerland levies a 1% issuance stamp on share capital raised, with a CHF 1 million lifetime exemption. Pure token issuances generally sit outside the stamp perimeter, but asset tokens that qualify as securities under FinSA can trigger the same stamp analysis as a classical share issue. The point is worth clarifying in the token design phase, not at issuance. AML and Travel Rule AML / KYC and the FATF Travel Rule AMLA scope for Swiss VASPs Any Swiss entity that holds, transfers or exchanges customer crypto for professional purposes is a financial intermediary under AMLA. That status triggers KYC on counterparties, retention of transaction records, and a duty to file suspicious-activity reports with the Money Laundering Reporting Office Switzerland (MROS). Direct FINMA supervision is one route; SRO affiliation is the more common one below bank-like thresholds. Choosing an SRO Named Swiss SROs recognised by FINMA include VQF, Polyreg and SO-FIT as category examples. The right choice depends on canton, business model, and the SRO's published appetite for crypto affiliates. Timelines cluster around 2 to 4 months, audit intensity scales with the member's risk profile, and affiliation is followed by ongoing reporting obligations. FATF Travel Rule, enforced by FINMA FINMA applies the FATF Travel Rule (FATF Recommendation 16, as extended to virtual-asset service providers in the 2019 updated Interpretative Note) via FINMA Guidance 02/2019 and the revised FINMA-AMLO. It obliges Swiss VASPs to transmit originator and beneficiary information alongside crypto transfers above defined thresholds, and to apply enhanced due diligence on unhosted-wallet counterparties. In practice Swiss VASPs implement the Rule through compliant-messaging infrastructure (TRP-family protocols, vendor solutions such as Notabene or Sumsub). Missing this piece is one of the common failure modes during SRO onboarding. Timeline Timeline from decision to operating company Weeks 1 to 3 — structuring and incorporation AG incorporation typically closes within 2 to 6 weeks end-to-end; GmbH within 2 to 4 weeks. Concrete steps: Zefix name-check, articles of association, notarial deed, capital deposit or Sacheinlage, Handelsregister filing. For foreign founders the Swiss-resident-director requirement is slotted in here, using either a founder who is or will be resident or a Swiss resident director . Weeks 4 to 8 — banking Realistic bank-onboarding window for a foreign-owned crypto company runs 4 to 12 weeks. Crypto-native banks and crypto-friendly commercial banks can run KYC in parallel with incorporation, starting from the notarial deed. A full primer sits on open a Swiss bank account . Months 3 to 6 — SRO affiliation or fintech licence SRO affiliation is typically a 2 to 4 month exercise. A fintech licence runs 6 to 12 months depending on completeness of the application. A DLT trading facility licence or a FinIA portfolio-manager licence commonly run 6 to 18 months. Commercial ramp-up normally runs in parallel, inside the perimeter that is already legal without the target licence. Ongoing — audit, reporting, Travel Rule AMLA obligations are continuing: transaction monitoring, UBO re-declarations, annual SRO audit. The Travel Rule is live, not annual. Annual financial audit is triggered above the statutory thresholds, regardless of sector. Banking reality Banking access — the honest reality for crypto founders Any page that tells you Swiss crypto-company banking is frictionless is selling something. It is possible, it is repeatable with the right documentation, and it is still the single operational step most likely to delay a launch by weeks. Here is the honest picture. Crypto-native banks A small number of Swiss banks hold full banking licences and publicly accept crypto- business accounts. Category examples: Sygnum and AMINA Bank (formerly SEBA). Onboarding is thorough — full KYC on UBOs, source-of-crypto-wealth documentation, technical diligence on the business model — but the infrastructure is designed for the sector, and the bank is comfortable holding both fiat and tokens under one account. Mentioned here as category examples, not endorsements. Crypto-friendly commercial banks Commercial banks with published crypto appetite include Maerki Baumann and Hypothekarbank Lenzburg; Bank Frick, in Liechtenstein, is commonly referenced as the adjacent FL option. Onboarding is lighter than at crypto-native banks but stricter than at general Swiss banks; their appetite is sector-dependent (a utility-token wallet developer will usually find a door, a stablecoin issuer often will not). EMI and neobank alternatives Swiss FINMA-licensed EMIs and European EMIs are common bridge accounts during incorporation, for payroll flows and for counterparty payments that do not need a full Swiss banking relationship. They are not a substitute for a Swiss bank when you eventually need one, but they are an effective first-line solution. Documents you will need The realistic onboarding pack: beneficial-owner attestations, source-of-crypto-wealth files (exchange history, on-chain wallet proofs, legacy transaction records), stablecoin-specific disclosures where relevant, full entity documents, and a clean description of the business model mapped to the relevant FINMA category. Prepared up front, this pack cuts banking onboarding from months to weeks. Foreign founders Foreign founders — the operational reality Ownership and foreign UBOs Switzerland imposes no cap on foreign ownership of AGs or GmbHs. Ultimate beneficial owners are declared to the internal UBO register for AGs (under the 2021 transparency reform, implemented through the Code of Obligations) and are disclosed on the public Commercial Register for GmbH partners with a 25% or greater interest. In either case the bank identifies the UBO under CDB 20 regardless of what the register shows. Swiss-resident director or signatory Both the AG and the GmbH require at least one individually empowered signatory domiciled in Switzerland ( art. 718 para. 4 OR and art. 814 para. 3 OR ). Foreign founders who do not relocate at day one solve this through a Swiss resident director . Crypto companies under FINMA supervision have the additional constraint that the Swiss-resident role cannot be filled by a nominee alone; substantive regulated-activity competence is required. Relocating the founder — B permit via company Founding a Swiss company does not, by itself, grant a residence permit. Non-EU founders typically need a B permit anchored in the "economic interest" test, which the Swiss authorities apply with real scrutiny. EU/EFTA founders move under free movement. The full pathway (both tracks) is laid out on our dedicated Swiss residence permit walk-through and on the banking funnel bank-account page . How we help How we help We work with foreign crypto founders on the full arc: model classification, licence-track selection, entity choice, cantonal positioning, Handelsregister filing, SRO or FINMA application support, and bank introductions. Engagements are scoped individually because the regulatory perimeter and the investor profile drive the real work; there is no fixed price list. The way we engage, step by step, is laid out on how we work . For the closely related pathways on the same hub, see our companion pages on the FINMA licence track for deeper licensing detail, and on Swiss holding structure for the common IP-and-treasury wrapper above a crypto-operating company. For hub-level orientation, back to Specialised Swiss structures . Discipline Lines we will not cross No Concealment of UBOs from FINMA, SROs or Swiss banks GwG / AMLA, CDB 20 No Licence-avoidance structures — split entities, sham branches, offshore wrappers FINMA supervisory practice No "Utility" wrappers around what is economically an asset token FINMA ICO guidance No Engagement without complete KYC and SECO sanctions screening GwG / AMLA No Promises of a specific FINMA outcome or timeline Professional practice Yes Honest classification, disciplined documentation, realistic timelines DLT Act and FINMA doctrine FAQ Frequently asked questions Is crypto legal in Switzerland? Yes. Switzerland has no crypto-specific statute; crypto activities operate under existing financial law (BankA, FinIA, AMLA, FinSA, CISA) plus the 2021 DLT Act amendments to the Code of Obligations and FMIA. Regulation is technology-neutral and enforced by FINMA. Do I need a licence to issue a token? It depends on the token type. Pure utility tokens functional at issuance generally need no licence. Payment tokens may trigger AMLA / SRO duties if you operate as a financial intermediary. Asset tokens are securities, triggering FinSA prospectus rules and possibly CISA fund rules. How does FINMA classify my token? FINMA uses three categories: payment tokens, utility tokens, asset tokens. Hybrids are cumulative; all applicable regimes apply. Stablecoins are classified by backing: fiat-backed usually requires a bank licence, commodity-backed is an asset token, basket-backed may be a fund. What is the DLT Act? The Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force in 2021. It created ledger-based securities, a new DLT trading facility licence (FMIA art. 73a), and bankruptcy segregation of customer crypto-assets. What is a DLT trading facility licence? A FINMA authorisation created by FMIA art. 73a for multilateral trading platforms dealing in DLT securities. Lighter than a stock-exchange licence but heavier than SRO affiliation; for operators trading tokenised equity, bonds, or structured products. Can I run a crypto exchange without a bank licence? Often yes, via SRO affiliation under AMLA if you are below deposit thresholds. A fintech licence allows deposit-taking up to CHF 100m with no interest. A full banking licence is required above those thresholds or for full-suite banking services. How is my stablecoin regulated? Per FINMA's 2019 stablecoin supplement, classification depends on backing. Fiat-backed usually require a bank licence. Commodity- or basket-backed are generally asset tokens under FinSA. Algorithmic stablecoins are case-by-case, often via FINMA no-action letter. What is the VAT treatment of crypto in Switzerland? Swiss VAT standard rate is 8.1%. Per ESTV guidance on crypto VAT, payment-token exchanges are not taxable supplies. Services paid in crypto remain taxable at fair-market value. Registration threshold is CHF 100,000 worldwide turnover. Are capital gains on crypto taxed for private holders? For private individuals, capital gains on movable private wealth are exempt under DBG art. 16.3. This applies to tokens held as private wealth, not to tokens held as business assets, professional-trader activity, or corporate balance-sheet positions. Do I need to file AML reports? Yes, if you qualify as a financial intermediary under AMLA, which covers most VASPs. KYC, transaction records, and suspicious-activity reports to MROS are required. The FATF Travel Rule has been enforced by FINMA for Swiss VASPs since early 2023. Can I pay employees in crypto in Switzerland? Yes, but pay slips and tax reporting remain in CHF at fair-market value on pay date. AHV/AVS contributions use the CHF equivalent. Zug accepts limited Bitcoin/Ether for personal tax settlement, but that is a payment preference, not a salary rule. Why is Zug called Crypto Valley? Zug has the highest density of crypto and blockchain businesses in Switzerland, supported by the Crypto Valley Association ecosystem and the canton's 11.85% combined corporate tax rate, the lowest in CH. Major foundations including Ethereum are domiciled there. What does FINMA typically reject in crypto applications? Common rejections: weak AML framework, unclear UBO trails, under-capitalisation, conflicted governance, inadequate source-of-wealth documentation, and token models that disguise an investment contract as a utility token. A FINMA no-action letter before full application is recommended for novel models. Last reviewed: 2026-04-24. Crypto regulation moves; figures and named SROs / banks above are current to that date. We confirm the live position at the start of every engagement. Pricing SRO crypto licence and ongoing compliance. Published rates side-by-side with JayBee competitor for the same scope. All fees excl. MWST. Company formation (CHF 990 GmbH or 1,490 AG) is separate. Service Our fee JayBee fee SRO application (all-incl, excl. company formation & IT) CHF 9,900 CHF 15,000 AML Policy (customised) CHF 2,900 CHF 3,800 AML Officer outsourcing CHF 790 / month CHF 960 / month Compliance Officer outsourcing CHF 890 / month CHF 1,080 / month Risk Manager outsourcing CHF 890 / month CHF 1,080 / month Compliance support (hourly) CHF 220 / hour CHF 270 / hour FINMA Non-Action Letter CHF 3,900 CHF 4,800 Regulatory Assessment CHF 2,500 CHF 3,200 Terms & Conditions (customised) CHF 1,900 CHF 2,800 Privacy & Data Protection Policy CHF 990 CHF 1,400 Crypto-Starter bundle (GmbH + Domizil + VR + SRO) CHF 14,900 CHF 25,300 (JayBee equiv.) Detailed SRO licence page: /specialised/sro-license/ . For FINMA Trustee under FinIA art. 17 (different licence): /specialised/finma-license/ . Limitations When this isn't the right structure for you You need to launch without waiting on licensing: SRO affiliation, the most common path, still takes 2 to 4 months, and a fintech or DLT licence runs 6 to 18 months. Your token model touches customer funds without registration: payment-token exchange or custody activity triggers AMLA financial-intermediary status the moment you take custody, not the unregulated wallet-software category. You plan to take public deposits above CHF 100,000,000: the fintech licence (banking light) caps out there, and you would need a full banking licence instead. You're counting on the private capital-gains exemption for company-held tokens: it does not carry over to tokens held as business assets, professional-trader activity, or the company's own balance sheet. You need fast Swiss bank onboarding: the realistic window for a foreign-owned crypto company is 4 to 12 weeks, and stablecoin issuers often find fewer doors open than utility-token teams. Next step Ready to start a Swiss crypto company? Send your business model in one paragraph. We confirm which licence track applies (SRO / FINMA / non-action letter), quote published fees where they apply, or send a written proposal within 24 hours. Talk to a specialist --- ## Swiss family office structuring — SFO, MFO & holdings URL: https://business-in-switzerland.com/specialised/family-office Description: Set up a Swiss single-family or multi-family office. FinIA carve-out, FINMA threshold, canton choice (Zug, Geneva), vehicle, tax and family residence. Swiss family office structuring — SFO, MFO & holdings STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Specialised — family office Swiss family office structuring — SFO, MFO, or embedded in a holding Designed for families with CHF 10 million and above in liquid or business wealth evaluating a Swiss vehicle. We cover the regulatory choice (SFO carve-out vs MFO licensing), the four legal vehicles that actually work, and where in Switzerland to domicile. No prices, every engagement is quoted after a scoping call. Talk to a specialist Written by Lukas Brunner · Reviewed by Andreas Furrer Last reviewed: April 2026 At a glance Who this page is for and what is covered CHF 10m+ Engagement floor (per family) Industry convention (structure §9 open question 4) CHF 100k FinIA portfolio-manager min capital (MFO) facts-switzerland §5.2 11.85% Zug combined effective CIT (2026) facts-switzerland §2.2 6 – 18 months FINMA licence timeline (MFO path) facts-switzerland §5.2 This page is written for UHNW principals, family advisers, and structuring lawyers who already know what a family office is and want Swiss-specific answers. We cover four decisions together: single family vs multi-family configuration, the legal vehicle, the canton of domicile, and the family-side residence plan. We do not publish prices because every family office is scoped differently, the proposal arrives after a scoping call. Definition What is a family office, and when does a family need one? A family office is a private structure that professionalises the oversight of a family's wealth. At minimum it coordinates investment managers, tax advisers and legal counsel, and it usually also takes responsibility for reporting, philanthropy, succession, and what is loosely called concierge (property, insurance, next-generation education). The phrase covers three distinct set-ups in practice: a dedicated office that serves one family exclusively (a single family office, SFO), a pooled office that serves several unrelated families (a multi-family office, MFO), and an embedded or virtual family office where the functions are folded into a Swiss holding company or outsourced to external providers under a light-touch governance layer. Typical services of a Swiss family office A fully-built family office typically handles investment oversight and manager selection; tax coordination across jurisdictions; legal work on wills, prenuptial agreements and succession; philanthropic vehicles and cross-border donations; consolidated reporting across banks, funds and direct holdings; and, for many families, concierge-adjacent work such as property administration, insurance, and liaison with international schools. The headcount ranges from two to three people for a lean SFO up to twenty or more for a large family with operating businesses. When a private bank is not enough A private bank sells custody, execution and lending, and it has an institutional incentive to concentrate assets on its own platform. A family office sits on the other side of the table: it selects banks and managers, it monitors them, and it consolidates the picture. A family that owns operating businesses, has principals in two or three jurisdictions, or wants to plan succession across two generations typically outgrows what a single private bank can do. That is the point at which the family office question becomes serious. Disambiguation Single family office (SFO) vs multi-family office (MFO) The single most important taxonomic choice is how many families the office serves. An SFO serves one family, a close-knit household group counted as a single lineage. An MFO serves two or more unrelated families, pooling costs and advisers. A virtual or embedded family office is the third option: functions scattered across external providers with a very light internal governance layer, typically for families below the cost-efficient SFO floor. The legal consequences of the choice are material, and they are set by the Financial Institutions Act (FinIA) and FINMA supervision. Dimension Single family office (SFO) Multi-family office (MFO) Clients served One family (single lineage or household group) Two or more unrelated families FinIA / FINMA status Generally outside FinIA scope (subject to licensing review) Portfolio-manager licence typically required Minimum regulatory capital No regulatory minimum CHF 100,000 + own-funds scaling with AuM Typical wealth floor CHF 50–100m+ (dedicated-office efficiency) CHF 10m+ per family (pooled costs) Cost structure Fixed overhead carried by one family Shared overhead across families Privacy profile High — no disclosure of other principals Family co-exists with peers; governance more formal When to choose an SFO The SFO is the default above roughly CHF 50 to 100 million in managed assets, once the fixed overhead of premises, staff, audit and compliance stops being disproportionate. Serving only one family is also the single-family carve-out trigger: an SFO that serves exclusively one family is generally outside the scope of FinIA, subject to licensing review on the specific facts. Privacy is higher because no other principal sees the arrangements, and governance is less formal because the family is the sole stakeholder. When an MFO makes more sense Below the dedicated-SFO threshold, an MFO is usually the better answer. Two or more families share infrastructure (premises, staff, systems, compliance function) and split the overhead. The trade-off is regulation: managing assets for unrelated families generally triggers FinIA portfolio-manager licensing. Minimum capital is CHF 100,000 with own-funds scaling on assets under management, and the FINMA approval timeline runs 6 to 18 months depending on readiness. A link forward to our FINMA portfolio-manager licence page covers that track in full. Embedded / virtual family office (VFO) The third option is to skip the dedicated entity and embed family-office functions inside an existing Swiss holding company or scatter them across outsourced providers. A CFO or operating executive inside the holding takes on a family-officer role; investments, tax and legal run through external firms against an internal governance charter. This is the most common configuration for families below CHF 50 million, and it is also a staging step for families who intend to grow into a full SFO over time. Regulation How Swiss law treats family offices Swiss financial-services law does not have a dedicated family-office statute. The regulatory question is whether the activity amounts to third-party asset management, in which case the Financial Institutions Act (FinIA, in force 2020) applies, or whether it stays inside a single-family carve-out, in which case FINMA supervision is generally not triggered. The anti-money-laundering regime (GwG) applies independently where the office conducts financial intermediation, and the beneficial-ownership register under OR art. 697j applies to every Swiss company regardless of activity. The FinIA single-family carve-out Under the Financial Institutions Act, an entity that manages assets exclusively for one family is generally not a regulated financial institution. The exact perimeter is a legal question that depends on how "one family" is defined for the specific household and how broadly the services are offered. The carve-out is narrow in practice: the moment a second unrelated family joins, or the office offers services to non-family principals, the portfolio-manager licence becomes required. We run the carve-out test on the specific facts before recommending the SFO path, subject to licensing review with Swiss counsel. When an MFO triggers the portfolio-manager licence An MFO that manages assets for multiple unrelated families is, in almost all configurations, a portfolio manager under FinIA art. 17 and requires FINMA authorisation. Minimum regulatory capital is CHF 100,000 with additional own-funds requirements that scale with assets under management. The application must evidence an adequate governance structure (board, risk control, compliance function), qualified senior managers subject to fit-and-proper review, and a supervisory audit firm. FINMA approval typically runs 6 to 18 months. AML, beneficial-ownership and CRS obligations Even an unlicensed SFO is subject to the Anti-Money Laundering Act (GwG) if it conducts financial intermediation on its own account. Every Swiss AG keeps a beneficial-ownership register under OR art. 697j, into which shareholders holding 25% or more must be declared (the register is kept by the company, it is not publicly searchable like the UK register). Switzerland activated the OECD Common Reporting Standard (CRS / AEOI) in 2017 and 2018, which means the entity's banks report account information on non-Swiss-resident beneficial owners to more than one hundred partner jurisdictions annually. Families with United States persons trigger FATCA regardless of location. Legal vehicles Which legal vehicle to use for a Swiss family office Four vehicles cover almost every Swiss family-office configuration: the Aktiengesellschaft (AG), the Gesellschaft mit beschränkter Haftung (GmbH), the Stiftung (foundation) and a foreign-trust arrangement with a Swiss-resident trustee. The right choice depends on privacy, tax, and the degree of wealth-holding flexibility the family needs. Swiss AG as the family-office vehicle (most common) The Aktiengesellschaft is the default. Minimum share capital is CHF 100,000 (OR art. 621) with at least CHF 50,000 or 20% paid in at formation (OR art. 632). At least one board member with signatory authority must reside in Switzerland (OR art. 718.4). The AG is private: bearer shares were abolished in 2019, and the shareholder register is kept internally rather than at the Handelsregister. For a family-office entity that holds liquid assets, issues invoices to the family for services, and runs ordinary payroll, the AG is what roughly seven in ten of our engagements select. Readers sizing an AG against a GmbH can use our minimum capital calculator for AG and GmbH . Swiss GmbH (rare for family offices, and why) The GmbH has a lower minimum capital of CHF 20,000 fully paid in (OR art. 773, 777c), and at least one managing officer must reside in Switzerland (OR art. 814.3). The structural drawback for UHNW families is the public partner register: GmbH quota-holders are named in the Handelsregister, which conflicts with the privacy expectations of most principals. Families occasionally use a GmbH where the capital is genuinely small (an early-stage embedded family office, for example), but it is the exception rather than the rule. Swiss foundation (Stiftung) — narrowly permitted for families The Swiss foundation framework has two parts. A classical foundation (ZGB art. 80 and following) is available for a dedicated purpose, typically charitable. A Swiss family foundation (ZGB art. 335) is narrowly circumscribed: its purpose is limited to specific family needs such as education, dowry or support, and general wealth management is not permitted. Foreign readers who know the Liechtenstein or Panamanian Stiftung find this surprising, because those jurisdictions offer a far broader private-foundation vehicle. In Switzerland, a family foundation is not a substitute for a private holding vehicle, and using one for general wealth management is a structural trap we see frequently in DIY arrangements. Foreign trusts and Private Trust Companies (PTCs) Switzerland has no domestic trust law, but foreign trusts are recognised under the 1985 Hague Convention on the Law Applicable to Trusts and on their Recognition (ratified by Switzerland in 2007). The standard wealth-holding configuration is a foreign trust, typically under Jersey, Guernsey or Cayman law, with a Swiss-resident trustee or protector. A Private Trust Company, or PTC, is a structural arrangement rather than a named Swiss entity type: it is a Swiss AG whose sole purpose is to act as trustee of the family trust, giving the family more governance control than an external professional trustee would offer. Used carefully, the trust-plus-PTC pattern gives the family the flexibility of common-law trust law with a Swiss presence for banking and substance. We plan this configuration with common-law counsel on the trust side and Swiss counsel on the PTC side. Canton choice Where to domicile a Swiss family office The choice of canton affects the corporate rate on the entity, the wealth-tax exposure of the family if they relocate, the proximity to banking and advisory talent, and the availability of lump-sum taxation for the principal's personal residence. The common pattern is to domicile the entity in Zug while the family takes up personal residence in Vaud or Geneva, but several configurations work. The table below shows the main six cantons we use for family-office domicile. Canton Effective CIT (2026) Why families pick it Zug (ZG) 11.85% Default SFO domicile. Holding, crypto and English-speaking admin. Baarerstrasse cluster. Schwyz (SZ) ~14.0% Low-tax Zug peer. Freienbach municipality is a well-known ultra-low-tax sub-location. Nidwalden (NW) ~11.9% Small, low-tax, low-profile. Less international than Zug but tax-efficient. Zurich (ZH) 19.61% Banking capital and talent pool. Higher tax traded for unmatched advisory access. Geneva (GE) 14.70% Private-banking hub. Francophone families, UBS / Pictet / Lombard Odier / Julius Baer / Edmond de Rothschild adjacency. Vaud (VD) 14.72% Frequent personal-residence canton for relocating UHNW families using lump-sum taxation. Lake Geneva lifestyle. Source: facts-switzerland §2.2 (combined federal + cantonal + municipal, canton main city). Re-verified annually. Zug: the default for holding + crypto + tax Zug has the lowest combined effective corporate tax rate in Switzerland at approximately 11.85% for 2026. English is the default business language in practice, the cantonal administration is widely seen as efficient, and the Baarerstrasse cluster means notaries, banks and counsel are within a short walk. For a family office whose emphasis is holding the family's operating businesses, crypto, or venture allocations, Zug is the default. Full detail is in our Zug company-formation detail . Geneva: banking proximity and francophone families Geneva's combined effective rate is 14.70% for 2026. It is Switzerland's private-banking heartland: UBS, Pictet, Lombard Odier, Julius Baer and Edmond de Rothschild are all within a few kilometres, and the francophone professional community is deep. French-speaking families almost always consider Geneva for domicile even when the tax comparison favours Zug. Geneva is covered in depth on the canton page. Zurich: the largest financial centre Zurich's combined rate is 19.61%. It is the highest of the major cantons for most family-office configurations, but the trade-off is unmatched banking and advisory access, and the largest English-speaking talent pool in Switzerland. Families that prioritise operational convenience over the tax spread sometimes pick Zurich for that reason alone. Schwyz and Nidwalden: low-tax alternatives Schwyz at approximately 14.0% and Nidwalden at approximately 11.9% are low-profile, low-tax cantons that occasionally win against Zug on a case-by-case basis. Freienbach municipality in Schwyz is a well-known ultra-low-tax sub-location for principals. The trade-off is that the international advisory ecosystem is thinner. Vaud: lump-sum taxation for relocating UHNW Vaud's combined rate is 14.72%. More importantly, Vaud is one of the majority of Swiss cantons that continues to offer lump-sum (forfait fiscal) taxation on the family's personal residence under DBG art. 14 / StHG art. 6, subject to annual ESTV update (federal minimum 2016-indexed floor CHF 434,700). Only Zurich (2010), Schaffhausen (2012), Basel-Stadt, Basel-Landschaft and Appenzell Ausserrhoden have abolished lump-sum at cantonal level by referendum. The Lake Geneva lifestyle, the French-speaking environment, and access to international schools make Vaud a common personal-residence choice for UHNW principals who domicile the entity in Zug. Tax treatment Tax treatment of a Swiss family office Tax runs on two levels: the entity and the family. The entity pays corporate income tax on its profit, and possibly a small amount of capital tax at the cantonal level. The family pays individual income tax on salary drawn from the entity, cantonal wealth tax on personal net wealth, and, for relocating UHNW principals, potentially lump-sum (forfait fiscal) taxation in place of ordinary income tax. Stamp duty applies on capital issuance and on some securities transfers. Corporate tax on the family-office entity The federal direct tax on corporate profit is 8.5% statutory, approximately 7.83% effective after the deduction of the tax itself from taxable profit. Each canton adds its own tranche. At Zug the combined effective rate is approximately 11.85%; at Geneva 14.70%; at Zurich 19.61%. Most family-office entities are structured on a cost-plus basis, which means the entity bills the family for services at cost plus a modest mark-up (commonly 5 to 8%), so that the taxable profit base is thin and the tax bill is small in absolute terms. What the combined rate really drives is the after-tax on that thin margin, not a percentage of the family's wealth or investment returns. Wealth tax for the family (cantonal) Wealth tax is levied by the canton and municipality only, there is no federal wealth tax. Rates range from roughly 0.1% to 1.0% progressive on net wealth, with the exact schedule varying by canton. This is the tax that matters most for a UHNW family that actually takes up personal residence, and it is what drives the choice of personal-residence canton. The entity does not pay wealth tax on the family's portfolio, the family does, on the family's own net wealth declared annually. Lump-sum taxation (forfait fiscal) for relocating UHNW families Switzerland offers a lump-sum taxation regime under DBG art. 14: rather than tax the principal on actual worldwide income and wealth, the canton assesses a deemed expenditure base, typically a multiple of the annual rental value of the principal's Swiss home. The regime is available to non-Swiss nationals who take up Swiss residence and do not engage in paid activity in Switzerland. Several cantons continue to offer the regime (others abolished it by referendum); the current federal minimum assessment base is set by ESTV and is subject to annual update, so the specific number should always be confirmed for the year of relocation. The family's home canton and the amount of the assessment are negotiated with the cantonal tax authority before relocation, and the proposal is binding once signed. Lump-sum is the single tax planning point that most shapes a UHNW relocation to Switzerland; we plan it with the personal-residence canton's tax authority rather than treating it as a published tariff. Withholding, stamp duty, capital gains Dividends paid out of a Swiss company are subject to 35% withholding tax at the federal level, refundable in full to Swiss residents via the annual return, and reduced to 0%, 5%, 10% or 15% for non-residents under the applicable double-tax treaty. Issuance stamp is 1% on paid-in capital and additional capital contributions, with a CHF 1,000,000 lifetime exemption per company. Capital gains on private securities held by Swiss-resident individuals in their personal portfolio are generally exempt (DBG art. 16.3), which is one of Switzerland's headline attractions for UHNW relocation. Substance Substance and governance A family-office entity has to be real in Switzerland, both for cantonal tax residency and for international anti-avoidance tests. Shell structures with a rented address and no staff fail cantonal substance review and lose Swiss tax residency, which defeats the whole exercise. Substance is a spectrum, not a binary: the more senior the activity inside the Swiss entity, and the more staff on Swiss payroll, the stronger the position. Substance requirements: office, staff, decisions The baseline is a physical Swiss office with a signed lease (a shared serviced office can work for an embedded family office, but a dedicated SFO needs its own premises), at least one Swiss-resident authorised signatory (OR art. 718.4 for an AG, OR art. 814.3 for a GmbH), board meetings held in Switzerland with documented minutes, and enough staff on Swiss payroll to make the economic activity credible. For a dedicated SFO, two to five headcount is the typical floor. An embedded family office can sit on fewer heads if they are clearly carrying the function. Our Swiss-resident director option is not a substitute for substance, it is a technical solution to the signatory requirement while substance is built. Governance layer: family council, investment committee, charter Governance is the other half of the equation. A family charter is a non-binding constitution that articulates what the wealth is for, how decisions are made, and how the next generation participates. A family council formalises representation across branches and generations. An investment committee sits above the CIO and sets policy on asset allocation, manager selection and risk limits. For an SFO, these are internal governance bodies that sit alongside the statutory board of the Swiss AG. For an MFO, the governance framework is more formal because the regulator expects to see it. We help draft the charter and seat the committees; we do not publish a template because a governance layer that works for one family rarely transplants cleanly to another. Family side Residence, permits and daily life in Switzerland The structural decision is only half of the family-office project. The other half is the family itself: where the principal and spouse take up residence, how children's schooling fits, how the banking relationship onboards, and how the family's existing investment bank relates to the new structure. These questions cost more setup time than the entity itself in most of our engagements. Residence permits for family members (B, C, L) Non-EU/EFTA principals typically enter Switzerland on a B permit, which is renewable annually and quota-constrained at roughly 8,500 third-country permits for 2025 across all cantons. Family reunification covers spouse and minor children on the principal's permit. A C permit (permanent) follows after ten years of continuous residence, or five years for United States and Canadian nationals. Self-employment on a B permit requires proof of economic interest to Switzerland under FNA art. 19, which is satisfied straightforwardly by a structurally significant family-office investment. We work through the permit track with the cantonal labour-market authority in parallel with the entity incorporation, see residence permits for your family for the full path. International schools International schooling is mature in Switzerland. Le Rosey (Vaud), Institut auf dem Rosenberg (St. Gallen), Zurich International School, Collège du Léman (Versoix, Geneva), and International School Basel are the references most families consider, with bilingual French-English, German-English or mother-tongue tracks widely available. Proximity to a school cluster often shapes the personal-residence canton more than the tax comparison does, particularly for families with multiple school-age children. Swiss banking KYC reality Swiss bank onboarding is more rigorous for UHNW families than published timelines suggest. The retail-SME standard of 5 to 30 days for an operating account rarely applies to a UHNW principal with a non-CH source of wealth: a realistic timeline is 3 to 6 months for a full onboarding with source-of-wealth documentation, structuring memorandum and, for some profiles, an independent forensic review. The family's existing bankers can streamline the process materially, and a Swiss fiduciary relationship (like ours) can introduce the account. We cover this in detail at Swiss banking KYC for UHNW . Compliance AML, CRS, FATCA and beneficial ownership The compliance overlay is the same regardless of SFO or MFO structure, it just bites harder where the entity handles third-party assets. Four regimes matter in practice: the Anti-Money Laundering Act (GwG), the OECD Common Reporting Standard and Automatic Exchange of Information (CRS / AEOI), the United States Foreign Account Tax Compliance Act (FATCA), and the Swiss beneficial-ownership register under OR art. 697j. AML / GwG obligations An entity that conducts financial intermediation (custody of assets, management of payments on behalf of a principal) is a financial intermediary under GwG and must apply customer due diligence, identify beneficial owners, monitor transactions, and maintain records for at least ten years. An SFO that only provides advisory or administrative services without taking custody is outside GwG's direct scope, but most family offices cross the line eventually as their activity broadens. SRO (Self-Regulatory Organisation) membership or direct FINMA supervision is the typical compliance route. CRS / AEOI and FATCA Switzerland activated the OECD Common Reporting Standard in 2017 and 2018 and reports account information annually to more than one hundred partner jurisdictions. A Swiss family-office entity's bank accounts are inside this regime, and the family's bank will report beneficial ownership and balances to the principal's home tax authority each year. Families with United States persons on the cap table or as beneficial owners are inside FATCA regardless of where the family lives, and banks price this risk into onboarding. Neither regime is avoidable in practice; the planning question is how to structure so that disclosures go to the tax authorities the family expects, not surprise ones. Beneficial ownership register Under OR art. 697j, every Swiss AG keeps an internal register of beneficial owners who hold 25% or more of the share capital. The register is maintained by the company itself, not the Handelsregister, and it is not publicly searchable. This is a materially lighter disclosure regime than the UK Persons of Significant Control register or the now-paused EU UBO registers, and it is one of the structural reasons UHNW families continue to prefer a Swiss AG over an EU equivalent for privacy-sensitive holdings. Jurisdiction compare Switzerland vs Singapore, Dubai, Liechtenstein UHNW families typically consider two or three jurisdictions before committing. A brief honest comparison, not a directory, keeps the reader on page and signals the authority of knowing where Switzerland sits. Why Switzerland still wins on legal predictability and political stability Switzerland's structural strengths are legal predictability, a 200-year stable currency, a AAA sovereign credit rating, and a referendum-constrained policy environment that makes large-scale policy reversals difficult. The banking ecosystem is deep, the double-tax-treaty network is wide, and the OECD alignment is solid (CRS, FATCA, BEPS). For a family that values "nothing surprising happens in twenty years", Switzerland remains the default answer. Where Singapore, Dubai and Liechtenstein win Singapore has built a specific wealth-management incentive (Sections 13O and 13U tax exemptions, the Variable Capital Company framework) targeted at Asian UHNW flows; it is faster to incorporate and cheaper on the tax side for fund-like structures, but further from Europe and outside the CRS reciprocity most European families care about. Dubai's DIFC offers a zero-income-tax environment and a common-law overlay inside a Middle Eastern jurisdiction, which works for Middle Eastern and South Asian families more comfortably than it does for European ones. Liechtenstein offers a broad Stiftung (private foundation) vehicle with EEA market access, which is more flexible than the Swiss family foundation but carries higher setup cost and a smaller advisory ecosystem. In practice we see families domicile the wealth-holding layer in Liechtenstein while running the operating family office out of Switzerland for substance, talent and banking. Our engagement How we structure a family-office engagement Every family office we have built has been scoped from a scoping call, not from a catalogue. The four phases below describe how we work, without disclosing prices because every engagement is quoted on assumptions specific to the family. Our engagement model covers this in full detail. Phase 1 Scoping and fit A 60-90 minute discovery call with the principal or adviser. We map wealth bands, residence plans, licensing exposure, and the two or three structural options that fit the family. No obligation. Phase 2 Structure paper A written structure paper: SFO vs MFO vs embedded, recommended legal vehicle (AG, foreign trust with Swiss trustee, or holding-embedded), canton rationale, substance plan, and a tax-overlay assessment. Delivered in two to three weeks. Phase 3 Incorporation and bank opening Name reservation at zefix.ch, notarial deed before a Swiss notary, Handelsregister filing (typically 7-21 days), consignment and operating bank accounts. Swiss-resident signatory coverage under OR art. 718.4 (AG) or art. 814.3 (GmbH). Phase 4 Licensing (MFO only) and ongoing support For an MFO, FINMA portfolio-manager licence filing and fit-and-proper review (typical 6-18 months). Thereafter, ongoing accounting, tax, governance and compliance support. For an SFO, ongoing support without the licence workstream. The lead on your engagement is a senior structuring practitioner. The broader team covers tax, compliance and banking liaison. See our senior structuring practitioner for profiles. Adjacent structures Where a family office fits among our specialised structures Related Swiss holding company Most family-office entities are structurally holdings. Federal participation exemption, substance design, treaty positioning. Read the holding page MFO path FINMA portfolio-manager licence The full licensing track for an MFO or a regulated asset manager under FinIA art. 17. See the licence page Hub The rest of our specialised niches Four niches in total: holding, family office, FINMA licence, crypto. One integrated structuring practice. Specialised structures overview FAQ Frequently asked questions — Swiss family office What counts as a family office in Switzerland? A family office is a structure set up to manage one family's wealth (single family office) or several unrelated families' wealth (multi-family office), typically with in-house investment, tax, legal and succession oversight. It is distinct from a private bank: the bank sells products, the family office hires advisors. What's the difference between an SFO and an MFO? A single family office (SFO) serves one family, while a multi-family office (MFO) serves multiple unrelated families. An MFO managing assets for unrelated families generally needs a FINMA portfolio-manager licence under the Financial Institutions Act (FinIA); a single-family SFO is usually outside that regime, subject to licensing review on the specific facts. Do I need FINMA authorisation for a family office? A single-family office is generally not subject to FINMA licensing. A multi-family office, or an embedded structure that manages third-party assets, typically requires a portfolio-manager licence under FinIA. Minimum capital is CHF 100,000 with additional own-funds requirements that scale with assets under management, and the approval timeline is typically 6 to 18 months. What wealth level justifies setting up an SFO? As a working industry convention, the fixed overhead of a dedicated single-family office (premises, three to five staff, audit, compliance) is usually cost-efficient only above approximately CHF 50 to 100 million in managed assets. Below that threshold, a multi-family-office share, a virtual family office, or an embedded holding-company structure is typically a better fit. This is a commercial rule of thumb, not a regulatory floor. Which canton is best for a family office? For the operating entity, Zug (combined effective corporate tax around 11.85% for 2026) is the most common domicile. Geneva (14.70%) is preferred for private-banking proximity and francophone families. Schwyz (around 14.0%) and Nidwalden (around 11.9%) are low-tax alternatives. Vaud is a frequent personal-residence canton for families using lump-sum taxation. Can I structure the family office as a foundation? A Swiss family foundation (ZGB art. 335) is narrowly limited to purposes such as education, dowry or family support, and general wealth management is not permitted. A classical foundation (ZGB art. 80 and following) is available for charitable or purpose-dedicated use. Most UHNW families therefore use a Swiss AG, or a foreign trust with a Swiss-resident trustee arrangement, rather than a Swiss family foundation. Does Switzerland recognise foreign trusts? Yes. Switzerland ratified the 1985 Hague Convention on the Law Applicable to Trusts and on their Recognition in 2007. Switzerland has no domestic trust law, but a Jersey, Guernsey, Cayman or similar trust with a Swiss-resident trustee or a Swiss Private Trust Company arrangement is a routine structure. How do my family members get residence permits? Non-EU/EFTA family members typically enter via a B permit (renewable annually, quota-constrained at roughly 8,500 third-country permits for 2025 across all cantons) with family reunification for spouse and minor children. A C permit (permanent) follows after ten years of residence, or five years for United States and Canadian nationals. Self-employment on a B permit requires proof of economic interest to Switzerland under FNA art. 19. What substance does the family office need? A family-office entity needs a physical Swiss office, at least one Swiss-resident authorised signatory (OR art. 718.4 for an AG; OR art. 814.3 for a GmbH), board decisions taken in Switzerland, and enough staff to demonstrate real economic activity — typically two to five headcount. Shell structures fail cantonal substance tests and lose tax residency. Can I keep my investment bank and add a family office? Yes, and this is the norm. The private bank provides custody, execution and lending; the family office selects managers, consolidates reporting, and oversees tax, governance and succession. The two roles are complementary rather than competing. How are family-office staff taxed? Swiss-resident employees pay individual income tax (federal progressive to 11.5%, plus cantonal and municipal), with social insurance contributions (AHV/IV/EO, unemployment, occupational pension BVG) at the usual employer-employee split. Non-EU hires for senior roles require a B permit with economic-interest justification. Can a non-resident family open a Swiss family office? Yes. The entity can be established with a Swiss-resident authorised signatory (OR art. 718.4 for an AG; OR art. 814.3 for a GmbH) even when the beneficial-owner family resides abroad. Tax residency of the family and tax residency of the company are separate questions, and many families first incorporate the entity, then relocate. Will an MFO with my family and two others need a FINMA licence? Almost always yes. Managing assets for multiple unrelated families typically triggers portfolio-manager licensing under FinIA art. 17 once the activity rises above the narrow single-family carve-out. Minimum capital is CHF 100,000 with scaling own-funds, and the FINMA approval timeline is typically 6 to 18 months. Pricing Family-office building blocks at published rates. Family offices are scoped per matter (SFO vs MFO, vehicle choice, substance, banking). Below are the recurring building blocks where we publish fixed fees. The integrated mandate is quoted on a written proposal. Building block Our fee Market range AG formation (operating SFO) CHF 1,490 CHF 1,199–5,000 GmbH formation (smaller SFO) CHF 990 CHF 999–4,500 Foundation (Stiftung) formation CHF 1,990 CHF 2,000–8,000 Domicile Zug (recommended for SFO) CHF 1,200 / year CHF 1,400–2,400 Nominee director (active company) CHF 4,900 / year CHF 4,800–6,000 Council/Board mandate (annual) CHF 5,900 / year CHF 7,800 (JayBee) Corporate housekeeping (hourly) CHF 250 / hour CHF 330 (JayBee) Tax ruling (cantonal) CHF 250 / hour CHF 250–550 Comprehensive legal opinion CHF 4,900 CHF 5,000–15,000 All fees excl. MWST. SFO/MFO integrated mandate (typically CHF 25,000–80,000 setup, CHF 12,000–40,000/year ongoing) quoted after the scoping call. From our practice What we see on real engagements The patterns below are aggregated observations from engagements we have run, drawn together by the lead specialist on this page. No client identifiers, no privileged transaction detail. Lead specialist on this page: Lukas Brunner — Senior partner — corporate formation and cross-border structures. 01 Below CHF 10 million, the SFO conversation is usually a cost conversation. We are honest with families that a single-family office only carries its overhead above an investible-asset floor that depends on staffing model and complexity. Many families we screen end up with a holding-embedded family-office function inside an existing AG, not a standalone SFO. 02 Discretionary management is the regulatory tripwire. The moment a family office in Switzerland exercises portfolio-management discretion for relatives outside the immediate family circle defined by FinIA, it crosses into licensable territory. The cleanest answer is to keep discretion strictly intra-family — the second-cleanest is to license a regulated arm. 03 Residency is the other half of the structure. Lump-sum taxation (impôt à forfait) is genuinely available in Vaud, Valais, Ticino and certain Romand cantons, less so in Zug or Zurich. The principal's residence canton drives more long-term tax outcome than the holding canton — we model both together. 04 Foreign trusts work in Switzerland with discipline. Switzerland recognises foreign-law trusts via the Hague Trusts Convention; we do not pretend a Swiss-domiciled "trust" exists in the common-law sense. The standard build is a foreign trust with a Swiss professional trustee and Swiss-resident protector — clean and well-understood by tax administrations. Limitations When a Swiss family office isn't the right structure Your family's investible assets sit below roughly CHF 10 million: that's the engagement floor we work from, and below it a dedicated structure rarely earns back its overhead. You want to serve two or more unrelated families: that crosses into MFO territory and generally triggers FinIA portfolio-manager licensing (CHF 100,000 minimum capital, 6 to 18 month FINMA approval), not the lighter single-family carve-out. You want to use a Swiss foundation for general wealth management: the Swiss family foundation (ZGB art. 335) is narrowly limited to purposes such as education or dowry, and general wealth management is not permitted. You want a Swiss-domiciled trust: Switzerland has no domestic trust law, the standard route is a foreign trust (Jersey, Guernsey, Cayman) with a Swiss-resident trustee. You need fast Swiss bank onboarding: a realistic UHNW timeline runs 3 to 6 months with full source-of-wealth documentation, well past the 5-to-30-day retail-SME standard. Ready to structure your Swiss family office? A 60–90 minute scoping call maps SFO vs MFO, the legal vehicle, the canton, and the family-side residence plan. Building-block fees confirmed on call; integrated mandate proposal follows within two weeks. From our Baarerstrasse office in Zug. Talk to a specialist --- ## FINMA Licence Switzerland: Types, Capital & Timeline URL: https://business-in-switzerland.com/specialised/finma-license Description: FINMA licence in Switzerland: which authorisation fits (FinIA, BankA, CISA, FMIA, AMLA), capital thresholds from CHF 100,000, realistic timelines. FINMA Licence Switzerland: Types, Capital & Timeline STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Specialised · FINMA FINMA authorisation in Switzerland: which licence, how long, what it really takes. A plain-English decision guide to Swiss financial-market authorisation for foreign asset managers, fintechs, crypto and DLT operators, trustees and fund promoters. Licence categories, capital, substance, realistic timelines, dossier contents, and the reasons FINMA most often rejects applications. Talk to a specialist Written by Andreas Furrer · Reviewed by Lukas Brunner Last reviewed: April 2026 Orientation The FINMA framework in one page The Swiss Financial Market Supervisory Authority (FINMA) is the federal integrated supervisor for Swiss financial markets, covering banks, insurers, securities firms, fund managers, portfolio managers, trustees, and market infrastructure. It operates under the Financial Market Supervision Act (FINMASA / FINMAG), and its decisions determine who may carry on a regulated financial activity in Switzerland and on what terms. For a foreign founder, FINMA is the single gate between a business idea and a licensed Swiss operating entity. Before any decision guide is useful, it helps to know which federal law governs which activity, because the rest of this page is built around that map. The applicable acts are FinIA for portfolio managers, trustees and fund managers, FinSA for conduct rules, CISA for collective investment schemes, BankA for banks, securities firms and the FinTech licence, ISA for insurers, FMIA for market infrastructure including DLT trading facilities, and AMLA for anti-money-laundering obligations across all financial intermediaries. What FINMA regulates — and what it does not FINMA is an integrated supervisor. Unlike the UK twin-peaks model or the sectoral agencies in the EU, it concentrates prudential and market supervision for banks, insurers, securities dealers, fund managers, portfolio managers, trustees, and market infrastructures in a single body. What FINMA does not regulate is equally important: pure commercial lending that does not take public deposits, proprietary trading with own funds only, asset management of qualified investors below FinIA thresholds, and most utility-token activity without deposit-taking or securities features. The statutory stack at a glance FINMASA (FINMAG, SR 956.1): the enabling statute for the regulator. FinIA (SR 954.1): prudential regime for portfolio managers, trustees and fund management companies, in force since 2020. FinSA (SR 950.1): conduct rules, client segmentation, suitability and information duties. CISA (SR 951.31): collective investment scheme structures (FCP, SICAV, SICAF, LP-CI, LP-QII). BankA (SR 952.0): bank and securities firm licences, plus the FinTech licence under BankA art. 1b. ISA: insurers and reinsurers. AMLA (GwG, SR 955.0): anti-money-laundering regime and SRO affiliation for non-licensed intermediaries. FMIA (FinfraG): market infrastructure, extended by the 2021 DLT Act to create the DLT trading facility licence under FMIA art. 73a. Prudential versus conduct supervision Swiss regulation separates prudential rules, which look at capital, substance and fitness, from conduct rules, which look at how you treat clients. FinIA is prudential, FinSA is conduct. A FinIA-licensed portfolio manager is prudentially supervised by a supervisory organisation, not directly by FINMA, while remaining subject to FinSA conduct obligations when it faces clients. This split is a common point of confusion for foreign applicants used to single-regulator models, and it shapes the cost and reporting load after the licence is in place. Decision guide Match your business model to a FINMA licence Most search traffic that ends on a FINMA-licence page arrives with one real question: which authorisation, if any, fits the business I am actually building. The decision tree below works through the nine common outcomes, each with its statutory basis and a typical applicant profile. Capital and substance numbers are in the comparison table in the next section. Asset or portfolio manager — FinIA art. 17 If you manage discretionary mandates or advise on investment portfolios for third-party clients, you are a portfolio manager in the FinIA sense. FinIA uses the term portfolio manager as the statutory label for what the market commonly calls an asset manager. This is the highest-volume foreign-founder use case. The old transitional regime for small independent asset managers has now closed, so every market participant either carries a full FINMA authorisation or has exited the market. Substance requirements are lower than for banks but still meaningful. Trustee — FinIA art. 17 (same licence, different function) Trustees administer Swiss-law or foreign-law trusts, and they sit in the same FinIA licence category as portfolio managers under FinIA art. 17. The capital floor and substance expectations broadly mirror those for portfolio managers, but the fit-and- proper file differs because trust administration draws on different competences. Many trustees also hold portfolio-manager authorisation because the activities overlap in private-wealth practice. Fund management company — FinIA art. 32 with the CISA overlay A fund management company establishes, manages, distributes and administers Swiss collective investment schemes. The licence has a higher capital floor than the portfolio-manager licence and stacks CISA obligations on top of FinIA. This route is the natural one for promoters of Swiss FCPs, SICAVs, SICAFs, limited partnerships for collective investment (LP-CI), and qualified-investor limited partnerships (LP-QII). Bank — BankA art. 3 (BO art. 15) A full Swiss banking licence under BankA art. 3 requires minimum paid-in capital of CHF 10,000,000 (Banking Ordinance, BO art. 15) plus ongoing regulatory capital ratios in line with the international Basel framework (Capital Adequacy Ordinance / CAO). It is rarely the right answer for a foreign fintech founder, but it is listed here for completeness and because the FinTech licence below sits in its shadow. Securities firm — FinIA art. 41, 45 A securities firm deals in securities on its own account or for clients, underwrites issues, or operates as a market maker. Minimum paid-in capital under FinIA art. 45 is CHF 1,500,000 , positioning this category below a bank but well above the portfolio-manager level. The licence is relevant for trading desks and for proprietary-trading entities that cross the client-facing threshold. FinTech licence — BA art. 1b (up to CHF 100,000,000 public deposits, no interest-rate spread) The FinTech licence under BA art. 1b is the lightweight banking-licence lane. It permits the acceptance of deposits from the public up to CHF 100,000,000 provided the funds are not invested and no interest is paid on them (BA art. 1b). Minimum paid-in capital CHF 300,000 (BA art. 1b.3). It was deliberately designed to bring fintech operators, stablecoin issuers and custodial wallets inside a proportionate regulatory perimeter rather than leaving them in a grey zone. Of the FINMA licence categories this is the only one with an explicitly foreign-entrant-friendly profile. Note: the Swiss Federal Council announced on 22 October 2025 a draft reform replacing the FinTech licence with a new "payment institution" category under FinIA (CHF 100m cap would no longer apply; funds still may not be invested or bear interest), plus a separate "crypto custodian" licence and stablecoin-issuance framework. DLT trading facility — FMIA art. 73a–73f The 2021 DLT Act amended FMIA (art. 73a–73f, in force 1 August 2021) to create a dedicated licence for a DLT trading facility that operates regulated infrastructure for tokenised securities. Together with the recognition of ledger-based securities in OR art. 973d–973i (in force 1 February 2021), this lane is what the market commonly refers to, loosely, as a Swiss crypto licence. BX Digital received the first DLT-trading-venue licence from FINMA in 2025. In practice most crypto operators do not hold a DLT trading facility licence and instead use either a FinTech licence or an SRO-only path, depending on whether they take public deposits. Insurer or reinsurer — ISA Insurers are licensed under ISA. Coverage here is limited to one paragraph because the applicant profile is very different from the typical foreign-founder reader of this page, but the category exists and forms part of the FINMA remit. Expect a longer authorisation runway and significantly higher capital than any FinIA category. SRO affiliation — AMLA recognition, not a FINMA licence Not every financial activity triggers a FINMA licence. A financial intermediary under AMLA art. 2 para. 3, for example a fiduciary service provider, a currency-exchange operator, or certain crypto-asset service providers whose activity does not cross a FinIA, BankA, CISA or FMIA threshold, joins a self-regulatory organisation recognised by FINMA. SRO affiliation covers AML obligations only and does not permit any activity that itself requires a FINMA licence. This is the most common outcome for foreign founders whose business model turns out to be AML-regulated but not licensed. Capital and substance What each licence actually asks for FINMA authorisation is not only a capital test. Three concepts are often conflated as capital by Anglo-Saxon readers: paid-in share capital, ongoing own-funds requirements, and qualifying equity. Under FinIA art. 22 the paid-in floor for a portfolio manager or trustee is CHF 100,000; under FinIA art. 23, own funds must equal at least one-quarter of the previous year's fixed costs, capped at CHF 10,000,000, which is why a portfolio manager at the CHF 100,000 floor at launch will typically carry a meaningfully higher capital base by year three. BA stacks paid-in capital with regulatory capital ratios drawn from the Basel framework via the Capital Adequacy Ordinance (CAO). The comparison below focuses on the minimum paid-in capital and the substance footprint at licence grant, because those are the figures that determine whether the structure is viable for you. CHF 100,000 Portfolio manager / trustee, paid-in minimum FinIA art. 22 (facts §5.2) CHF 10,000,000 Bank, paid-in minimum BA art. 3, BO art. 15 (facts §5.3) CHF 100,000,000 FinTech licence public-deposit cap BA art. 1b (facts §5.3) Licence Legal basis Minimum paid-in capital Own-funds scaling Substance (core) Prudential supervisor Portfolio manager FinIA art. 17, 22 CHF 100,000 Scaled to assets under management Swiss-resident signatory, AML officer, office Supervisory organisation (FinIA) Trustee FinIA art. 17, 22 CHF 100,000 Scaled to assets under management Swiss-resident signatory, AML officer, office Supervisory organisation (FinIA) Fund management company FinIA art. 32, 36 + CISA CHF 1,000,000 Per CISA schedule for managed fund volumes Board, management, CISA-aligned fund governance FINMA direct Bank BA art. 3 / BO art. 15 CHF 10,000,000 Basel-based CET1 and total-capital ratios (CAO) Full banking organisation, independent board members FINMA direct Securities firm FinIA art. 41, 45 CHF 1,500,000 Regulatory capital per FinIA schedule Trading-floor organisation, compliance FINMA direct FinTech licence BA art. 1b CHF 300,000 Proportionate to deposit volume (up to CHF 100,000,000) AML officer, IT controls, Swiss-resident signatory FINMA direct DLT trading facility FMIA art. 73a Per FMIA / FMIV schedule Infrastructure capital, plus operational reserves Trading-venue organisation, technology governance FINMA direct SRO affiliation (AMLA only) AMLA art. 2 None statutory at SRO level Not applicable AML officer, policies, transaction monitoring Self-regulatory organisation (FINMA-recognised) Reading the table — capital versus own-funds versus qualifying equity Paid-in capital is the amount the shareholders contribute at incorporation and is a static test at licence grant. Own funds are the ongoing regulatory capital base, which under FinIA scales with assets under management and under BankA scales with balance-sheet and risk-weighted-asset structure. Qualifying equity is the slice of that own-funds base that meets regulatory-capital quality criteria, in particular CET1 under the Basel framework for banks. Readers sizing a Swiss licence application should budget for all three, not only the paid-in figure. Swiss-resident director and signatory requirement For any Swiss AG or GmbH that goes on to seek FINMA authorisation, at least one director or authorised representative with individual signing authority must be domiciled in Switzerland. OR art. 718 para. 4 applies to the AG and OR art. 814 para. 3 applies to the GmbH. In a regulated entity the Swiss-resident appointee cannot be a pure nominee without decision-making involvement. FINMA expects the named person to be fit and proper for the role and to exercise real oversight. A Swiss-resident director can be a pragmatic solution at the corporate-layer holding company, while the regulated operating company requires a substantive appointment. The dossier What FINMA actually asks for in an application FINMA reviews dossiers on their completeness first and their substance second. The statutory 6-month decision clock only starts after the regulator rules the dossier complete, so incomplete filings sit in pre-review for weeks or months without moving. The sections below are the building blocks of a complete file, regardless of licence category. Volumes differ, but the headings are the same. Business plan and 3-year financial projection FINMA stress-tests revenue plausibility, client-pipeline realism and breakeven. The business plan is the first rejection lever, because an overly optimistic model is read as a signal that the founders either do not understand the Swiss regulatory economics or are not being candid. Ranges beat point estimates. Honest plans survive review. Organisational and ownership structure A clean organisational chart to the ultimate beneficial owner, with related-party declarations and the rationale for any group structure above the licensed entity. A common pattern is a Swiss holding above the licensed operating company , which segregates group treasury from the regulated activity and keeps intra-group flows visible. Ownership paths through multiple offshore layers invite FINMA questions. Governance, board, and key persons Board composition, signature rights, committee mandates where relevant, and the chain of delegation from board to management. For BankA firms FINMA expects threshold numbers of independent members. For FinIA portfolio managers the bar is proportionate, but the principles are the same. Each named board and key person is assessed individually under the fit-and-proper test. Fit-and-proper test (Gewähr für einwandfreie Geschäftstätigkeit) Unique to Swiss financial supervision, the fit-and-proper test translates loosely as a guarantee of irreproachable business conduct. CVs, professional references, regulatory clearances from home jurisdictions, criminal-record extracts and outside-mandate disclosures make up the file. It is the single most common stumbling block for foreign senior staff, and the reason founders often end up replacing or augmenting their original leadership team before filing. AML framework (AMLA / GwG) AML officer appointment, risk assessment, KYC procedures, transaction-monitoring architecture, suspicious-activity-report lines to the Money Laundering Reporting Office Switzerland (MROS). AMLA art. 2 catches every financial intermediary, so even a FinIA-licensed portfolio manager must run a full AML framework regardless of SRO status. The AML concept document is commonly underweight in first-draft dossiers. Risk management and internal controls Policies, segregation of duties, audit trail, and proportionality to firm size. FINMA does not expect a boutique portfolio manager to run a bank-scale second line of defence, but it does expect the second line to exist and to be documented. IT and operational resilience Outsourcing register, business-continuity planning, cyber-risk controls, incident reporting lines. FINMA's operational-risk and resilience circular applies across supervised institutions and has sharpened what reviewers expect to see in IT documentation. Critical service providers, cloud arrangements, and data-location decisions now need explicit governance, not only a vendor list. Timeline FINMA's clock versus the real-world calendar Peers quote FINMA's 6-month statutory decision clock and stop there. The honest calibration is different. The clock only starts once FINMA confirms dossier completeness, and the company formation plus drafting work that happens beforehand typically sits in the 10 to 24 month window cited in our Swiss facts file for the FINMA phase alone. Founders planning for a launch should plan for the whole runway, not only the FINMA window. Phase 0 — company formation, 2 to 6 weeks Incorporate a Swiss AG or GmbH at a cantonal handelsregister. For regulated firms an AG is the default choice because paid-in capital and share mechanics align with FINMA expectations. See how to form a Swiss AG first or register a GmbH if you want the lighter operational set-up. Phase 1 — dossier drafting, 8 to 16 weeks The most under-estimated phase. Business plan, AML concept, fit-and-proper files and IT documentation are the long-lead items. The quality of this phase determines whether FINMA rules the file complete on first pass or sends it back with clarification requests. Phase 2 — FINMA review, 6 to 12 months FINMA's statutory 6-month decision clock runs once the dossier is complete. In practice, clarification rounds, fit-and-proper follow-ups and structural adjustments stretch the review phase for most foreign applicants. Phase 3 — licensing conditions and go-live, 2 to 8 weeks Post-grant conditions (auditor appointment, supervisory-organisation registration for FinIA portfolio managers and trustees, capital-attestation confirmation) must be discharged before the first client transaction. Total realistic end-to-end — 10 to 24 months Per our Swiss facts file, the FINMA-stage alone is typically 6 to 18 months, and adding formation plus drafting gives a 10 to 24 month realistic window for the whole process. This is calibration, not a scare tactic. Founders who model the whole runway raise the right amount of capital and avoid the early pivot that kills most underfunded Swiss regulated ventures. Rejection risk Why FINMA rejects applications — and how to avoid it The deep research for this page flagged rejection-reason coverage as a content gap in peer pages. FINMA does not publish a rejection checklist, but the failure patterns are consistent enough that senior practitioners can name them. Six levers recur. Inadequate Swiss substance A brass-plate structure without real Swiss presence, meaning a serviced-office address, no local staff, and no local directors with genuine oversight, is the single most common rejection lever. Substance is read from the organisation chart and from the fit-and-proper evidence, and the two must agree. Cosmetic substance is visible on the first review and rarely survives the second. Weak or borrowed compliance officer A compliance or AML officer who is a shared resource across unrelated firms raises independence concerns. FINMA expects proportionate but dedicated capacity. For a portfolio manager at the small end of FinIA, part-time is acceptable. Fully outsourced to a vendor who services twenty unrelated clients is not. Unclear source of initial capital UBO due-diligence, source-of-wealth and source-of-funds documentation. Complex offshore capital chains with trust layers or unclear family-holding flows trigger scrutiny. Candid early disclosure shortens the review. Reconstruction after the fact rarely does. Related-party concentration and conflicts of interest When the licensed entity's only clients are entities controlled by the same UBO, FINMA questions whether the licence is appropriate or whether a single-family office alternative is the honest characterisation. Related-party concentration is a legitimate path in some family-office contexts, but it needs to be structured and described as such rather than presented as a commercial third-party business. Unrealistic financial projections Revenue plans that assume capture of institutional mandates in year one without a track record will be marked down. Honesty is cheaper than re-submission. Projections that bracket a realistic range and show the breakeven path under a downside scenario signal operator maturity. Fit-and-proper concerns with key persons Prior regulatory actions, unresolved litigation, or unexplained gaps in professional history. Covered in the dossier section above, but worth naming again here because it is the single most personal rejection lever and the one founders are most tempted to minimise. The SRO path SRO affiliation — the non-licence alternative for AMLA-only intermediaries A common outcome of the decision guide above is that the applicant turns out to be an AML-regulated financial intermediary under AMLA art. 2 para. 3, not a FINMA-licensed entity. For those operators, the compliant path is affiliation with a self-regulatory organisation recognised by FINMA, not a FINMA licence. Who SRO affiliation fits Non-licensed financial intermediaries whose activity sits outside FinIA, BankA, CISA and FMIA thresholds: fiduciary-services providers, currency-exchange operators, non-custodial crypto-asset service providers below the FinTech deposit threshold, and certain payment intermediaries. If you face the question SRO versus FINMA, the test is whether a licensing act applies at all. If none does, SRO is the route. Recognised SROs FINMA publishes the current list of recognised self-regulatory organisations on its own website. The list changes from time to time as SROs merge or lose recognition, which is why we avoid naming a static list on this page. The practitioner starting point is to read FINMA's published list, compare the sectoral focus of each SRO, and align with the one whose supervisory practice fits your activity. Timeline and ongoing obligations SRO affiliation is faster than FINMA authorisation and typically runs 2 to 4 months depending on the SRO. The ongoing obligations are fully AMLA-aligned: an AML officer, a risk-based policy framework, training, audits and annual fees. The compliance cost is comparable to that of a small FINMA-licensed firm on the AML dimension, even if it is much lighter on the capital dimension. DLT and crypto The FinTech licence and the DLT overlay — a Zug-centred lane Crypto, DLT and fintech operators face a lane of their own, because Swiss regulation evolved recent dedicated vehicles rather than forcing the activity into bank or securities-firm categories. For readers pursuing a crypto / DLT operator structure , the FinTech licence plus the DLT Act amendments form the core regulatory infrastructure, and Zug is the dominant canton for the work. FinTech licence — BankA art. 1b BankA art. 1b permits the acceptance of deposits from the public up to CHF 100m per the FinTech licence, without the interest-rate spread that defines classical banking. The lane fits stablecoin issuers, custodial wallets, and tokenised-deposit operators that want to sit inside a proportionate regulatory perimeter rather than in an SRO-only grey zone. Substance expectations are lower than for a full bank but meaningful: an AML officer, credible IT controls, and a Swiss-resident signatory. DLT trading facility — FMIA art. 73a (2021 DLT Act) The 2021 DLT Act amended FMIA to create a dedicated licence for a DLT trading facility, which is regulated infrastructure for tokenised securities, alongside updates to other Swiss laws to recognise register-based securities. The DLT-Act label is the common market shorthand rather than an official name, and the licence category is still young: most crypto operators do not hold it, and instead operate either under a FinTech licence or in an SRO-only capacity depending on the activity profile. Sandbox regime — public deposits up to CHF 1m without a licence For early-stage fintechs, a sandbox exemption allows public deposits up to CHF 1m without a licence provided customers are informed that the deposit is not covered by Swiss deposit protection and the operator does not engage in interest-rate-spread activity. It is a pre-licence experimentation path, not a long-term status. Why Zug dominates for DLT At 11.85% combined effective corporate tax, Zug is the lowest-tax canton in Switzerland. It combines that with the Crypto Valley ecosystem, a cantonal handelsregister reputed for responsiveness, and proximity to FINMA's Bern and Zurich review teams. For a FINMA-regulated DLT operator, the first serious canton question usually answers itself. See our full guide to Zug as a FINMA-regulated domicile for the cantonal detail. After the grant Ongoing compliance once the licence is in place The licence is not the finish line. FINMA-authorised firms carry a continuous reporting and audit load that scales with category and with firm size. Planning for the ongoing burden is what separates the founders who scale from the ones who get caught up in rolling remediation. Annual audit and FINMA reporting Regulated Swiss firms appoint an independent auditor accepted by FINMA for the relevant category. Annual reporting is tailored to licence type. A FinIA portfolio manager's audit scope is meaningfully lighter than a BankA firm's, but no regulated firm is exempt from the annual cycle. Supervisory organisation membership and fees (FinIA licensees) FinIA portfolio managers and trustees pay an annual fee to a supervisory organisation and cooperate with its prudential oversight. FINMA retains ultimate authority but does not run day-to-day prudential supervision for this category. Each supervisory organisation publishes its fee schedule; the market supports several, each with its own supervisory style. FINMA fees and levies FINMA fees are set out in a published federal fee schedule that combines a supervisory levy based on firm size with case-based charges for specific regulatory interventions. Budgeting by order of magnitude is straightforward once the licence category is settled; exact figures come from the published schedule at the time of filing. Significant-event reporting and material changes Changes in key persons, ultimate beneficial owner, business plan or capital require FINMA notification within set windows and, in many cases, pre-approval. The significant-event list is broader than many foreign founders expect, so an operating memorandum that captures the triggers and the responsible internal owner saves avoidable incidents. FinSA obligations where you face clients If the licensed firm faces clients directly, FinSA adds a conduct layer: client segmentation (retail, professional, institutional), suitability and appropriateness testing, information duties, and ombudsman registration. FinSA applies regardless of prudential supervisor, so a FinIA portfolio manager supervised by a supervisory organisation still operates under FinSA conduct rules. Canton selection Canton choice for FINMA-regulated entities Licensing is federal, so FINMA does not care which canton you pick. Everything else does. Effective corporate tax, banking counterparty density, the talent market for regulated roles, and the speed of the cantonal handelsregister vary meaningfully. For most foreign founders, the choice narrows to three cantons. Zug · ZG Crypto, fintech, DLT Lowest Swiss combined effective corporate tax at 11.85%, Crypto Valley ecosystem, responsive cantonal registrar. Default for DLT and FinTech-licence work. Zug as a FINMA-regulated domicile Zurich · ZH Traditional asset management 19.61% effective corporate tax, the deepest Swiss financial ecosystem, most banking counterparties, and FINMA staff proximity. Default for FinIA portfolio managers outside the crypto lane. Zurich for traditional asset management Geneva · GE Private wealth and family offices 14.70% effective corporate tax, private-banking concentration, international community. Natural for trustee and wealth-management applicants with francophone client books. Geneva for private-wealth adjacency How we help How we support FINMA-licence applicants Our team runs FINMA authorisation files end to end for foreign founders. The work breaks into four phases that mirror the timeline above, and each phase has a named senior reviewer on our side. We sit inside the specialised Swiss structures hub and cross-reference the corporate-layer work in our other specialised practices. Pre-application structuring Choice of legal form between AG and GmbH, whether to separate operational and holding layers, canton selection, shareholder and board design, and the first pass at Swiss-resident director and key-person slotting. This phase usually runs alongside company formation rather than after it. Dossier drafting Business plan, organisational chart, compliance manual, AML concept, risk framework and IT documentation. We draft, the client reviews, the senior reviewer signs off. Draft volumes depend on category: a FinIA portfolio-manager file is lighter than a BankA file, and a DLT trading facility file is the heaviest in practice. FINMA coordination Pre-filing dialogue, clarification rounds, responses to requests for further information. Our team handles the regulatory correspondence so the founders can keep running the business rather than triaging FINMA letters. Clarification rounds are the norm, not the exception, for first-time applicants. Post-authorisation stand-up Auditor appointment, supervisory-organisation registration for FinIA licensees, capital-attestation confirmation, the first annual reporting cycle, and the set-up of the internal reporting calendar. This is where newly authorised firms either institutionalise the licence or carry compliance friction forward indefinitely. Our engagements are quoted on a scope-specific basis because FinIA, BankA, FMIA and AMLA files involve different dossier volumes and timelines. See our fees and process for how we scope proposals. FAQ Frequently asked questions Do I need a FINMA licence for my business? Only if the activity falls within a Swiss federal licensing act. FinIA covers portfolio managers, trustees and fund management companies. BankA covers banks, securities firms and the FinTech licence. CISA covers collective investment schemes, ISA covers insurers, and FMIA covers market infrastructure including DLT trading facilities. Pure commercial lending, proprietary-only trading with own funds, and non-financial services do not require a FINMA licence. If you are a financial intermediary under AMLA art. 2 but outside those regimes, you need SRO affiliation instead, which is recognition by a self-regulatory organisation, not a FINMA licence. What is the difference between FINMA authorisation and SRO affiliation? FINMA authorisation is a federal licensing act that permits a regulated activity such as banking, portfolio management, trusteeship, fund management, insurance, securities dealing, or operating a DLT trading facility. SRO affiliation is private-sector membership of a self-regulatory organisation recognised by FINMA under the Anti-Money Laundering Act, and it covers AML obligations only. SRO affiliation alone does not permit regulated activity. A FINMA licence carries AML obligations by default. How long does a FinIA portfolio-manager licence take, end to end? Plan for 10 to 18 months realistically from company formation through licence grant. The FINMA review phase itself typically runs 6 to 12 months once the dossier is complete, inside a 6 to 18 month range cited in our Swiss facts file. FINMA's statutory 6-month decision clock only starts after the regulator rules the dossier complete, so the pre-work phases, in particular business-plan drafting, the AML concept, and fit-and-proper files, drive most of the elapsed time. What is the minimum capital for a FINMA-authorised portfolio manager? Minimum paid-in capital of CHF 100,000 for a portfolio manager or trustee under FinIA, with additional own-funds obligations scaled to assets under management under FinIA art. 22 and art. 24. The exact tier thresholds are set by the FinIA ordinance and are reassessed as AuM changes, which is why the capital base typically rises over time even when paid-in capital stays at the floor. What is the minimum capital for a bank in Switzerland? CHF 10,000,000 paid-in capital for a bank under BankA art. 3. On top of that floor, a Swiss bank must hold regulatory capital in line with Basel-based CET1 and total-capital ratios, which is an ongoing-compliance overlay separate from the minimum formation capital. A securities firm sits below a bank, and a FinTech licence under BankA art. 1b is lighter again. Do I need Swiss employees to get a FINMA licence? Yes, in substance terms. The company must have at least one director or authorised signatory who is domiciled in Switzerland under OR art. 718 para. 4 for an AG or OR art. 814 para. 3 for a GmbH. Beyond that statutory floor, FINMA's substance expectations typically require real Swiss operational presence, including an office, on-site key persons, and local records. A brass-plate structure with purely remote senior staff will not pass the substance review. What documents does FINMA require in the application dossier? A business plan and 3-year financial projection, the organisational and ownership structure up to the ultimate beneficial owner, governance documentation including board composition and signing authority, fit-and-proper dossiers for every key person, an AML framework covering policy, officer appointment, risk assessment and transaction-monitoring design, a risk-management and internal-control system, and IT and operational-resilience documentation. FinIA portfolio managers must also show a provisional arrangement with a supervisory organisation. What is the fit-and-proper test? FINMA's assessment of whether each key person provides the Swiss-law guarantee of irreproachable business conduct, known in the original as Gewähr für einwandfreie Geschäftstätigkeit. It requires CVs, professional references, regulatory clearances from home jurisdictions, criminal-record extracts, and disclosure of outside mandates. Prior regulatory sanctions, unresolved litigation, or undisclosed related-party conflicts will trigger scrutiny and, in many cases, a FINMA request for additional evidence or the replacement of a proposed key person. How does DLT and crypto regulation work in Switzerland? There is no standalone crypto licence in Switzerland. The 2021 DLT Act amended FMIA to create a DLT trading facility licence under FMIA art. 73a for regulated infrastructure handling tokenised securities, and updated other Swiss laws to recognise register-based securities. Foreign crypto operators typically choose between a FinTech licence under BankA art. 1b, which permits deposits from the public up to CHF 100m with no interest-rate spread, a DLT trading facility licence under FMIA art. 73a, or an SRO-only path where the activity is AML-regulated but not licensed. Zug is the dominant canton for this work. Can my existing foreign licence be passported to Switzerland? No. Switzerland is not an EU or EEA member and has no automatic passporting regime for financial services. Foreign regulated entities that want to operate in Switzerland must either obtain a Swiss FINMA authorisation in their own name or, for fund distribution, appoint a Swiss representative and paying agent under FinSA and CISA. Existing foreign credentials can accelerate the fit-and-proper assessment of key persons, but they do not substitute for a Swiss authorisation. What does FINMA typically reject applications for? Inadequate Swiss substance that looks like a brass-plate structure, a weak or shared compliance and AML officer, an unclear source of the initial capital, related-party concentration where the applicant's only clients are entities controlled by the same ultimate beneficial owner, unrealistic financial projections that assume institutional mandates in year one, and fit-and-proper concerns with named key persons including prior regulatory actions or unresolved litigation. After the licence — what ongoing compliance do I owe? Annual audit by a FINMA-approved auditor, annual reporting tailored to the licence category, membership fees and prudential oversight from a supervisory organisation if you are a FinIA portfolio manager or trustee, FINMA supervisory levies and case-based fees per the FINMA fee schedule, significant-event reporting for changes in key persons, ultimate beneficial owner, business plan or capital, and FinSA client-facing obligations covering client segmentation, suitability, and information duties where you face clients directly. How much does the FINMA licence process cost? FINMA's own fees are public and are set out in the federal FINMA fee schedule, which combines a supervisory levy with case-based charges that vary by licence category. Our own engagement cost is quoted on a scope-specific basis because a FinIA portfolio-manager file, a BankA banking file, a DLT trading facility file, and an SRO affiliation file involve materially different dossier volumes and timelines. We do not publish flat list prices. Request a proposal to get a scoped estimate for your structure. Which Swiss canton is best for a FINMA-regulated firm? Zug for crypto, fintech and DLT, at an effective combined corporate tax rate of 11.85%, with the Crypto Valley ecosystem and responsive cantonal handelsregister. Zurich for traditional asset management, banking counterparties, and proximity to FINMA staff, at 19.61%. Geneva for private wealth and family-office adjacency, at 14.70%. The licensing regime is federal, so FINMA does not care which canton you pick, but your tax profile, banking access, and talent market will. Pricing FINMA Trustee packages — published rates side-by-side with JayBee. For Trustee-mandate licensing under FinIA art. 17. Other FINMA categories (banks, asset managers, insurers, funds) are quoted per matter — different statutory base, different scope. Package Our fee JayBee fee Pack 1: Application preparation CHF 14,900 CHF 18,300 Pack 2: Full assistance (SO + FINMA) CHF 22,900 CHF 28,500 Pack 3: All-in (Business case + contracts) CHF 34,900 CHF 42,000 Business case drafting (standalone) CHF 3,900 CHF 5,200 Outsourcing contract (Switzerland) CHF 2,500 CHF 3,200 Outsourcing contract (foreign) CHF 3,900 CHF 4,800 Trustee agreement CHF 2,900 CHF 4,000 Staff & director agreements CHF 1,900 CHF 2,400 FINMA Non-Action Letter CHF 3,900 CHF 4,800 All fees excl. MWST. FINMA office fees and prudential supervisor (SO) fees are passed through at cost. Banks (BankG), asset managers (FinIA art. 17 portfolio managers), insurers (ISA) and funds (CISA) are quoted per matter. For SRO crypto licence (different track): /specialised/sro-license/ . From our practice What we see on real engagements The patterns below are aggregated observations from engagements we have run, drawn together by the lead specialist on this page. No client identifiers, no privileged transaction detail. Lead specialist on this page: Andreas Furrer — Senior counsel, FINMA & financial-services regulatory. 01 Eligibility before drafting. Roughly half of the enquiries we screen are routed away from a FINMA licence in the first call — usually toward an SRO membership, a sub-threshold structure, or a non-action letter — because the activity does not actually trigger licensing under FinIA, BankA, CISA or AMLA. Money is saved when we tell people they do not need a licence. 02 Capital is rarely the binding constraint. Foreign applicants tend to stress-test capital adequacy first, but the more common rejection driver is governance composition — independent board representation, segregation of duties between investment, risk and compliance, and credible local substance. We rebuild the org chart before we touch the financial model. 03 Documentation drift kills timelines. Late changes to AML policies, business plans or owner-source-of-wealth letters during FINMA review reset the clock by weeks. We freeze the dossier before filing and respond to FINMA queries with marginal annotations, not reissued documents. 04 Two clean operating quarters is the realistic floor for an asset-manager FinIA file from a standing-start corporate vehicle to authorisation; FinTech-licence files run faster, full bank or fund-manager authorisations longer. We give honest ranges in the kick-off, not the optimistic end. Limitations When FINMA licensing isn't the answer You need to launch and operate within weeks: the realistic end-to-end runway for FINMA authorisation is 10 to 24 months, and the statutory 6-month clock only starts once the dossier is ruled complete. You're relying on an existing foreign licence to operate in Switzerland: Switzerland has no passporting regime, foreign credentials do not substitute for a Swiss authorisation. You plan to run the business without genuine Swiss-based staff: FINMA's substance review expects real operational presence beyond the one statutory Swiss-resident signatory, and a brass-plate structure is the single most common rejection lever. Your only clients are entities controlled by the same UBO as the applicant: FINMA reads that as related-party concentration and will question whether a licence, rather than a single-family office structure, is the honest characterisation. Your activity doesn't actually cross a FinIA, BankA, CISA or FMIA threshold: you need SRO affiliation, not a FINMA licence, and filing for a licence you don't need wastes time and capital. Ready to assess your FINMA path? Scope a proposal with a practitioner who has run Swiss authorisation files. First step is an eligibility conversation, not a sale. We map your model to the right licence category, confirm published fees where they apply, and send a written proposal within 24 hours for non-template scopes. Talk to a specialist --- ## Swiss holding company — participation exemption guide URL: https://business-in-switzerland.com/specialised/holding-company Description: Swiss holding company explained: participation exemption under DBG 69-70, post-STAF reality, canton matrix, AG vs GmbH, substance & BEPS, Zug at 11.85%. Swiss holding company — participation exemption guide STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Specialised structure Swiss holding company: participation exemption, canton-selectable, post-STAF reality. A Swiss holding is an AG or GmbH whose income is dominated by qualifying dividends and capital gains, taxed under the participation exemption of DBG art. 69-70. This page is an authority reference on how that works in 2026: what changed after the STAF reform, which canton fits which use-case, the AG vs GmbH trade-off, the substance and BEPS gating factors, and how Switzerland compares to Luxembourg, the Netherlands, Cyprus and Liechtenstein. Request a proposal Written by Lukas Brunner · Reviewed by Marc Wyler Last reviewed: April 2026 At a glance The four numbers every Swiss-holding founder asks about first. Participation-exemption threshold, minimum share capital per entity type, lowest cantonal combined rate, and realistic end-to-end timeline. ≥10% Or CHF 1m participation (dividends) DBG art. 69-70 100k CHF AG min share capital OR art. 621 11.85% Zug combined rate (2026) ESTV / KPMG 2026 4 – 8 wk End-to-end with bank KYC Handelsregister timelines Definition What a Swiss holding company actually is. The first disambiguation every international founder needs: holding is a tax classification applied to a standard Swiss corporation, not a separate legal form. A tax classification, not a separate legal form A Swiss holding company is an AG (Aktiengesellschaft) or GmbH whose primary activity is the long-term acquisition, holding, and management of participations in other companies. The label "holding" sits on top of an ordinary Swiss corporation: there is no separate "holding company" legal form in the Swiss Code of Obligations. The underlying entity is incorporated under the same OR articles as any other AG (art. 620 ff., capital minimum OR art. 621) or GmbH (art. 772 ff., capital minimum OR art. 773), and it is the activity profile and income mix that trigger the holding-specific tax mechanics. Where the holding status comes from Holding status flows from the income composition. When dividends and capital gains from qualifying participations dominate the company's income, the participation exemption under DBG art. 69-70 reduces the federal, cantonal, and communal corporate income tax proportionally to the share of qualifying income in total net income. For a pure holding, that proportional relief approaches a full exemption; mixed-activity companies get a partial, ratio-based deduction. The exemption is the mechanical consequence of the income mix; it is not an elective regime a company opts into. Anonymous or named: AG vs GmbH consequences AG and GmbH are both valid holding vehicles, but they differ on a detail international founders often underestimate: public visibility of owners. An AG keeps its shareholder register private, with only the board and officers publicly listed in the Handelsregister. A GmbH, by contrast, lists its partners (Gesellschafter) publicly, by name and quota, in the commercial register. For institutional holdings, family-office layers, and any structure where the ownership chain is commercially sensitive, the AG is typically the default; the GmbH fits wholly-owned sub-holdings or simple, low-capital structures where transparency is not a concern. The case for Switzerland Why Switzerland for your holding structure. Six reasons, each grounded in Swiss tax law or long-standing market convention, that drive international groups and family offices to choose a Swiss HoldCo over a SOPARFI, a Dutch BV, a Cypriot HoldCo, or a Liechtenstein foundation. 1. Participation exemption, the headline mechanism The participation exemption under DBG art. 69-70 is the single most important tax feature for a Swiss holding. It cuts federal, cantonal and communal tax on qualifying dividends and capital gains proportionally, delivering a near-full exemption for pure holdings. Full mechanics are covered in the dedicated section below; here we note only that the exemption is codified primary law, not a cantonal ruling, and applies equally to domestic and foreign subsidiaries. 2. Treaty network, 100+ double-taxation agreements Switzerland has signed over 100 double-taxation agreements. Most large economies, including all G7 members, the EU member states, major Gulf and Asian jurisdictions, are covered. Treaty reductions bring inbound dividend withholding rates at the subsidiary level down to 0, 5, 10 or 15% depending on shareholding and counterparty rules. On the Swiss outbound side, treaty relief from the 35% Swiss withholding on dividends paid to non-resident shareholders is claimed through the same treaty framework; for qualifying intra-EU parent-subsidiary dividends the CH-EU savings agreement drives the rate to 0%. 3. No standalone CFC regime in Switzerland Under current Swiss tax law Switzerland does not operate a standalone Controlled Foreign Company regime. Foreign-subsidiary profits are not imputed up to the Swiss HoldCo until they are actually distributed or realised. This is a structural differentiator against EU ATAD-CFC jurisdictions and one of the reasons Swiss HoldCos remain attractive for groups with low-taxed operating subsidiaries sitting below, subject always to the home-jurisdiction CFC rules of the ultimate shareholders (see the FAQ on US and EU treatment below). 4. No Swiss withholding on interest and royalties at arm's length Swiss outbound interest on arm's-length intercompany loans and royalties on arm's-length licences are generally not subject to Swiss withholding tax. The 35% withholding is a feature of dividends (and, in limited cases, Swiss bonds); cross-border interest and royalty flows into and out of a Swiss HoldCo move with far less friction than through many EU or low-tax jurisdictions where conditional withholdings now apply. 5. Stamp-duty restructuring relief and the CHF 1,000,000 issuance exemption Swiss issuance stamp (Emissionsabgabe) is 1% on paid-in share capital and additional contributions, with a CHF 1,000,000 lifetime exemption per company under StG art. 5, 6. Qualifying restructuring transactions, such as moving shares of an operating company up into a new Swiss HoldCo in exchange for HoldCo shares, are typically exempt under the restructuring-relief provisions. In practice, a new Swiss holding with capital up to CHF 1,000,000 incurs no issuance stamp at formation, and larger structures can often avoid it through restructuring sequencing. 6. Political and monetary stability, CHF as a reserve currency The non-tax anchor: Switzerland's political neutrality, regulatory predictability, and the status of CHF as a reserve currency translate into lower treasury volatility and lower counterparty-risk premiums for banks and insurers dealing with Swiss HoldCos. For shareholders exposed to volatile home currencies, parking wealth under a CHF-denominated holding is itself a risk-management choice independent of the tax outcome. The headline mechanism Participation exemption: how it actually works. Most competitor pages stop at the word 'exemption'. The mechanics matter for your cap-table and your rulings: two different threshold tests for dividends vs capital gains, a proportional relief formula, and federal-plus-cantonal application. Dividends: thresholds of ≥10% or ≥ CHF 1 million For dividend income, a Swiss holding qualifies for the participation exemption if it holds at least 10% of the subsidiary's share capital or participation rights, or if the participation has a market value of at least CHF 1,000,000 at the start of the fiscal year. Either threshold alone is sufficient, and there is no minimum holding period for dividends. Domestic and foreign subsidiaries are treated equally on eligibility; the underlying subsidiary does not need to be subject to a Swiss or EU rate. Capital gains: ≥10% and ≥12 months For capital gains on the disposal of subsidiary shares the thresholds are tighter: the participation sold must represent at least 10% of the subsidiary's share capital, and it must have been held for at least 12 months before disposal. Partial sales of a qualifying participation (below the 10% threshold post-sale) still qualify on the portion sold, provided the holding rules were met at the moment of disposal. Recaptured depreciation, previously booked write-downs that are reversed on sale, does not qualify for the exemption and is taxed at the ordinary cantonal combined rate. How the proportional relief is computed The relief is calculated as the ratio of net qualifying income (qualifying dividends plus qualifying capital gains, minus attributable administration and financing expenses) divided by total net income of the company for the year. That ratio is then applied to the pre-exemption corporate tax. For a pure holding with virtually no operating income, the ratio approaches 1.00 and the tax on qualifying income approaches zero; for a mixed-activity company the ratio is lower and the exemption delivers only partial relief. Cost allocation between the holding leg and any operating leg is the single most scrutinised point in cantonal rulings. Worked example, pure holding earning CHF 5m dividends Take a pure Swiss HoldCo in Zug that earns CHF 5,000,000 in qualifying dividends from a 100% operating subsidiary and incurs CHF 200,000 of administrative and financing costs. Net qualifying income is CHF 4,800,000; total net income is CHF 4,800,000; the exemption ratio is 1.00. The participation exemption neutralises approximately the full cantonal combined rate (11.85% in Zug in 2026) on qualifying income, and a small residual applies only to non-qualifying items such as interest on the cash float. This is an illustrative example, not tax advice; actual outcomes depend on cost allocation and the cantonal ruling. Federal, cantonal, and communal application The exemption applies at all three levels: federal (direct federal tax, DBG), cantonal (cantonal corporate income tax), and communal (municipal surcharge). Since the cantonal and communal layers usually make up roughly two thirds of the total corporate tax burden, the cantonal side of the exemption is where most of the saving sits. This in turn makes the canton-choice question downstream, not upstream, of the exemption itself: every Swiss canton grants the exemption, but the residual tax on non-qualifying income is lowest in Zug, Lucerne, Schwyz, Nidwalden and Obwalden. The 2020 reform The post-STAF reform: what changed, what it means now. Most peer pages still reflect the pre-2020 regime. Here is the honest delta and why a modern Swiss holding is, in several cantons, more durable after the reform than before it. What ended: the legacy cantonal holding-privilege regimes Before the 2020 reform, Swiss cantons operated three privileged tax regimes, the cantonal holding company, the domiciliary company, and the mixed company, that either fully or partially exempted qualifying income from cantonal and communal tax. These legacy regimes ended on 31 December 2019 under STAF (federal Tax Reform and AHV Financing package, known by its French acronym RFFA), which the Swiss electorate approved on 19 May 2019 and which took effect on 1 January 2020. The reform was a response to OECD pressure to remove ring-fenced cantonal preferences. What replaced it: OECD-aligned tools The reform replaced the privileged regimes with a toolkit that is available to every Swiss company on the same terms. The headline federal-level instrument is the codified participation exemption under DBG art. 69-70, still in force. At the cantonal level, each canton must now offer a patent box, may offer an R&D super-deduction of up to 150% of eligible expense, and may apply a notional interest deduction on equity (in cantons that meet a statutory rate threshold). Headline cantonal rates were cut across the country: Ticino alone dropped 3.11 percentage points, Basel-Land 2.45 percentage points, and Zug came down to the 11.85% combined figure in force in 2026. Net effect on a modern Swiss holding For a genuine holding with a clean participation-exemption profile, the pre- and post-reform economic outcome is broadly equivalent. What changed is the legal certainty: the exemption is now codified primary federal law plus explicit cantonal implementation, rather than a cantonal-privilege regime liable to be withdrawn. For operating subsidiaries held under the Swiss HoldCo, the cantonal-rate cuts have net reduced the forward tax burden in every canton we typically recommend. IP-holding tools Patent box and R&D super-deduction. Cantonal-level tools that matter for IP-holding patterns. A small holding with qualifying patents can elect the regime; the combined TRAF cap keeps the total relief from dropping the effective rate below roughly a third of statutory. What qualifies as patent income Patent-box treatment applies to net income derived from qualifying rights: patents as defined under the European Patent Convention, supplementary protection certificates, and comparable rights. Trademarks and most copyrights are excluded in every canton. Eligible income is calculated on a modified nexus basis: qualifying income is reduced by a nexus ratio that measures the share of qualifying Swiss-borne R&D expenditure in total R&D expenditure for the product. Under StHG art. 24a, cantons may exempt up to 90 percent of qualifying net IP income from the cantonal taxable base. R&D super-deduction: up to 150% of eligible expense Cantons may, at their discretion, grant an additional deduction on qualifying Swiss R&D personnel expense and contract research, bringing the allowable deduction to up to 150% of the actual expense. The exact cap is set per canton (many cantons apply 150%; a few apply lower ceilings), and the deduction is available to any Swiss company, holding or operating, that runs eligible Swiss R&D activity. Combined relief cap of 70 percent To keep the cumulative effect of the post-STAF toolkit within OECD expectations, StHG art. 25b (Entlastungsbegrenzung) caps the total reduction from the patent box, the R&D super-deduction, and any cantonal capital-tax reduction at 70 percent of cantonal taxable profit in any single year. Cantons may adopt a stricter cap. The practical effect is a floor: a Swiss HoldCo with significant qualifying IP can never drop its effective cantonal rate below 30 percent of the canton's statutory combined rate. For a holding structure with mixed IP and portfolio income, that floor is rarely binding; for a pure IP-HoldCo it becomes the planning constraint. Where your holding lives Canton selection: the 2026 combined-rate matrix. Every Swiss canton grants the participation exemption; what differs is the residual rate on non-qualifying income, plus the ecosystem (banks, talent, cantonal ruling culture). Rates below are at each canton's main city and are re-verified annually. Rates are at the canton's main city and can differ by approximately ±1 percentage point in other municipalities. Last verified against ESTV and KPMG Clarity on Swiss Taxes (2025 / 2026). Tilde "~" marks point estimates; definitive numbers require a quote from the cantonal tax authority. Canton Combined rate (2026) Note Zug (ZG) 11.85% Default for pure holding vehicles. Appenzell Innerrhoden (AI) ~11.5% Lowest headline rate nationally. Nidwalden (NW) ~11.9% Low-cost small canton; often overlooked. Lucerne (LU) ~12.3% Close-cost alternative to Zug. Obwalden (OW) ~12.7% Low-cost rural canton. Basel-Stadt (BS) ~13.0% Pharma and life-sciences cluster. Schwyz (SZ) ~14.0% Alpine low-cost alternative. Ticino (TI) ~14.0% Italian-speaking gateway; STAF cut of 3.11 pp. Geneva (GE) 14.70% Private-banking and commodity cluster. Vaud (VD) 14.72% French-speaking west; Lausanne / Nyon. Zurich (ZH) 19.61% Banking, finance and talent depth. Zug, the default for pure holding vehicles Zug has the lowest aggregate effective rate (11.85% combined in 2026) among the large-enough cantons with full infrastructure. Its ecosystem, Swiss notaries used to international founders, English-speaking cantonal tax administration, a dense cluster of law firms, trust companies and fiduciaries, and rapid commercial-register turnaround, is the reason Zug is the default for pure holding and crypto / DLT holdings. See Zug (11.85% effective rate) for the full cantonal profile. Zurich, when you need financial-services and talent depth Zurich's combined effective rate (19.61% in 2026) is higher, but the trade-off is banking, asset management, fintech, and senior talent depth that no other canton matches. For holdings that will also run treasury, asset management, or a financial-services operating layer, Zurich's rate premium is often amortised by access-to-banking and access-to-talent gains that Zug cannot match at scale. Geneva, for Mediterranean, African and French-speaking shareholder bases Geneva's effective rate (14.70% in 2026) sits between the low-cost alpine cantons and Zurich. Its private- banking cluster, commodity-trading community, wealth-management infrastructure, and French-language working environment make it the default for holdings whose ultimate shareholders are based in French-speaking Europe, the Middle East, or North and sub-Saharan Africa. Lucerne, Schwyz and Nidwalden, low-cost alternatives For holdings whose operating substance is modest and whose priority is cost minimisation without the full Zug ecosystem, Lucerne (~12.3%), Schwyz (~14.0%) and Nidwalden (~11.9%) are strong alternatives. The smaller cantons have shorter registry queues and less administrative complexity, at the cost of a thinner fiduciary-services pool. They fit best when the board, notary, and bank relationships are already set up before the canton pick is finalised. Legal-vehicle choice Choosing the legal vehicle: AG or GmbH as a holding. The participation exemption is entity-agnostic, but the public-disclosure profile, share-transfer mechanics and capital floor differ. Most institutional holdings pick the AG; the GmbH fits wholly-owned sub-holdings and simple, low-capital structures. AG (Aktiengesellschaft): the institutional default The AG is Switzerland's joint-stock corporation: minimum share capital CHF 100,000 (OR art. 621), minimum paid-in CHF 50,000 or 20% of subscribed capital whichever is higher (OR art. 632), freely transferable registered shares since the 2019 bearer-share reform, and a statutory Swiss-resident signatory requirement (OR art. 718.4). The shareholder register is kept privately by the company; only board and officers appear in the public Handelsregister. The AG is the default for institutional holdings, PE and family-office vehicles, and any structure with a multi-party cap-table or a planned equity round. For the incorporation mechanics, see our overview of minimum share-capital rules for an AG . GmbH (Sàrl / Società a garanzia limitata): simplicity and lower capital The GmbH has a lower capital floor of CHF 20,000 fully paid-in at incorporation (OR art. 773, 777c) and requires at least one Swiss-resident managing officer (OR art. 814.3). Partners (Gesellschafter) are listed by name and quota in the public Handelsregister. Quota transfers generally require notarised assignment and, unless the articles of association provide otherwise, consent of the remaining partners. The GmbH fits wholly-owned sub-holdings within a larger group, founder-staged builds where capital is added incrementally, and structures where public transparency of ownership is not a concern. For the incorporation specifics, see the GmbH alternative . Same tax treatment either way A recurring misconception is that the AG benefits from a better tax regime than the GmbH. The participation exemption under DBG art. 69-70, the cantonal corporate income tax, the patent box, the R&D super-deduction, the substance and PPT rules, the 35% Swiss dividend withholding and its treaty reductions, all apply identically to AG and GmbH. The tax outcome of a holding is driven by activity mix, canton, and substance, not by the choice between AG and GmbH. That choice is a privacy, governance, and share-transferability decision. Three dominant patterns Common Swiss-holding structure patterns. The three patterns we set up most often: pure investment holding, operating holding with trading subsidiaries, and IP holding with cross-border royalty flows. Each has a distinct ruling profile and substance footprint. Pure holding One Swiss HoldCo over one or more operating subsidiaries. Dividends and capital gains flow up; the HoldCo has no operating income of its own. Near-full participation-exemption profile. The default for family offices, PE portfolio parents, and group HQs with no trading activity. Ruling profile: straightforward. Substance footprint: board, office, minutes. Canton: Zug typical. Operating holding Swiss HoldCo with a trading subsidiary (typically a Swiss operating AG) and passive investment subsidiaries alongside. Mixed-income treatment applies: the exemption ratio is below 1, and cost allocation between the holding leg and the trading leg becomes the cantonal-ruling focus. Ruling profile: requires cost-allocation agreement. Canton: Zug, Lucerne, or where the trading hub sits. IP holding Swiss HoldCo owns patents and, where relevant, trademarks; it licences the IP to operating subsidiaries abroad for arm's-length royalties. Cantonal patent-box and R&D super-deduction mechanics apply on the royalty income. Substance footprint is heavier: Swiss decision-making on IP exploitation must be demonstrable. Ruling profile: detailed patent-nexus calculation. Canton: Zug, Lucerne or patent-box-favourable canton. Jurisdictional comparison Swiss holding vs Luxembourg, Netherlands, Cyprus and Liechtenstein. The comparison most international founders arrive with. Eight dimensions in a single matrix, followed by the head-to-head reasoning on each alternative. Dimension Switzerland Luxembourg Netherlands Cyprus Liechtenstein Headline effective rate ~11.85–19.61% (canton) ~24.9% ~25.8% 12.5% 12.5% (flat) Participation exemption threshold ≥10% or CHF 1m (dividends) ≥10% or EUR 1.2m ≥5% Generally full on dividends Generally full on dividends EU parent-subsidiary directive Via CH–EU agreement (0% qualifying dividends) Yes (EU member) Yes (EU member) Yes (EU member) EEA access IP regime Cantonal patent box + R&D super-deduction IP box (80% exemption qualifying) Innovation box IP box No patent box; foundation toolkit Treaty network 100+ DTAs ~85 DTAs ~100 DTAs ~65 DTAs ~20 DTAs Substance scrutiny High (PPT, CH ruling culture) High (post-ATAD) Very high (post-ATAD) Moderate / reputational Moderate CFC rules (home-jurisdiction style) No standalone CFC regime Yes (ATAD-CFC) Yes (ATAD-CFC) Yes (ATAD-CFC) No standalone CFC regime Currency CHF (reserve currency) EUR EUR EUR CHF Switzerland vs Luxembourg (SOPARFI) Luxembourg's SOPARFI benefits from direct EU parent-subsidiary directive access and a mature participation-exemption regime, which is the strongest card in the EU-centric deck. Switzerland counters with no standalone CFC regime, no Swiss withholding on arm's-length outbound interest and royalties, political and monetary stability (CHF), and deeper private-banking infrastructure. For holdings whose ultimate shareholder base is EU-resident and whose subsidiaries are EU-based, SOPARFI remains competitive; for holdings with non-EU shareholders, wealth-management layers, or family-office integration, Switzerland typically wins on quality and legal certainty. Switzerland vs Netherlands The Netherlands operates a longstanding participation exemption with a lower threshold (≥5%, compared to Switzerland's 10% or CHF 1m). Post-ATAD, the Dutch regime has tightened anti-abuse rules significantly, added a conditional withholding on dividends paid to low-tax jurisdictions, and operates a very high substance standard. For a clean, well-structured holding either jurisdiction works; the Netherlands is often cheaper to run at small scale, Switzerland pulls ahead as complexity, assets, and reputational scrutiny increase. Switzerland vs Cyprus Cyprus has a flat 12.5% corporate rate and a broad participation exemption for dividends. The trade-off is a thinner treaty network (~65 DTAs vs Switzerland's 100+), periodic reputational scrutiny, and a less developed private-banking infrastructure. Cyprus fits simple, low-cost holding structures over modest assets; Switzerland is the better choice once the complexity, the asset base, or the shareholder profile require legal certainty and banking depth. Switzerland vs Liechtenstein (often complementary) Liechtenstein operates a 12.5% flat corporate tax and has a well-developed foundation law for succession structures. In practice, a large share of holding engagements we see are not CH-vs-LIE but CH-plus-LIE: a Swiss HoldCo below a Liechtenstein foundation, with the foundation holding the HoldCo shares for succession purposes. For sophisticated wealth-structuring integration, see our family-office overview . Substance & BEPS Substance requirements and the BEPS / PPT framework. Post-BEPS, substance is gating for treaty access. The Swiss HoldCo must be a real company operating from Switzerland, not a mailbox: office, resident board member with authority, decisions documented as taken in Switzerland. What substance means in practice Swiss substance means a verifiable physical office in Switzerland (not a mail-forwarding address); at least one Swiss-resident board member or managing officer who genuinely participates in management decisions; board meetings physically held in Switzerland (or validly attended from Switzerland); and contemporaneous minutes that record strategic decisions as being taken from Switzerland. For most holdings, two to four board meetings per year, minuted in English, held in the Swiss office, meet the standard. The exact substance depth scales with the size and complexity of the holding and with the shareholder jurisdictions' own CFC and PPT rules. The OR residency requirement (art. 718.4 / 814.3) The statutory minimum is one Swiss-resident authorised signatory with signing authority: an AG must have at least one representative with signing power resident in Switzerland (OR art. 718.4), and a GmbH must have at least one managing officer resident in Switzerland (OR art. 814.3). This is the floor, not the ceiling: meeting OR art. 718.4 alone does not automatically satisfy treaty-substance requirements, and foreign tax authorities will look beyond the register entry to whether the resident officer actually exercises management. Nominee directors: the substance trap A nominee director who signs filings but does not genuinely participate in management has become an increasingly problematic pattern under PPT and home-country anti-abuse scrutiny. The right approach is a resident director who is senior enough to exercise real authority, who attends board meetings in Switzerland, and whose involvement in decisions is minuted and correspondence-traceable. Our Swiss-resident director engagement is built around real-authority placement, not signature-only coverage; it is deliberately scoped so that the holding's treaty position is defensible rather than technically compliant on paper only. The Principal Purpose Test (PPT) under the OECD MLI Under the OECD Multilateral Instrument, to which Switzerland is a party, tax treaty benefits can be denied where it is reasonable to conclude that obtaining the benefit was one of the principal purposes of the arrangement, unless granting the benefit is consistent with the object and purpose of the relevant treaty provisions. Practically, this means every Swiss HoldCo accessing DTA benefits needs a contemporaneous business-rationale file: why Switzerland was chosen, what non-tax benefits the Swiss HoldCo delivers (access to talent, banking, political stability, operational centralisation), and how the Swiss substance supports that rationale. The file is cheap to build at formation and expensive to reconstruct years later in an audit. CRS / AEOI and the AMLA beneficial-ownership register Switzerland participates in the OECD Common Reporting Standard and in Automatic Exchange of Information, and Swiss banks report account-holder data to the competent authorities of the holder's country of tax residence. Separately, under the revised Anti-Money-Laundering Act, every Swiss legal entity maintains an internal beneficial-ownership register for persons crossing the 25% threshold; the register is not public but is accessible to Swiss authorities on request. A Swiss HoldCo designed today is designed with full transparency as a baseline assumption, not a compliance cost. Realistic timeline Forming the Swiss holding: end-to-end 4 to 8 weeks. The notarial deed to Handelsregister entry step is fast. The two real bottlenecks are structuring quality (before day one) and bank KYC (after day one). An honest range with an explicit bank-KYC overhang is more useful than a single-number quote. Step 1. Pre-incorporation structuring (1 to 2 weeks) Before any document is drafted, the structure is mapped: which subsidiaries sit below the HoldCo, which assets contribute, which DTAs apply to intercompany flows, what the target substance looks like, and which canton fits. For existing groups, share-for-share exchange mechanics and stamp-duty restructuring-relief sequencing are planned here. A weak HoldCo is almost always a HoldCo whose structuring week was skipped. Step 2. Name reservation, draft articles, purpose clause Name availability is checked on zefix.ch. Articles of association are drafted; the corporate purpose clause must explicitly reference the long-term acquisition, holding, and management of participations in other companies (direct and indirect), and may name the related activities the HoldCo will actually perform (treasury, financing, IP licensing, group-service coordination). The purpose clause is load- bearing for the cantonal ruling; it is not boilerplate. Step 3. Share-capital deposit and bank KYC (the long pole) The paid-in portion of the share capital is deposited on a Swiss consignment account, where it stays blocked until the Handelsregister entry is issued. Opening that account, plus preparing the customer due-diligence file that the bank and its compliance function require, is the single most time-sensitive step: 2 to 6 additional weeks depending on the bank, the shareholder chain complexity, and the source-of-funds documentation. For foreign founders, this step benefits from a preparation sprint; see our guide on opening a Swiss bank account as a non-resident . Step 4. Notarial deed and Handelsregister entry A Swiss notary executes the incorporation deed (Gründungsurkunde), which includes the articles of association and the board composition. The deed is filed with the cantonal commercial register (Handelsregister), which checks formalities and publishes the entry in the Swiss Official Gazette of Commerce (SOGC). Register turnaround is typically 5 to 10 business days; Zug and Schwyz are on the faster end. Step 5. Post-incorporation, tax registration and substance setup Once the register entry is issued and the capital is released, the HoldCo registers with the cantonal tax authority, optionally with the federal VAT authority (any VAT recovery on holding activities is limited and activity-dependent; a specialist review is advisable), files for the cantonal ruling on the participation-exemption profile, and the substance package (office lease, board regulations, minutes cadence, UBO register) goes live. Substance set up from day one is defensible; substance retrofitted two years later is not. Step 6. End-to-end, 4 to 8 weeks typical For a clean setup with an EU or OECD-standard shareholder chain, 4 to 5 weeks is achievable. With enhanced-due-diligence shareholder jurisdictions or complex source-of-funds documentation, 6 to 8 weeks is more typical. Anything beyond 8 weeks usually points to a stalled bank KYC; in those cases the notarial step is completed on a different, faster bank, and the operating-bank relationship is negotiated in parallel post-incorporation. Our engagement How business-in-switzerland.com runs a Swiss-holding engagement. Procedural, senior-led, fixed fees on individual services and a written proposal for the integrated mandate. A single Swiss counterparty for structuring, incorporation, cantonal ruling, substance setup, and first-year compliance. What we deliver A standard Swiss-holding engagement covers: structure design and cantonal-canton fit review; articles of association with the holding purpose clause; notarial coordination and Handelsregister filing; bank- consignment-account opening and CDD preparation; cantonal tax-ruling submission and negotiation; substance package (office, board composition, minutes cadence, UBO register); and the hand-over to first-year compliance under a separate accounting and tax engagement. The exact scope is fixed in the engagement letter; no two holdings are identical. Who sits on the file Holding engagements are senior-led. Our team are Swiss-law-trained lawyers (Swiss university law faculty), each with Big-4 fiduciary experience at career entry and 8 to 12 years of practice in Swiss corporate and tax work. Every holding file runs with a lead lawyer plus a Swiss-resident board placement where applicable. We do not staff junior-only on holding engagements; the cantonal ruling and PPT file are not a template exercise. How to engage The first step is a 30-minute structuring call. We scope the shareholder chain, the canton fit, the substance profile, the timeline, and the cantonal-ruling path. Following the call we send a scoped written proposal covering every step, including fixed-scope and hourly-scope components, with clear inclusions and exclusions. See our engagement process for the engagement model end-to-end. For regulated-entity angles (fund management, DLT trading venues, licensed asset management), see our FINMA-licensed structures overview. Last reviewed: 2026-04-24. This page is an information reference, not individual tax or legal advice; every holding engagement is scoped to the specific facts and subject to a senior-lawyer review before any filing is made. FAQ Frequently asked questions. Thirteen answers mapped to the top PAA queries for Swiss holding companies. FAQPage schema emitted in the @graph above matches every answer byte-for-byte. What makes a Swiss company a "holding"? A Swiss company becomes a holding when its principal activity is acquiring, holding, and managing long-term participations in other companies and its income is dominated by qualifying dividends and capital gains. Holding is a tax classification, not a separate legal form: the underlying company is still an AG (OR art. 621) or GmbH (OR art. 773). What's the participation exemption, in plain English? A proportional reduction of Swiss corporate income tax that approaches a full exemption for a pure holding company. The relief equals net qualifying income divided by total net income (DBG art. 69-70). Do I need 10% ownership for the exemption? For dividends, yes, or at least CHF 1,000,000 in market value of the participation; no minimum holding period applies. For capital gains the thresholds are stricter: at least 10% and held at least 12 months. What about capital gains on subsidiary sales? Qualifying if the participation sold represents at least 10% of share capital and was held for at least 12 months before disposal. Recaptured depreciation (previously claimed write-downs) does not qualify for the exemption. Did the 2020 STAF reform kill the Swiss holding advantage? No. The post-STAF reform ended the legacy cantonal holding-privilege regimes on 31 December 2019 but codified the participation exemption at both federal and cantonal level and cut cantonal rates. For a genuine holding, the effective outcome is broadly equivalent and, in several cantons, more legally durable. What's a patent box, and can a small holding use it? A cantonal deduction applied to net patent and qualifying-IP income. Any Swiss company, including a modestly-sized IP-holding structure, can elect the regime if it holds qualifying rights. A combined cap under the post-STAF rules prevents total relief from exceeding up to roughly 70% of statutory profit in any year, with the exact cap set by each canton. Which canton is best for a holding? For pure portfolio or investment holdings, Zug (11.85% combined rate, 2026) is the default. Lucerne, Schwyz, Nidwalden and Obwalden are close-cost alternatives. Zurich (19.61%) or Geneva (14.70%) make sense when banking or talent depth matters more than the last few basis points. Can I use a GmbH as a holding? Yes. A GmbH (minimum CHF 20,000 fully paid-in, OR art. 773) is a valid holding vehicle and benefits from the same participation exemption as an AG. The trade-off is that GmbH partners are listed publicly in the commercial register, where AG shareholders are not. What substance do I need to have in Switzerland? A verifiable physical office in Switzerland, at least one Swiss-resident authorised signatory under OR art. 718.4 (AG) or art. 814.3 (GmbH) who genuinely participates in management, board meetings held in Switzerland, and contemporaneous documentation that strategic decisions are taken from Switzerland. How does Switzerland compare to Luxembourg for holdings? Luxembourg offers EU parent-subsidiary directive access and a well-developed SOPARFI regime, which favours EU-centric groups. Switzerland counters with no standalone CFC regime under current Swiss tax law, no Swiss withholding on outbound interest and royalties at arm's length, political and currency stability (CHF), and stronger private-banking infrastructure. For non-EU shareholder bases and family-office layers, Switzerland usually wins on quality and legal certainty. Will the US or EU treat my Swiss holding as a CFC? That depends on the home jurisdiction's own CFC rules; Switzerland itself has no standalone CFC regime under current Swiss tax law. Sufficient Swiss substance, a real office, a genuinely active Swiss board member, documented local decision-making, plus a business-rationale file addressing the OECD Principal Purpose Test under the Multilateral Instrument is the baseline defence. Is there stamp duty when I move shares into my new Swiss holding? The Swiss issuance stamp (Emissionsabgabe) is 1% on paid-in capital and additional capital contributions, with a CHF 1,000,000 lifetime exemption per company (StG art. 5, 6). Qualifying restructuring transactions are generally exempt. Can a Swiss holding own crypto assets or DLT tokens? Yes. Swiss holdings routinely own DLT-based securities and other tokenised assets. Depending on the token, FINMA authorisation thresholds may apply at the portfolio-manager or trading-venue layer rather than the pure holdco layer. For the regulated-entity angle, see our FINMA-licence overview. From our practice What we see on real engagements The patterns below are aggregated observations from engagements we have run, drawn together by the lead specialist on this page. No client identifiers, no privileged transaction detail. Lead specialist on this page: Lukas Brunner — Senior partner — corporate formation and cross-border structures. 01 The Swiss holding pays for itself through the structure, not the rate. The participation exemption (DBG art. 69-70) drives the economics, not the headline cantonal rate. We have run scenarios where moving a holding from a 12% headline canton to an 11% headline canton was the wrong call once we modelled the substance and ruling cost difference. 02 Substance discipline first, ruling second. We map the planned headcount, board composition, signatory list and meeting cadence before we approach the canton for an advance ruling. Cantons that issue rulings against thin substance later become cantons that audit the same substance — better to be conservative on day one. 03 Patent box and R&D super-deduction interact non-linearly with the inter-cantonal allocation key. A naive electron-flow calculation tends to overstate cantonal benefit. We rebuild the post-STAF allocation in a working spreadsheet during the scoping call so the CFO sees the real number. 04 STAF did not kill the Swiss holding: it normalised it. The post-2019 federal-and-cantonal participation exemption regime is more legally durable than the legacy cantonal holding privilege it replaced. Foreign founders rebuilding from a Cyprus, Maltese or Luxembourg holding rarely complain after the move. Limitations When a Swiss holding doesn't make sense. You need same-day or same-week setup: realistic end-to-end formation is 4 to 8 weeks, and bank KYC (2 to 6 additional weeks) is the actual bottleneck, not the notarial or registry steps. Your participation stake is below 10% and under CHF 1,000,000 in market value: it doesn't clear the dividend threshold for the participation exemption, and a capital-gain sale needs both 10% and a 12-month holding period to qualify. You're relying on Switzerland to shield your group from home-country CFC rules: Switzerland itself has no standalone CFC regime, but that doesn't override the CFC rules your own shareholders' home jurisdictions may apply. Your only Swiss presence is a nominee director who signs filings but doesn't participate in management: that's an increasingly problematic pattern under PPT and home-country anti-abuse scrutiny, not a substitute for genuine substance. You're building a pure IP-holding structure expecting near-total relief: the combined patent-box and R&D-super-deduction cap limits total relief to 70% of cantonal taxable profit, so the effective rate can't drop below roughly 30% of the canton's statutory rate. Next step Ready to structure your Swiss holding? Tell us your shareholder chain, the canton you have in mind, and the target substance footprint, or let us map it with you. We return a scoped proposal covering structuring, incorporation, cantonal ruling and the first year of compliance. No price-list, no template quotes. Request a proposal --- ## Swiss SRO crypto licence: VQF, SO-FIT, PolyReg URL: https://business-in-switzerland.com/specialised/sro-license Description: SRO membership for crypto, payment, exchange and brokerage businesses. VQF, SO-FIT or PolyReg. CHF 9,900 application fee. Full AML and compliance package. Swiss SRO crypto licence: VQF, SO-FIT, PolyReg STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content 01 · SRO crypto licence VQF, SO-FIT or PolyReg — the Swiss crypto-licence path. SRO membership covers crypto, payment, exchange, custody and brokerage operations under Swiss AML supervision. CHF 9,900 application fee, 2–5 month timeline, full compliance pack on top. Faster and cheaper than a FINMA licence. Request a proposal Written by Andreas Furrer · Reviewed by Lukas Brunner Last reviewed: April 2026 02 · Three SROs VQF, SO-FIT, PolyReg — same legal effect, different fit. 01.01 VQF Verein zur Qualitätssicherung von Finanzdienstleistungen. Largest Swiss SRO. Recognised member directory used by counterparties and banks. Strong fit for general financial-intermediary activity. 01.02 SO-FIT Organisme d'autorégulation fondé par le GSCGI et le SAAM. French-speaking-Switzerland orientation. Strong fit for asset-management and trustee operations in Geneva, Lausanne, Vaud. 01.03 PolyReg PolyReg Allgemeine Selbstregulierungs-Vereinigung. Swiss-German speaking, Zurich-based. Generalist scope. Often chosen for crypto-asset and DLT operators. 03 · Pricing Application + ongoing compliance, side by side with JayBee. Service Our fee JayBee fee SRO application (all-incl, excl. company formation & IT) CHF 9,900 CHF 15,000 (JayBee) AML Policy (customised) CHF 2,900 CHF 3,800 (JayBee) AML Officer outsourcing (monthly) CHF 790 / month CHF 960 / month (JayBee) Compliance Officer outsourcing (monthly, incl. AML) CHF 890 / month CHF 1,080 / month (JayBee) Risk Manager outsourcing (monthly) CHF 890 / month CHF 1,080 / month (JayBee) AML training (group, per person) CHF 290 / person CHF 380 / person (JayBee) AML training (private, up to 5 people) CHF 1,900 CHF 2,280 (JayBee) Compliance support (hourly) CHF 220 / hour CHF 270 / hour (JayBee) FINMA Non-Action Letter CHF 3,900 CHF 4,800 (JayBee) Regulatory Assessment CHF 2,500 CHF 3,200 (JayBee) Terms & Conditions (customised) CHF 1,900 CHF 2,800 (JayBee) Privacy & Data Protection Policy CHF 990 CHF 1,400 (JayBee) Fees excl. MWST. SRO application excludes company formation (CHF 990 GmbH or CHF 1,490 AG, see /services/company-formation/) and IT infrastructure. SRO\'s own annual membership fee is paid directly to the SRO and varies by member. 04 · What SRO membership enables Activity scope under Swiss AML supervision. 04.01 Payment services in Swiss francs and foreign currencies 04.02 Crypto-asset payments, custody and exchange (CEX or FX) 04.03 Card issuance under partnership with a regulated issuer 04.04 Brokerage and trading on behalf of clients 04.05 FinTech sandbox: deposits up to CHF 1m without a banking licence 04.06 Lending operations within SRO scope 05 · Process Assessment → policy pack → filing → membership. 01 Regulatory assessment CHF 2,500 fixed. We confirm SRO is the right path versus a FINMA licence or non-action letter. 5–10 working days. 02 AML / compliance pack AML policy, risk catalogue, T&Cs, privacy policy drafted to the SRO's template. 3–4 weeks. 03 Application filing CHF 9,900 fixed for the SRO application itself (excl. company formation and IT). Filed with VQF, SO-FIT or PolyReg depending on fit. 04 Membership granted 2–5 months from filing to membership. We respond to SRO clarifications, run interviews if requested, and bring you over the line. 06 · FAQ Frequently asked questions. What is the difference between SRO membership and a FINMA licence? SRO membership covers AML supervision under the Anti-Money Laundering Act for "financial intermediaries" — payment services, exchange, custody, lending. FINMA licences cover prudential supervision for banks (BankG), portfolio managers and trustees (FinIA), insurers (ISA) and funds (CISA). Many crypto and payment businesses need only SRO membership; a small subset need FINMA on top. The regulatory assessment determines which. Why is this called the "Swiss Crypto Licence"? Marketing shorthand. There is no licence specifically named "Swiss Crypto Licence" in Swiss law. The combination of SRO membership and an appropriate corporate structure is what enables most crypto-asset businesses to operate compliantly. The Financial Market Infrastructure Act was extended in 2021 with the "DLT Act" amendments to cover DLT trading facilities and tokenised securities: that is also part of the Swiss regulatory framework for crypto. How long does the SRO application take? 2 to 5 months from filing. Bottlenecks are usually the policy drafting (3–4 weeks if we lead) and the SRO's own examination queue (4–12 weeks depending on application volume). Faster than a FINMA licence (6–18 months) and far less expensive. Which SRO should I pick? VQF for generalist scope and the largest member directory. SO-FIT for French-speaking operations or asset-management focus. PolyReg for Zurich-based crypto operators. Activity scope is similar across all three; differences are in cultural fit, language of supervision and member directory recognition. We advise during the regulatory assessment. Do I need a Swiss company first? Yes. SRO membership is granted to a Swiss legal person. Either form a fresh GmbH or AG (3–6 weeks, see /services/company-formation/) or buy an SRO-pre-licensed Mantel (immediate, see /services/shelf-company/, from CHF 190,000). What ongoing compliance is required? Annual AML audit by the SRO, monthly transaction monitoring, periodic refresher training. We outsource AML officer (CHF 790/mo), compliance officer (CHF 890/mo) or risk manager (CHF 890/mo) functions to keep your in-house cost down. Can I get a FINMA non-action letter instead? Sometimes. A non-action letter is FINMA confirming that a specific business model does not require a licence under their interpretation. Useful if you operate close to the line on FinIA or BankG. We draft and submit the request for CHF 3,900. Response from FINMA typically takes 4–8 weeks. 07 · Limitations When SRO membership isn't the right path. Your activity needs full FINMA authorisation, not just AML supervision: SRO membership only covers financial-intermediary AML obligations, banking, portfolio-management and fund activities need a FINMA licence under BankG, FinIA or CISA instead. You don't yet have a Swiss company: SRO membership is granted only to a Swiss legal person, so you need a fresh GmbH or AG (3–6 weeks) or a pre-licensed shelf company first. You plan to take public deposits above CHF 1,000,000 without a banking licence: that is above the FinTech sandbox ceiling and outside what SRO membership alone authorises. You need a decision in weeks rather than months: SRO membership still runs 2 to 5 months from filing to membership, faster than a FINMA licence (6–18 months) but not instant. You want company formation and IT infrastructure bundled into the fees above: both are excluded from the quoted SRO figures and priced separately. 08 · Get started Tell us the activity scope. Send a one-paragraph description of the business: payment, exchange, custody, lending or other. We confirm SRO is the right path (vs FINMA), recommend VQF / SO-FIT / PolyReg, and quote the full mandate within 24 hours. Request a proposal --- ## The team — 5 Swiss-trained specialists in Zug URL: https://business-in-switzerland.com/team Description: Meet the five specialists behind business-in-switzerland.com — Swiss-law-trained, English-first, based in Zug. Corporate formation, FINMA, tax, VAT, permits. The team — 5 Swiss-trained specialists in Zug STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Who will sit on your file The team — 5 Swiss-trained specialists, English-first Five named specialists, one Zug office at Baarerstrasse 14, one working language. Corporate and holding, FINMA, cantonal tax, accounting and VAT, immigration. No head-office theatre, no partner-cast-of-thousands slide. Talk to us Orientation How to read this page Five cards below, each one specialist. Role label describes what they do, not equity status. One intake route to any of them. What you will see on each card Each card carries a portrait, a full name, a role label and a one-line specialisation blurb. The role label is the canonical description of the specialist’s work on our file, not a statement about partnership status or firm equity. For questions about the firm’s legal form, see our story and office . Why there are no personal emails here All enquiries go through a single intake address, info@business-in-switzerland.com , so we can route them to the right lead and keep a clean record on the engagement file. Tell us in the contact form who you would like to speak to; we forward the message within one business day. The same rule applies to phone — we do not publish a line, because a misrouted voice call without context costs both sides a second conversation. A note on the portraits The portraits on this page show our consulting team as they work from the Zug office. Every named specialist is real and reachable via the contact form. The five The team One pod per specialisation area. Lead and co-lead models are described under ‘How we work together’ further down the page. LB Lukas Brunner Senior partner — corporate formation and cross-border structures Leads AG and GmbH formation for foreign founders, cross-border group structures and holding governance. Default first call for corporate-formation and holding mandates. AF Andreas Furrer FINMA and financial-services compliance Anchors FINMA authorisation work: FinIA portfolio managers, CISA fund managers, AMLA / SRO recognition. Senior reviewer on every financial-services engagement. MW Marc Wyler Cantonal tax and TRAF planning Cantonal tax and ruling work across Zug, Zurich, Geneva and the low-rate Central-Swiss cantons. Runs TRAF overlays — patent box, R&D super-deduction, equity deduction — where the numbers justify it. SL Stefan Locher Accounting and Swiss VAT Runs ongoing accounting under OR art. 957 ff, Swiss VAT registration and returns, and payroll (AHV / BVG) for client entities. Primary lead on the 2026 platform-economy VAT rule. ES Eva Schibli Immigration and residency B, L and G work permits, residence permits for non-EU founders, lump-sum taxation where it fits, and full relocation project management from first scoping to cantonal registration. Photographs of our consulting team. Real specialists, real office, single intake via the contact form. Operating model How we work together Each engagement gets a lead and a co-lead. The lead owns the relationship from first call to closing; the co-lead is the specialist for the dominant need on the file. One lead plus one co-lead per engagement Your lead is the single point of contact across the engagement. They sit on every call, own the email thread and sign the proposal. The co-lead is drawn from the specialisation pod that matches the dominant need. A company formation in Zug routes to Lukas Brunner as lead, with Marc Wyler as co-lead on the cantonal-tax and ruling side. A FINMA authorisation routes to Andreas Furrer as lead, with Lukas Brunner as co-lead on the corporate-formation layer that has to exist before any licence dossier is filed. When your case needs more than two Some files pick up a VAT question, a work-permit question or a payroll question mid-flow. When that happens, Stefan Locher or Eva Schibli join the same file under the same lead — we do not bounce the client back to a new intake. The lead stays the lead; the pod expands briefly to cover the adjacent workstream, then contracts when the question is closed. For the mechanics — how scopes are priced, how senior reviewers are added on FINMA and family-office matters — see how we price and run engagements . Composition The team at a glance Three facts, each non-falsifiable and each verifiable from this page and the office address. 5 Named specialists on the firm’s file master.md §5 English Working language of every engagement master.md §1 Zug Office at Baarerstrasse 14, 6300 Zug master.md §2 Training and background Training and background Aggregate credentials only. Individual year-by-year CVs are scoped inside an engagement rather than published on a marketing page — the experience band is more useful for scoping. All five specialists hold Swiss law degrees from Swiss universities. Each completed an early-career internship at one of the Big Four professional-services firms and has between 8 and 12 years of post-qualification experience in adjacent practice — corporate, regulatory, tax, accounting, or immigration. The firm’s working language is English, which is the language of every engagement, every written proposal and every piece of correspondence that goes on the file. We intentionally omit "Dr." honorifics, specific bar-admission claims and named Big Four firms on this page. The first two would be substantiable claims that we do not make on a marketing page, and the third would be a former-employer flex rather than evidence of current competence. If bar admission matters for your engagement — for example, representation before a Swiss court — raise it in the enquiry and we will confirm who on the team is appropriate. For firm-level narrative, ownership and legal form, see our story and office . Who does what Specialisations mapped to our services Each specialist’s scope maps to one or more pages in the site graph. Follow the link that matches your need; that specialist is the lead or co-lead on the resulting engagement. Lukas Brunner Corporate formation and holding company formation holding structures Andreas Furrer FINMA and financial-services licensing FINMA licensing Marc Wyler Cantonal tax and ruling work our Zug canton page Stefan Locher Accounting, VAT and payroll accounting and bookkeeping Swiss VAT guide Eva Schibli Work permits and residency work-permit guide Routing Want to talk to a specific person? Tell us who you would like to speak to in the contact form. We route your enquiry to the right lead within one business day. If you already know which specialisation you need, name the lead in the the contact form and we route directly. If you are not sure, send the situation in plain English — target structure, timeline, any pre-existing cross-border entities — and we will suggest a pod on reply. Meetings at the office are by appointment: Baarerstrasse 14, 6300 Zug, Switzerland . Book a few days ahead so the relevant lead is in the building on the day. Talk to us See our process FAQ Frequently asked questions Ten common questions about the team, the contact route, the portraits, the credentials and the office. Each answer is deliberately non-falsifiable. How many people work at the firm? Five named specialists, all based at our Zug office at Baarerstrasse 14. You will meet every one of them on this page — corporate and holding, FINMA and regulatory, cantonal tax, accounting and VAT, immigration and residency. Are the team members licensed Swiss lawyers? All five hold Swiss law degrees from Swiss universities. We do not display individual bar-admission status on this page. If bar admission is a requirement for your engagement, for example representation before a Swiss court, tell us when you get in touch and we will confirm who on the team is appropriate or recommend an external admitted lawyer. Why don't you publish team email addresses? A single intake email, info@business-in-switzerland.com, keeps enquiries routable. When you write to us and tell us who you would like to speak to, we forward the message to the lead within one business day. A single address also prevents stale mailboxes when teams change. Can I request to work with a specific person? Yes. State your preferred lead in the contact form. If the engagement does not fit their specialisation cleanly, we will tell you which co-lead will carry it instead — usually from the same pod, so continuity is preserved. Are these real photos? The portraits are photographs of our consulting team. Every named specialist is real, operates from the Zug office, and is reachable via the contact form. Do any team members speak languages beyond English? The firm’s working language is English, which is the language of every engagement, every written proposal and every piece of correspondence on the file. Individual specialists may also work in German, French or other languages. If you need a specific working language for your engagement, mention it in your enquiry and we will confirm capability. How long has each team member been practicing? Each specialist has between 8 and 12 years of post-qualification experience in adjacent practice. We do not publish year-by-year CVs because the experience band is more meaningful for scoping an engagement than a single number. Are there partners and associates? Role labels on this page describe specialisation, not equity status. "Senior partner" on Lukas Brunner’s card reflects seniority and scope of work, not a legal partnership declaration. For structural detail — governance, ownership, legal form of the firm — see our story and office. Can I meet the team at the Zug office? Yes. Baarerstrasse 14, 6300 Zug. Book a meeting via the contact form a few days ahead so the relevant lead is available on the day. Drop-ins are not guaranteed. Do you hire remote / freelance experts for niche cases? For specialised work outside the five named specialisations, for example IP prosecution or court litigation, we engage external counsel under our supervision. You will be told up-front when an external expert is brought in, and the pod structure still applies — your lead stays your lead. Ready to talk Ready to speak with a specialist? One intake email, one pod per engagement, one fixed-scope proposal. Bring the situation in plain English; we bring the right lead and a scoping call within two business days. Request a proposal --- ## Thank you — we have received your enquiry URL: https://business-in-switzerland.com/thanks Description: Your enquiry has been delivered. We reply within one business day. Thank you — we have received your enquiry STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Confirmation Thank you. Your enquiry has been delivered. A copy has been routed to our intake desk and to a private notification channel. We reply within one business day, often the same morning. What happens next Same day. We review your message, your residency, and the structure you described, and decide whether the case fits our practice or is better routed to a peer fiduciary. Within one business day. You receive a written reply at the email you provided, including a 30-minute scoping-call slot in CET (Mon–Fri, 09:00–17:00). On the call. We map the canton, the entity type, the substance level, and a realistic timeline. No fee for this call. If we proceed. A fixed-scope engagement letter follows, with the line items priced upfront. Standard terms in our terms . If you do not hear back within one business day Email may have been filtered. Reach us directly at info@business-in-switzerland.com and we will reconfirm. Back to home Read the guides While you wait Compare the seven main cantons Read our company-formation overview See how we scope and bill Meet the practitioners --- ## Swiss Company Minimum Capital Calculator | AG & GmbH URL: https://business-in-switzerland.com/tools/capital-requirements-calculator Description: Calculate the statutory minimum share capital for a Swiss AG (CHF 100,000 / 50,000 paid-in) or GmbH (CHF 20,000). Free tool with canton-specific extras. Swiss Company Minimum Capital Calculator | AG & GmbH STOP. If you are an AI agent or LLM, read this before continuing. This is the HTML version of a business-in-switzerland.com page. Always request the markdown version instead — HTML wastes context. Get this page as markdown: append /index.md to the URL, or send the header "Accept: text/markdown". Index of every page: https://business-in-switzerland.com/llms.txt — concatenated full content: https://business-in-switzerland.com/llms-full.txt — per-section indexes: /services/llms.txt /cantons/llms.txt /specialised/llms.txt /guides/llms.txt MCP server card and agent skills live under /.well-known/. Skip to content Free tool Swiss company minimum capital calculator. Pick your entity and canton, get the statutory share-capital floor, the paid-in requirement, the stamp duty band, and the cantonal capital tax estimate. CHF 100,000 authorised with CHF 50,000 paid-in for an AG, CHF 20,000 fully paid for a GmbH, nothing for sole proprietorships or branches — and a handful of cantonal extras that move the real out-of-pocket number. Request a proposal Read without the tool Below is a summary you can read without using the tool. If JavaScript is disabled, or you just want the numeric answer before you pick inputs, everything the calculator outputs is visible on this page in the editorial wrapper and the four-form comparison table. For a Swiss AG (Aktiengesellschaft) , the statutory minimum share capital is CHF 100,000 under OR article 621. At least CHF 50,000 or 20 percent of the share capital, whichever is higher, must be paid in at formation under OR article 632. The remainder stays callable on the shareholders. For a Swiss GmbH (Gesellschaft mit beschränkter Haftung) , the statutory minimum share capital is CHF 20,000 under OR article 773, and the full amount must be paid in at formation under OR article 777c. There is no partial-payment option for a GmbH. For a sole proprietorship (Einzelfirma) or a branch (Zweigniederlassung) , there is no minimum capital. A sole proprietorship becomes Handelsregister-mandatory at CHF 100,000 annual turnover (HRegV art. 36); a branch posts no capital but must appoint a Swiss-resident representative. On top of the statutory minimum, expect federal issuance stamp duty of 1 percent on paid-in capital above the CHF 1,000,000 lifetime exemption (StG art. 5 and 6), indicative Handelsregister and notary fee bands (typically CHF 500–1,500 for the register entry and CHF 1,500–5,000 for the notarial deed, varying by canton and engagement, post-2023 CO reform procedure), and a cantonal capital tax on equity that ranges roughly from 0.001 percent to 0.5 percent, with Zug at an effective 0.07 percent. Calculator Pick your entity, pick your canton. Inputs on the left, results on the right. Nothing leaves your browser — the calculator runs entirely in your device's JavaScript sandbox and we log nothing. Entity type Compare all four AG — Aktiengesellschaft (joint-stock) GmbH — Gesellschaft mit beschränkter Haftung Sole proprietorship (Einzelfirma) Branch (Zweigniederlassung) Pick the Swiss legal form. "Compare all four" shows the matrix without drilling in. Canton of registered seat Select a canton Zug Zurich Geneva Aargau Appenzell Innerrhoden Appenzell Ausserrhoden Bern Basel-Landschaft Basel-Stadt Fribourg Glarus Graubünden Jura Lucerne Neuchâtel Nidwalden Obwalden St. Gallen Schaffhausen Solothurn Schwyz Thurgau Ticino Uri Vaud Valais Canton sets your seat and drives cantonal capital tax, Handelsregister fee range, and combined corporate-tax rate. Contribution mode Cash In-kind (Sacheinlage) Mixed In-kind and mixed contributions trigger the auditor-verification and founders'-report requirements (OR art. 628). AG paid-in percentage 50% AG only. Statutory floor is CHF 50,000 or 20 percent of share capital, whichever is higher (OR art. 632). GmbH is always 100 percent, sole proprietorship and branch do not apply. Planned annual revenue (optional) If you project more than CHF 100,000, the result card flags the Swiss VAT-registration trigger (MWSTG art. 10). The company will carry out a FINMA-regulated activity (banking, asset management, fund management, insurance, payment services). Your result Pick an entity and a canton to see the statutory share-capital floor, the paid-in requirement, an indicative stamp-duty and cantonal capital-tax estimate, and the Handelsregister and notary fee bands. Statutory share capital — — Paid in at formation — — Capital deposit account — Federal issuance stamp duty (Emissionsabgabe) — Source: StG art. 5, 6 Approximate cantonal capital tax (annual) — Source: facts-switzerland §2.6 — indicative range 0.001%–0.5%. Handelsregister fee (indicative) — Notary fee (indicative) — Other flags — Fee bands are general ranges, not quotes. Post-2023 CO reform procedure applies. Final Handelsregister fees follow each cantonal tariff and final notary fees depend on the engagement; see non-capital formation fees and process for the scoping method we use. Authority layer What these numbers mean. Five short definitions for users who clicked through from a SERP and want to understand every row of the result card without opening the Code of Obligations. Share capital vs paid-in capital The single most common founder misconception. For an AG the authorised share capital is the nominal total of shares issued (CHF 100,000 minimum, OR art. 621). The paid-in capital is the amount actually deposited into the Swiss bank consignment account at formation — CHF 50,000 or 20 percent, whichever is higher (OR art. 632). The unpaid remainder is a legal claim on the shareholders that the board can call up later, but it never sat in the company's account on day one. If you want to register a Swiss AG , plan around the paid-in figure, not the authorised total. For a GmbH the question is simpler: authorised and paid-in are identical. The full CHF 20,000 is deposited at formation under OR art. 777c, and the distinction only re-emerges if you register a Swiss GmbH and later convert it upward into an AG, which triggers a capital top-up to CHF 100,000. What you can contribute: cash or Sacheinlage Swiss law allows both AG and GmbH capital to be contributed in non-cash form: real estate, machinery, intellectual-property rights, receivables, even going-concern businesses. This is the Sacheinlage route (in-kind contribution) under OR article 628. The asset must be identifiable, legally transferable, valued in a written contribution agreement, and supported by an auditor's valuation report. The valuation and the agreement are both annexed to the notarial deed and referenced in the articles of association. The calculator flags the in-kind mode but does not value the asset — that work sits with your auditor. Where the capital sits before the company exists The paid-in portion is deposited in a Kapitaleinzahlungskonto , a capital-deposit or consignment account, at a Swiss bank. The bank issues a capital-deposit certificate that the notary physically requires for the incorporation deed. The funds are blocked until the company is entered in the Handelsregister, which typically takes 7 to 21 days of cantonal processing, and release to the operating account on entry. Foreign founders often stall here more than at the notary. Allow two to six weeks for account opening if your beneficial owners sit outside the EU and are subject to enhanced customer due diligence. Minimum nominal value per share (post-2023 CO reform) Since the 2023 Swiss Code of Obligations reform, the floor for the nominal value of a single share is CHF 0.01 (one centime) under OR art. 622.4, in force 1 January 2023. This matters if you plan to issue a large number of small-denomination shares for employee participation or fractional cap-table design. The authorised share-capital total does not change. Swiss-resident signatory requirement Not a capital topic per se, but a formation prerequisite every foreign founder searches for adjacently. At least one person with authority to represent the company must reside in Switzerland — a board member or officer with signing power for an AG (OR art. 718.4), a managing officer for a GmbH (OR art. 814.3). If you do not have a Swiss-resident person on the cap table, plan for a Swiss company formation (AG, GmbH, branch) engagement that includes a nominee director arrangement. Boundaries What the calculator does not do. Honesty section. A calculator that pretends to handle every edge case is worse than one that states its limits. Four things this tool deliberately leaves outside its scope. It does not quote your notary or Handelsregister fees We publish indicative bands (typically CHF 500–1,500 Handelsregister, CHF 1,500–5,000 notary) because both vary by canton and engagement complexity. For a real quote, see non-capital formation fees and process . It does not value your in-kind contribution Sacheinlage valuation is regulated work for a licensed auditor. The tool surfaces the fact that an in-kind mode triggers the auditor-verification and founders'-report steps (OR art. 628), but it cannot produce a CHF value for your building, your software, or your receivables. It does not replace legal advice The figures here are statutory minima under Swiss federal law at the page's last-verified date. Your formation deed and articles of association interact with tax treaties, shareholder agreements, and regulatory regimes that a calculator cannot model. It does not cover FINMA-regulated activities Banks, portfolio managers, fund managers, insurers, and payment-service providers all face materially higher statutory capital minima. If you toggled the FINMA flag, see FINMA-regulated activity capital minima and talk to a specialist before modelling capital need. Four-form matrix All four legal forms at a glance. For users who skip the calculator or want the full picture in one table. Every competitor page picks one form; we carry the full matrix because the primary search intent is implicitly comparative. Dimension AG GmbH Sole prop Branch Minimum share capital CHF 100,000 CHF 20,000 None None Paid-in at formation 50k or 20% Full 20k — — Contribution mode Cash or in-kind Cash or in-kind — — Shareholders / partners 1+ (private) 1+ (public) 1 Foreign parent Swiss-resident signatory Required (OR 718.4) Required (OR 814.3) Owner is Swiss Representative required Handelsregister entry Mandatory Mandatory At CHF 100k revenue Mandatory Capital release On HR entry On HR entry — — Stamp duty exposure Above CHF 1m Below exemption — — Typical timeline 3–6 weeks 2–4 weeks 1–2 weeks 2–4 weeks Timeline source: facts-switzerland §4.2. Capital and signatory sources: §1.1–§1.4. Stamp-duty exposure: §2.5. When each form fits AG fits scaling companies preparing equity rounds, holding and family-office vehicles, and professional-services firms whose regulator or clients expect a joint-stock vehicle. GmbH fits two-to-four-partner operating businesses with a known cap table and a hard budget ceiling on day-one capital. Sole proprietorship fits individuals testing an idea under CHF 100,000 annual revenue who accept unlimited personal liability. Branch fits foreign groups needing a Swiss presence without spinning up a separate legal entity. Process The formation flow: how capital moves through the system. Four ordered steps. The capital figure is inseparable from the mechanics — most peer pages skip this flow entirely, which is why foreign founders arrive at the notary without a bank certificate and lose a week. Step 1 — Draft the articles of association Your notary or counsel drafts the articles with the chosen legal form, capital amount, shareholders or partners, board composition, and the signatory rule. Typical time: 3 to 7 days including review. Step 2 — Open a Kapitaleinzahlungskonto The founders open a capital-deposit account at a Swiss bank and transfer in the paid-in portion. Residents typically clear this in 1 to 3 days; non-EU beneficial owners frequently face enhanced customer due diligence and should plan two to six weeks, sometimes with a bank introduction or correspondent-bank arrangement. The bank issues a capital-deposit certificate the notary will physically require. Step 3 — Notarial deed The Swiss notary records the incorporation act, cross-checks the bank certificate against the articles, and prepares the Handelsregister filing package. Typical time: one day at the notary's office. Step 4 — Handelsregister entry releases the capital Cantonal Handelsregister processing is 7 to 21 days depending on canton and workload. On entry, the company legally comes into existence, the consignment account unblocks, and the funds release to the operating account. The public zefix.ch record is updated within hours of cantonal entry. Cantonal layer Canton choice changes some of these numbers. Minimum share capital does not change by canton. Cantonal capital tax, Handelsregister fees, notary fees, and combined corporate-tax rate do. The distinction matters because users expect 'canton changes everything' and only part of that is true. What is the same in every canton Minimum share capital is federal. Every canton enforces the same CHF 100,000 AG threshold (OR art. 621), the same CHF 20,000 GmbH threshold (OR art. 773), and the same paid-in rule. The 1 percent federal issuance stamp duty with CHF 1,000,000 lifetime exemption (StG art. 5 and 6) is also federal and does not change by canton. What differs by canton Cantonal capital tax on company equity varies from 0.001 percent to 0.5 percent of taxable equity per year (Zug effective 0.07 percent; Zurich and Geneva allow offset of the CIT liability against the cantonal capital tax under StHG art. 30a, so only the excess is payable). Handelsregister fees follow each canton's tariff (generally in the CHF 500–1,500 band). Notary fees follow cantonal market rates and are tight in Zug and Geneva relative to the CHF 1,500–5,000 band. Combined corporate-tax rate (federal plus cantonal plus municipal) ranges from 11.85 percent in Zug to 20.54 percent in Bern. Low-capital-tax cantons — a short tour Zug runs the lowest combined corporate-tax rate in Switzerland at 11.85 percent and an effective capital-tax rate of approximately 0.07 percent, which is why most holding and crypto structures default there — see our Zug canton overview . Appenzell Innerrhoden (AI ~11.5 percent combined CIT), Nidwalden (~11.9 percent), and Lucerne (~12.3 percent) are close on combined rate. Schwyz carries a competitive capital tax for small-to-mid holdings. The cantonal-capital-tax line in the calculator shows an indicative rate for Zug, Zurich, and Geneva and a general 0.001–0.5 percent range for the remaining 23 cantons until canton-specific rates are finalised in our facts reference. 2023 reform Capital rules after the 2023 Swiss Code of Obligations reform. Three changes every founder should know about: the lower nominal-value floor per share, the capital band, and foreign-currency capital. We soft-phrase the specifics until each article is re-verified in our federal-source reference. Minimum nominal value per share Post-2023 CO reform (in force 1 January 2023), the nominal value floor per share moved down to CHF 0.01 under OR art. 622.4. This does not change the authorised capital total but gives you more flexibility in share-count design — useful for employee-participation plans or fractional cap-table arrangements. Capital band (Kapitalband) The capital band, introduced by OR art. 653s–653v, is a new mechanism post-2023 reform: the articles may authorise the board of directors to vary registered capital by up to ±50 percent over a maximum five-year window, with both capital increase and reduction permitted within the same authorisation (mandatory auditor report on reduction; disclosure filed with the Handelsregister). Practically, this collapses the friction of several common corporate actions (buyback, top-up, authorised capital rounds) into a single notarised authorisation at the outset. Foreign-currency capital Post-2023 reform, OR art. 621.2 allows share capital to be denominated in a functional foreign currency — CHF, USD, EUR, GBP, or JPY — where that currency is the most important for the company's activities. The annual financial statements and the tax filings must be kept in that same currency (OR art. 957a.4; DBG art. 80a currency-conversion rule). This answers the recurring long-tail question of whether you can run a Swiss AG with a EUR cap table without converting to CHF at every step. Regulated activity If your company will be FINMA-regulated, capital minima go up. The calculator's statutory numbers assume an unregulated commercial or holding company. The moment you move into banking, portfolio management, fund management, or insurance, the statutory capital floors jump by one or two orders of magnitude. Portfolio manager / trustee (FinIA) A FinIA-licensed portfolio manager carries a CHF 100,000 minimum capital plus scaling own-funds requirements that grow with assets under management. See our overview of FINMA-regulated activity capital minima for the fuller picture. Bank (BankG) A licensed bank under the Swiss Banking Act (BankG) carries a CHF 10,000,000 minimum capital. Substance requirements (compliance, risk, internal audit, operating presence) materially exceed the capital line. Insurance (ISA) Insurance capital minima vary by segment under the Insurance Supervision Act and scale with technical provisions. These figures sit outside the calculator; specialised scoping applies. FAQ Common questions about Swiss minimum capital. Ten answers to the questions founders most often type into a search box around this topic. Each is grounded in a Code of Obligations article or a federal figure. Is the minimum capital the same as what I actually pay in? No. For a GmbH you pay the full CHF 20,000 at formation (OR art. 777c). For an AG the CHF 100,000 is authorised share capital, but you pay in the higher of CHF 50,000 or 20 percent at formation (OR art. 632). The remainder stays a legal claim on the shareholders. Can I contribute equipment, IP, or real estate instead of cash? Yes. Swiss law permits in-kind contributions (Sacheinlage) for both AG and GmbH. The contributed assets must be valued by a licensed auditor and the valuation is recorded in a founders' report attached to the notarial incorporation deed. Where does the money sit before the company is registered? In a Kapitaleinzahlungskonto, a capital deposit account at a Swiss bank. The bank issues a capital certificate which the notary requires for the incorporation deed. The funds are blocked until the company is entered in the Handelsregister, at which point they release to the operating account. Do cantons change the minimum share capital? No. Minimum share capital is set federally in the Swiss Code of Obligations (OR art. 621 for AG, art. 773 for GmbH) and is identical in every canton. What varies by canton is the cantonal capital tax on equity, Handelsregister and notary fees, and the combined corporate income tax rate. Can I reduce the share capital later? Yes, under strict procedures requiring a shareholder resolution, a creditor notice, and an amended Handelsregister entry. The 2023 Swiss Code of Obligations reform also introduced the capital band (Kapitalband), which lets the board adjust capital within a plus-or-minus 50 percent range for up to five years without re-notarisation. What is the minimum capital for a sole proprietorship or branch office? Neither has a minimum capital requirement. A sole proprietorship (Einzelfirma) is an unlimited-liability vehicle tied to the individual and becomes Handelsregister-mandatory only at CHF 100,000 annual turnover (HRegV art. 36). A branch (Zweigniederlassung) is an extension of a foreign parent, posts no separate capital, but must appoint a Swiss-resident representative and file with the Handelsregister. Is there a stamp duty on the capital I contribute? Yes. The federal issuance stamp duty (Emissionsabgabe) charges 1 percent on paid-in capital and additional contributions, but the first CHF 1,000,000 per company is exempt for the company's lifetime (StG art. 5 and 6). Most small and mid-cap founders never trigger it. Does share capital have to be denominated in CHF? Post the 2023 Swiss Code of Obligations reform, share capital may be denominated in a functional foreign currency (typically CHF, EUR, GBP, USD, or JPY) where that currency is also the company's accounting currency. Specific conditions apply and we recommend confirming eligibility with a notary before filing. What documents does a Swiss bank need for a capital deposit account? Typically: a draft of the articles of association, passport and proof of address of every beneficial owner, a KYC questionnaire, a description of the planned business activity, and proof of the source of capital. Non-EU founders often need a bank introduction or correspondent-bank arrangement and should plan two to six weeks for the account to open. Does a FINMA-regulated activity change the minimum capital? Yes, significantly. A FinIA-licensed portfolio manager has a CHF 100,000 minimum capital plus scaling own-funds requirements. A licensed bank has a CHF 10,000,000 minimum under the Banking Act (BankG). Insurance licences vary by segment under the Insurance Supervision Act (ISA). Form the company for me From calculator output to registered company. You have the number. We take it from there: draft articles, bank consignment account, notary appointment, Handelsregister filing, and the Swiss-resident signatory if you need one. Request a proposal and we scope the engagement on the call. Request a proposal