Company Formation in Switzerland

October 26, 2022

There is a plethora of aspects about business opening, each businessperson should be mindful of prior to starting their own venture. Among them – key features of this country, entity organization and basic terms of company formation in Switzerland. Below are the basic details about how to open a company in Zug, Zurich – the most preferable hubs for investors.

General overview

Switzerland is a prestigious center for foreign businesspersons. It has many peculiarities:

  • A broad range of legal options, for example, peculiar regulative framework for DeFi firms;
  • Favorable taxes, particularly, in Zug, and a variety of double taxation agreements;
  • Stable political climate, business-friendly and well-established public administering;
  • Strong level of confidentiality for investing parties and their contributions (for instance, data about beneficial owners is not publicly disclosed);
  • In the case of a LLC, silent partners or participation loans are available through a contract, permitting investing parties to contribute to their entities without being disclosed.
  • In the case of a corporations, there may be some circumstances that put off a change of owners or voting rights.
  • Min. paid-up capital to open a company in Zug is 20%, however, a min. of 50.000 CHF for a joint stock entity and 20.000 CHF for LLC.

Forms of businesses

The most frequently used organizational and legal forms of legal entities are as follows:

  • LLC – shareowners’ data is available to the public;
  • Joint stock;
  • Branches of foreign corporations;
  • Sole Enterprise or Sole Trader;
  • Limited or general partnerships.

What is needed to form an entity?

Once you have chosen a legal form for your venture and decided on its name, you need to take care of the following:

  • Power of attorney to sign your papers at the Swiss notary;
  • Sample signature of each senior manager;
  • Charter documents;
  • Documents in the respect of an office (for instance, a rental contract);
  • Lex-Friedrich/ Stampa declarations;
  • Statements to waive the obligation for yearly audits;
  • Customer Due Diligence Form;
  • Request to the registering body;
  • Passport and proof of residence of each owner and director;
  • In case the owner is a legal entity, there should be provided appropriate papers and a statement of the board to set up subsidiaries.


One of the variants to set up a business in Zug/Zurich is to buy a ready-made firm. Such a venture can often be run once after the purchase, it is possible to choose another name. Similar to ready-made firms, opening branches of foreign organizations provides a range of opportunities to businesspersons. A branch operates like a company it can act as a holding company as well. The management of the parent entity can run it if a local resident with signatory rights is designated. A branch belongs to the same legal entity. Hence, the transferring of funds from the branch to the HQ is no dividend and there is no withholding tax on dividends and interests. But there are some limitations if the parent entity is offshore. The amount of min. paid-up capital for such kind of business organization is low, and the branch does not need any start-up capital.

These are the basic characteristics and conditions for Swiss entities. If you have any questions in terms of business setup in Switzerland, do not hesitate to contact us for further discussion.

Other news

Financial self-regualtion in Switzerland
January 3, 2023

Financial self-regualtion in Switzerland

Swiss – is a highly popular jurisdiction among EU Fintech companies. Thanks to good biz conditions, namely: low taxes, availability…

More details
Swiss regulations of reporting for companies is expanded
December 29, 2022

Swiss regulations of reporting for companies is expanded

The Swiss system of stock exchange supervision is based on the principle of self-regulation. The Stock Exchange Act is a…

More details
Swiss regulations updated
December 29, 2022

Swiss regulations updated

FINMA has a serious leverage on market participants, since its activities include the audit of Swiss banks and the imposition…

More details
Company restructuring in Switzerland
December 29, 2022

Company restructuring in Switzerland

Switzerland attracts investors and businessmen as a leading financial center. Some of the best conditions for protecting assets and increasing…

More details
Formation of the companies in Switzerland
December 28, 2022

Formation of the companies in Switzerland

Country that we will consider today is a separate enclave within the European Union with its own business rules, legislation…

More details