Switzerland is an attractive location for entrepreneurs – stable economy, liberal regulations and a high degree of legal certainty. But what if you do not reside in Switzerland? Don't worry – you can also set up a company without living in Switzerland. Here you will find out how this works and what steps you need to follow.
The essentials in brief:
- Swiss law requires that one managing director be domiciled in Switzerland. Nevertheless, founding a company in Switzerland is also possible without such a domicile, but requires specific requirements.
- You will need a Swiss bank account and possibly a professional escrow company to support you. However, without a domicile in Switzerland, opening a bank account can be complicated.
- The legal form plays a central role in terms of liability and capital. In the case of a LLC, you are only liable for the share capital of at least 20,000 CHF, while the minimum capital in the case of an JSC is 100,000 CHF.
1. Choose the right legal form
If you want to set up a company in Switzerland, choosing the right legal form is crucial. The most popular options are Limited liability company (LLC) and joint-stock company (JSC). Both legal forms offer a limitation of liability – this means that in the event of insolvency, you are not liable for your personal assets, but only the capital contributed is available to the company.
LLC: Flexible and suitable for smaller companies
The LLC is a popular choice, especially for small and medium-sized companies. It is requires a minimum capital of CHF 20,000, which must be paid into a Swiss bank account at the time of incorporation. One advantage of the LLC is that it has fewer formal requirements than an JSC and is therefore often considered easier to administer. It is ideal for companies with few shareholders or those who do not want to trade on the stock exchange.
JSC: For larger companies and investors
The joint-stock company (JSC) is a particularly suitable legal form for larger companies – or those that want to attract external investors. It offers more flexibility in terms of capital access, as shares can be easily sold or transferred. For an JSC, the minimum capital is 100,000CHF, whereby at least 50,000CHF must be paid up at the time of incorporation. The JSC is particularly suitable for companies that later want to go public or have a high number of investors.
Another advantage of the JSC: It often enjoys a better reputation in the business world – especially among potential investors. Here, too, liability is limited to the company's assets.
Other legal forms and special regulations
In addition to LLC and JSC, there are other legal forms – for example, sole proprietorships, general partnerships or limited partnerships. However, these are less frequently used by international entrepreneurs, as they do not offer any limitation of liability and often require recourse to private assets. These legal forms are more suitable for local, smaller companies.
2. Managing Director with Swiss domicile
Even if you do not reside in Switzerland, you can start a company there. However, Swiss law requires that at least one person on the Board of Directors (at the JSC) or in the management (at the LLC) must have a permanent residence in Switzerland. This is mainly due to legal and administrative factors, as the Swiss managing director acts as a point of contact for the authorities.
Solutions for non-resident entrepreneurs
How can I meet the legal requirement of a managing director domiciled in Switzerland? There are two common options for entrepreneurs who do not reside in Switzerland:
1. Partner or trusted person
If you know someone in Switzerland, this person could join the management or board of directors of your company. This person then assumes legal responsibility for the company and acts as an official point of contact for the Swiss authorities.
This route is often the more cost-effective option – but requires that the person concerned enjoys sufficient trust and is able to reliably perform their tasks.
2. Appointment of a trust company
Alternatively, you can hire service providers in Switzerland who will take over the function of managing director for you. We offer more than just the formal assumption of the management mandate: we also offer support with, for example, the foundation process, accounting or tax returns.
The big advantage here is the professional support from experts who are not only familiar with the legal requirements – but also have a strong network in Switzerland. This allows you to focus on the growth of your company, while we secure the administrative and legal framework. Book a free consultation with us.
3. Open a Swiss bank account
A further prerequisite for the establishment of the company is a Swiss bank account, through which the minimum capital must be paid. Without a Swiss domicile, opening an account can be a bit more complicated – as banks have strict regulations on money laundering prevention. It is advisable to contact various banks at an early stage or to also consult a trust company that can handle the process for you.
4. Necessary documents and founding procedures
The founding process in Switzerland is comparatively simple. You must have the foundation certified publicly, which is usually done by a notary. To do this, you need the following documents:
- Articles of Association of the Company
- Commercial register application
- Confirmation of the payment of the share capital (Swiss bank account)
After all documents have been submitted, your company will be registered in the commercial register and you will receive your company identification number (UID).
5. Tax-related matters
Switzerland offers moderate corporate taxes compared to the rest of the world. The exact tax rates vary depending on the canton. It is worth looking these up in advance, as some cantons offer particularly attractive conditions for companies. An additional advantage: Switzerland has numerous double taxation agreements that prevent you from having to pay taxes on the same income in two countries.
Summary
Establishing a company in Switzerland is possible without a domicile in the country, but requires some organization. The key to success is to look after the right partners on site at an early stage – be it a managing director, a trust company or a bank. With the right preparations, you can benefit from a stable business location, attractive tax models and international connections.
