Starting a company in Switzerland opens up numerous opportunities but also comes with a wide range of challenges. Careful planning and solid knowledge of the key steps are crucial to ensuring long-term success. With these 10 steps, you lay the foundation for a successful start and sustainable development of your company.
1. Planning and preparation
Founding a company involves considerable risk. Only 20 out of 100 start-ups in Switzerland survive the first three years. Success depends on a wide variety of factors. In addition to a well-developed business model, timing, market conditions and the personal characteristics and skills of the founders also play a decisive role.
Before you begin with the actual incorporation, it is essential to analyse the market thoroughly and research the competition. A sound understanding of the market and competitive landscape enables you to optimise your business model and position it successfully.
Business idea and business model
Your business idea forms the foundation of your company. It should be innovative and offer clear added value for your target group. Consider which problem you solve for your customers and how you can stand out from existing offerings. A solid business model describes how your company creates value for customers while operating profitably. It serves as a roadmap for your operational and strategic alignment.
Market analysis and competitor research
A thorough market analysis helps you identify opportunities and risks. Examine market size, growth potential and current trends. Analyse your direct and indirect competitors, their strengths and weaknesses as well as their market positioning. This knowledge allows you to sharpen your own strategy and leverage competitive advantages.
Target group definition
Accurately defining your target group is crucial for the success of your company. Identify demographic characteristics, needs and behaviours of your potential customers. The better you understand your target group, the more effectively you can tailor your products or services to them and develop suitable marketing strategies.
Through careful planning and preparation, you lay the foundation for your start-up’s success. Take the time to critically question your business idea and develop a viable business model. This will not only help you with implementation but also convince potential investors and partners.
2. Creating a business and financial plan
Business plan
A business plan is the heart of every successful company formation. It summarises your business idea and brings the key aspects of your project to the point. A good business plan is logically structured, meaningful, understandable, clear, appealing, realistic, traceable and convincing. The document should be as long as necessary and as short as possible – usually between 25 and 60 pages.
The contents of a business plan include, among others:
- Company description: Presentation of the founder or founding team as well as company goals and vision.
- Product or service description: Detailed presentation of what you offer and the benefits it provides to the customer.
- Market and competition analysis: Examination of the target market, identification of opportunities and risks as well as analysis of competitors.
- Marketing and sales strategy: Planning how you will market your product or service and bring it to customers.
- Organisation and personnel planning: Company structure and required staff.
- Financial planning: Detailed financial forecasts and planning (see next section).
The business plan not only serves as your own guide, but is also an important instrument for convincing potential investors, financial institutions and business partners of your project. It shows that you have carefully thought through your business venture and provides a comprehensive overview of all relevant aspects of your company.
Financial plan
The financial plan is a central component of the business plan and serves both to plan and to monitor the financial development of your company. It enables you to periodically assess which goals have been achieved and where deviations exist. The financial plan is an agile document that is continuously adapted to new circumstances.
As a rule, the financial plan contains the following elements for the next three to five years:
- Projected balance sheet: Provides information on the asset, financial and earnings position of your company on specific key dates by comparing assets and liabilities.
- Projected income statement: Shows expected income and expenses and helps determine future profit or loss.
- Projected cash flow statement: Shows cash flows and how your company’s liquidity develops.
- Liquidity plan: Secures your ability to pay by comparing inflows and outflows.
Determining capital requirements
Calculating the actual capital needed is a crucial step in financial planning. At the beginning, a start-up mainly incurs administrative costs, such as:
- Entry in the commercial register: From approx. CHF 120.
- Notarisation and legal advice: Costs for contracts and legal documents.
- Patent applications and intellectual property rights: If required.
- Incorporation fees: Vary depending on the canton and legal form.
In addition, investments for business operations must be made, including for:
- Product development
- Production
- Marketing
- Business equipment
- Inventory
For calculating capital requirements, a detailed projected income statement and the asset side of a projected balance sheet are suitable. You should take all relevant costs into account, including:
- Wages and salaries
- Social security contributions
- Material costs
- Purchase of equipment and machinery
- Investments in technology and infrastructure
The creation of provisions and hidden reserves can be part of your financial strategy to cover future obligations. Ideally, founders can contribute 30 to 50% of the start-up capital from their own funds (equity). A realistic calculation helps you accurately assess your financial needs and forms the basis for discussions with potential financiers. Our experts support you in preparing your financial plan and are at your side for financial questions.
3. Choosing the right legal form
The choice of legal form is a decisive step when founding a company, as it defines the legal framework within which your company operates. This decision has implications on a personnel, financial, tax and legal level.
When choosing the legal form, you should consider the following aspects:
- Capital: Minimum capital requirements vary depending on the legal form. While founding a public limited company (AG) in Switzerland requires start-up capital of CHF 100,000, there are no minimum capital requirements for sole proprietorships.
- Risk and liability: Consider the extent to which you wish to be personally liable. In a sole proprietorship, you are liable with your entire private assets, whereas in corporations such as a GmbH or AG, liability is limited to the company’s assets.
- Independence: Depending on the legal form, additional partners or shareholders may be required, which can influence your decision-making freedom.
- Taxes: Taxation differs significantly depending on the legal form. Partnerships and sole proprietorships are taxed differently from corporations.
- Social security: Social security contributions and the type of social protection vary by legal form.
It is advisable to seek expert advice when choosing the legal form in order to make the right decision for your individual situation.
4. Raising capital and financing
Once you have determined your capital requirements in the financial plan, the next step is to find suitable financing options for your company.
Financing options
There are various ways to cover your start-up’s financial needs:
- Equity: Ideally, founders contribute 30 to 50% of the start-up capital from their own funds. This demonstrates your personal commitment to investors and lenders and reduces financial risk.
- Debt capital: The remaining financing needs can be covered through various sources of debt:
- Bank loans: Traditional bank financing, usually requiring collateral and a solid business plan.
- Loans from friends or family: These can offer more flexible terms but should be clearly regulated in a contract to avoid misunderstandings.
- Investors and venture capitalists: They invest capital in exchange for company shares and often bring additional know-how and valuable networks.
- Business angels: Experienced entrepreneurs who offer not only capital but also advice and contacts.
- Crowdfunding: Financing through a large number of small investors via dedicated online platforms.
- Support programmes and aid schemes: In Switzerland, there are various programmes that support start-ups, for example:
- Innosuisse: The Swiss Innovation Agency supports innovative projects.
- Cantonal economic development agencies: Many cantons offer financial support or tax incentives.
- Venturelab and similar initiatives: Provide coaching, networking and financing opportunities.
Choosing the right financing
The choice of the right type of financing depends on various factors:
- Amount of capital required: Smaller amounts can often be covered through equity or loans from your personal network, while larger sums may require investors.
- Business model and growth plans: Fast-growing companies with high scaling potential are attractive to venture capitalists.
- Risk tolerance and control: Taking on investors often means giving up shares and sharing influence over company decisions.
- Cost of financing: Consider interest, fees and potential dilution of your shares. When making financing decisions, you should also consider tax aspects such as the indirect partial liquidation to avoid unexpected burdens.
Preparing for financing negotiations
Regardless of the chosen source of financing, thorough preparation is crucial:
- Solid business plan: Demonstrates the profitability and growth potential of your company.
- Convincing financial plan: Underlines your professionalism and provides insight into financial development.
- Pitch deck: A short, concise presentation introducing your company and your offer.
- Knowledge of the market and competition: Demonstrates your expertise and the opportunities in your business field.
5. Taxes and duties
Anyone wishing to start a business must address the issue of taxes at an early stage. Basically, Switzerland offers start-ups an attractive tax system. Taxation takes place at three levels: federal, cantonal and municipal. The type of taxation depends on the chosen legal form of the company. In cross-border business, it is important to understand the mechanisms of the acquisition tax and reverse charge procedure to ensure tax compliance.
Partnerships
Sole proprietorships, general partnerships and limited partnerships are not legal entities, so the companies themselves are not subject to tax. If the business generates a profit, this is taxed at the owner’s personal tax rate. Owners of these types of companies declare private and business income as well as assets as a whole. No separate tax return is required for the company.
Corporations
GmbHs and AGs are legal entities. Therefore, there is a clear separation between private and business assets for tax purposes. This separation leads to economic double taxation:
- Corporate level: Profits generated are taxed at the corporate tax rate. In addition, capital taxes are levied on equity.
- Private individuals: Distributed dividends or profits are taxed again as income at the level of the shareholder or partner.
For corporations, a separate tax return is required for the company. It is important to familiarise yourself with your tax obligations and, if necessary, consult a tax advisor to benefit from possible tax optimisation.
6. Social insurance and pension provision
The primary purpose of social insurance is to protect against potential risks and to provide for the future, such as retirement, loss of earnings or reimbursement of costs in the event of accidents. Founders are obliged to take care of social insurance for themselves and any employees.
Depending on the legal form
What is mandatory or voluntary with regard to social insurance depends on the chosen legal form:
- Self-employed: Founders of sole proprietorships, general partnerships and limited partnerships are considered self-employed. They are largely responsible for their own pension provision and must take care of paying contributions themselves.
- Employees: Founders of public limited companies and GmbHs are considered employees of their own company. For them and their employees, various insurances must be taken out on a mandatory basis.
Mandatory social insurances
The mandatory social insurances include:
- Old-age and survivors’ insurance (AHV)
- Disability insurance (IV)
- Income compensation scheme (EO)
- Unemployment insurance (ALV)
- Accident insurance (UVG)
- Occupational pension scheme (BVG): Mandatory for employees, voluntary for the self-employed.
Three-pillar system
Switzerland has a three-pillar system for retirement provision:
- First pillar: State pension (AHV/IV/EO). It covers basic needs and is mandatory for all gainfully employed persons.
- Second pillar: Occupational pension scheme (BVG). Together with the first pillar, it is intended to secure around 60% of the last income and is mandatory for employees. The self-employed can join voluntarily.
- Third pillar: Private pension provision. It serves as an individual supplement and includes tied pension provision (pillar 3a) and flexible pension provision (pillar 3b). Contributions to pillar 3a can be deducted for tax purposes.
Differences in contribution payments
- Self-employed: Pay their contributions to AHV, IV and EO directly to the compensation office. Contributions are based on net income from self-employment.
- Employees: Contributions are deducted directly from wages and paid by the employer to the competent authorities. The employer covers part of the contributions.
Voluntary insurances
In addition to mandatory insurances, voluntary insurances can be useful:
- Daily sickness allowance insurance: Covers loss of income in the event of prolonged illness.
- Supplementary accident insurance: Increases benefits in the event of damage.
- Private pension products: Life insurance or savings plans for individual protection.
Personal pension planning
As a founder, you should address your personal pension provision at an early stage to be protected in old age or in the event of disability. Self-employed persons in particular should examine the options of the second and third pillar to avoid pension gaps.
It is advisable to seek expert advice in order to develop the optimal pension strategy for your individual situation.
7. Insurance and risk management
In addition to social insurance, it is essential for companies to protect themselves against operational risks. Comprehensive risk management helps minimise financial losses and secure the company’s existence.
Personal insurances
Although the mandatory social insurances have already been covered in chapter 6, there are other personal insurances that may be relevant for your company:
- Daily sickness allowance insurance: Protects the company from financial burdens due to continued salary payments in the event of prolonged illness of employees.
- Supplementary insurances: For special risks or to expand insurance cover.
Property insurances
Property insurances protect against financial losses that can arise from damage to or loss of items, for example due to fire, water, theft or glass breakage. The following property insurances can be relevant for companies:
- Commercial property insurance: Covers damage to inventory and goods.
- Building insurance: Protects the company building against damage caused by natural hazards.
- Technical insurances: Protect machines and technical systems, e.g. electronics or machinery insurance.
Pecuniary loss insurances
Pecuniary loss insurances protect the company’s assets and cover financial risks arising from liability claims or business interruptions:
- Business liability insurance: Covers damage caused to third parties by business activities. It is indispensable in many industries.
- Professional indemnity insurance: Particularly important for consulting or freelance activities, it protects against claims due to errors or omissions.
- Legal expenses insurance: Covers costs for legal disputes, e.g. in conflicts with customers, suppliers or employees.
- Business interruption insurance: Compensates for financial losses in the event of operational disruptions caused by insured property damage.
Risk management
Effective risk management involves more than just taking out insurances:
- Risk identification: Identify potential risks in your company, whether through internal processes or external influences.
- Risk assessment: Analyse the probability of occurrence and potential impact of risks.
- Risk mitigation measures: Develop strategies to avoid or reduce risks, e.g. through safety measures or training.
- Control and monitoring: Regularly review your risk management measures and adjust them if necessary.
Proactive risk management helps avoid situations such as over-indebtedness and capital loss and secures the long-term stability of your company.
8. Legal requirements and permits
Entry in the commercial register
Entry in the commercial register is mandatory for certain types of companies. It creates transparency and serves to protect business partners and customers. The following companies must register:
- Sole proprietorships: From annual turnover of CHF 100,000.
- Partnerships: General and limited partnerships.
- Corporations: GmbH and AG.
Registration is carried out at the cantonal commercial register office and incurs different costs depending on the legal form and canton.
Business Identification Number (UID)
Every company operating in Switzerland receives a unique Business Identification Number (UID). This serves to clearly identify the company vis-à-vis authorities and business partners and simplifies administrative processes.
Industry-specific permits
Depending on the industry, additional permits or special qualifications may be required. Examples include:
- Healthcare professions: Medical professions often require special licences.
- Gastronomy: Usually requires a restaurant licence and compliance with hygiene standards.
- Construction industry: Building permits and safety regulations must be observed.
- Transport and logistics: Depending on the type of service, special concessions may be required.
It is important to contact the competent authorities at an early stage and obtain the necessary permits to avoid legal problems. In certain business relationships, an irrevocable promise to pay may be required to guarantee solvency.
Protection of intellectual property
Protecting your intellectual property is essential to safeguard your ideas, products or services from imitation.
- Trademark protection: By registering your trademark with the Swiss Federal Institute of Intellectual Property (IPI), you protect your company name or logo.
- Patents: Protect technical inventions and innovations.
- Design protection: Protects the appearance and design of products.
- Copyright: Automatic protection for creative works such as texts, music or software.
It is advisable to seek professional advice to ensure optimum protection of your intellectual property.
9. Location selection and infrastructure
Choosing the right location is a decisive factor for the success of your company. It influences not only your costs but also your market presence and employee satisfaction.
Criteria for the ideal location
- Accessibility: Good access to public transport and the road network makes it easier for customers, suppliers and employees to reach you.
- Proximity to customers and suppliers: Short distances can save costs and facilitate collaboration.
- Costs: Rents and incidental costs vary significantly depending on the location.
- Infrastructure: Availability of necessary facilities such as broadband internet, parking spaces or storage facilities.
- Support programmes: Some cantons or municipalities offer financial incentives or support for companies.
Office and commercial space
There are various options for start-ups:
- Start-up centres and incubators: Often offer favourable rental conditions, flexible terms and additional support such as consulting or networking events.
- Coworking spaces: Ideal for solo entrepreneurs or small teams who value flexibility and want to benefit from a creative environment.
- Own office or retail space: As space requirements grow or specific needs arise, renting your own premises may be a sensible option.
Rental contracts and legal aspects
The following points should be considered when concluding rental or lease agreements:
- Contract term and notice periods: Flexibility can be crucial, especially during the growth phase.
- Operating costs: Clear regulations on incidental costs and their billing.
- Fit-out and modifications: Agreements on structural changes or specific requirements.
10. Marketing, brand presence and customer acquisition
Once the organisational and legal foundations have been laid, the focus is on acquiring customers.
Company name and corporate identity
A concise and memorable company name and a professional appearance are crucial for your market presence.
- Naming: The name should be easy to remember and reflect your brand identity.
- Logo and company colours: A consistent design strengthens recognition.
- Trademark protection: Secure legal protection for your name and logo.
Online presence
In today’s digital world, a professional online presence is indispensable.
- Website: Your website is often the first point of contact for potential customers. It should be informative, user-friendly and visually appealing.
- Search engine optimisation (SEO): Optimise your website to be found more easily in search engines.
- Social media: Use platforms such as LinkedIn, Facebook or Instagram to increase your reach and interact with your target group.
Marketing strategies
Develop a marketing strategy tailored to your target group.
- Content marketing: Offer valuable content to build trust and demonstrate your expertise.
- Online advertising: Run targeted ads to increase your visibility.
- Networking: Attend industry events, trade fairs or start-up events to make contacts.
Winning and retaining customers
Building a loyal customer base is essential for sustainable success.
- Sales channels: Choose the right channels to offer your products or services, whether online, in brick-and-mortar retail or via partners.
- Customer service: Excellent customer service fosters satisfaction and increases referral rates.
- Use feedback: Listen to your customers and use their feedback to improve your offering.