In short
Most founders use a GmbH (CHF 20,000 capital, fully paid in) or an AG (CHF 100,000, at least CHF 50,000 paid in). The founding deed must be notarised — a power of attorney is possible — and at least one person entitled to represent the company must live in Switzerland. Corporate tax is federal 8.5% on profit after tax plus cantonal and communal tax: about 11.7% in total in Lucerne and Zug, 14.7% in Geneva and 19.5% in Zurich (2026). VAT is 8.1% from CHF 100,000 turnover. Owning a Swiss company does not give you a residence permit, and most Swiss rates fall below the 18.9% US high-tax threshold for NCTI.
Swiss company: key facts
Last verified 28 September 2026| GmbH and AG | GmbH: CHF 20,000 capital, fully paid in. AG: CHF 100,000, at least CHF 50,000 paid in. The founding deed must be notarised; a power of attorney is possible# Source: Swiss company formation (Goldblum) |
|---|---|
| Resident representative | At least one person entitled to represent a GmbH or AG must live in Switzerland# Source: Setting up a company as a citizen of a third state (KMU portal, Swiss Confederation) |
| Corporate tax | Federal 8.5% on profit after tax (about 7.8%) plus cantonal and communal tax: about 11.7% in Lucerne and Zug, 14.7% in Geneva, 19.5% in Zurich and 20.5% in Bern (2026); Swiss average 14.43%# Source: PwC Tax Summaries – Switzerland: Taxes on corporate income · Clarity on Swiss taxes – KPMG Swiss Tax Report 2026 · Corporate taxes in Switzerland – rates by canton (Goldblum) |
| VAT | 8.1% standard (2.6% reduced, 3.8% accommodation); registration from CHF 100,000 annual turnover# Source: PwC Tax Summaries – Switzerland: Other taxes |
| Social security | AHV/IV/EO 10.6% of salary and unemployment insurance 2.2% up to CHF 148,200, each split between employer and employee, plus accident and pension (BVG) insurance# Source: PwC Tax Summaries – Switzerland: Other taxes |
| Dividends to the US | Switzerland withholds 35% on dividends; under the US treaty the final rate is 15% for portfolio holdings and 0% for US pension funds# Source: PwC Tax Summaries – Switzerland: Withholding taxes |
| US tax treaty | US–Switzerland treaty of 1996, with a 2009 protocol in force since 20 September 2019; the US still taxes its citizens on worldwide income# Source: Swiss-US double tax treaty protocol enters into force (International Tax Review) |
| US entity classification | The AG is a per se corporation for US tax; a GmbH can elect its classification (Form 8832)# Source: 26 CFR 301.7701-2 (Cornell LII) |
| US anti-deferral tax | GILTI is called NCTI from 2026; the high-tax exclusion needs an effective rate above 18.9% — most Swiss locations (11.7–14.7%) are below it, Zurich and Bern above# Source: 26 U.S.C. s.951A (Office of the Law Revision Counsel) · Greenback Tax Services – GILTI high-tax exception |
| US filings for owners | US owners and officers of a Swiss company usually file Form 5471, plus an FBAR when foreign accounts exceed $10,000# Source: IRS - About Form 5471 |
| FATCA | Swiss banks report US account holders; a new reciprocal FATCA agreement signed on 27 June 2024 is expected to apply from 2027# Source: Switzerland and United States agree on mutual exchange of financial account data (Federal Council) |
| Self-employment | Non-EU founders get a permit only if the business has a lasting positive effect on the Swiss labour market — local jobs, substantial investment, new orders; quotas apply# Source: Setting up a company as a citizen of a third state (KMU portal, Swiss Confederation) |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Swiss company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits set up a GmbH or AG exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Switzerland | A company does not give you residence. Non-EU founders need a permit, granted only if the business clearly benefits the Swiss labour market. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Tax treaty with Switzerland | Switzerland has income tax treaties with the US and many other countries, including Canada, Australia, New Zealand and the UK. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Swiss Company Formation in Numbers
Why Switzerland
Why Americans Register Companies in Switzerland
Switzerland offers political and legal stability, a strong currency and a tax rate you can partly choose by picking your canton — from about 11.7% in Lucerne and Zug to about 20.5% in Bern (2026).
For Americans there are three catches: one person who can represent the company must live in Switzerland, Swiss banks report US account holders under FATCA, and low Swiss rates can trigger US tax on the profits (NCTI). Plan all three before you incorporate.
Business Structures
Which Entity Type Is Right for You?
Limited Liability Company
GmbH / Sàrl
The usual choice for small and mid-sized businesses. CHF 20,000 capital, fully paid in before registration. At least one managing director entitled to represent the company must live in Switzerland.
- Min. capital
- CHF 20,000
- Liability
- Limited to capital
- US tax
- Eligible entity (can elect)
Corporation
AG / SA
For larger companies and investors. CHF 100,000 capital, at least CHF 50,000 paid in. A board member or director entitled to represent it must live in Switzerland.
- Min. capital
- CHF 100,000
- Paid in
- At least CHF 50,000
- US tax
- Per se corporation
Sole Proprietorship
Einzelunternehmen
Unlimited personal liability. The owner needs a Swiss residence and work permit.
- Min. capital
- None
- Liability
- Unlimited
Tax Environment
Switzerland's Corporate Tax Framework (2026)
Companies pay federal tax of 8.5% on profit after tax (about 7.8% of pre-tax profit), plus cantonal and communal tax. Combined rates in 2026 range from about 11.7% (Lucerne, Zug) through 14.7% (Geneva) to 19.5% (Zurich) and 20.5% (Bern). Large groups also fall under the 15% OECD minimum tax.
Old-age, disability and income-compensation insurance (AHV/IV/EO) is 10.6% of salary and unemployment insurance 2.2% up to CHF 148,200, each split equally between employer and employee — plus accident insurance and occupational pension (BVG).
US citizens and Green Card holders are taxed on worldwide income. Owning a Swiss company usually means Form 5471, and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI is called net CFC tested income (NCTI). The high-tax exclusion needs an effective foreign rate above 18.9% — most Swiss locations (about 11.7–14.7%) are below it, so low Swiss tax can mean extra US tax; Zurich and Bern are above. A GmbH can elect its US classification (Form 8832); an AG is always a corporation. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Switzerland
Formation usually takes 2–4 weeks to the commercial-register entry; opening the bank account for the capital often takes longer, so start it first.
Choose canton and structure Decision
Your canton sets most of your tax rate. Decide GmbH or AG with your US tax adviser — it changes how the US taxes you.
Find a Swiss-resident representative Required
At least one person entitled to represent the company must live in Switzerland.
Check the name and draft the articles Name check
Check the name in the commercial register (Zefix) and prepare the articles of association.
Pay in the capital Banking
Open a capital deposit account with a Swiss bank and pay in CHF 20,000 (GmbH) or at least CHF 50,000 (AG).
Notarise the founding deed Notary
The founding deed is signed before a Swiss notary — founders abroad can sign a power of attorney.
Register with the commercial register 2–4 weeks
The cantonal commercial register enters the company, which then receives its business identification number (UID).
VAT and social insurance After registration
Register for VAT from CHF 100,000 annual turnover, and with the AHV compensation office before paying salaries.
Costs & Fees
What Does It Cost to Register a Company in Switzerland?
| Cost item | Notes | Amount |
|---|---|---|
| Share capital (GmbH) | Fully paid in; stays in the company. | CHF 20,000 |
| Share capital (AG) | At least CHF 50,000 of CHF 100,000 paid in. | CHF 100,000 |
| Issuance stamp duty | Only on equity contributions above CHF 1 million. | 1% |
| Notary, register and set-up | Notary and commercial-register fees vary by canton; providers quote fixed packages. | on request |
Capital rules from Swiss company law; stamp duty from PwC. Source: Goldblum: Swiss company formation · PwC: Switzerland other taxes
Ongoing Obligations
Post-Registration Requirements
Resident representative
Keep at least one person entitled to represent the company living in Switzerland at all times.
Tax returns
File federal and cantonal tax returns each year with your canton.
VAT
Once registered, file VAT returns with the Federal Tax Administration.
Payroll
Pay AHV/IV/EO and unemployment contributions and arrange accident and pension insurance for staff.
Expert Notes
What Americans Should Know Before Registering in Switzerland
Low Swiss tax can mean US tax
Most cantons are below the 18.9% US high-tax threshold, so NCTI can tax the profits in the US. Model this before choosing a canton.
Banking takes time
Swiss banks report US account holders under FATCA (a reciprocal agreement is expected from 2027) and check US clients closely — start the capital account early.
You need a Swiss-resident representative
If you live in the US, appoint a trusted person in Switzerland — the role carries real duties.
GmbH or AG matters for US tax
A GmbH can be treated as a partnership or disregarded entity for US tax; an AG is always a corporation.
A company is not a permit
Owning a Swiss company does not let you live in Switzerland. Self-employed non-EU founders must show a lasting benefit to the Swiss labour market — see our Switzerland overview.
A Swiss company is right for you if…
- You want Swiss stability and a strong currency for your business
- You have a trusted Swiss-resident representative
- You have modelled US NCTI against your canton's tax rate
- You can fund CHF 20,000 (GmbH) or CHF 50,000+ (AG) in capital
- You are ready for Swiss bank due diligence as a US person
FAQ
Frequently asked questions
What is the minimum capital for a Swiss company?
CHF 20,000 for a GmbH, fully paid in. An AG needs CHF 100,000, of which at least CHF 50,000 must be paid in.
Do I need a Swiss-resident director?
Yes. At least one person entitled to represent a GmbH or AG must live in Switzerland.
What is the corporate tax rate in Switzerland?
It depends on the canton. Federal tax is 8.5% on profit after tax; combined rates in 2026 run from about 11.7% (Lucerne, Zug) to 20.5% (Bern), with a Swiss average of 14.43%.
Does a Swiss company help me move to Switzerland?
No. Non-EU founders need a permit, granted only if the business has a lasting positive effect on the Swiss labour market, within quotas.
When must a Swiss company register for VAT?
From CHF 100,000 of annual turnover. The standard rate is 8.1%.
Switzerland
Everything about moving to Switzerland
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Ready to Register Your Swiss Company?
We connect you with trusted Swiss fiduciaries and lawyers — from the notarised deed and commercial register to VAT, payroll and annual tax returns.