Setting Up a Recruitment Company in Switzerland: A Case Study

An international executive search firm came to IncoSwiss AG for help establishing its first Swiss operation. During our initial discussions, we identified a requirement the client had not been aware of: its planned headhunting activity needed a personnel placement licence.

We explained the requirements upfront and guided the client through the whole process. Preparing for licensing during incorporation helped avoid unnecessary delays and additional costs from having to revisit decisions later.

Approximately 10 weeks after our initial engagement, the client had a licensed Swiss GmbH, suitable premises and payroll and accounting in place.

The Swiss company setup at a glance

Building the setup around the client’s plans

We began with the practical questions: what services would the Swiss company offer, which countries would it recruit across, and who would run the business? The answers helped us plan incorporation, licensing and relocation together.

A Swiss GmbH suited the client’s initial team, capital needs and ownership plans. It would start with one manager, without immediate plans for external investors or frequent share transfers. These were important considerations when choosing between a Swiss AG and GmbH.

Our Swiss company formation support covered digital incorporation and coordination of the capital payment account. We drafted the company purpose to reflect the intended recruitment activity and licensing requirements from the start.

Preparing the recruitment licence applications

The company needed a cantonal personnel placement licence and an additional federal licence from the State Secretariat for Economic Affairs (SECO) for its planned cross-border recruitment.

To clarify the requirements and budget, we explained the difference between two business models:

• Personnel placement (Arbeitsvermittlung): the recruitment firm introduces candidates to a hiring company, which employs them directly.
• Labour leasing (Personalverleih): the agency employs workers and assigns them to a client business.

This client’s activity fell under personnel placement. The financial security required for licensed labour leasing, starting at CHF 50’000, therefore did not apply to its business. The distinction is explained in SECO’s placement and labour-leasing guidelines.

We explained which documents were needed, helped the client prepare them during incorporation and coordinated both applications through to approval.

Securing suitable premises from the start

For this engagement, a c/o address or flexible desk alone was insufficient. The company needed a lockable office for its exclusive use that met the licensing authority’s requirements.

We explained this before the client chose its Swiss company address, helped find suitable premises and coordinated the lease alongside incorporation. Selecting the right office at this stage avoided an address change after registration, with the extra administration and costs that would have involved.

Identifying the responsible person and arranging relocation

The person responsible for the licence had to meet requirements relating to qualifications, professional experience, reputation and residence status. We explained the criteria and helped the client identify a suitable person within its existing team.

During incorporation, we included the necessary signing authority in the Commercial Register registration. We also assisted with the manager’s relocation, including the applicable residence and work formalities.

We considered licensing eligibility separately from immigration requirements: a work permit alone does not establish eligibility to act as the person responsible for the licence.

Preparing payroll, accounting and VAT registration

To prepare the GmbH to employ the relocating manager, we coordinated the applicable social security and insurance registrations, including AHV/AVS, accident insurance and pension arrangements.

We also handled VAT registration and set up monthly payroll, accounting and annual reporting. With our Swiss Accounting & Payroll team involved from the beginning, the client had continuing support from people who already understood its business.

How long did the Swiss recruitment company setup take?

The setup took approximately 10 weeks from our initial engagement until the company was ready to begin operations. Licensing accounted for the largest part of the timeframe.

Some stages overlapped, with licence preparation beginning during incorporation. These timings are specific to this case; other projects depend on documentation, banking, the authorities and individual relocation circumstances.

What were the setup fees in this case?

The following approximate fees relate to this engagement. All fees exclude VAT.

The services and fees were agreed with the client before work began. A full launch budget also needs to allow for share capital, premises, ongoing accounting and payroll, and other applicable costs.

Our guide to the costs of setting up a Swiss company explains the main budget categories.

The outcome: ready to operate, with continuing support

The client completed the setup with an incorporated Swiss GmbH, the required cantonal and federal licences, suitable premises and its manager relocated. Employer and VAT registrations were complete, and payroll and accounting were ready for the business to begin operating.

IncoSwiss’s involvement continued beyond the launch through ongoing payroll and accounting support.