HOW TO LAUNCH A COMPANY IN SWITZERLAND

HOW TO LAUNCH A COMPANY IN SWITZERLAND

THE FIRST TEPS

Long days, short nights: The price of achieving independence is high. But these efforts can prove rewarding.

One should know that despite the motivating aspects of independence, beginnings can sometimes be difficult financially. In most cases, during the first year, companies run by young entrepreneurs are in deficit, and during the second year, they try to make up this deficit. If all goes well, they achieve their first results during the third year.

Here are the two preliminary questions to ask in order to sustainably increase the chances of success:

  • How much money do you need for you and your family during the foundation phase?
  • Can you put this money aside, despite the considerable initial investment?

Those who are not intimidated by these risks present the most important initial condition: self-confidence.

PRELIMINARY TIPS FOR SETTING UP YOUR OWN BUSINESS

What does it take to start a business in Switzerland? Incorporation is fairly easy. Few professions require special permits; exceptions are some federally regulated sectors (health care, pedagocical professions, social sector) and cantonal (road traffic, architecture, legal professions, etc.).

Before taking the plunge, it pays to follow some essential steps, including, for example:

  • The market analysis
  • The business plan (investment plan)
  • The choice of an appropriate legal form
  • The commercial registration
  • The intellectual property

A simple company can be established without much formality. Only at a later stage does the entrepreneur need an enterprise identification number (IDI) and can look for a business structure that is appropriate from both a legal and a tax point of view. In this regard, Demix Group consultants are at your complete support for proper planning of your New Co and the first steps to be taken.

SUPPORT FOR THE ESTABLISHMENT OF THE ENTERPRISE

There are many tools and support services to help the entrepreneur throughout the different stages. SECO supports business creation through the portal EasyGov.swiss.

Other partner institutions and organizations propose effective help:

  • Cantonal economic promotion offices can provide preliminary information.
  • The Swiss innovation promotion agency (Innosuisse) has established a specific coaching program.
  • Venturelab is an initiative of the Swiss innovation promotion agency Innosuisse aimed at young entrepreneurs. It has enabled the birth and development of numerous start-ups.
  • The Eurostars support program targets innovative projects in the European space. It provides an opportunity for start-ups and spin-offs to solicit financial support.

Business creation requires some bureaucratic formalities. In this regard, the various support institutions are particularly helpful: they provide advice and even offer local and customized services on attractive terms.

CHOOSE A LEGAL FORM FOR THE ENTERPRISE

Those who intend to establish or restructure an enterprise must decide on a legal form. Not all legal forms are suitable for every enterprise.

The three most common forms for SMEs in Switzerland are:

  • the sole proprietorship;
  • the joint stock company (SA);
  • the limited liability company (GmbH)

Partnerships and corporations differ mainly in the assumption of risk. Those who are willing and able to assume the risks and responsibility for claims with their own assets can simply register as sole proprietorships in the commercial register. In contrast, entrepreneurs who start a business with colleagues will have a greater advantage in setting up a general or limited partnership.

Anyone who wants to take less financial risk can limit themselves to a certain amount by creating a corporation, i.e., a limited liability company (GmbH) or a corporation limited by guarantee (AG). It is also possible that the business activity will take the form of an association or cooperative society.

Here are some criteria for choosing the desired legal form:

  • Capital: incorporation expenses, capital needs, and minimum capital vary depending on the legal form. In particular, it is good to consider capital needs for the current year and for the next three to five years.
  • Risk/responsibility: in general, the greater the risk of the enterprise or its financial commitment, the more advisable it is to choose a limited liability company.
  • Autonomy: depending on the legal form, one’s scope of action is more or less limited. Therefore, it must be determined whether the entrepreneur wants to work alone or with partners and whether he prefers to integrate investors or partners into his business.
  • Taxes: depending on the legal form, the income and business substance of the enterprise and the owner are subject to taxes separately or jointly. High profits resulting in corporations tend to be taxed less than those resulting in partnerships or sole proprietorships.
  • Social security: certain social insurances are compulsory, optional or nonexistent depending on the legal form. The owner of a sole proprietorship, for example, is not insured against unemployment and can choose to voluntarily join a pension fund. In the case of AGs or LLCs, however, the owner is also considered an employee and as such is socially insured.

HOW TO GET REGISTER WITHIN THE TRADE REGISTER

Regardless of the type of legal form selected, the incorporation of the company can be done online and registered with the commercial register. A service only partially available for sole proprietorships and limited liability companies.

EasyGov allows incorporation of sole proprietorships, limited liability companies (LLCs), public limited companies (SAs), general and limited partnerships, and registration with the AHV compensation office, VAT office, accident insurance company (all legal forms) as well as the Commercial Register office (sole proprietorships, limited liability companies and limited partnerships).

For Sagl and SA, on EasyGov the incorporation is initially prepared in the form of a mandate given to a notary public. Entry in the commercial register occurs only after the public act of incorporation.

TRADE REGISTRATION FEES

The fees for a trade register entry depend strongly on the legal form chosen.

The following fees (approximate amounts) are to be expected:

Sole proprietorshipCHF 80 (basic tax)
General Partnership/Partnership.CHF 160 (basic tax)
Joint stock company/limited liability company (Sagl)CHF 420 (basic tax)
Cooperative society/AssociationCHF 280 (basic tax)
Signature rightsCHF 20 (basic tax)
Registration of a functionCHF 20 (basic tax)
Completion of notificationmax CHF 120
Issuance/authentication of supporting documentsmax CHF 120
Legal information/examination of enrollment documentsbetween CHF 100 and CHF 250 per hour

IF YOU ARE INTERESTED IN SETTING UP A COMPANY IN SWITZERLAND, ESTABLISHING YOUR OWN BRANCH ABROAD AND DEVELOPING YOUR BUSINESS IN INTERNATIONAL MARKETS PLEASE CONTACT US!