Incorporations in Switzerland in 2021
Fri, 31.12.2021, 13:00
For more than two years, the COVID 19 pandemic has had a significant impact on the Swiss economy but in contrast to what was expected at the beginning, the crisis has been an opportunity b many people. This can be seen in the IFJ study "National Annual Analysis of Swiss Company Formations 2021". For the first time in Switzerland's history, more than 50,000 companies were founded within one year. The Swiss Commercial Register records a total of 50,545 new company entries in 2021, which corresponds to an increase of +7,9% compared to the record previous year 2020. In a 10-year comparison, 2021 also goes down in history with +17% above average. The national annual analysis of IFJ Institut für Jungunternehmen shows which cantons and sectors saw the most incorporations.
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In which regions is the incorporation scene booming?
All major regions of Switzerland show an increase, with Ticino +11.2%, Central Switzerland +11.1%, Southwestern Switzerland +8.4%, Espace Mittelland +8.1%, Eastern Switzerland +7.7%, Northwestern Switzerland +5.8% and Zurich +5.2%. In 2021, we see an increase in the number of new entrepreneurs, especially in the regions of Ticino and Southwestern Switzerland, which had recorded a decline in 2020. These regions are once again showing a positive trend.
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(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG)
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG)
Comparison of legal forms
In Switzerland, the limited liability company (LLC) is by far the most popular legal form when it comes to establishing a new company. A total of 19'529 (+6,8%) new LLC were registered in 2021. The largest increase compared to the previous year was recorded by the public limited company (Ltd.) with +13,2%.
(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG)
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10 - Annual comparison
Since the slight decline from 2014 to 2016, the Commercial Register Office has recorded a steady increase in new registrations. On average, around 43,000 companies per year have been registered over the last 10 years. The current year 2021 records a remarkable record level of +17% compared to the 10-year average, with 50,545 new company registrations.
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(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG)
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Incorporations by sector
In terms of incorporation by sector, all but 5 sectors have shown positive growth over the previous year. Among the sectors with the highest growth in 2021, we find B2C & B2B services (in particular placement services, assistance services, photography, business services, etc. and personal services) with +32.3%, retail trade with +17.5%, agriculture & forestry +17.2% as well as Finance & Insurance with +17.1%. On the other hand, there is a decrease in the Marketing & Communication sector (-7.3%), Transport & Logistics (-4.1%) as well as in Wholesale Trade (-2.9%).
(Source: Swiss Official Gazette of Commerce SOGC, Dun & Bradstreet Schweiz AG; Analysis: IFJ Institut für Jungunternehmen AG)
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Switzerland offers the best conditions for sustainable entrepreneurship
In the last decade, the number of incorporation in Switzerland has risen from under 40,000 to over 50,000. The number of new companies founded in 2021 developed positively in almost all cantons; only in the two cantons of Appenzell and Obwalden were fewer new companies founded than in the previous year. This is certainly also because an above-average increase took place in these three cantons in 2020 (cf. annual analysis 2020).
The rapid development of incorporations has leveled off in the 2nd half of 2021. Nevertheless, entrepreneurship in Switzerland has reached an unprecedented high level. New incorporations are still taking place in various sectors, employees in home offices are using the time to implement their own ideas, as in all crises, many innovations and improvements are being born in the COVID pandemic period, and people are looking for meaningful employment and time management more than ever.
The economic relevance of newly founded companies becomes impressively clear when one considers the number of jobs created in Switzerland in the long term. Around 400,000 employees work in companies that are less than 10 years old. For a well-functioning economy like Switzerland, it is essential that new companies are founded every day. It is not for nothing that Switzerland has for years occupied top global positions in the areas of innovation, efficiency and the number of patent applications and is considered the most competitive business location.
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