How to start a business in Switzerland if you are a Foreigner
Switzerland is a country that offers many opportunities and advantages for entrepreneurs who want to start a business. Its economy is sound and innovative, its taxation is among the lowest in Europe, and its quality of life is high. But how do you go about opening a business in Switzerland if you are a foreigner? What are the requirements, steps and costs involved? In this article we will try to answer these questions by providing a practical and up-to-date guide.
Who can open a business in Switzerland?
Under Swiss law, all EU citizens have the right to live and work in the country, provided they have a valid residence and work permit. This means that they can also set up on their own and start a business in Switzerland, choosing from the different company forms provided by the Swiss system. For third-country nationals, on the other hand, the situation is more complex, as they have to submit a business plan to local authorities and prove that their activity will be beneficial to the Swiss economy and will not harm local businesses.
What are the corporate forms in Switzerland?
There are various forms of companies in Switzerland, which differ in the degree of liability, required share capital, taxation and management. The most common are:
- Sole proprietorship: this is the simplest and cheapest form, suitable for those who want to start a small business themselves. It does not require a minimum capital or registration with the commercial register but involves unlimited liability for the owner and personal taxation.
- General partnership: is a form of association between two or more persons carrying on a business under one name. It requires registration with the commercial register, but no minimum capital. The partners are liable unlimitedly and jointly and severally for corporate obligations and are personally taxed.
- Limited partnership: is similar to the general partnership but provides for two types of partners: general partners, who run the business and are liable unlimitedly, and limited partners, who provide the capital and are liable only up to the share contributed. Again, registration with the commercial register is required and personal taxation applies.
- Limited Company: This is the most common form of corporation, suitable for those who want to start a medium- or large-sized business. It requires a minimum share capital of 100,000 Swiss francs (at least 20 percent of which is paid up) and registration with the commercial register. The liability of the partners is limited to the share contributed, and taxation is double: on the company’s income and on the partners’ dividends.
- Limited Liability Company: is an intermediate form between a corporation and a general partnership, suitable for those who want to start a small or medium-sized business. It requires a minimum share capital of 20,000 Swiss francs (fully paid up) and registration with the commercial register. Members’ liability is limited to the share contributed, and taxation is double: on the company’s income and on members’ dividends.
- Cooperative Society: is a form of association between persons pursuing a common, economic or social purpose. It does not require a minimum capital or a minimum number of members, but requires registration with the commercial register. The liability of members is limited to the share contributed, and taxation is double: on the income of the company and on the dividends of members.
How do you start a business in Switzerland?
To start a business in Switzerland, you need to follow some basic steps, which vary depending on the form of company you choose. In general, these are the steps to take:
- Write a business plan: This is a document that outlines the business project, analyzing the market, competition, products or services offered, business model, financial plan and marketing plan. The business plan is essential for assessing the feasibility and profitability of the business, but also for obtaining any financing or facilities.
- Obtaining a residence and work permit: In order to start a business in Switzerland, you must be a resident of the country and have a valid residence and work permit. For EU citizens, this means applying for a B permit, which is valid for five years and can be renewed. For third-country nationals, on the other hand, you need to apply for a G permit, which is valid for two years and can only be renewed if you can prove that you have sufficient income and a permanent establishment in Switzerland.
- Choosing the corporate form: As we have seen, there are different corporate forms in Switzerland, which are adapted to different needs and situations. The choice of corporate form depends on various factors, such as the degree of liability, available capital, taxation and management. It is important to carefully choose the most suitable corporate form for your business project, possibly consulting an expert.
- Registering the company: Depending on the company form you choose, you need to register the company with the commercial register of the canton in which you intend to operate. For sole proprietorships and general or limited partnerships, registration is optional if the annual turnover does not exceed 100,000 Swiss francs. For corporations, limited liability companies and cooperative societies, on the other hand, registration is mandatory. Registration involves the payment of a fee that varies depending on the canton and the form of company. In addition, for corporations and limited liability companies, one must draw up bylaws and appoint an auditor.
- Open a bank account: In order to manage the income and expenses of the enterprise, a current account must be opened at a Swiss bank. To open a current account, you need to present certain documents, such as a residence and work permit, business registration certificate, articles of incorporation (if any), and a copy of your passport or ID card. Swiss banks offer different types of current accounts, with varying terms and costs.
Why you should choose La Relocation
If you want to start a business in Switzerland but are not familiar with the country and its regulations, it can be helpful to rely on a relocation service such as La Relocation. This is a company that specializes in assisting relocations to Switzerland, offering a range of customized services to make it easier to settle into your new environment. Among the benefits of getting help from La Relocation are:
- Saving time and money: Thanks to its experience and knowledge of the area, La Relocation is able to offer tailor-made solutions for every need, optimizing the costs and time of the various procedures.
- Practical and bureaucratic support: La Relocation takes care of all the formalities required to start a business in Switzerland, such as registering with the commercial registry, opening a bank account, handling correspondence, maintenance and insurance.
- Personalized assistance: Relocation offers personalized assistance to each client, listening to their needs and proposing the most suitable solutions. It also offers home sitting, home fitting, home cleaning, car sitting and home restyling services to make life easier and more comfortable.
Starting a business in Switzerland can be an advantageous choice for entrepreneurs who want to benefit from a stable and innovative economy, favorable taxation, and a high quality of life.
To facilitate the relocation and integration into the new environment, it can be helpful to rely on La Relocation, which offers a range of customized services to save time and money, get the practical and bureaucratic support you need, and receive personalized assistance!
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