Often with a new business, the mistake is to think that the idea is enough and the rest will follow naturally. In reality, the early days are the most difficult, because the process is extremely tricky and the way ahead is never completely straightforward. There is a very specific process for starting a business in Switzerland. Professional start-up advice can help you access all state benefits and protect you from jeopardising everything by getting off on the wrong foot.
What do I need to start a business in Switzerland ?
In order to set up your own business, Switzerland has a specific set of requests for entrepreneurs:
- The entrepreneur must be economically and financially independent until the business is producing enough turnover to sustain itself
- You must apply for and obtain a residence permit, which is mandatory after 90 days in Switzerland
- You must present a well-structured business plan (including forecast turnover) when applying for a residence permit
As in any other country, running a business in Switzerland also needs specific skills: management not only of production and sales activities, but also bureaucracy, legislation and strictly operational matters. This is why start-ups need strategic consultancy services. Essential activities before starting a business include:
- Corporate strategy & business planning
- Business model design
- Marketing planning & strategy
- Project management
- HR management
- Digitisation
One of the most crucial steps in the early stages is market research. This assesses the market to determine the feasibility of an idea based on demand and competition. If the market is ready and in line with the business idea, it makes sense to start. If not, it might even be counterproductive. Market research is needed to define a target – potential clients for your products or services.
The actual start-up of the business will then be followed by a testing phase: do the products meet the expectations of the target group? Do we need to make improvements? We carry out a study on how to achieve concrete results with the business, thanks to the feedback of 'early adopters' - the first users to take advantage of the new start-up's products or services.
Once we’ve got the initial results, we move on to the next question: how to grow your business. It’s really important from the outset to design and implement a good marketing strategy to reach the widest possible audience by exploiting all available touchpoints. An effective strategy is only possible by further study of the market, the target and its needs, with a specialised team that can manage communication and allocate a budget efficiently.
Why open a start-up in Switzerland ?
Most people think of Switzerland as a tax haven and an endless source of opportunities for entrepreneurs, not least because it has streamlined bureaucracy and is extremely politically stable.
Another important element in favour of starting a business in Switzerland is free trade, which means that anyone – even from another country - can start a business or participate in it, as long as a Swiss citizen is appointed as director. You do not have to move to Switzerland to open a start-up. However, during the planning stage of the business, it is ideal to combine start-up consultancy with choosing a local accountant/fiduciary.
The Swiss tax system: what are the advantages for start-ups?
Switzerland considers innovation to be an incredible value. This is why a number of measures have been implemented at both a federal and cantonal level to help develop start-ups. Many local banks, universities and research institutes offer to support start-up ideas, both in terms of funding and as guarantors of the feasibility of the projects.
Ticino ranks second among the 26 Swiss cantons in terms of tax breaks offered to start-ups. Any entrepreneur that wants to start a business in Ticino can do so by presenting a certificate to the Office for Administration and Control of the Economic Affairs Division. The submission process can be found in the start-up section of the official Republic and Ticino Canton website.
Ticino also offers special support for technological innovation: a framework credit allocated by the canton to support innovative start-ups (those with progressive or technologically advanced ideas).
Opening a business in Switzerland with the security of start-up advice
Switzerland has a specific process for opening a new start-up, and advice protects you from the risks and unknowns associated with each step:
- Defining the form the company will take, whether a partnership or corporation (as stipulated in the COS - Swiss Code of Obligations)
- Choosing where to open the start-up and an address for the headquarters
- Choosing a name for the business and checking that it is not already in use
- Registering a domain, once again ensuring that it is unique
- Appointing a Swiss director
- Drawing up the articles of association
- Opening a bank account in Switzerland: the company’s initial capital must be deposited in a Swiss bank
- Registering with the Swiss Chamber of Commerce
Professional help makes this easier and speeds up the process considerably. A company can be up and running in 2-3 weeks with all the necessary paperwork and info in hand. A start-up can even be entered in the business register in around 5 days if you opt for a quicker, fee-based procedure.
The complete picture on opening a start-up in Switzerland
It’s obvious that opening a business in Switzerland on your own can be difficult and risky. This is why you need professionals who can offer all the advice and tools to manage your business start-up in the best possible way.
The NFS Group offers an integrated business consultancy service that considers your specific needs and handles all the organisational aspects of opening a start-up in Switzerland. We can help you with the following:
- Tax advice
- Legal advice
- HR Consulting
- Accounting and administrative advice
- Property management
- Business development
