Incorporations in Switzerland Q1 2024

Thu, 28.03.2024, 17:00

In the first quarter of 2024, 13,453 new incorporations were recorded in Switzerland. This represents growth of 4.1% compared to the same period last year. These are the findings of the IFJ study "National Analysis of Swiss Company Formations Q1 2024". The study also analysed the incorporation intensity in Swiss cantons. Based on the 2023 incorporation figures, the canton of Zug is the clear winner with 21.44 incorporations per 1,000 inhabitants. The two cantons of Schwyz (8.37) and Geneva (7.73) follow at a distance.

In 2023, a clear picture emerged in the Swiss incorporation scene, with the canton of Zug coming out on top with an impressive incorporation density of 21.44 per 1,000 inhabitants. This result comes as no surprise, as the canton of Zug has long been a magnet for companies thanks to its attractive tax environment and overall positive economic atmosphere for founders. On average, 5.8 companies are

founded per 1,000 inhabitants in Switzerland. The canton of Uri is the worst performer with 3.61 incorporation per 1,000 inhabitants. It is also interesting to note that the canton of Bern, the Swiss capital, just manages to save itself from last place with 4.0 incorporation per 1,000 inhabitants.

Foundation sentiment in the first quarter of 2024

The incorporation figures for the first quarter of 2024 are positive. At 150 incorporation per day, there is still an upward trend. It remains to be seen whether this trend will continue and lead to another record number of incorporations this year. According to Co-Managing Director Simon May, it is difficult to make a clear forecast: "The year 2024 definitely has the potential for a new incorporation record. However, this

depends heavily on the economic development of Switzerland. The recent interest rate cut by the Swiss National Bank, the low inflation and unemployment rate as well as the noticeable entrepreneurial desire to create something new make us optimistic."

The period selection of a statistic is central

Every statistic must be viewed critically. The results are heavily dependent on the choice of period. In the case of this current IFJ study, the period 1 January 2024 to 28 March 2024 was examined in this quarter in comparison to the same period of the previous year, as the end of March falls on the Easter weekend and the commercial register offices are closed. If the term had been set until the end of March and thus three days without company formations had been integrated compared to 2023, the results of the study would have been different.

Which canton had the highest incorporation density in 2023?

With a incorporation density of 21.44 per 1,000 inhabitants in 2023, we have a clear winner - the canton of Zug. This is no surprise given the tax advantages for companies and the positive incorporation sentiment in the canton. Number two with a incorporation density of 8.37 is the canton of Schwyz, followed by the canton of Geneva with 7.73.

Strikingly positive changes compared to the previous year 2022 can be observed in the canton of Graubünden (+13.8%) and the canton of Uri (+12.3%). The cantons of Obwalden (-16.1%) and Appenzell I.Rh. (-11.8%) show a sharp decline. However, the high percentage fluctuations can be explained by the small size of these cantons.

(Source: Swiss Official Gazette of Commerce SOGC; FSO Federal Statistical Office; Analysis and chart: IFJ Institut für Jungunternehmen AG, 01.01.2023 - 31.12.2023 compared to the same period of the previous year)

The IFJ's current national analysis shows how company incorporation in Switzerland have changed in the first quarter of the year compared to previous years.

The incorporation figures remain positive

In a comparison of the major regions, the Zurich region (+6.5%), Espace Mittelland (+5.1%) and Northwestern Switzerland (+5.1%) are impressive. The regions of Southwestern Switzerland (+4.6%), Eastern Switzerland (+3.7%) and Ticino (+0.9%) also recorded an increase. Central Switzerland (-0.1%) performed worse than in the same period of the previous year.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG ;

01.01.2024 - 28.03.2024 in comparison to the same period the previous year)

Cantons with the most incorporation

The number of new incorporations in the first quarter of 2024 increased year-on-year in 16 cantons. These are currently the cantons with the highest growth in Swiss incorporations: Glarus (+23.1%), Jura (+20.2%), Valais (+15.7%), Aargau (+10.7%), Appenzell A. Rh. (+9.0%), Neuchâtel (+9.0%), Thurgau (+9.5%), Vaud (+8. 3%), Zurich (+6.5%), Fribourg (+6.3%), St.Gallen (+6.6%), Bern (+3.3%), Solothurn (+2.4%), Lucerne (+4.8%), Uri (+2.4%) and Ticino (+0.9%).

Fewer incorporations are currently being founded in these cantons

The cantons with a slight percentage decline are Zug (-0.6%) and Obwalden (-2.2%). The commercial register offices in the cantons of Appenzell I. Rh. (-3.3%), Basel Stadt (-4.3%), Schwyz (-4.8%), Geneva (-6.1%), Graubünden (-6.2%), Nidwalden (-10.5%) and Schaffhausen (-15.6%) recorded larger percentage decreases in company formations.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG;

01.01.2024-28.03.2024)

5-year comparison

On average, 12,420 new companies were registered per first quarter from 2020 to 2024. With growth of +4.1% compared to the same period of the previous year, the first quarter of 2024 shows a positive trend with 13,453 new start-ups and is thus clearly above the average of the last 5 years.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG;

Period: 01.01.2024 to 28.03.2024 compared to the same periods 2020 to 2023)

New incorporation by sectors

The top growth sectors in the current year include mobility (+25.9%), marketing & communication (+13.9%) and IT & ICT (+13.7%). The highest percentage declines were recorded by printing and publishing (-30.0%), high-tech (-17.1%) and wholesale (-16.4%).

The analysis shows that the printing and publishing sector is struggling badly this year. However, twelve sectors continue to report positive developments in the quarter of 2024.

Swiss incorporation scene continues to record positive developments

The incorporation scene in Switzerland is experiencing a phase of dynamic growth and innovation. With an increase in new registrations in the commercial register in the first quarter of 2024, the trend continues to develop positively. Switzerland remains an attractive market for company founders, thanks in part to its stable political and economic environment, first-class educational infrastructure and range of support programmes and its openness to new ideas and technologies.

According to the analysis by the IFJ Institute for Young Entrepreneurs, the canton of Zug has the highest incorporation density with over 21 incorporation per 1,000 inhabitants. It thus emerges as the clear winner, which is not surprising given its attractive tax environment. As part of location promotion programmes, other cantons will also become more attractive for companies and the incorporation density will be strengthened in the long term.

Overall, the incorporation scene in Switzerland is in an exciting phase of growth and innovation. With strong support from investors, the government and companies, as well as a large number of talented and creative minds, Switzerland has the potential to continue to establish itself as a valuable location for start-ups thanks to artificial intelligence and a high level of innovation. It will be exciting to see whether the start-up record set in 2023 can be surpassed this year.

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