A Guide for Non-Residents Starting a Business in Switzerland

Switzerland is known for its economic stability, innovation-driven market, and favorable tax environment. These advantages make it an attractive destination for foreign entrepreneurs looking to establish a business presence in Europe. But what does it take for a non-resident to register a company in Switzerland?

Whether you're planning to set up a physical office, operate remotely, or form an offshore entity, understanding the rules for company registration in Switzerland is essential. This guide provides a detailed overview for non-residents—including types of companies, legal requirements, procedures, and insights into Swiss company registration.

Can a Non-Resident Start a Business in Switzerland?

Yes, non-residents can start a business in Switzerland. The country welcomes foreign investment and offers a well-defined legal framework that allows both residents and non-residents to form companies. However, certain conditions must be met depending on the type of company you choose to establish.

In most cases, a non-resident will need to appoint at least one Swiss-resident director or legal representative. This requirement ensures that your business can be legally represented within Sthe wiss jurisdiction.

Types of Companies Available for Non-Residents

Understanding the available structures is key when considering offshore company registration in Switzerland or setting up a local entity. The most common types are:

1. GmbH (Gesellschaft mit beschränkter Haftung) – Limited Liability Company

• Minimum share capital: CHF 20,000
• At least one managing director must reside in Switzerland
• Suitable for small and medium-sized businesses
• Can be 100% foreign-owned

2. AG (Aktiengesellschaft) – Joint Stock Company

• Minimum share capital: CHF 100,000 (CHF 50,000 must be paid up)
• Ideal for larger companies or those planning to raise capital
• Also requires at least one Swiss-resident director
• Offers a high level of confidentiality

3. Sole Proprietorship

• Only available to Swiss residents or citizens
• Not an option for non-residents

4. Branch Office of a Foreign Company

• No minimum capital requirement
• Legal identity tied to the parent company abroad
• Must appoint a local representative
• Offers a simpler route to start operations in Switzerland

Also Read: Documents Required for Company Registration in Panama

Requirements for Non-Residents

To complete Swiss company registration as a non-resident, you’ll need to prepare for the following:

• Appoint at least one Swiss-resident director or legal representative
• Provide proof of identity and legal documents of shareholders and directors
• Deposit the minimum share capital into a Swiss bank account
• Choose a unique company name and register it with the Swiss Commercial Register
• Register for VAT if annual turnover exceeds CHF 100,000
• Set up a local registered office in Switzerland
• Maintain proper accounting and statutory filings

Offshore Company Registration in Switzerland

Switzerland is sometimes seen as an offshore business destination because of its favorable tax laws and financial privacy. However, it does not operate like traditional offshore jurisdictions. Transparency and compliance are strictly enforced.

That said, foreign entrepreneurs can establish holding companies or finance companies in Switzerland to take advantage of:

• Low cantonal tax rates for holding companies
• Strategic location in Europe for financial operations
• Privacy protection under Swiss law (though international reporting standards apply)

To register an offshore company in Switzerland, it’s important to:

• Clearly define the business model and structure
• Work with a Swiss fiduciary or legal advisor
• Ensure compliance with anti-money laundering laws
• Maintain real economic substance (i.e., business activity and management)

Offshore company registration in Switzerland is not about anonymity—it's about strategic positioning in a stable and respected jurisdiction.

Steps to Register a Company in Switzerland as a Non-Resident

Here’s a general step-by-step guide for non-residents who want to register a company in Switzerland:

1. Choose the Company Type

Decide whether to establish a GmbH, AG, or branch. Most non-residents choose GmbH for its affordability and flexibility.

2. Select a Company Name

Your business name must be unique and must include the legal form (e.g., “GmbH” or “AG”).

3. Prepare Legal Documents

These typically include:

• Articles of association
• Shareholder and director ID documents
• Declaration of domicile
• Proof of capital deposit

4. Open a Capital Deposit Account

Before incorporation, you must deposit the minimum capital into a Swiss escrow account. The bank will issue a confirmation certificate.

5. Sign Documents in Switzerland

Incorporation documents must be signed in front of a Swiss notary. If you’re abroad, you may need to use an apostille and a power of attorney.

6. Register with the Commercial Registry

Once the documentation is complete, your company is officially registered in the Swiss Commercial Register.

7. Apply for Tax and VAT Registration

If you’re doing business in Switzerland, you’ll need to register with the local tax office. VAT registration is required for revenue above CHF 100,000 annually.

8. Set Up Accounting and Reporting

Swiss companies are required to maintain local bookkeeping, file annual financial statements, and comply with auditing requirements (depending on size).

Also Read: Procedure for Company Registration in Luxembourg

Taxation for Swiss Companies

Switzerland has a decentralized tax system. Companies may be taxed at the federal, cantonal, and communal levels. Corporate income tax varies by canton but generally ranges between 12% and 21%.

Key tax points:

• No capital gains tax on qualifying shareholdings
• Dividends from qualifying holdings may be tax-exempt
• Attractive holding company tax privileges in some cantons
• No withholding tax on dividends paid to EU/EEA companies under certain agreements

Non-residents can optimize their tax exposure by choosing the right canton and using legitimate international tax planning strategies.

Do You Need a Local Partner or Representative?

Yes, Swiss law requires at least one person with residency in Switzerland to represent the company legally. This is typically fulfilled by hiring:

• A Swiss-resident director (nominee)
• A Swiss fiduciary service provider
• A local attorney or accountant

This representative ensures that your company can respond to legal and administrative requests within Switzerland. Many service providers offer these representative services for a fee.

Final Thoughts

Switzerland is a premium location for international entrepreneurs who value political stability, a strong banking system, and global market access. While starting a business as a non-resident comes with certain legal requirements—such as appointing a local representative—it is entirely possible and often highly beneficial.

Whether your goal is Swiss company registration for trading, investment, or intellectual property management, the key is to understand the rules and proceed with a transparent, well-structured plan. If in doubt, professional legal and fiduciary advisors can help simplify the process and ensure compliance with Swiss regulations.

FAQs

1. Can I own 100% of a Swiss company as a non-resident?
Yes, non-residents can fully own Swiss companies. There are no nationality or residency restrictions on shareholders, but at least one director or legal representative must be a Swiss resident.

2. Is it possible to register a company in Switzerland remotely?
Some parts of the process can be handled remotely, but key documents must be notarized and submitted locally. Many non-residents appoint a Swiss legal representative to handle this on their behalf.

3. How long does it take to register a company in Switzerland?
It typically takes between 2 to 4 weeks, depending on the company structure, availability of documentation, and chosen canton.

4. Is Switzerland considered an offshore jurisdiction?
Switzerland offers some offshore-like benefits (low tax, privacy), but it is not a tax haven. It enforces transparency laws and complies with global tax reporting standards.