Setting up a Swiss company

Switzerland is one of Europe's most suitable countries for foreign investment. It's a known fact that taxes are low and the government encourages entrepreneurs to invest here, whether it's through direct investment into an existing company, or by setting up a foreign owned company. Entrepreneurs benefit from equal treatment as Swiss entrepreneurs and enjoy the advantages of a company in Switzerland. The country is member of the European Free Trade Association (EFTA) and the International Monetary Fund (IMF). Also there are many trade connections established between Switzerland and neighbor states, as Austria, France, Italy, Germany. Usually entrepreneurs choose to establish limited liability companies or stock companies.

Preliminary activities prior to registering limited liability and joint companies
There are several procedures that need to be taken care of prior to registering a Swiss company, whether it's a limited liability one or a stock corporation. A unique name should be established for the company, and a bank account must be opened for future transactions, and the minimum required capital must be deposited. Also an important step prior to registration represents drafting the articles of association before a public notary. The public notary must notarize the personal and corporate signatures and authenticate the articles of association and the public deed of incorporation. Other compulsory procedures for foreign investors imply filling the Stampa Declaration Form, a negative declaration on investments and the Lex Friedrich Declaration Form which is a permit for foreigners to acquire real estate. Both declaration forms are mandatory for all company incorporation applicants.

Registering limited liability and stock companies with the Commercial Register
In order to obtain a legal entity every company must register with the Commercial Register of Switzerland. In order to do that the founders must submit an application containing articles of association, specimen signatures of the managing board, Stampa Declaration Form and Lex Friedrich Declaration Form, registered office of the company, social capital, object of activity etc. The registration procedure can be carried out via express mail, in which case the whole process is completed in 3 to 5 days. After the issuance of the registration certificate of the new Swiss company, the Swiss Commercial Register publishes the articles of association, the statutes and all names of shareholders in the Swiss Commercial Gazette and the announcement is included in the registration fee.

Registering for tax purposes with the Federal Tax Administration
Not every company has to be registered for tax purposes. This depends on the object of activity of the company. However companies which are obliged to register for tax must file an application with the Federal Tax Administration after incorporating the company at the Swiss Commercial Register. The same rule applies for VAT registration; the application must contain the registration certificate issued by the Commercial Register of Switzerland, and other relevant company documents.

Registering employees for Social Insurance
If the newly registered Swiss company has employees they must be registered for social security. The institution sends each employee an application for registration in the social insurance system. This system includes retirement pension, disability insurance, occupational accident insurance etc.

Setting up a Swiss companies from abroad
Investing in Switzerland through setting up a foreign company is a profitable and straightforward procedure. The government encourages foreign investment as there are no restrictions for fully owned foreign companies. Setting up a company may be done through power of attorney; however it's mandatory that at least one of the directors be a Swiss resident.

How long does it take to establish a Swiss company?
Even though the process is straightforward and easy to follow, there are some procedures that require a more then a few days to complete. Drafting the articles of association and preparing all required documents before a notary public, as well as notarizing them may take up to a week. However, opening a bank account and registering the Swiss company for tax purposes are procedures completed in one day. Setting up a Swiss company is usually completed in three weeks.

BridgeWest offers company formation in Switzerland, including virtual office and other related services.