Company formation

The Swiss VAT system follows the European VAT Directive. Nevertheless, there are some important differences that need to be addressed, especially when it comes to foreign suppliers of goods and services

The employment Law is the most important element that governs employment in Switzerland for residents and for foreign nationals. Any foreign individual is allowed to work in Switzerland only after signing the Swiss individual contract of employment. 

In terms of well – developed industries in Switzerland, tourism is certainly one of them. Switzerland is home of numerous lakes, mountain villages, cities with medieval quarters and many popular tourist landmarks. It should come as no surprise that many entrepreneurs are interested in opening a hotel or creating a successful hotel chain in Switzerland.

Private limited liability companies are very common among foreign entrepreneurs investing in Switzerland. It's important to note that a Swiss LLC has a close form to a GmbH. It can be formed by one or more individuals or by companies with a predetermined capital. Each partner of a limited liability company is paying part of the initial share of the capital. The partner’s liability is limited to the predetermined nominal capital.

Most entrepreneurs who want to make the first step towards self – employment in Switzerland choose to do it in the form of the sole proprietorship. This means that a single individual manages a business without creating a company, such as a GmbH, for example. 

A management company is best suited to meet the needs of international groups or corporations. The management company operates mainly outside Switzerland, although it may receive part of the income from Switzerland.

Mixed companies are corporations that have most of their business activity abroad and any business activity conducted in Switzerland is considered only of secondary nature. Both Swiss and foreign shareholders may have a dominant influence on a mixed company, which means that foreign citizens are allowed to open mixed companies in Switzerland.

Switzerland is one of the world’s largest business centers, due tot the policies conducted by the Swiss government that support a competitive and dynamic business environment, while having strict financial laws at the same time.

The most common types of companies established by foreign entrepreneurs in Switzerland are GmbH and AG. Both types of companies have their advantages and disadvantages, therefore the following information might be very useful for those interested in opening a company in Switzerland, to help them make a decision.

Switzerland is offering a very attractive business environment, including for foreign investors. The Swiss laws allow anyone, including foreigners to start a business in Switzerland, to form a company or to have a financial interest in one.