How to start a business in Switzerland

Nino ZEBIRI

January 9, 2024

There Swiss - a country not only known for its cheese and chocolate, but also for its liberal economy and his low taxes. This makes setting up a business in the Alpine Confederation attractive..
In Swiss, we essentially distinguish between individual companies and capital companies. Capital companies can be public limited companies (ITS) or limited liability companies (SARL).
Companies differ from both capital companies in terms of risks. Anyone who wants to take on all risks can be held liable for the claims in a sole proprietorship with his private assets. If several people are involved in setting up a company, a capital company is recommended. In case of risk, the establishment of an LLC is recommended.
When choosing the legal form, in addition to risk, four other criteria must be taken into account: capital, independence, taxes and social security.
For the creation of an SA, a starting capital of at least 100,000 Swiss francs is required.. For an SARL, it is 20,000 Swiss francs.
Depending on the legal form, independence may be limited. In the case of a capital company with partners, it must be decided whether the partners should simply provide financial support to the company (SA) or whether they should participate in the management of the company (SARL).
Furthermore, both forms of corporations have tax advantages in the event of high profits, as these are taxed separately from the owner.
Ultimately, sole proprietorships are not insured against unemployment and membership in a pension fund is optional. In both capital companies, however, managing directors must also be socially insured.
Regardless of the form chosen, it must ultimately meet individual requirements. If this is no longer the case due to changing market conditions after a few years, a conversion to another legal form can still be carried out.

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Nino ZEBIRI