Company formation in Switzerland as a foreigner: a step-by-step guide for European entrepreneurs

This clearly demonstrates that Switzerland is open to international business founders, and establishing a company here is more accessible than many might think.

If you are a citizen of a European Union country or European Free Trade Association country and wish to open a Swiss business, this article will walk you through your options, requirements, and practical steps to get started – whether you want to manage your company remotely or relocate to Switzerland.

How you can open a company in Switzerland

As a European entrepreneur, you have two primary ways to establish a company in Switzerland:

• Running your business from your home country – for example, managing operations from Germany while your company is registered in Switzerland.
• Relocating to Switzerland – obtaining a residence permit and running your business locally.

Both scenarios have their advantages and specific requirements. Let’s compare them to help you decide which suits your situation best.

Aspect	Scenario 1: Manage from Home Country	Scenario 2: Move to Switzerland
Do you need to live in Switzerland?	No	Yes
Residence permit required?	No	B permit for self-employment
Can you own 100% of your company?	Yes	Yes
Swiss-resident director required?	Yes, someone locally appointed	Not required after you receive your B permit and officially reside in Switzerland
Business address requirement	Must provide a Swiss registered address (virtual office allowed, depending on canton)	Must provide a Swiss address (commercial address usually required)
Suitable for online business?	Very suitable	Suitable
Suitable for physical business?	Possible but less practical	Highly suitable
Hiring employees	Yes, but more coordination needed	Yes, straightforward
Taxation	Company taxed in Switzerland; personal taxes generally in home country (depending on residency rules)	Company and personal taxes handled in Switzerland
Bank account	Swiss business bank account required (capital deposit account also needed at incorporation)	Swiss business bank account required
Notary appointment	Required; can be represented by a service provider	Required; you typically attend personally
Permits/licensing	Only sector-specific	Sector-specific + local permits if operating a physical location
Typical use cases	Online businesses, consulting, e-commerce, holding companies	Startups, local shops, cafés, service offices

The most important decision to consider upfront is whether you plan to relocate to Switzerland and apply for a B permit or manage your company from abroad with the support of a Swiss-resident partner.

B permit – what you need to know

To apply for a B permit for self-employment, you need:

• Valid Passport or ID
• Proof of Residence in Switzerland – rental agreement or other official proof of address
• Business Registration Documents or documentation showing preparation for registration
• Business Plan – authorities evaluate whether your idea is viable and sustainable
• Proof of Financial Sustainability – evidence that your activity can support your living costs
• Personal Background Information – CV or documentation of relevant experience

Submit all documents to the cantonal migration office where you plan to reside. Authorities generally expect the business to be already prepared to operate and may request contracts, letters of intent, or other proof of economic feasibility.

Typical reasons for B permit refusal

• Criminal or security concerns
• Missing or incorrect documentation
• Unclear or non-viable business activity
• Insufficient financial sustainability
• Incomplete or poorly prepared business plan

At LedgerPeek, we assist you with business plan preparation and review to meet Swiss authorities’ expectations. We ensure all financial projections, company details, and supporting documents are complete and professional, increasing your chance of approval.

Book a consultation with our specialist to get guidance tailored specifically to your business and situation.

Next steps after getting your B permit (or managing remotely)

Once your permit is ready – or if you manage abroad – your next steps involve preparing company documents, registering officially, and setting up operations.

Prepare company documents

You need:

• Articles of Association
• Proof of capital (if required)
• Personal identification (passport + B permit if relocating)

Managing from abroad: A Swiss-resident director can prepare and submit documents on your behalf using a power of attorney.

Notary appointment

For certain company structures, notarization of Articles of Association and registration is mandatory.

Managing from abroad: Your Swiss-resident director can represent you at the notary.

Register with the Swiss Commercial Register

Official registration gives your company legal status.

Managing from abroad: Your Swiss-resident director can submit documents on your behalf.

Open a Swiss business bank account

This account allows you to receive client payments, manage expenses, and handle taxes.

Please note: Banks typically require the beneficial owners to complete their own identification procedure; a representative cannot complete this step alone.

Register for taxes and social contributions

• Register with cantonal tax authorities
• VAT registration if turnover exceeds CHF 100,000 globally
• Social security registration if hiring employees or paying yourself a salary

Managing from abroad: Your Swiss-resident director can manage filings and compliance.

Obtain sector-specific permits (if applicable)

Depending on your business, permits for food, finance, import/export, or other activities may be required.

Managing from abroad: Your Swiss-resident director can handle this process.

Start operating your business

Once registration, permits, and bank accounts are ready, you can:

• Hire employees
• Sign contracts
• Invoice clients
• Operate fully in Switzerland

Managing from abroad: Operations can be managed from abroad while your Swiss-resident director handles official representation.

Online vs. Physical businesses in Switzerland

While legal steps are largely similar, practical differences exist between online and physical businesses:

Aspect	Online Business	Physical Business
Swiss address requirement	Swiss-registered address; can be virtual in many cantons	Physical location; must comply with zoning rules
Notary appointment	Only for certain structures	Only for certain structures
Swiss-resident director	Required if owner lives abroad	Required if owner lives abroad
Permits / licensing	Minimal; sector-specific	More extensive; health, safety, building, zoning permits
Daily operations	Can be managed remotely	Typically requires local presence
Management from abroad	Highly feasible	Challenging; requires local manager or relocation
Costs	Generally lower	Higher
Suitability for remote ownership	Highly suitable	Less suitable

This comparison shows that online businesses are generally easier to manage remotely, while physical operations are more practical if you relocate.

Let LedgerPeek smooth your company incorporation process

Our team specialises in company formation and all financial-related matters such as taxes, accounting, and ongoing compliance that will follow once you start running your business.

We have already helped hundreds of entrepreneurs successfully complete the company formation procedure in Switzerland, and we are ready to provide professional services for you too.

Take the first step today – book a consultation with our specialist to discuss the company formation process and develop a clear roadmap for your business launch.