What You Need to Know About Starting a Business in Switzerland: Costs, Tips, and Hidden Fees

Are you planning to start a business in Switzerland? Did you know that initial costs can range from as little as CHF 80 to over CHF 7,000, depending on your choices?

Starting a business in Switzerland can feel like navigating a maze of regulations and unexpected expenses. But don't worry—you’re not alone! With the right guidance, you can avoid surprises and set your business up for long-term success. This guide breaks down the costs and considerations step by step, so you can plan confidently and focus on your entrepreneurial goals.

A company's startup costs in Switzerland can range from zero to CHF 100,000 in capital, based on your chosen business structure. The stark contrast emerges from different legal requirements - sole proprietorships need no upfront capital, while stock corporations (AG) require CHF 100,000 minimum, with CHF 50,000 paid immediately.

My experience with guiding entrepreneurs has shown that most people underestimate Switzerland's true business setup costs. The registration fees alone vary significantly - from CHF 120 for sole proprietorships to CHF 600 for limited liability companies. Swiss business formation extends beyond basic capital requirements. Your company's tax burden will range between 11.9% and 21%, depending on your canton. Let me break down every cost you should expect before registering your Swiss company, including unexpected expenses that often surprise new business owners.

Choosing Your Legal Structure: What Fits Your Budget and Needs?

The first big decision is selecting the right legal structure for your business. This choice will impact not only your setup costs but also your ongoing expenses:

• Sole Proprietorship

  • Ideal for small, simple businesses with limited capital.

  • Costs: Around CHF 80 for commercial registry fees.

  • Pro: No minimum capital required.

• General Partnership

  • Great for businesses with multiple partners sharing responsibilities.

  • Costs: Approx. CHF 160 for registry entry.

• Limited Liability Company (SARL)

  • Provides liability protection but requires more capital upfront.

  • Costs:

    • Minimum capital: CHF 20,000.

    • Administrative fees: Around CHF 420.

    • Includes costs for blocked accounts, notary services, and registration.

• Stock Corporation (AG/SA)

  • Ideal for larger businesses.

  • Costs:

    • Minimum capital: CHF 100,000 (at least CHF 50,000 paid upfront).

    • Administrative fees similar to SARL.

Tip: Seek professional advice to understand how your choice impacts taxes, liability, and long-term expenses.

Registration and Compliance: Essential Steps to Get Started

Once you’ve chosen your legal structure, it’s time to register your business and meet compliance requirements.

• Commercial Registry Fees

  • Sole proprietorship: CHF 80.

  • General partnership: CHF 160.

  • SARL or AG/SA: Around CHF 420.

• Additional Costs

  • Notary services for document authentication: CHF 1,000–3,000.

  • Administrative fees for signing authorities: CHF 20 per position.

• Processing Times

  • Registration can take anywhere from 5 to 60 days, depending on your canton.

Tip: Use tools like EasyGov to simplify administrative tasks, from VAT registration to preparing notary documents.

Hidden Costs and Recurring Expenses: Stay Ahead of Surprises

Starting a business involves more than just registration fees. Here are some often-overlooked expenses:

• Mandatory Insurance:

  • Professional liability and cybersecurity insurance.

  • Fun fact: Over 40% of Swiss companies already invest in cybersecurity.

• Social Security Contributions:

  • Example for an annual payroll of CHF 245,000:

    • OASI/DI/APG: CHF 26,230/year.

    • Pension fund: CHF 24,225/year.

• Marketing and Social Media Management:

  • SEO services: CHF 1,000–5,000/month.

  • Social media management: CHF 1,000–6,000/month.

• Accounting and Tax Consulting:

  • Software or professional services: CHF 2,000–10,000/year.

  • Tax consulting: CHF 250/hour.

Tip: Create financial projections for the first three years, including these expenses, to avoid surprises.

Ready to Take the Next Step?

Starting a business in Switzerland is an exciting journey, but it requires planning and knowledge.

Don’t let the numbers scare you—make informed choices, and you’ll set your business up for success.

Ready to start your Swiss business with confidence? Book a session with us today and let’s simplify the process together!

Book a Session Today