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Startup in Switzerland
Updated on Wednesday 20th May 2020 Rate this article
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There are various types of companies foreign investors can open in Switzerland and among these, startups have started becoming very popular especially when it comes to young entrepreneurs. Startups are usually set up as small companies which respect a few characteristics. Those who want to open a startup company in Switzerland are usually attracted by the fact that this country is very stable from an economic point of view and because it offers various tax benefits to the industries the operations of these businesses are completed.
Below, our company formation agents in Switzerland explain the most important features of startups. We can help you register a Swiss startup, if you want to have a business in this country.
The main features of a startup in Switzerland
Companies, including startups, fall under the regulations of the Company Act which provides for the registration requirements. Even if the creation of the startup will respect the conditions imposed by the Switzerland legislation, it has a few different characteristics, among which:
- the startup is usually created as a small business, thus it enters the category of SMEs (small and medium-sized enterprises);
- it operates in innovative sectors, such as information technology, research and development, fintech;
- it starts with a small share capital and requires funding for developing its operations;
- it caters to the needs of specific clients by meeting the demand for a service or good which has not need provided yet.
A startup in Switzerland is often the choice of young entrepreneurs who have innovative ideas, but do not want to use large structures for the development of the company.
Our company registration agents in Switzerland can offer more information on the startup climate in this country.
How to register a startup in Switzerland
The Swiss company formation procedure for a startup implies the same steps as for any other business, meaning it must have a unique trading name which must be reserved with the Companies Register. Its incorporation will rely on the Articles of Association and other application forms and on a legal structure which is usually fit for small businesses. Among these, the sole proprietorship, the partnership and the limited liability company are the most appropriate structures for a startup in Switzerland.
In terms of share capital, only the limited liability company is subject to strict requirements, meaning that the owner will need at least 20,000 CHF as a minimum capital.
Our agents can help with the incorporation of a legal entity if you want to open a startup in Switzerland. We can also help establish the suitable legal form for your entity.
Funding options for startups in Switzerland
As mentioned above, one of the main characteristics of the startup is that it usually relies on various funding sources for gathering the money for its project. The sources a Swiss startup uses to obtain money are the same as in other European countries and imply:
- - family and friends who can invest in the business for particular benefits;
- - venture capital, which is obtained from other businesspersons, usually known as angel investors;
- - crowdfunding platforms on which the idea is presented, and which is one of the most important sources for gathering money for such projects;
- - government support under the form of grants, tax incentives and deductions.
The startup sector in Switzerland is quite developed thanks to the support offered by various governmental agencies, which is why many foreign investors are attracted to this type of venture.
Another important aspect to consider when opening a startup in Switzerland is relying on good business plan and model, two documents that can lead to the success of the future company.
Our company formation specialists in Switzerland can offer more information on the main ways through which a startup can be created.
The development of the startup industry in Switzerland
Most startups in Switzerland operate in the financial sector thanks to the recently created Zug Cyrpto Valley which is one of the most important cryptocurrency hubs in the world.
According to the Startup Radar publication:
- - Zurich is the most important Swiss startup region with a 30.02% of all startups operating here;
- - Zurich is closely followed by the canton of Vaud which hosts 15.82% of all Swiss startups;
- - on an international scale, Switzerland hosts 6.28% of all fintech startups;
- - on the same scale, the country hosts 8.43% of industrial and technology startups.
If you plan on opening a startup in Switzerland and need assistance, please contact our company registration representatives.
Meet us in Zug
Call us now at +41 76 328 90 50 to set up an appointment with our experts in Zug, Switzerland. As our client, you will beneficiate from the expertise of our local consultants for opening a company in Switzerland.
We offer:
- cost-efficiency: competitive company formation prices;
- prompt response to your inquiry (maxim 24 hours);
- free and complete legal information featured on our site, at your disposal.
Contact usTestimonials
Being a member of BridgeWest legal network, I had the pleasure to work with colleagues at CompanyFormationSwitzerland.com. They handled successfully numerous company formation cases for my clients interested in starting businesses in Switzerland.
Mihai Cuc, Partner of MHC Law Firm