You want to found a Swiss LLC (GmbH) — but you don't live in Switzerland, or you hold no Swiss passport. Is that possible? Yes, absolutely. Switzerland welcomes foreign entrepreneurs — but within a clear legal framework.
Two things make incorporation different for foreigners than for Swiss residents:
- The residency requirement: at least one person with Swiss residency must be able to represent the company.
- The banking hurdle: opening a capital deposit account is considerably harder for non-residents than for CH residents.
This guide walks you through overcoming both — whether you are an EU citizen holding a Swiss residence permit, or founding entirely from outside Switzerland.
Who counts as "foreign" in this guide?
We distinguish three groups here:
- Group A — foreigners resident in Switzerland: EU/EFTA citizens or third-country nationals holding a valid residence permit (B, L or C). They are registered with a Swiss municipality and are legally considered Swiss residents. Incorporation runs almost identically to a Swiss citizen's.
- Group B — EU/EFTA citizens without Swiss residency: living in the EU, wanting to found a Swiss company. Need a Swiss Representative, or at minimum a shareholder with Swiss residency.
- Group C — third-country nationals without Swiss residency: non-EU/EFTA nationals living outside Switzerland. Same situation as Group B — Swiss Representative required, plus stricter bank KYC.
Different groups face different hurdles. Group A has essentially no special rules. Groups B and C need to take the Swiss Representative route.
The residency requirement: OR Art. 718 para. 4
The Swiss Code of Obligations requires: "the company must be able to be represented by a person resident in Switzerland" (OR Art. 718 para. 4, applied to LLCs via OR Art. 814 para. 3).
In practice: the LLC can have shareholders who live entirely abroad — even hold the majority stake abroad. But at least one person must:
- Be resident in Switzerland (registered with a municipality)
- Be able to legally sign for the LLC (i.e. be entered in the commercial register as managing director or authorised signatory)
- Have sole signing authority, or joint signing authority with another director
This person can be a co-founder, an employed managing director, or a professional Swiss Representative.
The Swiss Representative — who, what, how much?
A Swiss Representative (sometimes called a "domicile agent") is a person or company in Switzerland entered in the commercial register as an authorised managing director of your LLC.
Who can act as Swiss Representative?
- A natural person with Swiss residency (a friend, acquaintance, or fiduciary)
- A professional Swiss Representative service (law firm, fiduciary, specialised provider)
Important: the Swiss Representative takes on genuine legal responsibility. They are listed in the commercial register and can be held personally liable for certain acts of the company. Professional providers therefore run due diligence and impose ongoing reporting requirements on their clients.
Swiss Representative costs:
- Domicile service (address only): CHF 300–800/year
- Swiss Representative (commercial register entry): CHF 500–2,200/year
- Combined domicile + Swiss Representative: CHF 800–3,200/year
Floow works with vetted Swiss Representative providers who offer founders fair terms.
Founding as an EU/EFTA citizen with a B permit
Already living in Switzerland as an EU/EFTA citizen with a B residence permit? Then almost no special rules apply to you.
- You can be entered as managing director in the commercial register.
- Your B permit must stay valid — renewing it on time is your responsibility. An expired permit causes problems in the commercial register.
- You are permitted to work in Switzerland; the B permit covers gainful employment.
- No Swiss Representative needed.
Practical tip: opening a bank account still requires full KYC — identity document plus proof of Swiss residence (municipal registration certificate).
Founding as a third-country national without CH residency
You want to found a Swiss LLC but live outside Switzerland and are not an EU/EFTA citizen? That is possible, but more involved.
What you need:
- A Swiss Representative (mandatory)
- A Swiss business address (domicile service)
- A capital deposit account at a bank that accepts non-residents
- Full KYC documentation (ID, proof of source of the capital, possibly video KYC)
What you don't need (for the incorporation itself):
- A Swiss passport
- A visa for the incorporation itself (if you are not personally accompanying anyone in Switzerland)
- A personal visit to the notary (possible with power of attorney and e-ID)
What you should clarify before founding:
- Do you want to be physically active in Switzerland? → check work permit requirements
- Do you want to pay yourself a salary from the LLC? → that determines Swiss tax liability
- Is there a double taxation treaty between Switzerland and your country of residence?
Capital deposit account for non-residents
The capital deposit account is mandatory for LLC incorporation: you must deposit the CHF 20,200 share capital into a blocked account before the notary can certify the incorporation.
The problem: many Swiss banks do not open accounts for non-residents — or demand extensive documentation and long waiting times.
Options for foreigners:
- Relio (recommended): FINMA-licensed fintech bank specialised in LLC incorporations. Fully digital process, no physical presence required, video KYC. Particularly suited to Floow customers who want to found entirely online.
- Neon (for foreigners already resident in Switzerland): low-cost online bank, accepts B-permit holders.
- PostFinance: state-owned bank, accepts non-EU foreigners in some cases. More involved processes.
- Cantonal bank of your canton of residence (if in Switzerland): direct contact with a local advisor — often simpler than large national banks.
After incorporation: the share capital is released and transferred to the LLC's operating account. You can open a separate operating account at a different bank.
KYC: enhanced requirements for foreigners
KYC stands for "Know Your Customer" — the legal obligation of banks and fiduciaries to identify their customers. The Swiss Anti-Money Laundering Act (GwG) mandates enhanced due diligence for certain customer groups.
For foreign LLC founders, this means:
- Identification: a valid passport or national ID card. A driver's licence is not sufficient.
- Proof of residence: an official document showing name and address (utility bill, official letter) — no older than 3 months.
- Source of funds: for the CHF 20,200 share capital, you must prove where the money comes from — bank statement, salary slip or similar.
- PEP declaration: are you a "politically exposed person" (government official, judge, senior military officer)? If yes, expect a significantly longer process.
- Video KYC: many banks run KYC via video call — no in-person visit required.
Time budget: plan for 2–6 weeks for KYC as a non-resident. This affects your overall incorporation timeline.
Work permit and residence
Careful: founding a Swiss LLC does not automatically give you the right to work or live in Switzerland.
EU/EFTA citizens: entitled to gainful employment in Switzerland under the Agreement on the Free Movement of Persons. You still need to register with your municipality and apply for a B residence permit.
Third-country nationals: considerably more restrictive. Work permits for third-country nationals are subject to annual quotas. Exceptions exist for:
- Highly qualified executives (short-term L permit for projects)
- Investors making a substantial economic contribution (the "economic contribution" criterion)
- People with a Swiss spouse or family reunification grounds
Important: the work permit is separate from the incorporation. You can found and control a Swiss LLC without being employed in Switzerland — but if you are operationally active and draw a salary, you need a permit.
Step by step: incorporation for foreign founders
- Step 1 — Secure a Swiss Representative: find a person with Swiss residency or engage a professional Swiss Representative service. This step must be settled first.
- Step 2 — Swiss business address: engage a domicile service. Centrio Zug (Floow partner) offers a mailbox address from CHF 25/month.
- Step 3 — Check the company name: Zefix and Swissreg searches (via Floow's name check, in one step).
- Step 4 — Prepare the articles of association: define purpose, share capital and governing bodies. Floow drafts the articles via AI assistant.
- Step 5 — KYC and capital deposit account: choose a bank, submit KYC documents (plan 2–6 weeks), deposit CHF 20,200.
- Step 6 — Notary appointment: possible by power of attorney (no in-person appearance needed if the Swiss Representative signs). The notary certifies the incorporation.
- Step 7 — Commercial register entry: the notary files with the commercial register office. After roughly 5–14 days, the LLC is registered and has legal personality.
- Step 8 — Post-incorporation: social security registration (if operationally active), VAT check, open an operating account, set up accounting software.
Frequently asked questions about company formation for foreigners
Can I found a Swiss LLC (GmbH) without living in Switzerland?
Yes — with one important condition: at least one managing director (or an authorised representative) must be resident in Switzerland and legally entitled to represent the company (Swiss Code of Obligations, Art. 718 para. 4). This is called the "Swiss Representative". If nobody in your team has Swiss residency, you need to appoint one.
What is a Swiss Representative and what does it cost?
A Swiss Representative is a person resident in Switzerland who is entered in the commercial register as a managing director with signing authority for your company. They must be able to legally represent your LLC. Providers of Swiss Representative services typically charge CHF 500–2,500 per year. Floow works with vetted Swiss Representative partners.
Can an EU citizen with a Swiss B residence permit found a GmbH?
Yes. An EU/EFTA citizen holding a B (or L, C) residence permit is legally considered resident in Switzerland, provided they are registered with their Swiss municipality. They can be entered as managing director in the commercial register — no Swiss Representative needed. Important: the B permit must stay valid and be renewed on time.
How do I open a capital deposit account as a foreigner?
This is the hardest part. Many Swiss banks decline account openings for non-residents. Your options: online/fintech banks (Relio, Neon), specialised incorporation banks, or traditional banks with a founder package. KYC is always mandatory: identity document, proof of residence abroad, and information on the beneficial owner.
Do I need a visa to found a company in Switzerland?
Not for the incorporation itself — that can be delegated by power of attorney. But if you want to act as managing director and actually work in Switzerland, you need a work permit. EU/EFTA citizens: relatively straightforward (freedom of movement). Third-country nationals: considerably harder — quotas and qualification requirements apply.
What enhanced KYC requirements apply to non-residents?
Swiss banks and fiduciaries are legally required (Anti-Money Laundering Act, GwG) to apply enhanced due diligence to beneficial owners based abroad. In practice: full identification via video KYC or in person, proof of the source of funds, and a PEP (Politically Exposed Person) declaration. The process takes longer — plan for 2–6 weeks.
Does my Swiss company automatically pay Swiss tax if I run it from abroad?
Not necessarily — and that is a point many providers leave out. What decides tax liability is the place of effective management, not the commercial register entry. If you run your Swiss LLC entirely from Germany, say, German tax law can treat the company as resident there instead. That doesn't make the Swiss incorporation pointless — but you should clarify your structure with a tax professional in your country of residence. We don't promise tax advantages; we build a clean structure.
Ready to found your Swiss company from abroad? Contact us here — we reply within 24 hours on business days and tell you honestly which path fits your situation.