Is it worth setting up or buying a company in Switzerland? Who is this really a good and necessary solution for?
For years, Switzerland has been associated with prestige, stability, and a high standard of living. It is one of the wealthiest countries in the world, and its efficiently operating public administration and business-friendly environment attract entrepreneurs from around the globe.
Registering a company in Switzerland not only comes with the prestige and strong brand of the country but also offers a number of tangible advantages: a high level of privacy, access to advanced financial services, and openness to innovation, including blockchain and cryptocurrency solutions.
Thanks to these advantages, Switzerland is increasingly chosen by tech companies, startups, and investors seeking a stable yet modern environment in which to operate.
About Switzerland
Switzerland is a unique federation made up of 26 cantons, each of which enjoys a high degree of autonomy—from its own constitution to independent governmental structures. The differences between the cantons are not only administrative but also linguistic and tax-related, meaning that the choice of location for a company has real operational and financial significance.
Some cantons are very small—the smallest, Basel-City, covers only 37 km², and the least populated has around 15,000 residents. Nevertheless, each operates as a small, independent entity—with its own president and institutions.
It is worth noting that Switzerland is not a member of the European Union, which means it is not subject to many EU regulations and directives. At the same time, the country remains open to cooperation with Europe—as a Schengen Agreement signatory, it allows for free entry without passport controls.
Why set up a company in Switzerland
Switzerland is a remarkable example of a country that successfully combines free-market capitalism with a well-developed social system. Citizens have access to high-quality healthcare, and entrepreneurs can rely on favorable conditions for growth—both in terms of infrastructure and access to qualified professionals, as well as predictable and stable legislation. It is a country that invests in quality of life while remaining one of the most competitive markets in the world.
Swiss Company. Reputation
Running a business under the banner of a Swiss company brings significant branding value. The “Made in Switzerland” label is a mark of quality—whether for products, services, or business credibility. In the eyes of business partners, a company registered in Switzerland inspires greater trust and is associated with reliability and professionalism.
It is also worth mentioning the capital requirements. The minimum share capital for a limited liability company (GmbH) is 20,000 CHF—a level that underscores the seriousness of the undertaking while filtering out random initiatives. By comparison: in Lithuania, a UAB requires only 1,000 EUR, and a Mažoji bendrija (MB)—as little as 1 EUR.
In Poland, a limited liability company (sp. z o.o.) requires only 5,000 PLN, while a simple joint-stock company (PSA)—just 1 PLN.
By choosing to operate in the form of a Swiss company, you send a clear message: your business stands on a solid capital foundation, and the services or products you offer represent a high standard.
Company in Switzerland and Anonymity
One of the key features of the Swiss legal and economic system is its strong emphasis on privacy protection. Switzerland has long valued discretion in business affairs—this is precisely why its system is designed to limit access to detailed personal information of company shareholders.
If the business owner is also a Swiss resident, the country exercises significant restraint in sharing fiscal information with foreign tax authorities. As a result, entrepreneurs for whom anonymity is strategically important—such as those operating in highly competitive sectors—find Switzerland a safe haven for their business operations.
Consequently, a Swiss company becomes not only a business tool but also a legal guarantee of discretion—within the framework of the law and in compliance with European standards of transparency.
Swiss Companies and the Diversity of Financial Institutions
Switzerland has remained one of the world’s most prominent financial centers for decades. The country is home to over 200 banks, including globally operating institutions and specialized private banks. This diversity ensures that virtually every type of business activity can find suitable financial support.
Swiss banks offer a wide range of modern services, including:
- access to the SEPA payment system,
- multi-currency and foreign currency accounts,
- advanced forex trading platforms,
- investment tools,
- private banking services,
- financing for innovative and promising business ventures.
Thanks to this comprehensive offering, Switzerland remains not only a secure place for capital storage but also an active partner in business development.
Swiss Companies and the Acceptance of Cryptocurrencies and New Technologies
Switzerland has earned a reputation as one of the most open and innovative countries in terms of blockchain technology and cryptocurrency development. In certain cantons, it is even possible to pay taxes using digital currencies. The country actively supports innovation in the blockchain space, attracting entrepreneurs from around the world.
A prime example is the Crypto Valley Association, based in Zug—a region regarded as Europe’s blockchain hub. The organization provides companies not only with technological infrastructure but also with access to an international network of industry contacts.
Are Switzerland’s Tax Solutions Advantageous?
What benefits come with establishing a company in Switzerland? Above all, you can expect favorable and transparent tax regulations for both corporate and personal income. For instance, if you are not a member of the Catholic Church and wish to avoid the church tax, submitting a simple declaration is sufficient to opt out. It is also important to note that tax rates vary from canton to canton.
Low CIT for Swiss Companies
Establishing a company with an effective corporate income tax (CIT) rate of up to 30% is entirely possible. The overall CIT in Switzerland is determined by a combination of municipal, cantonal, and federal tax levels. This means that the location of your company’s actual headquarters—from which operations are genuinely managed—is crucial.
For example, if your company is effectively based in the canton of Zug, you can benefit from an attractive low CIT rate of around 12%.
Does this make Switzerland a tax haven? That depends on your perspective.
Low VAT for Swiss Companies
Companies providing services within Switzerland or delivering goods to the country are generally subject to VAT. However, the standard VAT rate is just 7.7%, which is three times lower than in Lithuania and/or Poland.
Despite this low tax burden, Swiss tax administration remains efficient and effective—perhaps thanks to the country’s stable and predictable legal framework. In any case, it’s a welcome contrast to the legislative volatility often seen in the Lithuanian and/or Polish legal systems.
Low Personal Income Tax (PIT) in Switzerland
What sets Switzerland apart from other Western European countries is its relatively low personal income tax rates.
While Switzerland has introduced a wealth tax, its rate is moderate—up to 0.3%, depending on the total value of personal assets. Income tax rates vary based on the taxpayer’s place of residence.
For example, in the canton of Zug, an individual with assets and annual income of CHF 1 million pays an income tax rate of approximately 22%.
Interestingly, for an annual income of CHF 100,000, the total tax liability amounts to just 8.33%. The Swiss tax authorities even provide an online calculator to help you estimate your tax burden:
https://swisstaxcalculator.estv.admin.ch/#/calculator/income-wealth-tax
The result? A combination of moderate rates—comparable to those in Lithuania and/or Poland—with Swiss-level transparency and institutional quality. This may be what real tax fairness looks like.
How to Set Up a Company in Switzerland – Step by Step
- Company Documentation
The process of setting up a company in Switzerland begins—aside from the fundamental question of “why?”—with gathering the required documentation.
One of the first steps is the KYC (Know Your Client) identity verification procedure. Typically, this requires:
- a copy of your passport (preferably notarized),
- a document confirming your place of residence (e.g., a utility bill).
Once identity documents are submitted, the company can be formally registered.
If a legal entity is to be the shareholder, its corporate documents must be provided, including:
- the company’s articles of association or incorporation deed,
- an up-to-date commercial register extract with an Apostille,
- often internal documents such as board or shareholder resolutions.
If the shareholder is a private individual, a valid passport is required.
It is also mandatory to appoint a local director—a person with Swiss tax residency.
In practice, a nominee director (usually a lawyer) is often used temporarily, until the actual shareholder obtains residency status.
- Bank Account for Share Capital Contribution
The share capital of a Swiss company must be paid before registration in the commercial register.
To do this, a temporary bank account is opened, dedicated specifically for the capital contribution.
The shareholder deposits the required funds into this account, and only after confirmation of the deposit can the company be formally registered.
- Notarial Visit and Company Registration
Once the capital is deposited and documentation is ready, a visit to a Swiss notary is arranged to execute the deed of incorporation.
Following the notarization, the company is officially registered in the Swiss commercial register.
- Opening a Swiss Bank Account
Opening a bank account in Switzerland is generally simpler than in many EU countries.
Swiss financial institutions are open to working with investors who present transparent and well-prepared business projects.
While the bank may request a business plan or documents verifying the source of funds, reliable projects usually experience a smooth and uncomplicated onboarding process.
General Information on Company Registration in Switzerland
Switzerland has long been synonymous with trust, stability, and discretion.
Banking secrecy, strong confidentiality, and respect for privacy are deeply rooted in the Swiss system. The country boasts one of the oldest and most stable banking frameworks in the world.
It is also an ideal place to do business, thanks to its transparent and business-friendly tax regime and open economic environment.
After company formation, one may apply for Swiss tax residency—obtainable in as little as 30 days.
Tax residency provides various benefits, including greater anonymity, especially when operating a joint-stock company (AG).
A Swiss company brings more than just tax advantages—it also strengthens your brand image and enhances business security.
If you’re seeking a safe location for your capital or prefer to operate in an environment of greater confidentiality,
take advantage of the unique benefits offered by the Swiss banking and economic system.
Choose quality—and let us handle the rest.
Interested in registering a company in Switzerland?
Contact us—our specialists at the Vilnius office will gladly provide detailed information tailored to your needs.