How to open a Swiss company.

1. Why Switzerland

Switzerland is one of three countries in the world to hold a AAA sovereign rating from all three major agencies. It ranks first in IMD's World Competitiveness scoreboard, and has held formal political neutrality since the Treaty of Vienna of 1815. For a company, this translates into three concrete advantages: a stable currency (CHF), a predictable corporate tax burden (between 11 and 21 % effective depending on canton), and an administration that is famously rapid for a Western European country — registry filings are typically processed in 7 to 14 days. None of this is decorative; it is the reason many holdings, family offices and growing technology companies choose Switzerland over their domestic markets.

2. Choose your legal form

Five forms cover the great majority of Swiss incorporations. The choice depends on capital available, number of shareholders, and whether you intend to list shares.

• Société à responsabilité limitée (SARL / GmbH) — minimum capital CHF 20 000, fully paid. Most common for SMEs and consultancies. Quotas (parts) rather than shares.
• Société anonyme (SA / AG) — minimum capital CHF 100 000 with at least CHF 50 000 paid up. Required for listed entities and most regulated activities. Bearer or registered shares.
• Raison individuelle (sole proprietorship) — no minimum capital. Personal liability. Required to register with the RC above CHF 100 000 annual turnover.
• Branch of a foreign company (succursale) — Swiss tax presence without separate legal personality. Useful for foreign multinationals that want a Swiss seat without a new entity.
• Association or foundation — for non-profit, sporting, or charitable purposes. Specific governance rules apply.

3. Choose your canton

Switzerland's 26 cantons set their own corporate tax rates, on top of the 8.5 % federal rate. The effective burden ranges from roughly 11 % (Zug, Lucerne) to 21 % (Bern, parts of Geneva). Beyond tax, language, talent pool and proximity to your customers matter.

• Zug — lowest effective tax (~11.85 %), strong on commodity trading and crypto. German-speaking.
• Vaud — effective ~13.79 %, French-speaking, between Lausanne and Geneva. Strong on biotech, fintech, and services.
• Geneva — international hub, higher tax (~14 %), excellent for trading, NGOs and finance.
• Zurich — Switzerland's largest economy, ~19.65 %, banking and tech capital.
• Ticino — Italian-speaking, gateway to Italy, ~17.5 %.

4. The five steps of incorporation

Once the form and canton are chosen, the actual incorporation moves quickly. A typical SARL is operational within 3 to 4 weeks.

• Step 1 — draft articles of association and shareholder agreement (your counsel)
• Step 2 — open a capital escrow account at a Swiss bank, deposit the minimum capital
• Step 3 — sign the deed of incorporation before a Swiss notary; receive the bank confirmation of paid-in capital
• Step 4 — file the dossier at the cantonal commercial registry (RC); typical processing time 7 to 14 days
• Step 5 — once RC entry is published in the Federal Commercial Gazette (FOSC), open the operational bank account, register for VAT (if turnover > CHF 100 000), AVS, and BVG/LPP

5. Taxes you will face

Swiss corporate tax has three layers (federal, cantonal, communal) which combine to the figures cited above. VAT applies at 8.1 % standard, 2.6 % reduced, 3.8 % accommodation. Mandatory social charges (AVS, AI, AC) total around 12.8 % of payroll, split employer/employee. Withholding tax of 35 % applies to dividends, recoverable through tax treaties for most jurisdictions.

6. Ongoing obligations

Once incorporated, your Swiss company has predictable annual duties: bookkeeping under Swiss GAAP (or IFRS for listed), filing of statutory accounts at the RC, an ordinary general meeting within six months of fiscal year-end, and tax filings (federal and cantonal). Above CHF 250 000 in balance-sheet total or CHF 500 000 in turnover, an audit (limited or ordinary) becomes mandatory.

7. How Galloni Holding helps

Galloni Holding does not practise law or tax advisory directly — Swiss law forbids it without bar admission. What we do is provide the prerequisite that every Swiss company needs: a registered professional address in Canton Vaud, fully accepted by the commercial registry. We also coordinate the introduction to Vaud-based notaries, fiduciaries and lawyers from our trusted network, so the operational steps above do not become a search problem. Most of our clients are operational with their domiciliation contract within 24 hours, and have their RC entry published within two weeks.