Incorporations in Switzerland Q1 to Q3 2023
Tue, 07.11.2023, 10:00
The startup figures from the first to third quarter show that more and more people in Switzerland are taking the plunge into entrepreneurship. These are not only Swiss nationals, but also entrepreneurs with foreign citizenship. This is shown by the IFJ study "National Analysis of Swiss Company Formations Q1 to Q3 2023". From 01.01.2023 to 30.09.2023, 38,331 new startups were recorded. This represents a growth of 3.3% compared to the same period in 2022.
The data from 01.01.2023 to 30.09.2023 shows an impressive trend: more and more people are deciding to become entrepreneurs. The number of company startups this year is at a record high level and, if the startup frequency continues, will exceed the startup record of 2021 with 50,545 company startups. It is also exciting to see that many entrepreneurs with foreign citizenship are founding companies in Switzerland. According to the Avenir Suisse study "Grenzenlos innovativ" (based on company foundations in 2022), 45% of companies, 73% of startups, and 88% of unicorn startups have at least one foreign founder. But why is Switzerland dependent on the lively creativity of foreign founders? Swiss companies can only maintain their international competitiveness through innovation. These innovations are the product of highly qualified labor, which is difficult to find in times of a shortage of skilled workers. As a business location, Switzerland offers excellent conditions for startups and is therefore very attractive to founders from abroad.
Proportion of founders with foreign nationality in 2023
Founders of public limited companies who do not have a registered function or authorisation to sign are not entered in the commercial register, but only in the company's internal share register. For this reason, the recording of nationality relates to the two most frequently chosen legal forms of sole proprietorship and limited liability company. According to the current study, almost half (48.6%) of sole proprietorships are foreign nationals. The figure for limited liability companies is 30.4%. If the two legal forms are combined, the figure is around 44%. This is one per cent less than in 2022 (Avenir Suisse study). However, it should be noted here that some of the startups are mixed founding teams (Swiss and foreign nationality). To summarise, it can be said that foreign nationals play an important role in the corporate world and have a significant influence on the Swiss corporate
landscape.
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(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2023 to 30/09/2023 compared to the same period of the previous year)
The latest national analysis by the IFJ shows how company formations in Switzerland have changed have changed:
Positive startup sentiment prevails in the major regions
In the first to third quarter of 2023, Northwestern Switzerland (+7.3%), Eastern Switzerland (+5.5%) and Espace Mittelland (+4.5%) are the major regions with the strongest growth in startups. Zurich also recorded significant growth of +3.3% compared to the same period last year. Only slight growth was recorded in the regions of Central Switzerland (+2.4%), Ticino (+0.6%) and Southwestern Switzerland (+0.5%).
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG
Period: 01/01/2023 to 30/09/2023 compared to the same period of the previous year)
Cantons with a high number of startups
In 18 cantons, the number of new startups increased in the first nine months of 2023 compared to the same period of the previous year. These are currently the cantons with growth in the number of Swiss startups: Graubünden (+18.5%), Uri (+13.2%), Nidwalden (+9.8%), Lucerne (+9.2%), Basel- Landschaft (+9.1%), Aargau (+7.6%), Neuchâtel (+7.6%), Bern (+6.6%), Thurgau (+6. 6%), Basel-Stadt (+4.9%), Fribourg (+4.1%), St. Gallen (+3.6%), Zurich (+3.3%), Schwyz (+2.5%), Vaud (+1.8%), Ticino (+0.6%), Valais (+0.6%) and Schaffhausen (+0.3%). Fewer startups are currently being founded in these cantons The cantons with only slight percentage decreases are Geneva (-1.1%), Solothurn (-1.4%), Zug (-2.5%), Jura (-2.9%) and Glarus (-3.2%). The largest percentage decreases in company formations were recorded in the commercial register offices of the cantons of Appenzell Ausserrhoden (-6.9%), Appenzell Innerrhoden (-8.2%) and Obwalden (-13.3%).
A comparison of legal forms
In Switzerland, the limited liability company (LLC) is by far the most popular legal form when it comes to founding a new company. A total of 15,077 (+2.4%) new limited liability companies were registered in the period from 01.01.2023 to 30.09.2023. The increase in newly founded general partnerships is surprisingly high, with 1,210 new entries, a growth of 23.1% compared to the same period in 2022. A decrease of -5.4% was recorded for public limited companies.
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG
Period: 01/01/2023 to 30/09/2023 compared to the same period of the previous year)
5-year comparison
On average, 35,921 new companies were registered in the period from 1 January to 30 September 2019 to 2023. With growth of +3.3% compared to the same period of the previous year, the first three quarters of 2023 are at a record level and well above average with 38,331 new startups.
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG
Period: 01/01/2023 to 30/09/2023 compared to the same period of the previous year)
New startups by sector
The top growth sectors in the current year include B2B (including coaching and tour operators) & B2C services (including photography, facility management, horticulture) with +23.2%, retail with +12.7% and consulting with +11.8%. The highest percentage declines were recorded in the agriculture & forestry sector with -12.2%, printing & publishing with -18.9% and high-tech with -21.9%. Most companies were founded in the trades, consulting, property and retail sectors. These four sectors account for 43.8% of all new startups.
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG
Period: 01/01/2023 to 30/09/2023 compared to the same period of the previous year)
Switzerland remains attractive for startups
Switzerland continues to be an attractive business location for startups. Despite major global challenges and economic pressure, the country recorded an impressive increase in the number of new companies founded in the period from 1 January 2023 to 30 September 2023. If the number of startups remains at the same level, the startup record set in 2021 will be surpassed by the end of the year.
Switzerland's advantages as a business location are manifold and also attractive for founders with foreign nationality. Cutting-edge research, a high level of education, a stable political climate and an attractive tax system are just as convincing locational advantages as the high quality of life, central location in Europe and comprehensive support for startups. Switzerland therefore occupies top positions in global rankings for innovation, efficiency, patent applications and competitiveness.
Switzerland's advantages as a business location are manifold and also attractive for founders with foreign nationality. Cutting-edge research, a high level of education, a stable political climate and an attractive tax system are just as convincing locational advantages as the high quality of life, central location in Europe and comprehensive support for startups. Switzerland therefore occupies top positions in global rankings for innovation, efficiency, patent applications and competitiveness.
Company startups by Swiss and foreign nationals are fundamental to a well-functioning Swiss economy, which thus remains internationally competitive.
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