Switzerland isn't in the EU, and its tax system reflects a genuinely federal structure: the canton you choose to register in changes your effective corporate tax rate by nearly ten percentage points. Here's what it takes to start a business in Switzerland in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Einzelunternehmen (sole proprietorship). No minimum capital, though you must register in the commercial register once turnover exceeds CHF 100,000. You're personally liable for business debts.
- GmbH. Switzerland's private limited liability company, requiring CHF 20,000 in capital, fully paid in at formation.
- AG. A corporation, requiring CHF 100,000 in capital, with at least CHF 50,000 paid in at incorporation.
2. Register your business
You choose your legal form, clear a distinct company name, deposit the required capital into a blocked Swiss bank account, have the formation deed notarized, and file with your chosen canton's commercial register. A Swiss-resident representative is required. Standard formation takes 2 to 4 weeks, with the bank account typically the slowest step, especially for founders based abroad. Real out-of-pocket setup costs (separate from the capital itself, which stays with the company) run roughly CHF 1,500 to 3,500 for a GmbH and CHF 4,000 to 8,000 for an AG.
3. Get your UID number
Once registered, your company receives a UID enterprise number, which later doubles as your VAT number if you register for VAT.
4. Check licenses and permits
Switzerland doesn't issue a single national business license. What you need depends on your canton and industry; certain regulated sectors carry their own permits on top of standard commercial register entry.
5. Understand Swiss taxes
Corporate profit tax combines a federal rate of about 7.8% with cantonal and communal rates that vary dramatically by location, from around 11.85% in low-tax Zug to close to 20% in higher-tax cantons like Bern. Combined effective rates typically land somewhere between 12% and 21% depending entirely on where you register. Cantons also levy an annual capital tax on net equity, generally a small fraction of a percent. Dividends paid to non-resident shareholders carry a 35% withholding tax, often reduced under double tax treaties.
VAT is 8.1% standard, among the lowest in Europe, with reduced rates for essential goods and services. Registration is required once annual turnover exceeds CHF 100,000.
6. Stay compliant
Every company keeps double-entry bookkeeping from day one under Swiss commercial law, with annual financial statements due within 6 months of year end and corporate tax returns due within 3 to 9 months depending on the canton. VAT is filed quarterly, generally within 60 days. Commercial register updates for any changes to directors, address, or capital are due within 10 to 30 days. Some cantons require an annual audit depending on company size.
Switzerland business costs at a glance
| Item | Cost |
|---|---|
| GmbH formation (out-of-pocket, excl. capital) | ~CHF 1,500 to 3,500 |
| GmbH minimum capital | CHF 20,000 |
| AG minimum capital | CHF 100,000 (CHF 50,000 paid in) |
| UID enterprise number | Free, automatic |
| Corporate tax, combined effective rate | ~12% to 21% by canton |
| Dividend withholding tax (non-residents) | 35% |
| VAT, standard rate | 8.1% |
| VAT registration threshold | CHF 100,000 turnover |
Frequently asked questions
How much capital do I need to start a GmbH in Switzerland?
CHF 20,000, fully paid in at formation.
Does the corporate tax rate in Switzerland vary by canton?
Yes, significantly. Combined effective rates typically land between 12% and 21% depending on where you register, from around 11.85% in low-tax Zug to closer to 20% in higher-tax cantons like Bern.
How much does it cost to form a GmbH in Switzerland?
Real out-of-pocket setup costs, separate from the capital itself, run roughly CHF 1,500 to 3,500.
When do I need to register for VAT in Switzerland?
Once annual turnover exceeds CHF 100,000. The standard VAT rate is 8.1%, among the lowest in Europe.
What's the withholding tax on dividends paid to non-residents in Switzerland?
35%, often reduced under applicable double tax treaties.
Fees and rates above come from Swiss cantonal commercial registers and the Federal Tax Administration as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Switzerland-qualified accountant or lawyer about your specific situation.