Company Formation

When founding a business, at least one of the people involved must have right of residence in Switzerland. EU/EFTA citizens have the right to freedom of residence and work in Switzerland, while citizens from third countries require work and residence permits to conduct business in Switzerland on a permanent basis.

Many entrepreneurs favour sole proprietorship, which is ideal for business activities that are closely linked to the owner and where only one natural person is involved in the activity. The only requirement for set up is an entry in the trade register. However, the owner is held liable up to the amount of both their business and private assets.

Sole proprietorships with turnover of less than CHF500,000 only need to keep simplified accounts that list income, expenses and assets. If turnover exceeds CHF500,000 during the previous fiscal year, accounts must be kept and presented in accordance with the rules set forth in the Swiss Code of Obligations.

The principal types of company providing limited liability in Switzerland are the: