Swiss Company Formation: A Complete Guide to Starting a Business in Switzerland
Founders are still looking to Switzerland. The country hasn’t necessarily gotten easier to enter, but for those willing to go through the steps, the payoff tends to be stability, credibility – and in some cases – faster access to the European market. That’s especially true in biotech. Firms involved in immune cell therapy or clinical trial therapy say they need a base that investors trust. Switzerland, they argue, still signals quality.
“Most of our clients want predictability,” said one of our experts, who works with early-stage startups. “Even if it means more setup time upfront, they’d rather build where the systems are reliable.”
The Process Isn’t Fast – But It Works
The basic requirements for Swiss company formation haven’t changed: founders must choose between a GmbH and an AG, deposit minimum capital, file documents, and appoint a Swiss-resident director. But in practice, what slows teams down is banking.
“You can prepare the documents in a week,” our specialist said. “Getting the bank account – that can take two or three. Especially if the founders are based overseas.”
That delay has pushed many to use fiduciary firms that handle the process end-to-end. The most common formation is still a GmbH. It requires CHF 20,000 in capital and usually involves two filings – one at the notary, one with the registry. But for public-facing ventures like those developing novel cancer treatments, teams often go with an AG instead. It gives them more flexibility with equity.
No, You Don’t Need to Live There
One thing that surprises first-time founders: they don’t need to be in Switzerland. But the company does.
At least one board member must reside in the country – and that’s non-negotiable. Some teams designate a co-founder. Others use legal agents. The point is to make sure the company can sign, receive official notices, and meet obligations. That part of the process used to be a hurdle.
Why Entrepreneurs Is Still Betting on Switzerland
Switzerland isn’t cheap. Hiring, insurance, and regulation take time and money. But for startups – especially those in specific fields like medicine and something similar – the country’s clinical credibility still matters.
In the last year, at least three early-stage ventures being a part of a similar industry set up shop in Basel. Two more structured their trials from Lausanne. The reason? Proximity to EU regulators, strong ethics boards, and neutral positioning for multinational licensing.
“These aren’t huge companies,” said our legal advisor who’s worked on multiple cases. “They’re lean teams trying to validate one platform. And Switzerland gives them a way to do that with clean paperwork.”
How Long It Really Takes
Timelines vary. Technically, a company can be formed in two weeks. But add in account verification, board approvals, and paperwork reviews, and most take closer to four.
Once registered, there’s more to do.
- Apply for a VAT number if revenue is expected above CHF 100,000.
- Register with the pension and social insurance funds.
- File any sector-specific applications – especially for biotech or fintech ventures.
It’s not an “open shop and go” jurisdiction. But that’s also why investors keep backing Swiss-registered firms.
Location Still Matters
Tax rates differ widely by canton. Zug and Schwyz remain popular for holding companies. Zurich and Geneva offer more access to workforce and global hubs. But for firms in immune cell therapy or digital health, Vaud and Basel often win out.
It’s not just about taxes. Sometimes you want to be near the university, the hospital, or the ethics committee. That can be more valuable than saving 3% on your corporate rate.
One list of advantages frequently cited by founders includes:
Switzerland’s access to EU and global markets;
- strong protection of IP;
- credibility with regulators and investors;
- predictable tax system (despite being tiered by canton);
- clean financial reputation for exit strategies.
What Makes It Work
It’s not the speed that attracts businesses. It’s the finish. Teams that get through the process – especially those dealing with clinical trials, licensing, or product approvals – often find their credibility rises immediately.
“Swiss company formation gives you a kind of international handshake,” one of our experts said. “You don’t have to explain the jurisdiction. People know what it means.” That still carries weight in sectors where trust is hard to earn.
For example, one biotech firm working on antigen-specific treatment structured its AG in Switzerland, then used that vehicle to apply for co-funding out of Brussels. Another, focused on rare immunotherapy, opened its data operations near Lausanne and signed its first pharma partnership six months later.
These aren’t isolated examples. They’re part of a trend – and the logic isn’t likely to change anytime soon.
Our team works directly with founders, legal counsel, and investors to streamline the company formation process in Switzerland. Whether it’s structuring an AG for biotech trials or securing a fiduciary partner, we help you get operational without the usual red tape.
