Switzerland regularly ranks among the most attractive countries in the world for starting a business. Political stability, reliable legal system, competitive taxation, qualified workforce and central geographical position in Europe: the advantages are numerous. Geneva, in particular, stands out as a premier international hub, welcoming entrepreneurs from around the world.
But starting a business in Switzerland as a foreigner raises specific questions: what residence permit is needed? Can you form a company without living in Switzerland? How do you open a bank account? What taxation applies? This guide covers all these issues so you can do business in Switzerland with confidence.
Whether you are an EU/EFTA national, a third-country national or a cross-border commuter, the procedures differ. This guide details each scenario and presents practical solutions to overcome administrative obstacles. For general formation steps, also see our complete guide to company formation in Switzerland.
Switzerland: an attractive framework for international entrepreneurs
Several factors make Switzerland a preferred destination for foreign entrepreneurs:
- Political and economic stability: Switzerland benefits from one of the most stable institutional frameworks in the world, with direct democracy and a predictable federal system.
- Competitive taxation: the effective corporate tax rate ranges from 12% to 14% in Geneva after the TRAF reform, which remains very attractive by European comparison. See our taxation page for more details.
- Network of tax treaties: Switzerland has signed more than 100 double taxation agreements (DTAs), preventing double taxation of income.
- Highly qualified workforce: the level of training and multilingualism of the Swiss working population are major assets.
- Geneva, international hub: home to numerous international organisations, Geneva offers a unique ecosystem for cross-border business, with a strong concentration of international talent and a globally connected airport.
- Intellectual property protection: Switzerland provides a solid legal framework for the protection of patents, trademarks and designs.
- Access to the European market: thanks to bilateral agreements, Swiss companies easily access the EU market.
Conditions by nationality: who can start a business in Switzerland?
The conditions for entrepreneurship in Switzerland vary considerably depending on your nationality and place of residence. Here is a comparative table of the three main situations:
| Criterion | EU/EFTA nationals | Third-country nationals | Cross-border commuters (G permit) |
|---|---|---|---|
| Right to start a business | Yes, without restriction | Yes, subject to conditions | Yes, as self-employed |
| Permit required | B permit (free movement) | B or L permit (subject to quotas) | G cross-border permit |
| Access to permit | Automatic upon proof of activity | Subject to annual quotas | Border zone + daily/weekly return |
| Specific conditions | Proof of self-employment or company formation | Economic interest for Switzerland, qualifications, job creation | Residence in border zone, activity in Switzerland |
| Permit duration | 5 years (renewable) | 1 year (renewable, subject to quota) | 5 years (renewable) |
| Formation without residing in Switzerland | Possible with domiciled representative | Possible with domiciled representative | Cross-border commuters reside abroad by definition |
EU/EFTA nationals: the simplest route
Thanks to the Agreement on the Free Movement of Persons (AFMP), nationals of EU and EFTA countries (Iceland, Liechtenstein, Norway) enjoy facilitated access to entrepreneurship in Switzerland. They can obtain a B permit for self-employment by simply demonstrating that they carry out a genuine economic activity. The procedure is relatively quick and does not require proof of a particular economic interest for Switzerland.
Third-country nationals: more demanding conditions
For nationals of countries outside the EU/EFTA (United States, Canada, Asian countries, African countries, etc.), the conditions are significantly stricter. The granting of a residence permit is subject to limited annual quotas and rigorous admission criteria:
- The activity must present an economic interest for Switzerland (job creation, technology transfer, investments)
- The candidate must have high qualifications (degrees, professional experience)
- Priority is given to national and European workers (national preference principle)
- Remuneration and working conditions must be complied with
However, it is important to note that a third-country national can form a company in Switzerland without residing there, provided they appoint a representative domiciled in Switzerland. This solution is frequently used by international entrepreneurs.
Cross-border commuters (G permit): doing business from abroad
Cross-border commuters residing in the border zone (France, Germany, Italy, Austria) can start a business in Switzerland with a G permit. They benefit from the ability to work in Switzerland while residing in their home country. This arrangement is particularly common in the Geneva basin, where many French residents create their business in Geneva.
Domicile requirement for directors
One of the crucial points for foreign entrepreneurs is the legal domicile requirement in Switzerland for directors. This rule varies by legal form:
LLC (art. 814 para. 3 CO)
For an LLC, the law requires that at least one manager with individual signatory authority be domiciled in Switzerland. This manager can be a member or a third party. There is no Swiss nationality requirement: the person simply needs to have their effective domicile in Switzerland, regardless of their passport.
Corporation (art. 718 para. 4 CO)
For a corporation, the law requires that at least one board member with individual signatory authority be domiciled in Switzerland. As with the LLC, there is no nationality requirement.
Sole proprietorship
For a sole proprietorship, the holder must be domiciled in Switzerland or in the border zone with a G permit. There is no possibility of appointing a representative, since the sole proprietorship is by nature linked to a natural person.
The solution: domiciled director service
If you do not reside in Switzerland and wish to form an LLC or corporation, the most common solution is to use a domiciled director service. A fiduciary such as AX-Fiduciaire provides a professional domiciled in Switzerland who assumes the role of manager or board member with signatory authority. This service is perfectly legal and very widespread. It allows you to form and manage your company without settling in Switzerland.
This service can also be combined with our Geneva domiciliation offering, which provides a prestigious commercial address for your company's registered office.
AX-Fiduciaire advice: the choice of domiciled director should not be taken lightly. This person has signatory authority over your company and legal responsibilities. Use a recognised fiduciary with professional liability insurance.
Step-by-step procedure for a foreign entrepreneur
Here is the complete process for forming a company in Switzerland as a foreign entrepreneur, from the first step to an operational company:
Step 1: Obtain the appropriate residence permit
If you plan to settle in Switzerland, the first step is to obtain the appropriate residence permit. For EU/EFTA nationals, the application is made to the cantonal population office after arrival in Switzerland. For third-country nationals, the process is longer and goes through the cantonal employment office, then the State Secretariat for Migration (SEM). Allow 2 to 6 months for third-country nationals. For more information, see our page on work permits in Switzerland.
If you do not wish to reside in Switzerland, you can proceed directly to the next step and arrange for a domiciled representative.
Step 2: Choose the legal form
The choice between LLC, corporation and sole proprietorship depends on your personal situation, the nature of your activity and your objectives. For a non-resident foreign entrepreneur, the LLC or corporation are the most suitable options as they allow for the appointment of a representative domiciled in Switzerland.
Step 3: Find a representative domiciled in Switzerland
If you do not reside in Switzerland, you must identify a manager (LLC) or director (corporation) domiciled in Switzerland. AX-Fiduciaire offers this service with comprehensive support: the designated person is fully conversant with Swiss company law and ensures your company's compliance.
Step 4: Open a bank account in Switzerland
Opening the escrow account for the share capital deposit is a step often underestimated by foreign entrepreneurs. It can take longer than for a Swiss resident (see the dedicated section below). AX-Fiduciaire directs you to banks suited to your profile.
Step 5: Standard formation procedure
Once the permit is obtained (or the representative appointed) and the bank account opened, the formation procedure follows the standard path: drafting of articles, visit to the notary (in person or by power of attorney), commercial register inscription. See our detailed guide to the formation steps for full details of each formality.
Step 6: Social and tax registrations
After commercial register inscription, you must complete the mandatory affiliations: AHV compensation fund, accident insurance LAA, occupational pension BVG (if employees), VAT (if expected revenue exceeds CHF 100,000). Foreign entrepreneurs must also address their personal tax situation, particularly in cases of dual residence.
Opening a bank account: challenges for non-residents
Opening a bank account in Switzerland is often the most delicate step for a foreign entrepreneur, particularly for non-residents. Swiss banks apply strict compliance procedures (Anti-Money Laundering Act — AMLA) and have become more selective in recent years.
Common difficulties
- Refusal of non-residents: some banks systematically refuse to open accounts for companies whose beneficial owners do not reside in Switzerland.
- Enhanced due diligence: banks require detailed information about the origin of funds, the nature of the activity and the beneficial owners.
- Extended timelines: the process can take 2 to 6 weeks, compared to 1 to 2 weeks for a Swiss resident.
- Certain nationalities: nationals of higher-risk countries are subject to additional checks.
Documents required
- Valid passport (certified true copy if sent by post)
- Recent proof of address (less than 3 months old)
- Detailed business plan with financial projections
- Proof of origin of funds (bank statements, contracts, savings certificate)
- CVs of founders and beneficial owners
- Bank references (letter from your current bank)
- Form A (identification of the beneficial owner)
How to maximise your chances
AX-Fiduciaire maintains privileged relationships with several banking institutions in Geneva. We know each bank's acceptance criteria and direct our clients to the one that best matches their profile. Our assistance in preparing the banking application significantly increases the acceptance rate.
Taxation for foreign entrepreneurs
Taxation is a strategic aspect for any foreign entrepreneur in Switzerland. Several mechanisms determine the applicable taxation, depending on whether you reside in Switzerland or not.
Taxation principle: domicile or stay
In Switzerland, unlimited tax liability (on worldwide income) applies to persons who have their domicile in Switzerland or stay there for an extended period (30 days or more with gainful employment, 90 days without gainful employment). If you do not reside in Switzerland, only Swiss-source income is taxed (limited tax liability).
Company taxation
Your Swiss company (LLC or corporation) is taxed in Switzerland on its profit and capital, regardless of the founders' nationality. In Geneva, the effective profit tax rate is approximately 13 to 14%. Deductions are available for research and development costs (patent box), and some cantons offer tax relief for new businesses. See our taxation page for an overview.
Double taxation agreements (DTAs)
Switzerland has concluded more than 100 double taxation agreements with countries worldwide. These agreements prevent the same income from being taxed twice (in the country of residence and in Switzerland). They cover notably:
- Dividends paid by the Swiss company to a foreign shareholder (reduced withholding tax rate)
- Interest and royalties
- Business profits (taxed in the country of the permanent establishment)
- Self-employment income
Withholding tax for non-residents
If you work for your Swiss company without being domiciled in Switzerland, your remuneration may be subject to withholding tax. The rate varies by canton, salary amount and family situation. In Geneva, withholding tax scales are published annually by the cantonal tax administration.
International tax planning
Appropriate tax structuring can significantly optimise the overall burden. This includes:
- Determining the optimal structure (holding, operating company, branch)
- Exploiting applicable double taxation agreements
- Optimising director remuneration (salary, dividends, benefits in kind)
- Anticipating transfer pricing rules in the case of intra-group transactions
- Complying with economic substance rules required by the OECD
AX-Fiduciaire advice: international tax planning is a complex area where mistakes can be very costly. We work with a network of specialised tax advisors to propose an optimal and compliant structure in all countries concerned.
Special cases
Remote formation: it is possible
It is entirely possible to form a company in Switzerland without travelling there physically. The procedure relies on an authenticated notarial power of attorney: you sign a power of attorney before a notary in your country of residence, which is then apostilled (Hague Convention) or legalised by the Swiss embassy. The representative in Switzerland — usually your fiduciary — attends the Swiss notary on your behalf to sign the deed of incorporation.
For the bank account, some banks accept remote identification (video identification), but most require physical presence or a certified copy of identity documents by a notary or consulate.
Lex Friedrich: restriction on real estate acquisition
The Federal Act on the Acquisition of Real Estate by Persons Abroad (LFAIE, known as "Lex Friedrich") restricts the purchase of real estate by non-resident foreigners. This law may impact your project if you plan to purchase commercial premises. However, the acquisition of a property serving as a permanent establishment for a commercial activity is generally authorised, even for non-residents. Commercial domiciliation with a fiduciary is a simple alternative that avoids this issue.
Branch vs subsidiary for foreign companies
If you already own a company abroad and wish to establish a presence in Switzerland, two options are available:
| Criterion | Branch | Subsidiary (new company) |
|---|---|---|
| Legal personality | None (extension of the parent company) | Separate legal entity |
| Liability | Parent company liable | Limited to subsidiary's capital |
| Capital required | None | CHF 20,000 (LLC) or CHF 100,000 (corporation) |
| CR inscription | Mandatory | Mandatory |
| Accounting | Separate accounting recommended | Autonomous accounting mandatory |
| Taxation | Taxed in Switzerland on attributable profits | Taxed in Switzerland on all profits |
| Ideal for | Limited activity, market testing | Long-term establishment, autonomous activity |
A branch is simpler and less costly to set up, but it does not offer legal separation from the parent company. A subsidiary (LLC or corporation) is preferable for long-term establishment, as it limits liability and offers greater operational flexibility. AX-Fiduciaire advises you on the structure best suited to your internationalisation strategy.
Cost summary for a foreign entrepreneur
Beyond the standard formation costs, a foreign entrepreneur should plan for the following additional costs:
| Item | Indicative cost | Frequency |
|---|---|---|
| Domiciled director in Switzerland | CHF 2,000 to 5,000 | Per year |
| Registered office domiciliation | CHF 1,200 to 3,600 | Per year |
| Translation and legalisation of documents | CHF 200 to 1,000 | One-off |
| Notarial power of attorney (remote formation) | CHF 300 to 800 | One-off |
| International tax advisory | CHF 500 to 3,000 | One-off / annual |
| Residence permit application (if applicable) | CHF 100 to 250 | One-off |
These costs are in addition to the standard formation costs (notary, commercial register, share capital). AX-Fiduciaire offers all-inclusive packages incorporating company formation, domiciliation and domiciled director service, allowing you to control your overall budget from the outset.
Checklist: starting a business in Switzerland as a foreigner
Summary of steps and documents to prepare:
- Determine your situation (EU/EFTA, third country, cross-border commuter)
- Check the applicable permit conditions
- Choose the legal form (LLC, corporation, sole proprietorship)
- Identify a representative domiciled in Switzerland (if non-resident)
- Prepare identity documents (passport, residence permit if applicable)
- Draft a solid business plan (essential for the bank)
- Open the escrow account and deposit the capital
- Draft the company's articles of association
- Obtain a notarial power of attorney (if forming remotely)
- Attend the notary for the deed of incorporation
- Inscribe the company in the commercial register
- Complete social insurance affiliations (AHV, LAA, BVG)
- Register for VAT if necessary
- Set up accounting
- Analyse the international tax situation with a specialist
The complexity of the procedures for a foreign entrepreneur fully justifies engaging an experienced fiduciary. AX-Fiduciaire supports dozens of international entrepreneurs each year in establishing their business in Geneva and Switzerland. Request a personalised quote to find out the package suited to your situation.