How Much Does It Cost to Start a Company in Switzerland? Cost Plan for Hungarian Entrepreneurs
GmbH, AG, or sole proprietorship? Concrete figures, legal requirements, and a complete cost plan for Hungarian entrepreneurs planning to establish a company in Switzerland.
In Brief
Founding a GmbH in Switzerland involves one-time costs of CHF 2,600–7,600 and a minimum capital of CHF 20,000, which becomes available to the company after incorporation. Total first-year costs (incorporation, registration, accounting, insurance) typically range from CHF 15,000–25,000, plus office rent and labor costs, which amount to 120–130% of gross salary including contributions.
Key Takeaways
- Choose your business structure (sole proprietorship, GmbH, or AG) based on your business plan and capital requirements: GmbH is most common for small and medium enterprises.
- Verify your company name in the Zefix federal registry (zefix.ch) and select a canton based on corporate tax rates (11–21%) and office rental costs.
- Budget for hidden first-year costs: accounting (CHF 3,000–10,000), local director (if not resident in Switzerland: CHF 1,500–5,000/year), SUVA insurance, and VAT registration.
- Secure a bank account early in the incorporation process, as Swiss banks may take 4–12 weeks for due diligence; consider fintech alternatives (Neon, Wise Business).
- Register with AHV/AVS (old-age insurance), SUVA (occupational accident insurance), and as a VAT taxpayer if annual revenue exceeds CHF 100,000.
- As a Hungarian citizen, you may operate in Switzerland under the FZA agreement, but you need a residence permit (B permit) if you live in Switzerland; consult a tax advisor regarding double taxation and changes to social security status.
What business structures can you choose from in Switzerland?
In Switzerland, three main business forms are relevant for Hungarians entering the market independently or with a small team.
Sole proprietorship (Einzelunternehmen)
The sole proprietorship is the simplest and most cost-effective form. If annual revenue exceeds CHF 100,000, registration in the commercial register (Handelsregister) is mandatory; below this threshold it is optional but recommended.
Key characteristics:
No minimum capital requirement.
The entrepreneur is personally liable without limitation.
Registration fee: CHF 0–300 (depending on cantonal registry).
Not suitable for capital raising or attracting investors.
This form is appropriate if you are starting alone, with low risk, and modest turnover. From a Hungarian perspective, it is important to note: the sole proprietor pays Swiss AHV/AVS (old-age insurance) contributions independently, which amounts to approximately 10% of net income (at 2025 rates).
Limited liability company (GmbH / Gesellschaft mit beschränkter Haftung)
The GmbH is the most common form for small and medium-sized enterprises. Minimum share capital is CHF 20,000, which must be paid in full at the time of incorporation.
One-time incorporation costs (indicative summary):
Item | Typical amount (CHF) |
|---|---|
Notary fees (Notariatsgebühren) | 500–1,500 |
Commercial register entry (Handelsregistereintrag) | 600–800 |
Legal / advisory fees (optional but recommended) | 1,000–4,000 |
Bank account opening and capital contribution proof | 200–500 |
Translation and certification (if foreign documents required) | 300–800 |
Total (excluding share capital) | 2,600–7,600 |
The share capital (CHF 20,000) is not lost — after incorporation it remains available to the company for operational purposes.
Joint-stock company (AG / Aktiengesellschaft)
The AG requires larger capital and a more complex structure. Minimum share capital is CHF 100,000, of which at least CHF 50,000 must be paid in at the time of incorporation.
When should you choose an AG?
If you wish to bring in investors.
If stock market listing is a long-term goal.
If you want to build strong institutional credibility behind your company name.
The incorporation cost for an AG (excluding share capital) is typically CHF 4,000–12,000, depending on legal fees and cantonal charges.
How does the registration process work, and what documents are needed?
Steps for incorporating a GmbH
Check the company name in the federal commercial register (Zefix, zefix.ch). The name must be unique and not confusingly similar to any other registered company.
Prepare the articles of association (Statuten). These must include the company name, registered office, business purpose, share capital, and details of the management.
Notarial deed of incorporation. In Switzerland, GmbH incorporation requires a notarial deed. The notary (Notar) is a cantonal official — fees vary by canton.
Bank account opening and capital deposit. The bank issues a confirmation (Einzahlungsbestätigung), which will be attached to the articles of association.
Submission of registration application to the cantonal commercial register (Handelsregisteramt). The process typically takes 5–15 working days.
Request for a UID number (Unternehmens-Identifikationsnummer — the Swiss tax identification number for businesses). This is generated automatically upon registration.
AHV/AVS registration with the competent regional compensation office (Ausgleichskasse), if you employ staff.
As a Hungarian citizen, pay particular attention to this
As a Hungarian citizen, you are classified as an EU citizen under the Agreement on the Free Movement of Persons (FZA / Freizügigkeitsabkommen, 1999). This means you can establish a business in Switzerland without needing a separate work permit — but you must have a residence permit (B permit / Ausländerausweis B) if you live in Switzerland. If only the company's registered office is in Switzerland but you live in Hungary, the situation is more complex: in that case you may need a local domiciliary director, which costs an additional 1,500–5,000 CHF per year.
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