GoCantonal tax competition
Effective total rates from about 12 % (e.g. Zug) — choosing the canton is a real tax lever.
Company formation
Company Formation in Switzerland
Switzerland is not an EU member but closely tied to the single market via bilateral treaties. Corporate taxation has three levels (federal/cantonal/municipal); cantonal competition leads to effective rates from around 12 % to over 20 %. Legal status: 2026, without guarantee.
effective from ~12 %GmbH from CHF 20,0001–2 weeks
Key figures
Switzerland at a glance
from ~12 %
Effective tax (e.g. Canton Zug)
20.000 CHF
Minimum capital GmbH (fully paid in)
1–2 weeks
Typical formation time
55.654
New commercial-register entries 2025
Advantages
What speaks for Switzerland
Top innovation location
Regularly ranked #1 in the Global Innovation Index, strong ecosystem incl. Crypto Valley Zug.
Fast and stable
Formation in 1–2 weeks, political and legal stability, market access via bilateral treaties.
Tax comparison
Example: €100,000 profit
| Germany | Switzerland | |
|---|---|---|
| Corporate tax | ~30 % (effective) | ~12–21 % depending on canton |
| Tax on €100,000 profit | ~€30,000 | from ~€12,000 (e.g. Zug) |
| Special feature | Municipal trade tax | participation deduction for holdings, VAT only 8.1 % |
OECD minimum tax (QDMTT) since 2024 only for very large groups (revenue ≥ €750 m).
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| GmbH | CHF 20,000 (fully paid in) | limited | SMEs, startups |
| AG | CHF 100,000 (min. CHF 50,000 paid in) | limited | Fundraising, larger firms |
| Sole proprietorship | none | unlimited | Entry level, freelancers |
| Branch | — | parent liable | Market entry of foreign firms |
Process
How incorporation works
Canton & legal form
Choose location and legal form (GmbH/AG).
Blocked account + capital
Open the capital deposit account and pay in.
Notarisation
Formation deed at the notary.
Commercial register
Registration, publicly visible via Zefix.
Tax/VAT registration
Register with the tax authorities.
Permits
For third-country nationals: residence/work permits.
Usually 1–2 weeks.
Costs
Costs (indicative)
Notarisation and registration ~CHF 2,000–5,000 (excl. capital), depending on canton and complexity (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Direct federal tax (profit) | 8.5 % |
| Effective total burden (fed.+canton+municipality) | ~12 % (e.g. Zug) to ~21 % |
| Participation deduction (holding) | effectively close to 0 % on qualifying stakes |
| VAT (standard) | 8.1 %; registration duty from CHF 100,000 revenue |
OECD minimum tax (QDMTT) since 2024 for very large groups (revenue ≥ €750 m).
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Federal tax on profit?
Show answer
8.5 %.
Minimum capital AG?
Show answer
CHF 100,000 (CHF 50,000 paid in).
Low-tax canton?
Show answer
E.g. Zug (~12 % effective).
Location in numbers
Switzerland in numbers
| Metric | Value |
|---|---|
| New commercial-register entries 2025 | ~55,654 (+5.1 %) |
| Most popular legal form | GmbH (~62 % of entries) |
| Fastest growing 2025 | AG (+9.7 %) |
| Innovation ranking | regularly #1 (Global Innovation Index) |
Latest developments
Latest developments (as of July 2026)
- Record formations 2025 (+5.1 %, ~140 per day).
- AG as fastest-growing legal form (+9.7 %).
- Implementation of the OECD minimum tax for large groups.
FAQ
Frequently asked questions about Switzerland
GmbH or AG?
GmbH (CHF 20,000) for smaller firms, AG (CHF 100,000) for funding rounds.
How high is the tax?
Effectively ~12–21 % depending on the canton.
Is Switzerland in the EU?
No, bilateral treaties secure market access.
How fast is formation?
Usually 1–2 weeks.
Related countries
These locations might also interest you
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Austria
23 % corporate taxGmbH/FlexCo from €10,000
Country guide
Company formation
Germany
~30 % effective corporate taxGmbH from €25,000
Country guide
Company formation
Luxembourg
CIT 14/16 %SARL-S from €1 without notary
Country guide
Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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