Setting up acompany in Switzerland as a French national

Can a French national set up a company in Switzerland?

Yes, a French national can absolutely set up a company in Switzerland, but certain conditions apply depending on their residency situation. If you already reside in Switzerland with a B or C permit, the process is almost identical to that of a Swiss national. If you reside in France, incorporation is still possible but requires meeting specific requirements depending on the chosen legal structure.

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Residency conditions and work permits

Switzerland distinguishes between two main situations: persons domiciled on Swiss territory and non-residents. For French nationals living in France, Swiss law does not prohibit being a shareholder or partner in a Swiss company. However, carrying out a lucrative activity as a director or self-employed person generally requires a work permit. The Agreement on the Free Movement of Persons (AFMP) between Switzerland and the European Union nevertheless facilitates procedures for French citizens.

In practice, if you wish to be the active director of a Swiss PLC from France, at least one member of the board of directors domiciled in Switzerland must have the power to represent the company. This requirement is designed to ensure that the company is effectively managed from Switzerland. For an LLC, at least one manager must be domiciled in Switzerland.

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Advantages of setting up a company in Switzerland for a French national

Switzerland is a particularly attractive environment for French entrepreneurs. The corporate tax rate is generally lower than in France: depending on the canton, it ranges between 12% and 20% on profits, compared to 25% in France. Political and monetary stability, the quality of infrastructure, the international reputation of companies domiciled in Switzerland, and the geographical proximity to France are major assets. The cantons of Geneva, Vaud, Fribourg and Valais, close to the French border, are particularly sought after by French entrepreneurs.

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Steps to set up a company in Switzerland from France

The first step is to choose the legal structure suited to your project and situation. You will then need to define the registered office of the company, which must mandatorily be located in Switzerland. It is strongly recommended to call on a fiduciary or a Swiss lawyer to assist with the registration procedure at the Commercial Register (CR). Once the company is registered with the CR, it obtains an IDE number (Business Identification Number) and can begin its activity. The procedures generally take between two and four weeks depending on the legal structure and canton chosen.

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Choosing the right canton for your establishment

The choice of canton is strategic, as tax and administrative conditions vary significantly. Zug is often cited for its very advantageous taxation, but Geneva, Vaud, Valais and Fribourg offer proximity to France and a French-speaking environment. Some cantons offer reception services for foreign companies (one-stop shops, personalised support), which greatly facilitates procedures for a foreign entrepreneur.

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Taxation and accounting obligations

In Switzerland, capital companies (PLCs and LLCs) are subject to profit tax at federal and cantonal level. The federal direct tax is set at 8.5% of net profit, to which cantonal and municipal tax is added. VAT (known as LTVA in Switzerland) applies from an annual turnover of CHF 100,000. Maintaining accounting in compliance with the Swiss Code of Obligations is mandatory for all companies. A balance sheet and income statement must be prepared annually.

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FAQ - Setting up acompany in Switzerland as a French national

Can a French national set up a company in Switzerland without living there?

Yes, it is possible. A French national can be a shareholder or partner in a Swiss company without residing there. However, to carry out active management duties, at least one manager (LLC) or director (PLC) domiciled in Switzerland is required. The Agreement on the Free Movement of Persons (AFMP) facilitates the process for EU citizens.

Is a Swiss residence permit required to set up a company in Switzerland?

No, a residence permit is not required to set up a PLC or to be a partner in an LLC. However, it is essential if you wish to personally carry out a lucrative activity in Switzerland (active management, employment). Without a permit, the standard solution is to appoint a Swiss fiduciary as the legally domiciled representative.

Will I be taxed twice — in Switzerland and in France?

No. The Franco-Swiss bilateral tax convention prevents double taxation. Professional income generated in Switzerland is taxed in Switzerland. Dividends paid to French residents are subject to the convention's rules. It is strongly recommended to consult a tax expert before defining your remuneration structure.

Which canton should I choose to set up my company in Switzerland from France?

For French nationals, the French-speaking cantons (Geneva, Vaud, Fribourg, Valais) offer the advantage of a shared language and geographical proximity. Zug is highly attractive from a tax perspective. Vaud and Fribourg offer a good cost/services balance. The choice also depends on your sector and your planned physical presence in Switzerland.

What is the simplest legal structure for a French national creating a company in Switzerland?

The LLC is the best compromise: minimum capital of CHF 20,000, limited liability, and relatively simple management. However, it requires a manager domiciled in Switzerland. The PLC (minimum capital CHF 100,000) is preferable for ambitious projects or those requiring investors. The sole proprietorship is reserved for those physically active in Switzerland.

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