Starting a Business in Switzerland: A Practical Guide

Switzerland offers a stable environment, clear legal frameworks, and a dynamic ecosystem – making it an attractive location to start a business. Here are the key steps and obligations you need to know.

Step 1 – Choose the Legal Structure

Four legal forms are most commonly used in Switzerland:

• Sole Proprietorship
  • Suitable for solo entrepreneurs.
  • No minimum capital required.
  • Commercial register entry only required if annual turnover exceeds CHF 100,000.
  • Mandatory registration with the AHV/AVS compensation office.
  • No notary required.
• General Partnership (SNC)
  • For two or more partners.
  • No minimum capital.
  • Commercial register entry mandatory.
  • No notary required.
• Limited Liability Company (GmbH/Sàrl)
  • Minimum capital CHF 20,000.
  • Commercial register entry mandatory.
  • Notarization required.
• Corporation (AG/SA)
  • Minimum capital CHF 100,000 (at least CHF 50,000 paid in).
  • Commercial register entry mandatory.
  • Notarization required.
  • Popular with startups, as it facilitates fundraising and investor participation.

Step 2 – Define Capital Distribution

Founders must decide how shares are distributed and contribute their portion of the minimum required capital (e.g., 50/50 split → each founder contributes half).

Step 3 – Deposit Capital at a Bank

For GmbH or AG incorporation, the capital must be deposited into a blocked account at a bank. The bank issues a certificate required for the commercial register entry.

Step 4 – Prepare and Certify Documents

Articles of incorporation and required documents are prepared and notarized. Founders must sign physically (in person or via videoconference with ID verification).

Step 5 – Register with the Commercial Register

Once notarized, the company is officially registered in the commercial register – finalizing the incorporation process.

Obligations After Incorporation

Incorporation is just the beginning. Swiss companies face several mandatory obligations:

Social Insurance

• AHV/IV/EO (1st pillar): registration with the cantonal compensation office.
• Accident Insurance (UVG/LAA):
  • Mandatory for all employees.
  • Covers only occupational accidents if < 8 hours/week.
  • Covers both occupational and non-occupational accidents if ≥ 8 hours/week.
• Occupational Pension (BVG/LPP): mandatory if annual salary per employee exceeds CHF 22,680 (2025).
• Recommended additional insurance: liability insurance, daily sickness allowance, property insurance, legal protection.

Cantonal Registration

• Register the company with the cantonal compensation office at the head office or branch.
• Payment of family allowances (rates vary by canton, e.g., 2.65% in Vaud).
• Possible cantonal deductions (e.g., PC Familles in Vaud).

Foreign Employees

• Require a valid work/residence permit (B, C, Ci, G, L).
• Employees without a C permit must be registered with the withholding tax office in their canton of residence.

How quitt Business Supports You

Starting a business is the first step. But from the moment you hire employees, HR and payroll obligations quickly become complex.

quitt Business handles it all for you:

• Registration with social insurances (AHV, UVG, BVG).
• Salary calculation and payments.
• Tax declarations, including withholding tax.
• Family allowance administration.
• Preparation of employment contracts, payslips, and salary certificates.

👉 You focus on growing your startup – we ensure compliance and efficient payroll administration.

Conclusion

Starting a business in Switzerland follows a clear legal process, but comes with numerous administrative and social insurance obligations.

With quitt Business, you gain a reliable partner for transparent, compliant, and efficient payroll and HR administration – right from your first employee.‍