Doing business

Switzerland

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Limited Company. Minimum CHF 20,000.	No minimum Liability is limited up to the registered capital and not to the amount contributed.
Public Limited Company. Minimum CHF 100,000.	No minimum Liability is limited to the amount contributed.
General partnership. No minimum capital.	Minimum 2 partners. Liability is unlimited.
Limited partnership. No minimum capital.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.

Business setup procedures

Setting up a company	Switzerland	OECD
Procedures (number)	6.0	5.6
Time (days)	20.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Switzerland.
Central Business Names Index
Swiss Commercial Gazette (SHAB)
The competent organization: The Chamber of Notaries (in French).

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	5,085	26,964	-6,561
FDI stock (millions USD)	439,148.1	497,611.6	538,949.6
Performance Index*, ranking on 141 economies	121	81	-
Potential Index**, ranking on 141 economies	19	-	-
Number of Greenfield investments***	173	135	-
FDI inwards (in % of GFCF****)	4.8	26.3	-
FDI stock (in % of GDP)	87.8	94.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Switzerland

Strong points: Switzerland is strategically placed. The country is an open gateway to European, African and Middle-Eastern markets. Switzerland offers world-class infrastructures, as well as a business-friendly legal and regulatory environment. The Swiss market is a good testing ground for the introduction of new high technology and high-end products. Switzerland has a highly skilled and educated workforce, which is reliable and relatively flexible. Switzerland has the highest per capita IT spending in the world and is also one of the world’s most advanced countries in research and development. It presents excellent bio and nano technology partnership opportunities. The Swiss common private equities are the highest in Europe.
Weak points: The Swiss market is very competitive. Switzerland is an epicenter of European and global competition. Companies face tough European Union regulations and standards, related to product quality and packaging. Moreover, there are unique Swiss requirements for medications, cosmetics, detergents and chemical products, which need to be met.
Government measures to motivate or restrict FDI: The Swiss government welcomes foreign direct investment and is not hampered by any kind of barrier. The federal government allows all the 26 cantons (states) to set their own foreign investment attraction policies. Many cantons offer foreign investors tax exemptions and other tax incentives. For example some cantons offer ten years of tax exemption to new firms. Furthermore, there is no surveillance nor screening done on foreign investments except in certain sectors like telecommunications where certain levels of performance are required in order to qualify for tax reductions. For companies working in the banking and insurance fields, government authorisation is required in order to invest in the country.
Bilateral investment conventions signed by Switzerland: Switzerland has signed many investment protection treaties, out of which 112 are in force. UNCTAD allows you to visualize the list of conventions signed by Switzerland.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: Possible.
Acquiring a majority stake of a local company is legal in Switzerland.
Obligation to declare: No such declarations are required. However, in order to prevent the misuse of its very liberal market framework, the Swiss government has introduced Due Diligence Guidelines in the banking industry under which banks must identify the beneficial owner of the invested funds. The government has also instructed Swiss banks to abandon anonymous numbered bank accounts, keep banking records ten years after the closing of an account, and to refrain from actively assisting customers to evade tax.
Competent organization for the declaration: Federal Department of Finance
Federal Banking Commission (EBK)
Swiss National Bank
Requests for specific authorizations: Companies working in sectors like banking and insurance need to seek government permission to invest directly in the country.

Finding assistance for further information

Investment aid agency: Swiss Foreign Investment Agency
Other useful resources: Federal Department of Economic Affairs (FDEA)
Federal Commercial Registry Office