Switzerland

Federal rules, cantonal choices

Whichever canton you choose for your company, the rules that matter most to you are federal: company law in the Code of Obligations, financial market supervision by FINMA, the duties under the Anti-Money Laundering Act, sanctions and the enforcement of claims. The cantons differ in their tax rates, in the language of the authorities and in the character of their business communities, and that is where the choice between Zurich, Geneva, Zug, Basel and Lugano is made.

Federal law also sets the frame for tax. The federal profit tax is 8.5 per cent, and the cantons add their own rates, so that the combined effective rate ranges from under 12 per cent in Zug to over 20 per cent in Bern. Large groups with a turnover of EUR 750 million or more pay at least 15 per cent under the OECD minimum tax, which Switzerland introduced in 2024.

Company law and the courts

Company law is the same in every canton. An AG requires share capital of CHF 100,000 and a GmbH CHF 20,000, and since the reform of 2023 the share capital may be denominated in the company's functional foreign currency, such as US dollars or euros. At least one person authorised to represent the company must reside in Switzerland.

Disputes are heard by the cantonal courts, with specialised commercial courts in Zurich, Bern, St Gallen and Aargau, and end at the Federal Supreme Court in Lausanne. For the cantonal differences in tax, language and business community, each financial centre has its own page under Locations.