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canonical: "https://euincnow.com/company-formation-switzerland"
dateModified: "2026-10-11"
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# Company Formation in Switzerland: Types, Taxes and Costs

Forming a company in Switzerland takes about one to three weeks once documents and share capital are in place, and it can be done remotely through a notary power of attorney. Most founders set up a GmbH (CHF 20,000 capital) or an AG (CHF 100,000), and at least one director must be resident in Switzerland. Combined corporate tax runs roughly 12% to 21% depending on the canton, with VAT at a low 8.1%.

## Switzerland at a glance

- Switzerland is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.

### Company types in Switzerland

- GmbH (Sarl), limited liability company The most popular form for SMEs and startups. CHF 20,000 capital, fully paid in; shareholders are listed in the public commercial register.
- AG (SA), joint-stock company The corporation form for larger firms or those wanting shareholder anonymity. CHF 100,000 capital, at least CHF 50,000 paid in before registration.

* Company formation in Switzerland: key facts (last reviewed July 2026)

- Corporate tax

  Federal corporate tax is a flat 8.5% on profit after tax, but each canton and commune adds its own, so the combined effective rate ranges from roughly 11.9% in low-tax cantons (Zug, Lucerne) up to about 20.5% in higher-tax ones (Zurich, Bern). The 2025 national average is near 14.4%.

- VAT rate

  Standard VAT is 8.1% (raised from 7.7% on 1 January 2024), far below typical EU levels, with reduced rates of 2.6% and 3.8%. Registration is mandatory above CHF 100,000 of turnover.

- Dividends & payroll taxes

  Dividends face the 35% anticipatory tax, refunded or treaty-reduced for shareholders who file properly, and qualified holdings enjoy partial relief on personal tax. Income tax varies canton by canton and stays comparatively low; employer social contributions run roughly 6% to 12%.

- Minimum share capital

  GmbH: CHF 20,000, fully paid in at incorporation. AG: CHF 100,000, of which at least CHF 50,000 paid in before registration. Capital is first deposited into a blocked Swiss account.

- Setup time

  About 1 to 3 weeks once documents and capital are ready; the commercial-register entry itself takes roughly 5 to 10 working days (faster in cantons like Zug).

- Remote setup

  Yes. The incorporation deed is notarised, but foreign founders can complete it remotely via a power of attorney to a local fiduciary. A Swiss-resident director and a physical registered office are still mandatory, so most non-residents use a formation agent.

- Director / residency

  At least one director or authorised signatory must be resident in Switzerland; shareholders can be 100% foreign. Founders without a local resident appoint a fiduciary nominee director (from roughly CHF 2,900 per year).

- Banking options

  Capital is deposited into a blocked Swiss capital account before incorporation; confirm which institution can provide the required deposit certificate. Banks include UBS, cantonal banks and PostFinance; Swiss providers such as Relio and Yapeal and international services such as Wise or Revolut have their own eligibility and product rules. Do not assume a provider supports Swiss-company formation or is faster to approve. Wise Europe SA is a payment institution, while Revolut Bank UAB is a bank; the contracting entity and product determine account protection. Confirm support for the legal form, ownership, residence and activity before applying.

* Switzerland is not an EU or EEA member; it is in EFTA and linked to the EU by bilateral treaties, so it accesses much of the single market without EU membership, and the proposed EU Inc / 28th Regime would not apply to a Swiss entity. It offers strong stability, the Swiss franc and a notably low 8.1% VAT; low-tax cantons like Zug are popular for holdings.

## How to register a company in Switzerland

- Step by step, this is how a Switzerland formation actually runs:

1. **Choose GmbH or AG.** The GmbH needs CHF 20,000 fully paid; the AG needs CHF 100,000 with half paid in and offers anonymity of shareholders.
2. **Secure the local director.** At least one person with sole signature authority (director or officer) must be resident in Switzerland; fiduciaries provide this service.
3. **Block the capital.** The capital goes into a Swiss blocked account; the bank certificate feeds the notarial deed.
4. **Notarise and file.** A notary executes the deed (power of attorney works from abroad) and files with the cantonal Commercial Register, entered within days to two weeks.
5. **Tax and VAT setup.** Cantonal tax registration follows automatically; VAT registration applies past CHF 100,000 of worldwide turnover.

## What company formation in Switzerland costs

- Notary and register fees commonly total CHF 700 to 1,500, on top of the CHF 20,000 GmbH capital that becomes working funds. The resident-director service, where needed, costs roughly CHF 3,000 to 6,000 a year. Accounting runs about CHF 150 to 350 a month for a small company, with cantonal tax rates varying meaningfully by location.

## Who can form a company in Switzerland

- Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Switzerland. The director and residency information above identifies the main formation conditions to review.
- Switzerland fits businesses monetising Swiss credibility, fintech and crypto ventures (especially in Zug), and holding structures wanting stability outside the EU. The resident-director rule and CHF 20,000 capital price out casual setups; this is a quality-over-cheapness jurisdiction.

## After registration: what Switzerland expects each year

- Annual financial statements are prepared under the Code of Obligations but are not publicly filed, a privacy point founders appreciate. Tax returns go to the canton, VAT settlements are quarterly, and companies under 10 full-time staff can opt out of audit with shareholder consent. The resident-director arrangement recurs yearly.

## Switzerland and the 28th Regime (EU Inc)

- EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. Switzerland is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.

## Sources and review scope

- Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.

### Topics checked

- These dates apply to the named topics. Other figures and indicative service prices have separate review needs.

* **Payment-provider classification and account eligibility wording** Checked 11 October 2026. [Source 1][1]; [Source 2][2]

### Reference links

- [taxsummaries.pwc.com][3]
- [goldblum.ch][4]
- [wise.com][1]
- [revolut.com][2]

## Frequently asked questions

### Can a foreigner open a company in Switzerland?

- At least one director or authorised signatory must be resident in Switzerland; shareholders can be 100% foreign. Founders without a local resident appoint a fiduciary nominee director (from roughly CHF 2,900 per year).

### How long does company formation in Switzerland take?

- About 1 to 3 weeks once documents and capital are ready; the commercial-register entry itself takes roughly 5 to 10 working days (faster in cantons like Zug).

### What corporate tax does a company in Switzerland pay?

- The headline summary is \~12-21% (canton), with standard VAT of 8.1%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.

### Can I form a company in Switzerland remotely?

- Yes. The incorporation deed is notarised, but foreign founders can complete it remotely via a power of attorney to a local fiduciary. A Swiss-resident director and a physical registered office are still mandatory, so most non-residents use a formation agent.

## Source URLs

[1]: https://wise.com/help/articles/50VrYRVwHcsYeKzvWbjf3n/how-our-eu-entity-wise-europe-sa-safeguards-customer-funds

[2]: https://www.revolut.com/en-CH/business/

[3]: https://taxsummaries.pwc.com/switzerland/corporate/taxes-on-corporate-income

[4]: https://goldblum.ch/knowledgebase/swiss-company-formation-guide