The good news is that it is generally possible to establish a Swiss company fully digitally and without travelling to Switzerland. The key is understanding the legal requirements, planning the structure correctly from the outset, and choosing the right provider to assist with the setup.
Swiss law places no restrictions on foreign nationals owning and operating Swiss companies. A founder or founders can be based anywhere in the world, whether in the European Union, the United Kingdom, the United States, the Middle East or Asia, and still own 100% of a Swiss company.
However, unlike local founders, foreign entrepreneurs often face additional requirements relating to Swiss resident representation, company domicile, banking relationships and ongoing compliance obligations.
IncoSwiss, a Swiss corporate services provider, has supported international entrepreneurs, startups and cross-border corporate groups with company formation and administration in Switzerland for almost two decades.
Already familiar with the incorporation process?
If not, read our complete guide: What Is the Process for Setting Up a Swiss Company? This article focuses specifically on the additional considerations foreign entrepreneurs should be aware of.
Key requirements foreign founders need to be aware of
1. Minimum share capital must be paid in before the registration of the company
Before registration, a capital payment account must be opened and the share capital deposited. The bank issues a capital confirmation, which the notary requires to proceed with the incorporation.
For a Swiss GmbH (Art. 777c para. 1 CO): minimum share capital of CHF 20’000, fully paid in before incorporation.
For a Swiss AG (Art. 633 CO): minimum share capital of CHF 100’000, of which at least CHF 50’000 must be paid in before incorporation.
IncoSwiss expert insight
Many foreign founders assume share capital must always be contributed in cash. Swiss law also permits contributions in kind (Sacheinlage): assets such as machinery, intellectual property, software or receivables may be contributed instead of cash. However, this process involves additional valuation, documentation and notarial requirements. Founders considering this option should seek advice early in the planning stage.
2. Every Swiss company requires Swiss resident representation
Swiss law (Art. 718 Para. 4 and Art. 814 Para. 3 CO) requires every Swiss GmbH and AG to have at least one authorised representative residing in Switzerland with the required signing authority. This person does not need to be a Swiss citizen.
Foreign founders who do not have a suitable contact in Switzerland typically satisfy this requirement by engaging a professional Swiss resident director service, such as that provided by IncoSwiss.
3. A registered office address in Switzerland is required
Every Swiss company must have a registered office in Switzerland. The address may be dedicated business premises, a serviced office, a fiduciary’s office, or a professional domiciliation address.
IncoSwiss expert insight
Switzerland’s 26 cantons each have their own corporate tax rates, administrative procedures and business environments. The choice of canton is a strategic decision that affects the company’s ongoing tax burden, operational costs and processing timelines. Some of the most popular cantons for international businesses are:
- Zug, for holding companies, consulting firms, trading businesses and fintech structures;
- Zurich, for financial services, technology companies and international organisations;
- Basel, for life sciences, biotech and pharmaceutical companies;
- Geneva, for commodity trading, wealth management and international organisations.
The right choice depends on the company’s activities, growth plans and operational requirements.
4. Accounting, tax and VAT compliance are mandatory
Every Swiss company must maintain proper bookkeeping records, prepare annual financial statements and file annual corporate tax returns with the cantonal tax authority.
VAT registration becomes mandatory once worldwide taxable turnover exceeds CHF 100’000 per year. Many foreign founders are surprised to learn that the threshold applies to worldwide revenue, not only Swiss sales, meaning a company generating significant revenue abroad may already have a Swiss VAT obligation before making substantial sales in Switzerland.
IncoSwiss expert insight
VAT rules vary depending on the business activity and structure. Exemptions, industry-specific rules and special provisions may apply, particularly for international service providers and companies operating in regulated sectors. IncoSwiss recommends assessing VAT obligations during the planning stage rather than after operations have commenced.
The requirements themselves are clear. The challenges tend to show up in the execution
5 Most common challenges foreign entrepreneurs face
1. Finding an experienced corporate service provider
Not all Swiss incorporation providers have experience with foreign shareholders, cross-border structures and international banking requirements. Working with a provider that regularly assists international founders can significantly simplify the process and reduce the risk of delays. The right provider coordinates not only the incorporation itself but also banking introductions, domiciliation, resident director services and ongoing compliance, ideally under one roof.
2. Securing a Swiss resident representative
Many foreign founders do not have existing contacts in Switzerland who can fulfil the legal representation requirement. This role can be taken on by a Swiss-resident employee, a local business partner, or a co-founder based in Switzerland, provided they hold the required signing authority.
For companies that do not yet have anyone based in Switzerland, the requirement is typically satisfied through a professional nominee director service provided by a Swiss corporate services firm such as IncoSwiss.
3. Opening a capital payment account
Banking is consistently the most time-consuming stage of the incorporation process for foreign founders, often more so than the company registration itself. Swiss banks conduct thorough due diligence on founders, assessing shareholder background, source of funds, planned business activities, substance in Switzerland and countries involved.
Practical example: A UK-based entrepreneur wanted to establish a Swiss trading company. The incorporation documents were prepared within a few days, but opening the capital payment account took several additional weeks because the bank requested further information on the source of funds and expected business activities. Banking became the longest stage of the process, not the registration itself. This is not unusual.
Different banks have different risk appetites and acceptance criteria. Some are comfortable with international founders, others prefer Swiss-resident shareholders. Certain institutions decline to onboard companies involved in cryptocurrency, digital assets or other regulated activities regardless of business legitimacy.
IncoSwiss assesses each client’s business model, shareholder profile and Swiss business substance in advance, and identifies the most suitable banking partner before any application is submitted, reducing the risk of rejection and unnecessary delays.
4. Choosing the right canton
Many founders select a canton based solely on tax rates. While tax efficiency matters, other factors are equally important: processing timelines, availability of skilled employees, proximity to customers or industry clusters, language, and domiciliation costs. A canton that is attractive on paper may be less suitable for a company’s specific operational needs.
IncoSwiss advises on canton selection as part of the initial project assessment, weighing tax rate, registry processing time and operational requirements together.
5. Managing ongoing compliance obligations
Many founders budget for the incorporation but underestimate the recurring obligations that follow. Annual accounting, financial statements, corporate tax returns, VAT filings, payroll administration, social security contributions and resident director services are all ongoing requirements, not one-time costs.
A situation IncoSwiss regularly encounters: companies that have been operating for twelve months or more without realising they have crossed the CHF 100’000 turnover threshold that triggers mandatory VAT registration. By the time this is identified during the first year-end accounting review, back-registration and retroactive VAT obligations are required. This is entirely avoidable with proper planning from the outset.
How to choose the right corporate service provider
For foreign founders, the choice of corporate service provider can significantly impact the speed and success of the incorporation process. An experienced provider can help coordinate banks, notaries, registries and ongoing compliance requirements, reducing administrative burden and avoiding costly mistakes.
When selecting a Swiss incorporation partner, foreign founders should consider whether the provider:
- Has experience with foreign shareholders and cross-border structures
- Coordinates the full process: banks, notaries, registries and authorities
- Offers a digital incorporation process to minimise courier costs and delays
- Can facilitate introductions to suitable banking partners
- Provides ongoing services including accounting, payroll, VAT and compliance
Keeping these services under one roof results in a smoother process and avoids the coordination costs of managing multiple providers.
How long does it take to register a Swiss company?
A Swiss GmbH or AG can typically be incorporated within 7 to 20 working days once all documentation is available. For foreign founders, the realistic total timeline, from initial assessment to a fully operational company with a bank account, is typically four to eight weeks, depending on the banking process and document preparation timelines. Some cantons process applications more quickly than others.
How Much Does It Cost to Open a Swiss Company as a Foreigner?
| Item | Typical range |
| Commercial Register fees | CHF 500 – 800 |
| Notary fees | CHF 300 – 2’000 |
| Corporate service provider fees | CHF 1’000 – 5’000 |
The share capital deposit (CHF 20’000 for a GmbH; CHF 100’000 for an AG) is not a cost, it is a company asset released to the business once registration is complete. Ongoing costs including domiciliation, resident director services, accounting and VAT should be budgeted separately.
Frequently Asked Questions
Can a foreigner own a Swiss company?
Yes. Swiss law places no restrictions on foreign ownership. A foreign individual or foreign company may own 100% of a Swiss GmbH or AG without residing in Switzerland.
Can a foreign founder be the sole shareholder and sole director of a Swiss company?
Yes. However, if the founder does not reside in Switzerland, the company must still have at least one authorised representative residing in Switzerland with the required signing authority.
Can a foreign company own a Swiss company?
Yes. Foreign corporate entities may own Swiss subsidiaries and may also establish Swiss branch offices in Switzerland.
Does a foreign founder need to live in Switzerland?
No. Many Swiss companies are owned by individuals residing abroad. The legal requirement concerns the residence of the company’s authorised representative, not the residence of the shareholder.
Can a foreigner open a Swiss company remotely?
Yes. The incorporation process can be completed remotely using digital onboarding, video identification, certified signatures and powers of attorney, without the founder travelling to Switzerland.
Which legal structure is best for foreign entrepreneurs?
For most SMEs, consultants and owner-managed businesses, a GmbH is often the preferred structure due to its lower capital requirement and flexibility. An AG is typically chosen for larger businesses, investor-backed companies, holding structures or businesses seeking a more formal governance framework.
Can a foreigner open a Swiss bank account?
Yes, although the process is generally more involved than for Swiss resident founders. Approval depends on the bank, the business activity, the shareholder profile and the countries involved. IncoSwiss assists clients in identifying the most suitable banking partner for their specific circumstances.
Which Swiss canton is best for foreign entrepreneurs?
The most suitable canton depends on the company’s business activity, tax considerations, operational requirements and growth plans. IncoSwiss assesses canton selection as part of the initial project review to help clients choose the most appropriate location for their business.
Planning to Open a Swiss Company as a Foreign Founder?
Whether you are establishing your first Swiss company, expanding an existing international business, or relocating operations to Switzerland, proper planning at the outset can save significant time, cost and compliance challenges later.
IncoSwiss supports entrepreneurs and international businesses throughout the entire lifecycle of a Swiss company, including incorporation, domiciliation, Swiss resident director services, banking assistance, accounting, payroll and ongoing compliance.
Contact our team for an initial assessment of your project and recommended setup structure.
