Starting a business in Switzerland: Guide for Indian residents with requirements, fees, and opening a business account

Switzerland can be an attractive location for setting up a business, with many international corporations having headquarters there. The country offers a stable business environment with attractive tax structures, but many may find it expensive to live and start a business. Learn more about what it takes to register a company in Switzerland and what to consider when operating a Swiss business. This article will also go into the visa options available for Indian passport holders at the end of the article.

Table of contents

Can you register a company in Switzerland from India? Different types of companies in Switzerland Requirements to start a Switzerland company from India What does it cost to run a Switzerland company Starting costs for setting up the company Fees for compliances, annual filings Taxes and Government Fees Starting a business account for Switzerland company Moving to Switzerland from India Startup / Entrepreneur Visa Program

Can you register a company in Switzerland from India?

Since India does not belong to the European Union or the European Free Trade Association, Indians face stricter restrictions for setting up a company in Switzerland. However, qualifying Indians can take up self-employment or set up business in Switzerland if they meet specific requirements, like obtaining an appropriate visa, getting an office address, and engaging a Swiss director. They also must be considered part of a highly qualified workforce and have an existing residence permit. This is in addition to complying with Swiss residential, business and legal requirements.¹

If you are a Swiss or European citizen, or holding the appropriate visa to open a business in Switzerland, you can do so online. The Swiss government has put the entire process online with EasyGov, where you can register and manage your company registration. Depending on your type of business structure, the registration costs range from CHF 80-420.²

Different types of companies in Switzerland

Founders can choose from multiple business structures for registering a company in Switzerland. Here are the three most common legal structures:³

• Sole proprietorship - This type of structure is one of the most common in Switzerland, and is ideal for entrepreneurs and freelancers. A sole proprietorship is typically the easiest to set up. It also means that the owner is responsible for all debts and obligations the business accrues. There also may be additional regulations if the business has a turnover of CHF 500,000 or more.
• Partnership - A partnership means there are two or more people and can be a simple, general or limited liability partnership, depending on how the liabilities are shared. A simple partnership is intended for the short term and can be dissolved, while a general partnership typically has a partnership agreement. A limited liability partnership is not as common as the other two but allows for one of the partners to be liable for only their portion.
• Limited Company (SA) - A Swiss limited company requires a board of directors and allows shareholders and employees to take advantage of company benefits. There is a high capital investment of CHF 100,000 to get started. Additionally, an SA is expected to meet additional regulatory and reporting requirements.

Other business structures in Switzerland include setting up an LLC (SARL), a joint stock company, a cooperative company, an association or a foundation. Review the Swiss government’s SME Portal for more information.

Requirements to start a Switzerland company from India

Non-EU/EFTA citizens do not have automatic rights to set up a business in Switzerland. They need special authorization if they are not permanent Swiss residents, such as being designated as highly qualified as professionals.

Entrepreneurs from non-European countries, like Indians, will need to meet the requirements of the Federal Act on Foreign Nationals (FNA), Decree on Admittance, Residence and Employment (VZAE) and the provisions of the AuG and the VZAE.

Those having a permanent residence or a settlement permit in Switzerland can be self-employed. Alternatively, you must be a holder of a valid C permit or a spouse of a C-permit holder to have the rights to run a self-employed business.

People with S status must apply for a work permit from the cantonal authorities at the place of work. If conditions are met, S status-holders may be approved to start their own business.

All others, who do not hold a valid permit, must apply to the cantonal authorities for proper authorization. The Swiss authorities will consider applicants that have:

• A comprehensive business plan.
• Sufficient start-up capital
• The ability to show that the business will have a "lasting positive effect or influence on the Swiss labour market.”
• Existing relationships with other Swiss companies.
• A foundation charter and/or a Commercial Register entry.

If your application for a business is approved by the cantonal authorities, you may be granted one of these short-term permits: ⁴

• L-permit - is a short-term residence permit that is valid for one year and extendable by a maximum of 12 months.
• B-permit - is a residence permit issued for one year and renewed annually if found eligible.

Here are the requirements that depend on the type of business structure you set up:

Business structure	Requirement
Sole proprietorship	A Swiss residence and work permit
General and limited partnership	A Swiss residence and work permit for all partners and investors
Limited liability company	At least one manager or director is a resident in Switzerland, with a valid work permit.
Joint-stock company	At least one person who represents the company must live in Switzerland and hold a valid residence and work permit

If you are looking for additional information or support when opening a business, these agencies can help you through the process:

• Swiss Economic development website.
• Swiss Innovation Agency, Innosuisse
• Venturelab for young entrepreneurs.
• Eurostars for European innovation projects, with information on finding financial assistance.

What does it cost to run a Switzerland company

Setting up and running a Swiss company can be as expensive as other European countries. Additionally, the Swiss government does not provide assistance or direct financial support for entrepreneurs or startups.⁵

If you are starting your own business, there are some general costs you can expect:

• Employee salaries: The salary and benefits of staff for your company can be one of the largest expenses for a new business, including the salary for yourself.
• Office maintenance: Office costs can include rent, deposits, the cost of tech infrastructure or even a coworking membership.
• Insurance and taxes: Your business may need insurance policies for employees, including yourself, as well as your office space. A tax accountant can help make sure you are compliant with all taxes for your business, from the local to the national level.
• Professional services: Tax accountants, lawyers and local professionals can be helpful in setting up and running your business, but their charges can add to your expenses.

These are some costs you can have when you start your business, but there may be others. Next, let’s look at the primary costs to expect when setting up a company in Switzerland.

Starting costs for setting up the company

Switzerland has 26 cantonal authorities. Each canton can have their own costs and fees, but here are the general costs to register a company in Switzerland.⁶

Type of business structure	Fee
Sole proprietorship	CHF 80
General partnership	CHF 160
Limited company	CHF 420
Cooperative company or an association	CHF 280
Signing authority	CHF 20 (per registration)
Registration of a position	CHF 20 (per registration)
Preparation of a request for registration	up to CHF 120
Preparation or authentication of proof of registration	up to CHF 120

There may be additional costs to start your company, including notary fees or taxes. Registering on EasyGov or working with an agency can provide help to clarify additional costs.

Fees for compliances, annual filings

Audit compliance and annual tax filings are compulsory for Swiss companies. The fees for compliance and annual filings vary from one canton to another. To navigate compliance and annual tax filings, it is a good idea to get an accountant or service provider to help.

Taxes and Government Fees

Switzerland has a decentralized tax system. The taxes you pay will depend on your business structure and you are likely to pay taxes at three different levels, the confederation, canton and commune or church. Here is how the Swiss government outlines the taxes and a breakdown according to your business structure:⁷

Business structure	Confederation tax	Canton tax	Commune or church
Partnership	Direct federal income tax	Income tax and wealth tax	An added surcharge or deduction from government tax
Corporation (SA) or limited liability company (Sàrl)	Direct federal tax on profits	Tax on profits and wealth	Surcharge on top of or deduction from government tax

The self-employed pay taxes on income and assets.

VAT is part of the Swiss tax system, and even companies that are based overseas but offer services in Switzerland are required to pay it. You can be exempt from paying VAT if your annual turnover is less than CHF 100,000 or if you are part of certain sectors that are exempt. The Swiss government provides additional information on VAT and how it is paid on their website.

Starting a business account for Switzerland company

Switzerland has an advanced and developed banking system, so opening a business banking account is convenient and you will have bank options to choose from. Some top Swiss banks include the Union Bank of Switzerland (UBS), Credit Suisse, and CIM Banque.

Want to learn more about opening a business account? Read our full guide to how to open a business bank account in Switzerland

Challenges in opening and managing account from India

Online banking has made managing a bank account simpler from anywhere in the world. But with transfer fees and a marked-up exchange rate, making an international transfer with a bank can be expensive. Want an easier way to transfer money globally? Check out Wise.

Meet Wise Business

The Wise Business Account can help your business go global. With one account, you can send international transfers to employees, staff or suppliers in countries around the world. There is just one transfer fee and you get the mid-market exchange rate, which means no extra charges or hidden fees.

You can also make things easier for clients with the Wise Business Account’s local bank details. By providing local bank details in multiple currencies, clients can now pay invoices in the currency that works best for them.

It’s the only business account you need to go global. It has everything the Wise Account offers, plus extra tools businesses need to grow and operate internationally. Over 300,00 businesses already use Wise Business each quarter. Join now and see how seamless managing money for your business can be.

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Our online process lets you open and verify your Switzerland business account from India. With our customer support available in English and our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Moving to Switzerland from India

Switzerland has stringent rules for allowing non-EU/EFTA residents to do business in Switzerland. Indian citizens may be hired by Swiss companies to live and work in the country as full-time employees. This typically requires a graduate or postgraduate degree and work experience. ⁸

If you want to start a business in Switzerland, in most cases you will be required to have an existing L or B residence permit and show evidence of living in the country for a specific number of years.⁹

Startup / Entrepreneur Visa Program

Presently, there is no entrepreneur visa program for Indian passport-holders intending to open companies and do business in Switzerland.

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This article is not intended to provide financial, legal, immigration or business advice. Consult professionals for personalized advice on how to navigate starting a business or moving to Switzerland.

Sources used for this article:

1. Foreign national: Setting up a business
2. Registration costs with the commercial register
3. Choosing a legal structure: Matching your company's legal structure to your requirements
4. Setting up a company as a citizen of a third state
5. Starting your own business: preliminary advice and agencies providing assistance
6. Registration costs with the commercial register
7. List of taxes for entrepreneurs
8. Non-EU/EFTA nationals
9. Setting up a company as a citizen of a third state

Sources verified on 3 December 2023.

Cover photo by Marvin Meyer on Unsplash.