To start a business in Switzerland, choose a legal structure, check your right to operate, prepare a budget and complete the registrations required for your activity. The process differs depending on whether you become a sole proprietor or form an LLC or a limited company.
This guide helps you organise your business setup, from the first decisions to your obligations after launch. Understand the different costs and prepare the documents you will need.
Your starting point
Starting a business in Switzerland: the essentials
- Alone or with partners? A sole proprietorship belongs to one individual. An LLC or limited company can have one or more founders.
- How much capital? No legal minimum for a sole proprietorship; CHF 20,000 for an LLC; CHF 100,000 for a limited company, with at least CHF 50,000 paid in and at least 20% of each share’s nominal value covered.
- Which formalities? OASI/AHV recognition for the self-employed; incorporation before a notary and Commercial Register registration for an LLC or limited company.
- What is the full budget? Add setup costs and the cash needed to operate. Capital contributed to a company remains its money; it is not a fee paid away.
- What comes next? Plan accounting, social insurance, tax and any VAT registration from the start.
Already chosen your structure? Explore our support for starting as a sole proprietor, forming an LLC or forming a limited company.
With Romain Prieur
Understand the process before you start
Watch the formation steps in our video. Refer to the guide below for updated figures and rules.
Which legal structure should you choose?
Your choice depends on financial risk, how you work, your partners and funding needs. Available capital is one consideration among several. These are three common structures for starting a business.
| Criterion | Sole proprietorship | LLC (Sàrl) | Limited company (SA/AG) |
|---|---|---|---|
| Owners | One individual | One or more members | One or more shareholders |
| Minimum capital | None | CHF 20,000, fully paid in | CHF 100,000; at least 20% of each share’s nominal value and CHF 50,000 in total must be paid in |
| Liability | Personal and unlimited | Generally limited to the company’s assets | Generally limited to the company’s assets |
| Formation | Start trading; obtain OASI/AHV recognition and register where the applicable conditions require | Public deed and registration with the Commercial Register | Public deed and registration with the Commercial Register |
| Typical use | Working alone with a simple structure | An SME, a joint business or a wish to separate business and personal assets | A project requiring a shareholding structure suited to investors |
Limited liability does not exclude personal guarantees, liability for management misconduct or certain duties of company officers. Discuss the choice in the context of your actual business.
Explore further: sole proprietorship or LLC and LLC or limited company.
What are the requirements for starting a business in Switzerland?
Check your activity and required permits
Identify any professional or cantonal authorisations before committing substantial money: for example, in catering, healthcare, transport or certain financial activities. Commercial Register registration does not replace an operating licence. Check premises requirements and, if you are employed, your obligations to your employer.
If you live abroad or are a foreign national
Owning a Swiss company and having the right to work in Switzerland are separate matters. The requirements depend on your nationality, residence and permit. EU/EFTA and third-country rules differ. An LLC or limited company must be representable by a person resident in Switzerland under the rules for its legal structure.
See our guides to forming a Swiss company while living in France and starting a business as a cross-border commuter, then confirm your circumstances with the relevant cantonal authority.
How much does it cost to start a business in Switzerland?
A useful budget distinguishes formation fees, capital and the cash needed to operate. Mixing these categories often leads to underestimating funding needs.
| Cost item | Sole proprietorship | LLC or limited company |
|---|---|---|
| Required capital | No legal minimum | LLC: CHF 20,000. Limited company: CHF 100,000, with the minimum paid-in amount described above |
| Legal setup costs | Commercial Register and signature certification fees where required; optional professional support | Document preparation, notary, Commercial Register, signatures and any bank charges |
| Getting established | Equipment, software, website, premises, rental deposits, permits and insurance according to the activity | |
| Initial working capital | Expenses before the first receipts, payment delays and provisions for social insurance and tax | |
Example of fees with Entreprendre.ch
For a standard formation, our fees start at CHF 490 excl. VAT for an LLC and CHF 590 excl. VAT for a limited company, including the notary. As a guide, allow an additional CHF 520–600 for the Commercial Register, CHF 30–60 per signature requiring certification and any bank fees.
With one signature to certify, this comes to approximately CHF 1,040–1,150 for an LLC or CHF 1,140–1,250 for a limited company, before VAT on our fees and any bank charges, excluding capital. Contributions in kind and non-standard arrangements involve different requirements and are outside our standard formation offer. See our company formation pricing for the scope and inclusions.
Plan for the first months as well as formation
List cash outflows month by month and use realistic collection dates. For example, if business expenses are CHF 3,000 per month and sufficient receipts are three months away, you already need CHF 9,000, plus initial purchases and your personal living budget. Adapt the reserve to your sales cycle.
Our cash flow budgeting guide helps turn those assumptions into figures.
Unsure about the structure or budget?
A consultation lets you work through your project: legal structure, initial costs, remuneration and social insurance or tax obligations. Send your information beforehand so we can prepare.
30 minutes · CHF 89 incl. VAT
7 steps to start a business in Switzerland
Validate your offer and funding
Define what you sell, to whom, at what price and with what margin. Test the offer with potential customers and calculate your expenses. A detailed business plan helps when seeking external funding; a clear offer and realistic budget provide a useful starting point.
Choose your legal structure and define roles
Decide whether you will work alone or with partners, which risks you accept and how decisions will be made. Before signing, agree each partner’s contributions, remuneration, ownership percentage and exit arrangements.
Define the name, address and activity
Search Zefix for existing business names, then check potential trademark conflicts and domain availability. A sole proprietorship’s business name must include the owner’s surname. For a company, arrange a valid registered office address and a business purpose consistent with the planned activity.
Prepare your business name and the wording of your business purpose.
Gather the documents and, where required, the capital
Collect identity documents, contact details, address evidence and relevant permits. For an LLC or limited company formed with cash contributions, open a capital deposit account and obtain the bank’s confirmation. A contribution in kind requires specific supporting documents and is outside our standard offer. A sole proprietorship does not need a capital deposit.
Complete the formalities for your structure
Sole proprietorship: document your actual activity and apply to the compensation office for recognition as self-employed. For a commercially run business, Commercial Register registration is generally compulsory from CHF 100,000 of annual turnover. Voluntary registration may be possible below that threshold, subject to the rules for your activity.
LLC or limited company: finalise the articles of association, company officers and signing arrangements, then execute the deed of incorporation before a notary. The company acquires legal personality when entered in the Commercial Register. Online preparation helps organise the application; these formal requirements still apply.
Organise banking, insurance and VAT
After company registration, arrange for the capital to be released into its operating account. For a sole proprietor, a separate account makes business records easier to manage. Organise social insurance affiliations, suitable cover and, if hiring, employee insurance. Review VAT liability from the outset.
Set up administration before issuing your first invoices
Prepare quotes, payment terms, invoices and a filing system for receipts. Define who keeps the accounts, tracks payments and sets aside money for social insurance and taxes. Agree the first deadlines with your accountant to avoid a year-end backlog.
Which documents should you prepare before starting the formalities?
For every project
- Current identity document and contact details.
- Proposed business or registered office address.
- A precise description of the activity.
- Required permits and authorisations.
- Budget, funding and target launch date.
Depending on your legal structure
- Self-employed: evidence of actual business activity, such as contracts, invoices, quotations and investments.
- LLC or limited company: founders, capital allocation, company officers and signing authority.
- Bank capital deposit confirmation for cash contributions, or the required documentation for contributions in kind.
- Articles, declarations and registration application prepared with the professional handling incorporation.
The bank, notary or authorities may request additional documents, particularly if a founder is a legal entity or lives abroad. Use our pre-formation checklist to prepare your file.
How long does it take to start a business?
Timing depends on your legal structure, document completeness, permits and the parties involved. Allow several weeks for an LLC or limited company: bank checks, capital payment, signatures, notarial formalities and cantonal Commercial Register processing follow in sequence.
A sole proprietorship does not require notarial incorporation. You can start the activity once you meet the conditions to operate, while arranging OASI/AHV recognition and any Commercial Register registration. Those applications have their own administrative timescales.
Your obligations after starting the business
Obtain self-employed recognition or register employees
For a sole proprietor, the compensation office assesses the facts, including acting in your own name, bearing economic risk, organising your work independently and maintaining customer relationships. A contract labelled ‘self-employed’ or Commercial Register registration is not sufficient on its own. There is no general rule requiring exactly three clients.
Self-employed people contribute to OASI/AHV, disability insurance and income compensation, among other schemes, but are not insured for unemployment through this activity. Pension and accident cover need to be arranged according to their circumstances. If your own LLC or limited company pays you a salary, you fall under the employee system; access to unemployment benefits remains subject to the rules for people in an employer-like position. Hiring staff requires the corresponding registrations and insurance.
Check whether VAT registration is required
As a general rule, registration becomes compulsory when relevant turnover reaches CHF 100,000. Review the relevant supplies worldwide, rather than Swiss sales alone. Supplies exempt without credit are treated differently from taxable supplies.
If you expect to reach the threshold over the next twelve months from the outset, review registration immediately rather than waiting for year-end. Voluntary registration may be appropriate. The VAT and Commercial Register thresholds follow different rules: check them separately with our VAT support service.
Keep accounts and set aside money for tax
A sole proprietorship must at least record income, expenses and assets. Ordinary accounting requirements apply from CHF 500,000 of turnover in the previous financial year. LLCs and limited companies must keep full accounts.
A sole proprietor’s business income is taxed in their own hands. An incorporated company is taxed separately; remuneration and distributions to its owner have their own consequences. Comparing cantonal tax rates alone leaves out salary, social insurance contributions and your personal circumstances.
Organise this work with our self-employed accounting service or business accounting service.
What support is available for starting a business in Switzerland?
Available support depends on the canton, your profile and the project. It may include advice, coaching, professional networks, loan guarantees or innovation programmes. Support does not automatically mean a cash grant or funding for share capital.
Contact your cantonal economic development office and check eligibility before committing expenditure. If you are unemployed, discuss the project with your regional employment office (RAV/ORP) before changing your status: support options and conditions need to be reviewed in advance. Our business startup support guide outlines avenues to explore.
Mistakes that complicate a business launch
- Choosing on capital requirements alone. Consider liability, partners, remuneration and future administration.
- Confusing turnover with available personal income. Deduct expenses and set aside social insurance contributions and tax before drawing money.
- Treating OASI/AHV, the Commercial Register and VAT as one registration. They have different purposes and conditions.
- Waiting for the first year-end accounts to organise bookkeeping. Keep evidence from your first business expense.
- Signing before agreeing arrangements between partners. Disputes about work contributions or an exit become harder to resolve after launch.
- Assuming a limited company guarantees anonymity. Shareholders are not listed in the Commercial Register merely because they hold shares, but company officers and some documents are public, and transparency obligations still apply.
FAQs about starting a business in Switzerland
Can I start a business in Switzerland without capital?
A sole proprietorship has no legal minimum capital, but you still need to fund setup costs and the first months of trading. An LLC requires CHF 20,000 fully paid in. A limited company has minimum share capital of CHF 100,000, with at least 20% of each share’s nominal value and CHF 50,000 in total paid in.
Do I have to use a notary?
Yes, to form an LLC or limited company. A sole proprietorship does not need a notarial deed of incorporation, although signature certification may be required for Commercial Register registration.
Can I start a business while remaining employed?
This may be possible depending on your circumstances. Check your contract, duty of loyalty, any competition with your employer and required authorisations. The compensation office separately assesses whether your secondary activity qualifies as self-employment.
Do I have to live in Switzerland to form a company?
Not every founder needs to live in Switzerland. However, an LLC or limited company must be representable by a person resident in Switzerland. A founder’s right to work in Switzerland is a separate matter, depending on nationality, residence and permits.
Does Commercial Register registration make me self-employed?
No. The compensation office decides your OASI/AHV status based on the work you actually do. Commercial Register registration serves a separate purpose and does not replace that recognition.
Do I need to register for VAT as soon as I start?
It depends on relevant turnover and the nature of your supplies. If reaching the applicable threshold over the following twelve months is foreseeable at launch, review VAT liability immediately. Voluntary registration may be considered below the threshold.
Can share capital pay for business expenses?
Yes. Once funds are released after registration, the company can use them for its business needs. The capital belongs to the company and must be managed and recorded accordingly, separately from the founder’s private spending.
Can I complete company formation online?
Some preparation can be handled online, including collecting information, exchanging documents and assembling the file. Identification, signing, notarial and registration requirements still apply according to the legal structure and circumstances.
Which support fits your project?
I am preparing my project
Check your decisions before forming the business
Review your legal structure, budget and social insurance or tax implications with a professional.
Consultation: 30 minutes, CHF 89 incl. VAT.
I am ready to start
Prepare my formation application
Explore the support for your chosen structure and the included fees before sending us your project details.
Sole proprietorship · LLC from CHF 490 excl. VAT · Limited company from CHF 590 excl. VAT
To learn how we work, you can also book a free 10-minute introductory call. The call introduces our services; substantive questions about your circumstances are addressed in a consultation.
Feedback from our clients
Ready to turn your project into a business?
Send the initial information needed to prepare your business setup with Entreprendre.ch.
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Official sources and updates
The following official sources support the legal, social insurance and tax information in this guide. The competent authorities remain the reference for requirements specific to your circumstances.
- SECO SME portal: sole proprietorship, LLC and limited company.
- SME portal: starting a business as a foreign national.
- OASI/DI Information Centre: contributions for the self-employed, leaflet 2.02.
- Federal Tax Administration: VAT liability.
- Canton of Geneva: business formation steps and access to Commercial Register documents.
- Federal Office of Justice: Swiss transparency register and commencement timetable.
- Name searches: Zefix and Swissreg.
Information reviewed in September 2026. Fee estimates reflect the information available at that time; final costs and timescales depend on your application.
About the author
Romain Prieur
Swiss-qualified accountant, EXPERTsuisse member
Romain Prieur is a Swiss-qualified accountant and co-founder of Entreprendre.ch. With more than ten years of experience in auditing and supporting businesses in Switzerland, he advises entrepreneurs on company formation, accounting and tax.
