We provide a full range of business services—from company registration to licensing and opening bank accounts.
High level of reputation
Low corporate tax rate — from 11.8%, depending on the canton
Extremely stable banking system
Possibility of remote registration
Who We Are?
LFT Advisors is a team of international business experts helping entrepreneurs structure and grow their ventures effectively. Our lawyers, auditors, accountants, and tax advisors support every stage of your business, providing strategic guidance and practical solutions. With years of experience, we help businesses establish a strong foundation for long-term success.
What We Do?
We have combined all the necessary services in one place so that you can optimize costs and avoid unnecessary bureaucracy. The “one-stop-shop” principle allows us to comprehensively solve legal and financial issues – from creating a company to obtaining all the necessary permits and banking services.
Why Choose Us?
We provide transparent, efficient and customized solutions that take into account the specifics of your business. Our goal is to help you achieve financial stability, maintain your reputation and implement strategic plans.
How we work
- We identify your goals and develop an optimal development strategy.
- We analyze the current state of the business and offer an effective action plan.
- We register a company, open accounts, support the licensing process and resolve tax issues.
- We provide ongoing legal support and consulting support.
- We evaluate the results achieved, adjust the strategy and offer ways for further development.
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Switzerland is one of the most attractive locations for business, thanks to its stable economy, advanced financial system, and business-friendly environment. The country ranks among global leaders in quality of life, innovation, and competitiveness.
Why Do Business in Switzerland?
- Political and economic stability ensure predictable business operations.
- Strong legal protections for property rights and contract enforcement.
- A well-developed banking system with access to international financial markets.
- Low levels of corruption and transparent government regulations.
- Strategic location in the heart of Europe, facilitating international trade.
- High levels of innovation and favorable conditions for research and development.
- Access to a highly skilled workforce due to an excellent education system.
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Advantages of Company Registration in Switzerland
Registering a business in Switzerland offers numerous benefits that attract both small and large enterprises. With a transparent registration process and a favorable tax system, Switzerland remains one of the world’s leading financial hubs.
Key Benefits of Registering a Company in Switzerland:
Tax Advantages – Optimize tax liabilities by choosing cantons with low tax rates.
Flexible Legal Structures – Companies can register as an AG (public limited company) or GmbH (limited liability company).
Access to International Markets – Seamless collaboration with clients and partners in the EU, USA, and Asia.
Reliable Banking System – Open corporate accounts in leading global banks.
High Confidentiality – Strong corporate data protection ensures owner privacy.
Business-Friendly Regulations – An efficient bureaucracy allows for quick company registration and launch.
Switzerland offers a unique business environment, combining economic stability, favorable taxation, and access to global financial markets.
Company Registration Process in Switzerland
1. Choosing a Legal Structure
Before registering a business, you must determine the appropriate company type. The most common forms in Switzerland are:
AG (Aktiengesellschaft) – A joint-stock company suitable for large enterprises.
GmbH (Gesellschaft mit beschränkter Haftung) – A limited liability company ideal for small and medium-sized businesses.
Einzelfirma – A sole proprietorship for self-employed individuals.
2. Selecting and Verifying a Company Name
The company name must be unique and comply with the commercial register requirements (Zefix). The name of a joint-stock company (AG) must include “AG,” while a limited liability company (GmbH) must contain “GmbH.”
- The name must not be misleading or similar to existing businesses.
- It should align with the company’s activities and branding strategy.
- A name verification process through the Swiss Commercial Register is required before submission.
3. Defining a Registered Office Address
Every company must have an official registered address in Switzerland, which can be:
- A physical office space owned by the company.
- A rented business location under a valid lease agreement.
- A virtual office (for certain business types) that meets legal requirements.
A registered address is necessary for legal correspondence and tax purposes.
4. Appointing Directors and Founders
The minimum number of directors depends on the company type:
- GmbH – At least one director must be a Swiss resident.
- AG – Requires at least one board member with local representation.
Additional shareholders and board members can be appointed based on the business’s operational needs.
5. Defining the Share Capital
AG – Minimum capital of CHF 100,000, with at least CHF 50,000 paid at registration.
GmbH – Minimum capital of CHF 20,000, which must be fully deposited before registration.
6. Preparing Incorporation Documents
The following legal documents are required:
- Company Articles of Association – Defines the business structure, purpose, and governance rules.
- Incorporation deed – Official document establishing the company.
- Director and shareholder details – Identity verification and roles within the company.
- Lease agreement – Proof of the registered office location (if applicable).
All documents must meet Swiss legal requirements and be notarized before submission.
7. Opening a Business Bank Account and Depositing Share Capital
To complete the registration process, a Swiss business bank account must be opened, and the required share capital deposited.
- The bank issues a capital confirmation certificate, necessary for registration.
- After company approval, the funds become accessible for business operations.
- Swiss banks conduct due diligence checks, including proof of business activity and compliance with anti-money laundering laws.
8. Notarization of Documents
All incorporation documents must be certified by a Swiss notary before submission to the cantonal commercial register.
- The notarization confirms the authenticity of the company’s founding documents.
- Certain business activities may require additional legal approvals.
9. Registration with the Swiss Commercial Register
Once all documents are prepared and notarized, they are submitted to the cantonal commercial register. After approval:
- The company receives a Unique Identification Number (UID).
- It becomes legally recognized and can start operations.
- Registration details are published in the Swiss Official Gazette of Commerce.
10. Tax Registration
A newly registered company must register with the Swiss tax authorities to obtain:
- A VAT number (if annual revenue exceeds CHF 100,000).
- A corporate tax status, determining local and federal tax obligations.
- Guidance on tax compliance, including filing deadlines and reporting requirements.
11. Registration with the Social Security System
If the company intends to hire employees, it must register with:
- AHV (Swiss Social Security System) – Ensuring pension and welfare contributions.
- Health and accident insurance providers – Covering workplace risks.
- Occupational pension funds (BVG/LPP) – Mandatory for businesses with employees.
12. Obtaining Additional Licenses
Depending on the business sector, specific permits and licenses may be required:
- Financial and banking services – FINMA licensing.
- Healthcare and pharmaceuticals – Federal health regulations.
- Food and hospitality businesses – Hygiene and safety compliance.
- Import/export operations – Swiss customs registration.
Registering a company in Switzerland is a complex process that requires legal expertise and compliance with local regulations. Following this step-by-step approach ensures a smooth business launch in one of the world’s most stable economies. Professional assistance is recommended to navigate Swiss corporate law, optimize taxation, and establish a strong legal foundation.
Potential Risks and Ways to Mitigate Them When Starting a Business in Switzerland
High Taxes and Business Costs
Switzerland has a complex tax system, and operational costs can be substantial. In addition to corporate taxes, companies must consider social security contributions, rental costs, and high salaries.
Mitigation Strategy: Conduct thorough tax planning before registering a company. Choose a canton with favorable tax conditions and explore possible tax relief programs. Engaging a tax consultant can help optimize tax liabilities.
Strict Regulations and Bureaucracy
Business registration and compliance require adherence to numerous regulatory frameworks, including labor laws, environmental standards, and corporate governance rules.
Mitigation Strategy: Work with local legal advisors to ensure full compliance with Swiss regulations. Using business consultants experienced in Swiss bureaucracy can streamline the process.
High Market Competition
Switzerland’s attractive business environment means a highly competitive market across many industries. Standing out can be difficult, especially for new businesses.
Mitigation Strategy: Conduct in-depth market research before launching. Identify unique value propositions and develop a differentiation strategy. Investing in branding and digital marketing can help build a strong market presence.
Requirement for a Local Representative
Certain industries and business structures require a Swiss resident as a company director or representative.
Mitigation Strategy: Hire a local director or partner with a Swiss company to meet the legal requirements. Consider consulting firms that offer nominee director services.
High Labor Costs
Swiss wages are among the highest in the world, increasing operational expenses for businesses.
Mitigation Strategy: Optimize business processes to improve efficiency. Consider outsourcing non-core functions or hiring remote workers in lower-cost regions when possible.
Foreign Currency Exchange Risks
The Swiss franc is a strong and stable currency, but exchange rate fluctuations can impact international transactions, particularly for exporters.
Mitigation Strategy: Use currency hedging strategies and multi-currency bank accounts to mitigate financial risks. Work with financial advisors to develop an exchange rate management plan.
Compliance with International Standards
Switzerland enforces strict sustainability, environmental, and ethical business standards. Non-compliance can lead to penalties and reputational damage.
Mitigation Strategy: Implement sustainable business practices from the outset. Ensure products and services comply with international and Swiss-specific regulations
Restrictions on Foreign Investments
Certain industries impose restrictions on foreign ownership or require additional approvals for foreign investors.
Mitigation Strategy: Consult legal experts to determine the best business structure. Consider forming strategic partnerships with Swiss entities to navigate investment restrictions.
Despite these challenges, Switzerland remains one of the most attractive business destinations due to its economic stability, favorable tax policies, and strong infrastructure. With proper planning and expert guidance, entrepreneurs can successfully establish and grow their businesses in the Swiss market.
Swiss Tax System
Switzerland operates a three-tiered tax system, with levies imposed at the federal, cantonal, and municipal levels. This results in varying tax rates depending on the location of the company or individual. Proper tax planning is essential to optimize liabilities and benefit from available incentives.
Corporate Tax
Certain cantons provide tax relief for newly established businesses or those involved in innovative industries.
Corporate income tax consists of three levels:
- Federal level: A fixed rate of 8.5% on net income.
- Cantonal level: Varies significantly by canton, with some offering preferential rates for certain business activities.
- Municipal level: Often added to the cantonal tax rate, further influencing the overall tax burden.
Value-Added Tax (VAT)
The standard VAT rate in Switzerland is 7.7%, with reduced rates applied to:
- 2.5% for essential goods such as food, medicines, and books.
3.7% for hotel and accommodation services. - Some services, such as healthcare, education, and insurance, are VAT-exempt.
- Companies with annual revenue exceeding 100,000 CHF must register for VAT.
Personal Income Tax
Swiss residents are subject to a three-tiered tax system:
- Federal tax: Progressive rate up to 11.5% depending on income level.
- Cantonal tax: Varies by canton, with some applying lower rates to attract high-net-worth individuals.
- Municipal tax: Set by local authorities and added to the cantonal tax.
Switzerland offers tax deductions for social security contributions, pension savings, and certain professional expenses.
Capital Tax
Companies pay a capital tax on their net assets, with rates determined at the cantonal level. Some cantons provide reduced rates for holding and domiciliary companies.
Real Estate Tax
Switzerland has no federal real estate tax, but some cantons and municipalities impose local property taxes. Real estate transactions may also be subject to property transfer taxes, which vary by region.
Inheritance and Gift Tax
- This tax is regulated at the cantonal level, and some cantons fully exempt direct heirs (spouses and children) from inheritance tax.
- Rates and exemptions differ across Switzerland, making estate planning crucial for wealth management.
Special Tax Regimes
Switzerland offers attractive tax regimes for specific business structures:
- Holding companies: Reduced taxation on dividend income and capital gains.
- Domiciliary companies: Lower tax rates for businesses conducting activities outside Switzerland.
- Mixed companies: Beneficial tax treatment for firms with international operations.
- Patent Box & R&D Incentives: Preferential tax rates for companies engaged in research and innovation.
Switzerland’s tax system is intricate, but flexible cantonal tax policies and available incentives make the country highly attractive for businesses and individuals. Proper tax structuring and strategic location selection can significantly reduce the tax burden. For tax optimization and compliance, consulting local experts is strongly recommended.
Corporate Reporting Requirements in Switzerland
Reporting requirements for Swiss companies depend on their legal structure, size, and industry. Key obligations include financial statements, tax declarations, and audits.
Financial Reporting
Companies must maintain accounting records and prepare annual financial statements according to Swiss GAAP, IFRS, or Swiss Code of Obligations. Small businesses may use simplified reporting methods.
Tax Reporting
Companies must submit tax declarations at both cantonal and federal levels. VAT declarations are also required for businesses with an annual turnover exceeding 100,000 CHF.
Auditing Requirements
Larger companies must undergo a mandatory audit, while small businesses may qualify for a limited audit or exemption.
Businesses may be subject to additional reporting obligations related to social security contributions, payroll declarations, and international financial standards (especially in the financial sector).
