Quick answer — Swiss GmbH at a glance. A Swiss GmbH requires fully paid share capital of CHF 20,000, a notarised deed and entry in the commercial register, and at least one managing director with signing authority who lives in Switzerland. Corporate tax combines federal, cantonal and municipal rates, from roughly 12% in low-tax cantons to over 20% in others. Lump-sum taxation is only for foreigners without gainful activity in Switzerland, so it rarely fits an active founder.
Switzerland combines political stability, a strong currency, excellent banking and some of the lowest corporate tax rates in Western Europe in cantons such as Zug, Lucerne or Nidwalden. For founders who can live there, a Swiss GmbH offers credibility that few jurisdictions can match.
The trade-offs are cost and access. Living and operating in Switzerland is expensive, non-EU founders face strict permit quotas, and the company must have a Swiss-resident signatory. The often-cited lump-sum taxation (forfait fiscal) is designed for wealthy foreigners who do not work in Switzerland — not for founders running an active business there.
It does not suit early-stage solo founders on tight budgets, nomads who won't live in Switzerland, or anyone hoping to combine lump-sum taxation with an active business. It is not designed for locally employed expats or cross-border commuters.
Comparing options outside the EU? See our guide to low-tax countries in Europe outside the EU.
For a lower-cost alternative in the Pyrenees, compare the Andorran SL and active residency. For a low-cost Balkan option, see the Serbian d.o.o. for tech founders.
EU and EFTA nationals can generally move to Switzerland and work as self-employed or set up a company under freedom of movement. Non-EU nationals need a permit subject to annual quotas, and self-employment is granted only where the business serves the Swiss economy. Plan the permit before the company.
Lump-sum taxation taxes certain wealthy foreigners on their living expenses rather than their income. It is only available to people who do not carry on gainful activity in Switzerland, so a founder actively running a Swiss GmbH does not qualify.
A Swiss GmbH is resident where it has its registered seat or effective management. Its Swiss-resident managing director and board decisions taken in Switzerland support that residence and access to Switzerland's broad treaty network.
Amounts are indicative.
Dividends are then subject to 35% withholding, which Swiss residents recover when declaring them, and to personal income tax with partial relief for holdings of 10% or more. The choice of canton and municipality is one of the biggest decisions.
Swiss banks are among the best in the world but demanding: expect thorough KYC, proof of source of funds and a clear business plan. The capital deposit account is opened before incorporation.
The Switzerland Business Bank Comparison Guide compares the main options for new GmbHs — get it when you start your Swiss setup with Heavnn.
CHF 20,000, fully paid in at incorporation.
Yes. At least one managing director or authorised signatory with individual signing authority must live in Switzerland.
It depends on the canton and municipality. The combined effective rate ranges from roughly 12% in the lowest-tax cantons to over 20% in the highest.
No. Lump-sum taxation is reserved for foreigners who do not carry on gainful activity in Switzerland. Running an active Swiss company excludes it.
Yes, but living and working in Switzerland requires a permit subject to quotas and economic-interest conditions. Without a permit, you need a Swiss-resident managing director.
In Switzerland, the canton and the permit decide almost everything. Heavnn checks both before you incorporate.
Start your Swiss setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
