The Swiss-US tax treaty mitigates double taxation, cutting cross-border withholding taxes by lowering dividends to 5-15% and reducing interest and royalties to 0% to protect international corporate investments.
H&CO
Switzerland
Your strategic partner for Growth and Innovation in the Global market.
Local Expertise in a Global World
Our network of contact offices spans continents, bringing the expertise of H&CO professionals closer to you. Whether you're seeking financial advice, strategic consulting, or tailored solutions, our dedicated teams in various locations are here to serve you with a personalized touch.
Switzerland
Rue du Rhône 118
1204 Geneva
Doing Business
Switzerland offers unmatched economic stability, low corporate tax rates (11.9%-20.5%), and a world-class financial sector. As a global innovation hub with a highly skilled workforce, it provides a secure, strategic gateway to European and international markets.
How to
open a Business
Launching a Swiss business protects capital via the strong Swiss Franc (CHF), mitigating inflation risks. Enjoy flexible labor laws, elite IP protection, a vast network of global Free Trade Agreements, and highly cooperative public authorities offering clear tax rulings.
Main industries for Business in Switzerland
Pharmaceutical and Chemical Industry
Switzerland's leading export driver. Driven by innovation and massive R&D spending, global giants like Roche and Novartis dominate the international life sciences market.
Financial and Insurance Services
Zurich and Geneva rank among the world's premier financial hubs. The sector contributes roughly 10% to national GDP, leading in private banking and global asset management.
Machinery, Electrical Engineering and Metals Industry
The nation's largest industrial employer focusing on advanced robotics, precision machinery, and complex tools exported worldwide to power high-tech manufacturing chains.
Watchmaking and Microtechnology Industry
Synonymous with global luxury through iconic brands like Rolex. Its specialized microtechnology expertise has successfully expanded into the high-precision medical device sector.
FAQs about Switzerland
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What are the main corporate structures for entering the Swiss market?
What are the main corporate structures for entering the Swiss market?
The most common choices for foreign businesses are the GmbH (LLC) and the AG (Corporation):
- GmbH: Requires CHF 20,000 minimum capital; ideal for SMEs. Shareholder names are public.
- AG: Requires CHF 100,000 minimum capital; offers maximum credibility and full shareholder privacy.
- Branch Office: An extension of the foreign parent company without separate legal liability.
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Can a foreigner fully own a Swiss company, and do I need a local director?
Can a foreigner fully own a Swiss company, and do I need a local director?
Yes, 100% foreign ownership is allowed with no nationality restrictions on shareholders. However, the law requires that at least one managing director (or board member with sole signatory power) must be a legal resident of Switzerland to manage local operations.
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How does the Swiss corporate tax system work across federal and cantonal levels?
How does the Swiss corporate tax system work across federal and cantonal levels?
Switzerland uses a three-tier tax system (federal, cantonal, communal). The flat federal rate is 8.5% (effective 7.83%). Since cantons set their own local rates, the total combined effective tax rate varies between 11.9% and 20.5%, depending on the company's location.
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How does the global minimum tax (OECD Pillar Two) impact Swiss expansion?
How does the global minimum tax (OECD Pillar Two) impact Swiss expansion?
It only targets multinational groups with annual revenues exceeding EUR 750 million (ensuring a 15% minimum tax). Mid-market companies, SMEs, and startups are not impacted and can fully benefit from Switzerland’s low cantonal tax rates below 15%.
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What are the mandatory timelines and costs to expect when setting up?
What are the mandatory timelines and costs to expect when setting up?
- Timeline: Expect 3 to 6 weeks in total. While the public notary deed and register filing take 1 to 2 weeks, corporate bank compliance (KYC/AML) usually adds 2 to 4 weeks.
- Costs: Beyond share capital, plan for CHF 2,500 to CHF 7,500 covering notary, commercial registry, and legal setup fees.
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Are there specific tax reliefs or incentives for high-tech or R&D expansions?
Are there specific tax reliefs or incentives for high-tech or R&D expansions?
Yes, under the TRAF framework, Switzerland offers competitive incentives at the cantonal level:
- Patent Box: Reduces taxable profits on qualifying patent income by up to 90%.
- R&D Super-Deduction: Allows companies to deduct up to 150% of their actual local R&D costs from taxable income.
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What are the rules regarding VAT and corporate banking compliance?
What are the rules regarding VAT and corporate banking compliance?
- VAT: The standard rate is 8.1%. Registration is mandatory if your global annual turnover exceeds CHF 100,000 and you do business in Switzerland.
- Banking: Swiss banks require absolute transparency regarding ultimate beneficial owners (UBO) and a clear local business purpose to open a corporate account.
Why H&CO?
We specialize in guiding global investors, families, and multinational businesses through the complexities of cross-border investments and business expansion. With offices in over 30 countries, we are a trusted partner for those seeking to relocate, invest, or expand their business abroad providing tax, advisory, and integrated global solutions.
- 1,000+ multilingual professionals, providing local expertise with a global perspective.
- Client-focused leadership with deep industry experience in global markets.
- Forbes America’s Top 200 CPAs, 2025
- Forbes Best in State Top CPAs, 2025
- USA Today America’s Most Recommended Tax and Accounting Firms, 2025
- IPA Top 100 Accounting Firms, 2025 – Ranked #66
- IPA Fastest Growing Firms, 2025
- SFBJ Largest Accounting Firms by Billings, 2025
- SFBJ Largest Accounting Firms by CPAs, 2025
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