Limited Liability Company in Switzerland
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.
Features of a Limited Liability Company in Switzerland
- Minimum capital required to form an LLC is CHF 20,000
- Minimum one shareholder is mandatory
- At least one executive director has to have their domicile in Switzerland
- Foreigners can own 100% of the shares
- In general, there is a free choice of the company name. The term “GmbH” has to be added to the company name
How to Set Up an LLC 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:
1. Create an Escrow Account to Hold Paid-Up Capital
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.
2. Draft Registration Paperwork in front of the Notary
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.
3. File the Completed Application Form with the Local Commercial Register
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.
4. Register for VAT
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.
5. Enroll your Company Employees in the National Social Insurance Program
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.
Documents Required to Set Up an LLC in Switzerland
- Company Name of your wish (ending with “GmbH”)
- Passport color scan copy (director(s), shareholder(s)
- Proof of residence (phone bill, electricity bill) not older than 3 months
- Bank reference letter or, 3-month bank statement
- Nature of business
- Business plan
- Details of the owner of the company- their names, address, and other relevant details
- The activities that will be developed under the LLC
- A draft copy of the Articles of Association
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.