Frequently asked questions about setting up a company in Switzerland

How much does it cost to set up a company with Startups.ch?

Depending on the chosen legal form, your founding canton and the selected and confirmed partners of Startups.ch, you can even found a company free of charge via our start-up service.

Calculate a non-binding offer online with just a few clicks.

How long does it take to set up a company?

Startups.ch not only makes it easy and straightforward to found a company, but also fast. Here you will find a complete overview of how quickly you can found a company with and without Startups.ch.

Either way, please allow at least two weeks for the start-up process.

What should I do when setting up a company?

You can enter the entire foundation process online via our homepage or during a consultation with one of our advisors. To do this, first request a free and non-binding offer.

You can then accept the offer and create your personal user login. In a further step, you have the option of entering all company details (name, address, persons) online and finally submitting the incorporation to us.

The Startups.ch lawyer will contact you by telephone within the timeframe specified in the package (on working days) to discuss the incorporation.

How does company formation work?

First, you make all the clarifications for your company formation, from the company name to the financing. Then you can calculate the offer for your company formation on Startups.ch and send us the order for the company formation.

A Startups.ch lawyer will then contact you by telephone within the 24-hour period (on working days) specified in the package to discuss the incorporation.

How do you get residence and work permits?

Anyone who works in Switzerland during their stay or stays in Switzerland for longer than three months requires a residence permit.

Switzerland applies a dual system for the admission of foreign workers. Workers from EU/EFTA states benefit from the Agreement on the Free Movement of Persons.
Well-qualified workers from other countries are admitted.

To apply for a residence permit and for further information, you can contact the relevant cantonal migration office directly.

When can I withdraw my pension fund assets as starting capital?

This is only possible if you set up a partnership (sole proprietorship, general partnership) and if you have also been recognized by the cantonal compensation office as a self-employed person.

In addition, the self-employed activity must be your main occupation. If you set up a LLC or PLC, you are not entitled to draw from your pension fund. Find out more here.

Do I have to inform my employer about a possible self-employment?

It depends. In most cases, the employer's consent must be obtained on the basis of the employment contract.

This is normally granted as long as the secondary employment does not compete with the employer and your own performance does not suffer as a result.

If your employment contract mentions a notification obligation in the case of secondary employment, the employer's consent must be obtained.

Are there any regulations regarding the nationality of company founders?

No. The nationality of the company founders is irrelevant. Regulations only apply to the composition of the company's executive bodies:

• PLC: At least one member of the board of directors or one director with sole signing rights must be permanently resident in Switzerland (nationality is no longer relevant).
• LLC: At least one managing director with sole signing rights must be resident in Switzerland.

What do I need to consider when changing the legal form?

Companies can change their legal form in accordance with the Merger Act (FusG). The law, Art. 54 FusG, defines the permissible transformations exhaustively.

A sole proprietorship cannot be converted directly into a LLC or PLC, but must be transferred with its assets and liabilities to a newly formed company and then liquidated.

It is also important to choose the optimal time for a conversion.

The requirements and necessary steps for a conversion can be found in the following checklist.

At what point after incorporation must VAT be accounted for?

First of all, you need to clarify whether you are subject to VAT at all. You can find more information here.there are tax-exempt activities (e.g. provision of services abroad) and activities exempt from VAT (e.g. medical or cultural services).

The obligation to pay VAT only applies from a turnover of CHF 100,000 generated in Switzerland. If you are obliged to pay VAT, you must register with the Federal Tax Administration (FTA) and apply for a VAT number when you set up your company.

However, voluntary registration is also possible (for turnover of less than CHF 100,000).

If an existing company expands its business and therefore expects to exceed the threshold, it also becomes liable for tax and must register with the FTA.

An extrapolation must therefore be made after three months. If the extrapolated turnover exceeds the limit of CHF 100,000, the company must register with the FTA.

However, if the threshold is not exceeded until some time after the company is founded, the company must register with the FTA as of January 1 of the following year in which the threshold is exceeded.

Here you can find out when the value added tax must be settled.

What criteria should I use to choose my company name?

In principle, you are free to choose the company name. However, certain restrictions must be observed. For example, the name must not be misleading about the purpose of the company and the company name must not be descriptive.

• Deceptive company name: For example, the name “Rudolf Stahlhandel AG” would not be permitted if the company does not trade in steel but has the purpose of managing Mrs. Rudolf's apartment buildings.
• Descriptive company name: The following examples would therefore not be permitted: “Auto AG”, “Handels GmbH” or “Maler AG”. Allowed would be company names that are supplemented by further elements and thus the name appears individualized: e.g. “H. Meier Auto AG”, “MiDio Handels GmbH”, “Maler 2000 AG”, “TATA Transport AG”, “Lagerhaus Weinfelden AG”.
• Family name: In the case of a sole proprietorship, the family name (as it appears in the passport) must appear in the company name.