Turning an idea into reality: how to set up your company in seven steps

The first question is: does my idea have substance? It’s less about perfection than clarity: 

• What problem are you solving?
• For whom?
• Why would anyone pay for it?

Initial discussions, simple market analyses or tests help to check assumptions. A business plan is not mandatory, but it is often a helpful tool. It forces you to sort out your thoughts, realistically assess figures and critically examine your own project, especially if financing or support are to be added later on.

Once the business idea has been refined, one of the most important decisions must be made: the choice of legal form. This affects liability, capital requirements, taxes and administrative effort, and the decision should therefore be taken consciously.

The following overview shows the most important differences between the most common legal forms in Switzerland.

Practice shows that many company founders start with a simpler legal form and adapt it later as the company develops.

Setting up a company incurs costs – these vary depending on the legal form and setup.

Among the most common cost items are: 

• Entry in the commercial register and notary costs
• Capital payment for a limited liability company/private limited company
• Advice, software, insurance and initial infrastructure

It is important to budget not only for the formal foundation, but also for the ongoing expenses of the first few months. 

Many initially finance the startup with equity capital. Depending on the situation, other forms of financing are also possible – such as banking solutions, private loans or external investors. 

The vital thing in any case is to finance not only the startup itself, but also the initial phase, during which revenue is often still irregular. 

With self-employment, responsibilities also change. What was previously arranged by the employer is now up to you.

Compulsory insurance, such as OASI, is mandatory. Additional insurance for illness, accidents or liability may also be worthwhile. Early clarification provides not only financial protection, but also personal security in the everyday life of a founder.

Whether an entry in the commercial register is required depends on the legal form and revenue. While entry is always mandatory for limited liability companies and private limited companies, a revenue limit of CHF 100,000 applies in the case of sole proprietorships.

The entry is more than a formal obligation. It creates transparency for business partners and is a precondition for various administrative steps.

While the previous steps are often still conceptual, the issue now is formal recognition and legal obligations. 

Recognition of self-employment through OASI

In Switzerland, you are not automatically considered self-employed simply because you set up a company . Recognition by the compensation office is crucial.

For this, register your activity and submit documents, such as 

• contracts or quotations
• invoices to customers
• a business plan or description of your activity

The compensation office will check whether you are working for your own account and at your own risk. You will only be officially recognized as a self-employed person after this check. As a self-employed person, you pay your OASI contributions yourself. The amount depends on the income and is usually set provisionally. Subsequent amendments are possible. 

Taxes: responsibility lies with you

By becoming self-employed, you are responsible for your own tax liability. Points to note include: 

• income and wealth tax
• differences between cantons
• provisional tax statements

It is worth planning for provisions from the outset and correctly documenting revenue and expenditure.

VAT: mandatory or voluntary registration?

In Switzerland, companies with an annual turnover of CHF 100,000 or more are liable for VAT. There is no obligation below this limit. In certain cases, voluntary VAT registration may be worthwhile – for example, if you have high input tax deductions or predominantly work with business customers who are entitled to input tax deductions.

Once all the necessary preparations have been made, the company will be formally established. Depending on the legal form, you will need the following documents:

• proof of identity of the founders
• founding documents and contracts
• articles of association for limited liability companies and private limited companies

For corporations, notarial proceedings and the entry in the commercial register are also required.

For limited liability companies and private limited companies, a capital payment to a special account is required before registration. It is also worthwhile for sole proprietorships and general partnerships to have a separate business account to ensure clarity from the outset.

PostFinance has been supporting company founders in Switzerland for many years with the financial and administrative preparations for setting up a company and is familiar with the typical requirements from practical experience. On this basis, PostFinance offers business accounts and a startup package that is specifically tailored to the needs of the startup phase.

It is possible to set up a company in Switzerland both online and on-site. Online services are suitable for standardized startups, while personal advice is particularly useful in more complex cases.