When does VAT have to be settled in Switzerland?

First of all, you need to clarify whether you are subject to VAT at all. You can find more information here.

There are tax-exempt activities (e.g. provision of services abroad) and activities exempt from VAT (e.g. medical or cultural services). The obligation to pay VAT only applies from a turnover of CHF 100,000 generated in Switzerland. If you are obliged to pay VAT, you must register with the Federal Tax Administration (FTA) and apply for a VAT number when you set up your company. However, voluntary registration is also possible (for turnover of less than CHF 100,000). If an existing company expands its business and therefore expects to exceed the threshold, it also becomes liable for tax and must register with the FTA. An extrapolation must therefore be made after three months. If the extrapolated turnover exceeds the limit of CHF 100,000, the company must register with the FTA. However, if the threshold is not exceeded until some time after the company is founded, the company must register with the FTA on January 1 of the following year in which the threshold is exceeded.

‍Here you can find out when the value added tax must be settled.

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All the answers to your questions about setting up a company in Switzerland

If you cannot find the answer to your question here, our Customer Care Center will be happy to hear from you.

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How much does it cost to set up a company at STARTUPS.CH?

Depending on the legal form you choose, your canton of incorporation and the STARTUPS.CH partners you select and confirm, you can even incorporate for free using our incorporation service. Calculate a non-binding offer online with just a few clicks.

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How long does it take to set up a company?

With STARTUPS.CH, founding a company is not only uncomplicated and simple, but also quick. Here you will find a complete overview of how quickly you can set up a company with and without STARTUPS.CH. Either way, please allow at least two weeks for the start-up process.

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How do I proceed with a start-up?

You can record the entire start-up process online via our homepage or during a consultation with one of our advisors. To do this, first calculate a free and non-binding quote. You can then accept the offer and create your personal user login. In a further step, you have the option of entering all company details (name, address, persons) online and finally submitting the incorporation to us. A STARTUPS.CH lawyer will contact you by telephone within the timeframe specified in the package (on working days) to discuss the incorporation.

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How does the company formation work?

First you make all the necessary clarifications for your company formation, from company name to financing. Then you can calculate the offer for your company formation on STARTUPS.CH and send us the order for the formation, after which a STARTUPS.CH lawyer will contact you by telephone within the 24-hour period (working days) specified in the package to discuss the formation.

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How do I best prepare for setting up a company?

• Write a business plan
  
• Determine the appropriate legal form
  
• Determine the company name
  
• Determine company headquarters
  
• Clarify capital requirements
  
• Determine management
  
• Reserve website
  
• Possibly take advantage of a consultation
  
• Possibly attend our free courses
  

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How does a personal consultation work?

A personal consultation can be arranged at one of our many locations throughout Switzerland. It lasts approximately one hour and is included in the start-up costs (only for Business and Premium packages).If you do not set up your company immediately, we will charge you CHF 150. In return, you will receive a voucher of the same value after the consultation, which you can then offset directly against the start-up costs when you set up your company via STARTUPS.CH later (only for Business and Premium packages). The consultation is based on your individual questions; you do not need to bring any specific documents with you.

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I would like to become self-employed, what exactly do I need to do?

Arrange a personal and non-binding consultation in your area now. During the consultation, you will be informed in detail about the exact procedure and the next steps regarding your self-employmentMandatory: If you are self-employed as your main occupation or as a sideline and your annual profit exceeds CHF 2,300, you must register with the cantonal compensation office. The income must be declared in the private tax return, and from a turnover of more than CHF 100,000 per year, entry in the commercial register and VAT registration are also mandatory. It is often advisable to make the entry in the commercial register and VAT registration voluntarily even if the annual turnover is lower.

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Do the founders have to appear in person?

No, founders do not have to appear in person to set up a company via STARTUPS.CH. Every founder who wishes to be authorized to sign in the Swiss commercial register must have their signature notarized in person by a notary or the municipality and forward the documents to our responsible employees.

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How do you obtain residence and work permits?

Anyone who works in Switzerland during their stay or stays in Switzerland for longer than three months requires a residence permit, and Switzerland applies a dual system for the admission of foreign workers. Workers from EU/EFTA member states benefit from the Agreement on the Free Movement of Persons, while well-qualified workers from other countries are admitted. To apply for a residence permit and for further information, you can contact the relevant cantonal migration office directly.

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When can I withdraw my pension fund assets as start-up capital?

This is only possible if you set up a partnership (sole proprietorship, general partnership) and if you have also been recognized as a self-employed person by the cantonal compensation office. In addition, self-employment must be your main occupation. If you set up a GmbH or AG, you are not entitled to draw from your pension fund. Find out more here.

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Do I have to inform my employer about possible self-employment?

It depends. In most cases, the employer's consent must be obtained on the basis of the employment contract. This is normally granted as long as the secondary employment does not compete with the employer and your own performance does not suffer as a result.‍If your employment contract mentions a notification obligation in the case of secondary employment, the employer's consent must be obtained.

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Are there any regulations regarding the nationality of the company founders?

No. The nationality of the company founders is irrelevant. Regulations only apply to the composition of the company's executive bodies:

• AG: At least one member of the board of directors or one director with sole signatory rights must be permanently resident in Switzerland (nationality is no longer relevant).
  
• GmbH: At least one managing director with sole signing rights must be resident in Switzerland.
  

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What do I have to consider when changing the legal form?

Companies can change their legal form in accordance with the Merger Act (FusG). The law, Art. 54 FusG, conclusively defines the permissible transformations. A sole proprietorship cannot be converted directly into a GmbH or AG, but must be transferred with its assets and liabilities to a newly formed company and then liquidated. It is also important to choose the optimal time for a conversion, and the requirements and necessary steps for a conversion can be found in the following checklist.

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At what point after incorporation must VAT be accounted for?

First of all, you need to clarify whether you are subject to VAT at all. You can find more information here.

There are tax-exempt activities (e.g. provision of services abroad) and activities exempt from VAT (e.g. medical or cultural services). The obligation to pay VAT only applies from a turnover of CHF 100,000 generated in Switzerland. If you are obliged to pay VAT, you must register with the Federal Tax Administration (FTA) and apply for a VAT number when you set up your company. However, voluntary registration is also possible (for turnover of less than CHF 100,000). If an existing company expands its business and therefore expects to exceed the threshold, it also becomes liable for tax and must register with the FTA. An extrapolation must therefore be made after three months. If the extrapolated turnover exceeds the limit of CHF 100,000, the company must register with the FTA. However, if the threshold is not exceeded until some time after the company is founded, the company must register with the FTA as of January 1 of the following year in which the threshold is exceeded.

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What criteria must I use to select my company name?

In principle, you are free to choose your company name. However, certain restrictions must be observed. For example, the name must not be misleading about the purpose of the company and the company name must not be descriptive.

• Deceptive company name: For example, the name “Rudolf Stahlhandel AG” would not be permitted if the company does not trade in steel, but has the purpose of managing Mrs. Rudolf's apartment buildings.
  
• Descriptive company name: The following examples would therefore not be permitted: “Auto AG”, “Handels GmbH” or “Maler AG”. Allowed would be company names that are supplemented by further elements and thus the name appears individualized: e.g. “H. Meier Auto AG”, “MiDio Handels GmbH”, “Maler 2000 AG”, “TATA Transport AG”, “Lagerhaus Weinfelden AG”.
  
• Family name: In the case of a sole proprietorship, the family name (as it appears in the passport) must appear in the company name.
  

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What do I have to do after setting up a company?

• Have a logo & letterhead created
  
• Appoint an accountant / trustee and/or accounting software
  
• AHV registration
  
• VAT registration
  
• Take out insurance
  
• Determine business organization
  
• Open bank accounts
  
• Set up Internet / telephone
  
• Have website designed
  
• Determine advertising concept
  
• Possibly attend further courses (e.g. marketing, insurance, Google, ...)
  
• Possibly organize a terminal for cashless payment transactions
  
• Possibly subscribe to a credit rating system to check new customers
  
• Possibly transfer pension fund to the new company