How to start a business in Switzerland: A guide for US citizens

Switzerland is one of the most stable and business-friendly countries in Europe. With a strong economy, low corporate tax rates, and a central location, it’s an attractive destination for American entrepreneurs looking to expand internationally. If you’re a U.S. citizen interested in setting up a business in Switzerland, this guide will walk you through the legal, financial, and logistical requirements.

We’ll cover everything from how to start a business in Switzerland, the types of entities available, startup costs, and visa options.

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How to start a business in Switzerland as a foreigner

U.S. citizens are legally allowed to start and own businesses in Switzerland, even without residency. However, if you plan to operate the business from inside Switzerland or hire local employees, you’ll need to comply with local registration, residency, and visa requirements.

Switzerland is made up of 26 cantons, each with its own business and tax rules, so your requirements may vary slightly depending on the location. Still, the federal process remains mostly consistent across the country.

Types of legal entities in Switzerland

Before launching, you’ll need to choose a legal structure. Switzerland offers several business entity types, but these are the most common for foreign entrepreneurs:¹

1. Sole proprietorship (Einzelfirma)

Sole proprietorship is the simplest option and is ideal for small businesses or freelancers. Only Swiss residents can register a sole proprietorship, which makes it less feasible for most U.S. citizens.

2. Limited liability company (GmbH/Sàrl)

A GmbH (in German-speaking cantons) or Sàrl (in French-speaking areas) is one of the most popular business types for foreigners. It requires at least one director residing in Switzerland and a minimum share capital of CHF 20,000. You’ll need to appoint a local representative if you’re not living in the country.

3. Public limited company (AG/SA)

The public limited company structure is more common for large companies and multinationals. It requires CHF 100,000 in share capital, with at least CHF 50,000 paid in at the time of registration. Like the GmbH, one board member must be a Swiss resident.

Regardless of structure, company registration in Switzerland requires notarized documents, a business address, articles of association, and an application to the commercial registry. Some cantons allow digital submissions, while either require in-person notarization.

How much does it cost to start a business in Switzerland

How much it costs to start a business in Switzerland depends on the legal structure you choose, but here’s a general breakdown of costs:²

Additional ongoing costs include accounting services, local taxes (federal, cantonal, and municipal), and possibly VAT registration (required if revenue exceeds CHF 100,000/year).³

Keep in mind that some of the share capital (CHF 20,000 or CHF 50,000, depending on entity type) must be deposited into a Swiss business account before registration.⁴ This can be a challenge for U.S. citizens due to cross-border banking restrictions, but more on that below.

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Swiss business visa

If you’re planning to live in Switzerland while operating your business, you’ll need to apply for the appropriate Swiss residence permit. For U.S. citizens, Switzerland offers long-stay visas based on self-employment and entrepreneurship.

Permit options for business owners

There are two options for business owners specifically.

1. Permit L (Short-Term Residence)

Valid for up to one year, this permit is issued for short-term work or business projects. It’s rarely used for setting up a long-term company.

2. Permit B (Residence Permit)

This is the most suitable permit for entrepreneurs who want to reside in Switzerland.⁵ To qualify, you’ll need to:

• Demonstrate a solid business plan
• Prove the business will benefit the Swiss economy (e.g., job creation, innovation, etc.)
• Show that you can financially support yourself

This application must be submitted through the local cantonal migration office and includes documentation like your business plan, financial projections, proof of accommodation, and ID.

Residency permits can be difficult to obtain without local representation or assistance, which is why many U.S. entrepreneurs either partner with Swiss residents or hire local directors to meet these requirements.

If you plan to run the company remotely from the U.S., you may not need a residence permit, but you must still appoint a Swiss-based representative and comply with corporate governance standards.

Tax and financial compliance

Switzerland is known for its low corporate tax rates, but when it comes to the different tax levels, things get more complex:²

• Corporate income tax: 8.5% on profit after tax (7.83% on profit before tax)
• Cantonal and municipal tax: varies by canton (combined average rate ranges between 12-21%)
• Value-added tax (VAT): 8.1% (if annual revenue is over CHF 100,000)
• Withholding tax: 35% rate if your company distributes dividends
• Social security contributions: Includes old-age pension (AHV), disability insurance (IV), and accident insurance
• Other taxes: These taxes may include emission tax, church tax, wealth tax, waste tax, stamp duties, and customs duties.

Businesses earning more than CHF 100,000 annually must register for VAT. They’ll also need to maintain clear accounting records and submit annual financial statements.

Taxation becomes more complex for U.S. citizens due to double taxation rules. Fortunately, Switzerland and the U.S. have a double taxation agreement in place, which allows eligible entrepreneurs to avoid being taxed twice on the same income. You may still need to file a U.S. tax return and report foreign bank accounts (via FBAR or FATCA).

Working with a tax advisor familiar with both jurisdictions is highly recommended.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

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• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

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• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

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Final thoughts

Learning how to start a business in Switzerland as a U.S. citizen involves several important steps: Choosing the right entity, understanding costs, complying with visa requirements, and managing cross-border finances. No matter if you’re opening a Swiss branch, launching a GmbH, or working with local partners, Switzerland offers a robust and competitive environment for entrepreneurs.

Still, one of the most complex aspects can be financial: dealing with multiple currencies, local compliance, and traditional banking requirements. With the Wise Business account, you can streamline cross-border operations, pay international vendors, and hold money in Swiss francs—all from one platform.

So if you’re ready to launch your Swiss venture, Wise can help you manage it from anywhere, whether you’re based in New York, Zurich, or both.

Sources:

1. Types of structures in Switzerland | LawyersSwitzerland.com
2. Starting a company in Switzerland: A detailed cost overview | Nexova
3. Self-employment | ch.ch
4. How much does it cost to set up a company | PostFinance
5. Setting up a company in Switzerland as a foreigner | Nexova