A stable economy, competitive in the global market, and comparatively low tax rates is what makes Switzerland one of the ideal locations for starting a business. A company in Switzerland need not have a license to do business except in circumstances where the business is subject to licensing requirements. The shareholders too, do not need to be the Swiss citizens. And in case of foreigners wanting to start a business in Switzerland must know that they must be a Swiss resident or have a Swiss legal entity or a business partner who is a Swiss resident. One of the ways through which a business can be incorporated in Switzerland is by forming a Limited Liability Company. LLC formation comes with many benefits and is also one of the most opted for business entities in Switzerland.
One or more natural person or a legal entity is required in order to register an LLC in Switzerland. The management structure of the LLC or the GmbH in Switzerland is also quite simple and does not require high costs. No board of directors is mandatory for a Swiss GmbH, but the main decision maker is the managing director who has full responsibility for the company. The steps to LLC company formation in Switzerland are as follows:
This step essentially tells to set up a bank account for the company. The government of Switzerland needs to confirm that you have enough money to start a company before granting the registration. The capital requirement for an LLC in Switzerland is CHF 20,000.
The next step after opening a bank account in Switzerland is to submit the application for registration which then has to be certified by the Public Notary. The application includes Articles of Association, signatures of the managing board, Stamp Declaration Form, Lex Friedrich Declaration Form and public deed of incorporation.
The notarized documents must be mailed to the Office of the Commercial Register, alongside a fee for incorporation. The size of this fee will vary based on how much capital your company has. It takes around 15 days for the government to review and approve your application.
Once your application has been approved by the commercial registry you’ll need to register for the Value Added Tax for taxation purposes. All Swiss companies are required to file annual financial statements.
After completing registration, the Cantonal Social Security office (Ausgleichskasse) will send the paperwork for registering employees in the national social insurance system. This system includes retirement and survivors’ insurance benefits, disability insurance, occupational accident insurance and retirement pension.
Once you complete all the above steps, you will officially be a Swiss entrepreneur.
Business Setup Worldwide is a platform to help you in starting a business in Switzerland. Our services include business registration, accounting and bookkeeping, IP, company secretarial services, taxation, and visa services. Our team in Switzerland have years of experience in this field and will make your LLC company setup process in Switzerland hassle-free. Contact us today to know more.