Creating an AG or GmbH in Switzerland

GmbH or AG: choosing

GmbH (Sàrl)

• Minimum capital: CHF 20,000 fully paid-in
• Founders: 1+ (can be a single person)
• Liability: limited to capital
• Disclosure: partner names in trade register (transparency)
• Formalism: annual meeting, accounting, audit per size
• For: startups, small businesses, family projects

AG (SA)

• Minimum capital: CHF 100,000, min 20% paid-in (CHF 20,000 min)
• Founders: 1+
• Liability: limited to capital
• Disclosure: initial founders' names then possible shareholder anonymity
• Formalism: board of directors, annual meeting, audit per size
• For: ambitious companies, fundraising, potentially listed

Step-by-step

Step 1: preparation

• Name choice: check availability on Zefix (federal trade register)
• Articles preparation: corporate purpose, capital, founders, board (AG)
• Domicile: Swiss address mandatory (can be at a fiduciary)
• Board / management: at least 1 person resident in Switzerland

Step 2: capital and founding bank account

• Open founding bank account at a Swiss bank
• Deposit capital: CHF 20,000 (GmbH) or CHF 50–100,000 (AG)
• Bank certificate issued

Step 3: notarised deed

• Before notary: signature of articles and founding deed
• Notary cost: CHF 1,000–2,500 by canton and complexity
• Presence: all founders or proxy

Step 4: trade register entry

• Application to register of the canton of registered office
• Documents: notarised deed, articles, bank certificate, Stampa declaration
• Registration fees: CHF 600–1,200
• Lead time: 5–15 working days
• Publication in the Swiss Official Gazette of Commerce (FOSC): paid

Step 5: mandatory affiliations

• AVS compensation fund: for employees and directors
• LPP (2nd pillar): for employees earning > CHF 22,680/yr
• LAA accident: SUVA or private insurer
• VAT: if turnover > CHF 100,000
• Cantonal tax office: new taxpayer notification

Step 6: complementary steps

• Open operating bank account (founding account becomes current)
• Set up accounting
• Contracts: articles, internal rules, employment contracts
• Logo, website, marketing

Total cost of creation

Basic GmbH

• Notarised deed: CHF 1,000–1,500
• Trade register entry: CHF 600–900
• Bank founding fees: CHF 200–500
• Capital (CHF 20,000, your contribution, not a cost)
• Total fees (excl. capital): CHF 2,000–3,500

Basic AG

• Notarised deed: CHF 1,500–2,500
• Trade register entry: CHF 800–1,200
• Bank fees: CHF 200–500
• Capital (CHF 50,000 minimum paid-in)
• Total fees (excl. capital): CHF 3,000–5,000

With full fiduciary support

• Creation + tailored articles + 1st year accounting
• CHF 5,000–12,000 by provider

Ongoing obligations

Accounting

• GmbH/AG: formal accounting mandatory
• Ordinary audit: if turnover > CHF 40m, total balance > CHF 20m or >250 employees
• Restricted audit: for others, opt-out if <10 employees

Tax filings

• Profit: federal tax 8.5% + cantonal/communal variable (12–25%)
• Capital: cantonal capital tax (0.01–0.5%)
• Dividends paid to shareholders: taxed at shareholder level

Meetings and procedures

• Annual general meeting mandatory
• Board of directors (AG): meetings, minutes
• Annual accounts filed with trade register

Compared advantages

GmbH advantages

• Lower capital (CHF 20,000 vs 100,000)
• Easier to manage
• Less formalism
• Suited to small teams

AG advantages

• Larger capital = more credibility
• Easy share issuance (funding)
• Shareholder anonymity
• Preferred by investors and large clients
• Suited to fundraising

Conversions

• GmbH → AG: possible anytime, capital increase + new articles
• Conversion cost: CHF 2,000–4,000
• Often done when the company reaches maturity or prepares IPO

Tips

• GmbH to start: cheaper, simpler, enough for 90% of projects
• AG if external funding or rapid growth expected
• Notary and fiduciary advice essential
• Business domicile: can be your home, a fiduciary, or coworking
• Plan 4–8 weeks for full creation
• Working capital: budget 6–12 months of charges on top of share capital
• Don't forget VAT: quarterly or half-yearly invoicing and filing