Company Formation Switzerland

Switzerland is one of Europe's most suitable countries for foreign investment. It's a known fact that taxes are very low and the government encourage incorporators to invest here, whether it's through direct investment into an existing company, or by setting up a foreign owned company. Incorporators 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 made between Switzerland and neighbor states, as Austria, France, Italy, Germany. Usually investors choose to establish limited liability companies or stock companies.

Preliminary activities prior to registering limited liability and joint companies
There are several procedures that must be taken care of before registering a Swiss company, whether it's a limited liability one or a stock corporation. A unique name should be established for the firm, and a bank account need to be opened for future transactions, and the minimum required capital needs to be deposited. Also an important step prior to registration represents drafting the articles of association before a public notary. The public notary needs to 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 needed for all company incorporation applicants.

Registering limited liability and stock companies with the Commercial Register
In order to obtain a legal entity every business needs to register with the Commercial Register of Switzerland. For doing that, the founders need to send an application containing articles of association, specimen signatures of the managing board, Stampa Declaration Form and Lex Friedrich Declaration Form, registered office of the firm, social capital, object of activity etc. The registration procedure can be carried out via express mail, in which case the entire process is completed in tree to five days. After the issuance of the registration certificate of the new Swiss firm, 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 business has to be registered for tax purposes. This depends on the object of activity of the firm. However companies which are obliged to register for tax need to 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 need to 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 company from abroad
Investing in Switzerland through setting up a foreign company is a profitable and straightforward procedure. The government encourages foreign investors as there are no restrictions for fully owned foreign companies. Setting up a company may be done through power of attorney; however it's needed that at least 1 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 need more then a few days to complete. Drafting the articles of association and preparing all the required documents before a notary public, as well as notarizing them may take up to 1 week. However, opening a bank account and registering the Swiss firm for tax purposes are procedures completed in 1day. Setting up a Swiss company is usually completed in three weeks.

Our attorneys will offer instant help with company formation Switzerland in matters of official registration, structure, financing, taxation, office registration. We handle both German Limited Liability and Joint-Stock company formations.