Switzerland is one of the most attractive countries in the world for starting a business. Political stability, competitive taxation, qualified workforce and strategic position in the heart of Europe: the advantages are numerous. Each year, more than 45,000 new companies are established in Switzerland, including nearly 5,000 in the canton of Geneva.
Whether you are an entrepreneur embarking on a first project, a self-employed professional looking to structure your business or a foreign investor attracted by the Swiss market, this guide walks you through the formation of your company step by step. We cover all legal forms, administrative steps, real costs and pitfalls to avoid.
The three main legal forms in Switzerland
Swiss law offers several legal forms suited to different entrepreneur profiles. The three most common are the sole proprietorship (RI), the limited liability company (LLC/Sarl) and the corporation (SA). Each has specific advantages and constraints in terms of capital, liability, taxation and governance.
Sole proprietorship (RI)
The sole proprietorship is the simplest and least expensive form for starting a business. It requires no minimum capital and formalities are minimal. The entrepreneur operates in their own name and assumes unlimited liability over personal assets. Commercial register inscription is only mandatory from CHF 100,000 annual revenue.
This form is particularly suited to freelancers, consultants, craftspeople and small service businesses. The main disadvantage is unlimited liability: in the event of bankruptcy, creditors can seize the entrepreneur's personal assets, including real estate.
LLC (Sarl - Limited Liability Company)
The LLC is the most popular legal form in Switzerland for SMEs. It offers liability limited to the invested capital (minimum CHF 20,000, fully paid up at incorporation) and a flexible governance structure. Members are registered in the commercial register with the amount of their shares.
The LLC is governed by articles 772 to 827 of the Swiss Code of Obligations (CO). It requires a notarial deed and commercial register inscription. Since the 2008 revision of LLC law, this legal form offers great flexibility while protecting entrepreneurs.
Corporation (SA - Societe Anonyme)
The corporation is the most prestigious legal form in Switzerland. It has a minimum share capital of CHF 100,000, of which at least CHF 50,000 (50%) must be paid up at incorporation. Shareholders can remain discreet (bearer shares were abolished in 2021, but registered shares offer a degree of privacy from the public).
The corporation is the preferred form for large-scale projects, fundraising and companies aiming for a stock exchange listing. It is governed by articles 620 to 763 of the CO.
Legal form comparison
| Criterion | Sole proprietorship | LLC (Sarl) | Corporation (SA) |
|---|---|---|---|
| Minimum capital | None | CHF 20,000 | CHF 100,000 (50,000 paid up) |
| Liability | Unlimited (personal assets) | Limited to capital | Limited to capital |
| Number of founders | 1 natural person | 1 or more | 1 or more |
| CR inscription | Mandatory from CHF 100,000 revenue | Mandatory | Mandatory |
| Notary | No | Yes | Yes |
| Auditing body | No | Opting-out possible | Mandatory (unless opting-out) |
| Taxation | Personal income (progressive) | Corporate profit + dividends | Corporate profit + dividends |
| Social charges | Self-employed AVS (~10%) | Manager salary + charges | Director salary + charges |
| Formation costs (AX-Fiduciaire) | From CHF 500.- | From CHF 2,500.- | From CHF 3,500.- |
| Average timeline | 1-2 weeks | 2-4 weeks | 2-4 weeks |
| Accounting | Simplified (income/expenses) | Double-entry (balance sheet, P&L) | Double-entry (balance sheet, P&L) |
For an in-depth analysis, see our detailed comparisons: LLC vs Corporation and Sole proprietorship vs LLC.
Key steps in company formation
Regardless of the legal form chosen, forming a company in Switzerland follows a structured process. Here are the main steps, detailed in our step-by-step guide:
- Define your project and business plan: market research, financial projections, choice of business model.
- Choose the legal form: based on available capital, acceptable risk and growth objectives. Our choice guide helps you decide.
- Choose the company name: verify availability with the commercial register (Zefix) and ensure legal compliance.
- Draft the articles of association (LLC/corporation): the founding document defining the business purpose, capital, governance and operating rules.
- Open an escrow account and deposit the share capital (LLC/corporation).
- Visit the notary (LLC/corporation): authentic deed of incorporation.
- Register the company with the commercial register: filing the application with the cantonal CR of Geneva.
- Register with social insurance: AVS/AI/APG, accident insurance (LAA), occupational pension (LPP).
- Register for VAT: mandatory from CHF 100,000 annual revenue.
- Start operations: set up accounting, open the commercial bank account, begin invoicing.
Company formation costs in Switzerland
Formation costs vary considerably by legal form and canton. Here is a summary for the canton of Geneva:
| Cost item | Sole proprietorship | LLC (Sarl) | Corporation (SA) |
|---|---|---|---|
| AX-Fiduciaire fees | CHF 500 - 800 | CHF 2,500 | CHF 3,500 |
| Notary fees | - | CHF 800 - 1,500 | CHF 1,200 - 2,500 |
| Commercial register | CHF 120 - 200 | CHF 550 - 620 | CHF 550 - 800 |
| Escrow account | - | CHF 100 - 200 | CHF 100 - 200 |
| Federal stamp duty | - | Exempt (< 1M) | Exempt (< 1M) |
| Capital to pay up | - | CHF 20,000 | CHF 50,000 minimum |
| Total excl. capital | ~CHF 500 - 1,000 | ~CHF 3,000 - 5,000 | ~CHF 4,000 - 8,000 |
Use our online cost estimator for a personalised calculation based on your situation.
Why form your company in Geneva?
The canton of Geneva offers a particularly favourable ecosystem for company formation:
- Attractive taxation: corporate income tax rate of 13.99% for legal entities (effective cantonal and municipal rate 2026), one of the most competitive in French-speaking Switzerland.
- International position: presence of international organisations (UN, WTO, WHO), multinational companies and a first-class banking network.
- Talent pool: access to a highly qualified, multilingual workforce, with the University of Geneva and EPFL nearby.
- Infrastructure: international airport, dense transport network, free zones and business incubators.
- Startup ecosystem: FONGIT, Platinn, Swiss Innovation Park and numerous support programmes.
Why use AX-Fiduciaire?
Forming a company in Switzerland involves numerous administrative and legal steps. An error in the articles of association, an oversight in social insurance registration or a poor legal form choice can be costly in the long run. AX-Fiduciaire offers you:
- Comprehensive support: from initial reflection to commercial register inscription, including articles drafting and notary coordination.
- Transparent packages: from CHF 500.- for a sole proprietorship, CHF 2,500.- for an LLC and CHF 3,500.- for a corporation, with no unpleasant surprises.
- Geneva expertise: we have thorough knowledge of Geneva commercial register procedures, local notaries and cantonal specifics.
- Post-formation support: accounting (from CHF 149.-/month), taxation, domiciliation (from CHF 99.-/month) and payroll management.
- Dedicated contact person: you work with an assigned expert who knows your file.
Good to know: by using AX-Fiduciaire for your company formation, you benefit from a free tax audit in the first year and preferential rates on our accounting and domiciliation services.
Our specialised guides
To explore each aspect of company formation in Switzerland in depth, see our detailed guides:
- Form an LLC in Geneva: complete guide, steps, costs and timelines.
- Form a corporation in Geneva: capital, board of directors, auditing body.
- Become self-employed in Switzerland: sole proprietorship, obligations, advantages.
- LLC vs Corporation: detailed comparison of the two forms.
- Sole proprietorship vs LLC: when to incorporate?
- How to choose your legal form: decision tree and examples.
- The commercial register: inscription, documents, costs.
- Share capital: deposit, release, escrow account.
- Formation costs: detailed budget by legal form.
- Formation steps: complete A to Z checklist.
Have a company formation project? Contact us for a free, no-obligation initial consultation. Our experts analyse your situation and recommend the best strategy.