Want to launch your business in Switzerland? Discover domiciliation rules, how to optimize the transfer of your share capital, and billing obligations (VAT and AHV) for small turnovers.
Reading time: 10 minutes | Updated: March 2026
Switzerland offers an extremely attractive economic framework, but responds to strict rules. If you create an LLC (GmbH/Sàrl) or a Ltd (AG/SA), you must appoint a representative domiciled in Switzerland and block a starting capital on a capital payment account. If you wish to test your activity without a legal structure, you can invoice in your own name, but you must imperatively have your independent status validated by the AHV Compensation Office. Finally, if your turnover remains modest (under 100,000 CHF), you benefit from VAT exemption.
Many entrepreneurs wonder if it is absolutely mandatory to found a capital company (LLC or Ltd) to start issuing invoices. The answer is no. You can operate as a Sole Proprietorship (independent worker status).
One of the advantages of Switzerland lies in its initial administrative flexibility. If you carry out a commercial activity in your own name and your gross annual turnover is under 100,000 CHF, registration in the Commercial Register is not mandatory (although recommended to reassure business clients).
This is where many founders (especially foreigners) make a costly mistake. In Switzerland, you cannot just decide to issue invoices randomly. For your income to be legal and not considered undeclared work, you must have your independent status recognized by the AHV (OASI) compensation office of your canton.
The Swiss independent status is not a free choice; it is recognized a posteriori. The AHV office will analyze your real economic situation. To be recognized as independent, you must prove that:
Once recognized, you will have to pay your AHV social contributions (around 10 percent of your net profit) directly to the office.
If you want to protect your personal assets or welcome investors, setting up a Limited Liability Company (LLC/GmbH/Sàrl) or a Public Limited Company (Ltd/AG/SA) is essential.
One of Switzerland's greatest assets is its openness to international capital. It is not necessary to be of Swiss nationality, nor even to reside in Switzerland, to hold shares in a Swiss company. A foreign citizen residing abroad can perfectly hold the entire share capital.
However, the Swiss Code of Obligations imposes a strict rule concerning the operational management of the company:
The solution for foreign founders: If you do not reside in Switzerland, you will need to use the services of a "fiduciary manager" or "fiduciary director". This is a Swiss resident mandated to legally represent you for an annual fee.
To register your company in the Commercial Register, you must prove that the share capital has been paid in. The legal minimum amount is 20,000 CHF for an LLC (fully paid in), and 100,000 CHF for a Ltd (with at least 50,000 CHF paid in at incorporation).
You cannot pay this money directly to a notary. You must open a "capital payment account" (consignment account) with a Swiss bank. Once the funds are received, the bank issues a "deposit certificate," an essential document for the notary to found the company.
If you are a non-resident entrepreneur, your starting capital is probably in Euros or another foreign currency in your personal account abroad. Making a direct international transfer to the Swiss consignment account is a costly mistake.
To keep your entire seed capital, you must convert your currency into Swiss Francs at the real market rate before the funds arrive in the consignment account.
Once your independent status is validated or your company is registered, you will issue your first invoices. In Switzerland, the Value Added Tax (VAT) legislation is particularly favorable to startups.
A Swiss company (LLC, Ltd, or Sole Proprietorship) is not obligatorily subject to Swiss VAT if its global turnover from taxable services is under 100,000 CHF per year.
If you do not reach this level and have not requested voluntary registration:
Even if your turnover is very low in the first year, it is sometimes strategic to register voluntarily for VAT upon creation. This is particularly true if you make significant initial investments (purchase of machines, stock) because it will allow you to recover the VAT paid on these purchases (input tax). Talk to your accountant!
ibani experts support founders, SMEs, and fiduciaries to optimize their capital transfers and daily cash flows.
Our B2B team, based in Geneva, is at your disposal by email or by phone from Monday to Friday.
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