The 8 steps to create a company in Switzerland: how to proceed

Creating a company can sometimes seem like a real obstacle course. However, in Switzerland, this process is surprisingly simple if you are familiar with the administrative steps.

Indeed, the Swiss authorities, particularly the State Secretariat for Economic Affairs (SECO), aim to facilitate entrepreneurship. This is why SECO has created EasyGov, a digital platform that allows you to complete all the administrative steps required to create a company from home. In addition to digitizing the entire creation process, the platform offers a questionnaire that will help you determine the documents required to create your company quickly and easily.

To help you in the creation of your company, we provide below all the administrative steps to follow to complete your project. We also direct you to the competent authorities to contact for each step. By the end of this article, you will possess all the essential information needed to establish your company confidently and without any concerns.

However, if you don’t want to handle these diverse administrative tasks by yourself, it’s worth noting that there are companies in Switzerland that you can hire for a few hundred francs to take care of all the necessary administrative procedures for setting up your business.

1. Develop a solid project

In this article, we will focus exclusively on the administrative steps involved in setting up your company in Switzerland. This assumes that you have already considered your project, conducted a market analysis, and developed a business plan. If this is not yet the case, we recommend that you utilize the resources available online, such as the SME portal for small and medium-sized enterprises of the Swiss Confederation, which will help you solidify your project before initiating the administrative creation of your company.

2. Check if the profession is regulated

In Switzerland, certain professions or activities are regulated, which means that the practice of these professions is subject to the possession of certain professional qualifications. In other words, obtaining a cantonal (and in some cases federal) authorization is necessary to engage in these activities. You can find a complete list of these regulated professions on the page Regulated professions and information notes of the State Secretariat for Education, Research and Innovation (SEFRI). To obtain a work permit, you must contact the relevant authorities for each profession, as listed on the SEFRI website. If your profession is not regulated, you can go directly to point 3.

Please note that if you hold a foreign diploma and wish to obtain recognition to practice a regulated professional activity, you must initiate a diploma recognition procedure. This procedure can be done by following the instructions available on the SEFRI application procedure page. This step can take up to 4 months depending on the country of origin and the competent authorities. It is therefore recommended to gather information and initiate the procedure as soon as possible.

3. Choose a legal form

Once you have defined your entrepreneurial project, the first step to complete is selecting a legal form for your business. The legal form determines the leeway you have as a business owner, the required initial capital, the legal liability framework, as well as the formalities to be considered. It is therefore crucial not to overlook this step.

In our article “Choosing a legal form for your company in Switzerland“, we have already provided a detailed presentation of the different legal forms available in Switzerland. You can also download the PDF provided by EasyGov, which outlines the precise requirements for each legal form. In addition, you can reach out to the economic development agency of the canton in which you intend to establish your company to acquire additional information.

4. Create an account on EasyGov (15 to 30 minutes)

Once you have addressed points 1 to 3, you can proceed with the actual creation of your company. It is at this stage that you will utilize EasyGov to streamline all the administrative steps. Therefore, it is crucial to begin by registering (free of charge) on EasyGov. You can complete the registration process online by clicking on this link.

5. Determine the necessary authorizations (1 hour to 3 hours)

EasyGov provides you with a questionnaire that will assist you to determine the necessary administrative steps based on the characteristics of your company, such as the legal form, turnover, number of employees, and field of activity. The six main administrative steps are the following:

1. Raise the initial capital;
2. Determine the status of the company;
3. Registering with the Commercial Registry;
4. Register for VAT;
5. Register with the cantonal AVS compensation office;
6. Insuring yourself and your employees.

However, not all legal forms require all these steps. Therefore, we recommend that you consult the section that corresponds to the legal form of your company to determine which steps are necessary. Also, don’t forget to complete the questionnaire available on EasyGov to obtain additional information and ensure that you haven’t overlooked anything.

As an indication, we have provided the estimated time required to set up a company, depending on its legal form, in brackets. However, please note that this time is calculated assuming that all the required documents are available and that the competent authorities are not overloaded by a high number of registration requests.

a. Sole proprietorship (1 day to 3 weeks)

The administrative steps to be taken to create a sole proprietorship in Switzerland are as follows:

1. Registration in the commercial register: it is mandatory if your annual turnover exceeds CHF 100,000.
2. VAT registration: it is mandatory for a turnover exceeding CHF 100,000.
3. Registration at the Caisse cantonale de compensation AVS: you must apply for self-employed status at the Caisse cantonale de compensation AVS in the year you start your professional activity to have your self-employed status recognized.
4. Insurance: You are required to take out compulsory occupational pension (BVG) and accident insurance (UVG) for your employees and to register them with the AHV compensation fund. For a complete list of all mandatory insurance policies for a sole proprietorship, please visit the federal government’s “Insurance by legal form” page.

b. General partnership (3 days to 3 weeks)

The administrative steps to be carried out within the framework of a general partnership are the following:

1. Registration in the trade register: it is mandatory, regardless of your turnover.
2. VAT registration: this is mandatory for annual sales of more than CHF 100,000. Below that, you do not need to register.
3. Registration at the Caisse cantonale de compensation AVS: it is necessary to apply for self-employed status at the Caisse cantonale de compensation AVS in the year you start your professional activity to have your self-employed status recognized.
4. Insurance: You are required to take out compulsory occupational pension (BVG) and accident insurance (UVG) policies for your employees and to register them with the AHV compensation fund. If you would like to consult an exhaustive list of all the compulsory insurance policies for a general partnership, please consult the Confederation’s page “Insurance by legal form“.

c. Limited company, SA (3 days to 3 weeks)

The administrative steps to be carried out within the framework of a limited company are the following:

1. Raise the initial capital: the initial capital must be at least CHF 100,000. You must deposit the money with a bank in a consignment account during the company’s creation phase. The bank will send you a confirmation of deposit to the commercial register office.
2. Determining the organs: the organs of the corporation are the general meeting, the board of directors, consisting of at least one member (of which at least one member must be domiciled in Switzerland), and the auditors.
3. Define the company’s articles of association: you need to define the purpose and organization of your company. You will find more information on the statutes on the following page.
4. Registration in the trade register: it is mandatory, regardless of your turnover.
5. VAT registration: this is mandatory for annual sales of more than CHF 100,000. Below that, you do not need to register.
6. Registration with the cantonal AVS compensation fund: even before hiring your very first employee, the new company must first register with an AVS compensation fund.
7. Insurance: you are required to conclude contracts for the compulsory occupational pension plan (BVG) and accident insurance (UVG) for your employees and to register them with the AVS compensation fund. If you wish to consult an exhaustive list of all the compulsory insurances for a corporation, please consult the Confederation’s page “Insurances according to the legal form“.

d. Limited liability company, Sàrl (3 days to 3 weeks)

The administrative steps to be carried out within the framework of a limited liability company are the following:

1. Raise the initial capital: the initial capital must be at least CHF 20,000. You must deposit the money with a bank in a consignment account during the company’s creation phase. The bank will send you a confirmation of deposit to the commercial register office. It is also possible to make contributions in kind (e.g. furniture, vehicles, real estate, etc.). These contributions must belong to you and must be able to be sold.
2. Determining the company’s articles of association: you need to define the purpose and organization of your company. You will find more information on the statutes on the following page.
3. Registration in the trade register: it is mandatory, regardless of the amount of your turnover.
4. VAT registration: it is mandatory for an annual turnover exceeding CHF 100’000.
5. Registration with the cantonal AVS compensation fund: even before hiring your very first employee, the new company must first register with an AVS compensation fund.
6. Insurance: you are required to conclude contracts for the compulsory occupational pension plan (BVG) and accident insurance (UVG) for your employees and to register them with the AVS compensation fund. If you wish to consult an exhaustive list of all the compulsory insurances for a corporation, please consult the Confederation’s page “Insurances according to the legal form“.

6. Obtain the required documents from the competent authorities (1 day to 5 weeks)

Once you have determined which documents are required to establish your business through the EasyGov questionnaire, the next step is to obtain them. Depending on the legal form of your company, you may be asked to provide documents such as a confirmation of deposit provided by the bank, the articles of association of your company, or a civil status document. This step can be completed quickly (1 day) or take longer (up to 1 month) depending on the number of documents requested and the workload of the different authorities involved. Once you have gathered all the necessary documents, you can proceed to the next step which involves having certain documents certified by a notary, as explained in point 7.

7. Notary authentication (1 day to 1 month)

Some documents must receive recognition from a notary. This is particularly the case for documents prepared on EasyGov. This step must be completed to officially register with the competent authorities in step 8. By responding to the mentioned questionnaire on EasyGov, you will determine which documents are concerned by this notary act.

8. Register officially with the competent authorities

You have just entered all your company data in EasyGov (legal form, company name, number of employees, etc.). Thanks to this, you now know exactly which authorities you need to register with (as mentioned in point 5 for each legal form). All you have to do is proceed with the registrations. These registrations can be completed directly through EasyGov, as the platform enables direct registration for the following:

1. Commercial register
2. AVS (compensation funds)
3. VAT
4. Accident insurance (SUVA and private insurance)

Once you have completed these steps, you will have created your business and will finally be able to operate legally.

In a nutshell: EasyGov is an indispensable tool to create your company in Switzerland. This platform is free of charge, does not incur any additional costs to the creation of your company, and greatly simplifies the administrative steps associated with your entrepreneurial project. By following these 8 steps, you can create your company with just a few clicks.