Switzerland Company Formation & Entity Choice

Entity types, capital and compliance

The two main Swiss capital companies are the GmbH/Sàrl (limited liability company) and the AG/SA (stock corporation); sole proprietorships and partnerships are also common. These are 2025 figures for accountant review.

• GmbH / Sàrl (limited liability company) — Limited liability company; members hold quotas; most common form for SMEs (Swiss Code of Obligations (OR/CO))
• AG / SA (stock corporation) — Stock corporation with shares; preferred for larger businesses and capital-raising (Swiss Code of Obligations (OR/CO))
• Other forms — Sole proprietorship (Einzelfirma), general partnership (Kollektivgesellschaft) and limited partnership (Kommanditgesellschaft) (Swiss Code of Obligations (OR/CO))
• GmbH minimum share capital — CHF 20,000, fully paid up before registration CHF (Swiss Code of Obligations (OR/CO))
• AG minimum share capital — CHF 100,000, of which at least CHF 50,000 (and at least 20%) paid in before incorporation CHF (Swiss Code of Obligations (OR/CO))
• Incorporation steps — Name check, draft articles of association, open a capital-deposit (blocked) account with a Swiss bank, notarised public deed, then registration in the Commercial Register (Handelsregister) (Swiss Code of Obligations (OR/CO))
• Typical timeline — Approx. 5–10 business days after documents are submitted (approx — confirm) (Swiss Code of Obligations (OR/CO))
• Indicative incorporation cost — Roughly CHF 1,500–3,000+ in notary and commercial-register fees (excl. capital and advisory) (approx — confirm) CHF (Swiss Code of Obligations (OR/CO))
• Swiss residency requirement — At least one person able to represent the company (director/managing officer) must be resident in Switzerland (Swiss Code of Obligations (OR/CO))
• Capital issue stamp duty — 1% federal issuance stamp duty on equity contributions above a CHF 1,000,000 exemption % (Federal Act on Stamp Duties (StG/LT))
• VAT registration — Required once taxable turnover reaches CHF 100,000; may register voluntarily earlier CHF (Federal Act on Value Added Tax (MWSTG/LTVA))
• Annual accounts — Companies must keep books and prepare annual financial statements under the Code of Obligations accounting rules (Swiss Code of Obligations (OR/CO))
• Audit requirement — Ordinary audit if two of: balance sheet total CHF 20m, revenue CHF 40m, 250 full-time staff (two consecutive years); otherwise limited audit, which small companies (≤10 FTE) may opt out of (approx — confirm thresholds) (Swiss Code of Obligations (OR/CO))
• Annual tax filing — Annual corporate income/capital tax return filed with the cantonal tax administration; VAT and social-security returns filed periodically (Federal Act on Direct Federal Taxation (DBG/LIFD))