Setting up a business in Switzerland as a cross-border commuter: what you need to know

Thu, 12.10.2023, 18:00

Do you dream of starting a business in Switzerland as a cross-border commuter? Join the growing number of entrepreneurs from across the border. Discover the attractive business climate. Our comprehensive guide answers all your questions about setting up a business in Switzerland as a cross-border commuter. Advantages, disadvantages, procedures: everything you need to know to make your plans a reality!

Who can open a company in Switzerland?
In general, citizens of the European Union can establish a company in Switzerland, provided that at least one of the partners has a five-year residence permit. However, citizens of other countries do not benefit from the same facility. Only "C" permit holders or spouses of "C" permit holders or Swiss nationals can be self-employed in Switzerland. Other third-country nationals will have to apply to the relevant cantonal authorities to prove that their activity will have a positive and lasting impact on the Swiss labor market. In other words, you must convince them that your activity will benefit the Swiss economy and local employment. In short, before you start your business in Switzerland as a foreigner, make sure you have a well-developed project that is consistent with the requirements of the Swiss market.
 
 
What are the advantages of opening a business in Switzerland without residing there?
If you are looking to start a business in Switzerland without residing there, you will be happy to know that this can be a great decision! Switzerland offers some attractive advantages for entrepreneurs. First, wage costs are relatively low, despite the country's high salaries. And that's not all: the quality of life and favorable social climate are also very attractive. Tax-wise, Switzerland is also a very attractive place to do business. Taxes are relatively low compared to other European countries. Taxes are paid at three different levels: national, cantonal and municipal. Each canton and municipality sets its own tax rate, which can vary depending on the type of business or location. Businesses are taxed where they actually do business. Federal tax is levied at a single rate of 8.5 percent. Cantonal taxes on profits range from 5.9% to 16%, while cantonal capital taxes range from 0.05% to 0.3%. It is therefore very important to choose the right canton and municipality for company formation. In short, setting up a company in Switzerland without residing there can be a great idea for entrepreneurs seeking tax advantages and a favorable business climate.
 
What are the requirements for setting up a company in Switzerland?

• Your residential address must be in Switzerland. If you wish to rent an address with us in Switzerland, you can do so through our website.
• In addition, for a Ltd./LLC: you must arrange at least one manager/director residing in Switzerland with single signature, or alternatively two managers/directors residing in Switzerland with joint signatures.

 
Choice of legal form
Now is the time to play with legal forms and choose the one that best suits your company. Whether it is an Ltd, a limited liability company, a sole proprietorship, or a general partnership will depend on your project, your team, and the activity you intend to carry out. So on your marks, get ready, take your pick!
 
What are the steps for setting up a business in Switzerland?
To start a business in Switzerland, you need to follow a few steps. First of all, you need to prove that your business is real and that it is not a joke. If you are an EU or non-EU citizen, you can prove this by obtaining an UID number, registering with the Trade Register and registering with a social insurance company as an independent contractor. It is also important to provide a solid business plan with accurate figures to show that your company can thrive and grow. If you are from a non-EU country, you will also need to demonstrate relationships with other companies to show that you are ready to enter the Swiss market with confidence.
 
We hope we have helped you with this blog. With IFJ by your side, barriers to business creation are no longer an obstacle for border crossers. Start your cross-border entrepreneurial journey today - IFJ makes it possible!