Question 1

Do I have to register my company in the commercial register?

Accepted Answer

Capital companies (LLC, corporation) only come into existence with commercial register entry – without it, they don't legally exist. Sole proprietorships must register only from CHF 100,000 annual turnover, below that it's voluntary. A voluntary entry looks more professional to banks and business partners, though.

Question 2

How long does incorporation take?

Accepted Answer

A sole proprietorship without a register entry is effectively operational the same day. With a register entry, expect 1–2 weeks. An LLC or corporation typically takes 2–4 weeks due to the notary appointment, capital payment, register review and official gazette publication.

Question 3

Does founding an LLC or corporation require a notary?

Accepted Answer

Yes. LLCs and corporations must be formed by public deed. The notary certifies the articles of association, the Stampa declaration and the capital payment confirmation. Only with this notarial deed can the commercial register office record the entry.

Question 4

Can I found a company in Switzerland as a foreigner?

Accepted Answer

Yes, but at least one person with signing authority and Swiss residence is required (for a corporation: at least one board member, for an LLC: at least one managing officer). EU/EFTA citizens have it easier from a residence-permit perspective than third-country nationals.

Question 5

Can I found several companies at the same time?

Accepted Answer

Yes. There's no upper limit. Each company is legally independent, with its own bookkeeping, tax return and, where applicable, VAT number. Keep clear invoicing between the companies to avoid hidden profit distributions.

Question 6

How much capital do I really need?

Accepted Answer

By law: LLC CHF 20,000 (fully paid in), corporation CHF 100,000 (at least CHF 50,000 paid in). In practice you also need liquidity to cover 6–12 months of operations before the company breaks even – usually well above the legal minimum.

Question 7

Can I contribute assets instead of cash?

Accepted Answer

Yes. Machinery, vehicles, IP or an existing sole proprietorship can be contributed in kind. This requires a contribution-in-kind agreement, a formation report and a review confirmation from a licensed auditor – which extends the process.

Question 8

What does a formation cost in total?

Accepted Answer

Roughly for 2026 for a standard LLC: notary CHF 600–1,500, register fee CHF 600, certifications CHF 100–300, plus optional advice/platform CHF 0–2,000. Budget CHF 1,500–4,000 in total – on top of the share capital, which stays in the company.

Question 9

What is a capital payment account?

Accepted Answer

A blocked account at a Swiss bank into which the formation capital is paid before the notarial deed. The bank issues a payment confirmation that the notary requires by law. After registration, the account is converted into a normal business account.

Question 10

From when am I liable for VAT?

Accepted Answer

From CHF 100,000 worldwide annual turnover from taxable supplies. Turnover of the last 12 months is decisive. If exceeded, you must register with the Federal Tax Administration within 30 days. Below that, voluntary registration is possible (worthwhile if you have significant input tax).

Question 11

Am I taxed twice with an LLC?

Accepted Answer

Formally yes: the LLC pays profit tax (roughly 12–21%, depending on the canton), and you pay income tax on dividends. Partial taxation (federal: 70%, cantons vary) eases the burden for holdings of 10% or more. Pure salary payments face no double burden – just OASI and income tax.

Question 12

How are dividends from my LLC taxed?

Accepted Answer

Dividends count as income. For a qualifying holding (≥ 10%), partial taxation applies: federal tax on 70% of the dividend, cantons between 50–70%. A 35% withholding tax is deducted directly and can be reclaimed with correct declaration.

Question 13

What can I deduct for tax as self-employed?

Accepted Answer

All business-related expenses: home-office share, business vehicle or mileage allowance, further training, professional literature, meals while travelling, trade association fees, pillar 3a, voluntary occupational pension contributions. Keep receipts for 10 years.

Question 14

Do I have to pay into the occupational pension (BVG) as self-employed?

Accepted Answer

No, the second pillar is voluntary for the self-employed. You can join via your trade association's pension fund or the BVG substitute occupational benefit institution. Without a pension fund, you may instead pay up to 20% of net income (max. CHF 36,288 in 2026) into pillar 3a.

Question 15

How do I prove to OASI that I'm self-employed?

Accepted Answer

The compensation office recognises self-employment if you: (1) act in your own name and for your own account, (2) bear the entrepreneurial risk, (3) have several clients, (4) use your own infrastructure. Submit contracts, invoices and receipts. A single client is usually not enough.

Question 16

Is daily sickness benefits insurance mandatory?

Accepted Answer

No. For both self-employed and employees, daily sickness benefits insurance is legally voluntary – but strongly recommended. Without it, extended illness leaves you without income replacement. As an employee of your own LLC, you can deduct the premium as a business expense.

Question 17

Do I need accident insurance (UVG) as a sole proprietor?

Accepted Answer

No, mandatory accident insurance only applies to employees. Self-employed people are covered against accidents through mandatory health insurance (activate the add-on!) or can take out voluntary accident insurance.

Question 18

Do I need an auditor?

Accepted Answer

LLCs and corporations are in principle subject to limited statutory audit. Opting out is possible if (a) no more than 10 full-time positions on annual average and (b) all shareholders agree. Large companies (2 of 3 criteria: balance sheet total CHF 20m, turnover CHF 40m, 250 FTEs) are subject to ordinary audit – cannot opt out.

Question 19

When do I have to keep double-entry bookkeeping?

Accepted Answer

From CHF 500,000 annual turnover. Below that, simplified bookkeeping ("cash book") of income, expenses and assets is enough. Capital companies always keep double-entry bookkeeping regardless of turnover.

Question 20

How long do I have to keep receipts?

Accepted Answer

10 years – for business books, annual accounts, accounting vouchers and relevant correspondence. Electronic storage is permitted if integrity and readability are guaranteed (Art. 958f CO, business records ordinance).

Question 21

What happens if my LLC makes losses?

Accepted Answer

Losses can be offset against future profits for 7 years. In case of capital loss (equity < 50% of share capital plus statutory reserves), the board / management must initiate restructuring measures. In case of over-indebtedness (assets < liabilities), the court must be notified (Art. 725 CO).

Question 22

How can I later convert my sole proprietorship into an LLC?

Accepted Answer

Via a contribution-in-kind formation under the Merger Act: the sole proprietorship as a whole is contributed to the new LLC, with the business assets counting as a contribution in kind toward the share capital. Tax-neutral if the 5-year lock-up period is observed and no open reserves are distributed.

Common questions, answered briefly.

The path to your own company

What does starting up cost?

What the tax office wants to know

OASI, occupational pension and the rest

Questions in day-to-day business

Next step

Plan your formation

Glossary

Legal form check