What are the costs involved in setting up a company?
The costs of setting up a company usually consist of three blocks: government fees, notarial or administrative costs, and capital that you must contribute depending on the legal form.
It is important to distinguish between real costs and tied-up capital. The share capital of a LLC or the share capital of a stock corporation is not simply a fee that is "gone". It belongs to the company after incorporation and can be used for business purposes. Nevertheless, you must provide this capital at the time of incorporation.
Typical cost items are:
Commercial registry fees
Costs for public notarization for LLC and stock corporation
Notarization of signatures
Drafting or reviewing articles of association and incorporation documents
Opening a capital contribution account
Advice from a fiduciary, lawyer, or incorporation service provider
if applicable, permits, industry approvals, or domicile costs
The exact company incorporation costs therefore depend heavily on whether you are setting up a sole proprietorship, a LLC, or a stock corporation.
How much does a sole proprietorship cost?
A sole proprietorship is the cheapest option because it does not require statutory minimum capital or public notarization.
If you operate a business as a natural person and achieved at least CHF 100'000 in sales revenue in the last financial year, you must register your sole proprietorship in the commercial register. Below this threshold, registration is generally voluntary (Art. 931 Abs. 1 OR, Art. 931 Abs. 3 OR).
The SME Portal of the Confederation states the costs for registering a sole proprietorship in the commercial register are CHF 120. Depending on the situation, additional costs for advice, notarizations, or other services may arise.
However, a sole proprietorship has a major disadvantage. You are personally liable. There is no separation between your personal assets and the business, as is the case with a LLC and a stock corporation.
How much does it cost to set up a LLC?
With a LLC, the costs are higher because the company must be formally established, publicly notarized, and registered in the commercial register.
The share capital of a LLC is at least CHF 20'000 (Art. 773 Abs. 1 OR). Upon incorporation, the founders must declare in a public deed that they are establishing a LLC, define the articles of association, and appoint the governing bodies (Art. 777 Abs. 1 OR). The LLC must be registered in the commercial register at its registered office (Art. 778 OR) and only acquires its legal personality upon registration (Art. 779 Abs. 1 OR).
For registration with the commercial register, the public deed, the articles of association, and, depending on the case, other evidence must be submitted (Art. 71 Abs. 1 HRegV). Anyone who initiates a commercial register ruling or service must pay fees for it (Art. 1 Abs. 1 GebV-HReg).
The SME Portal of the Confederation for LLCs gives the following guide values for a typical incorporation:
Cost item | Typical amount |
|---|---|
Share capital | CHF 20'000 |
Commercial register and additional fees | approx. CHF 600 to CHF 700 |
Notary and public deed | approx. CHF 800 to CHF 2'000 |
Incorporation consulting or incorporation service | approx. CHF 500 to CHF 2'500 |
Notarizations, bank, documents | approx. CHF 100 to CHF 500 |
As a rough rule of thumb, a simple LLC incorporation often costs around CHF 1'500 to CHF 4'000 excluding share capital. With share capital, you must provide at least an additional CHF 20'000.
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How much does it cost to set up a stock corporation?
The stock corporation is usually the most expensive standard legal form because it requires a higher minimum capital and must also be publicly notarized.
The share capital is at least CHF 100'000 (Art. 621 Abs. 1 OR). At the time of establishment, at least 20 percent of the nominal value of each share must be paid up. In any case, the paid-up contributions must be at least CHF 50'000 (Art. 632 Abs. 1 OR, Art. 632 Abs. 2 OR).
The stock corporation is also established by a public deed. In it, the founders declare that they are establishing a stock corporation, define the articles of association, and appoint the governing bodies (Art. 629 Abs. 1 OR). The stock corporation must be registered in the commercial register at its registered office (Art. 640 OR) and only acquires its legal personality upon registration (Art. 643 Abs. 1 OR).
For registration with the commercial register of a stock corporation, the public deed, the articles of association, evidence of acceptance of election by the governing bodies, and, in the case of cash contributions, a certificate of the deposited contributions must be submitted (Art. 43 Abs. 1 HRegV).
The SME Portal of the Confederation for stock corporations gives the following guide values:
Cost item | Typical amount |
|---|---|
Share capital | at least CHF 100'000 |
Amount to be paid up upon incorporation | at least CHF 50'000 |
Commercial register and additional fees | approx. CHF 600 to CHF 700 |
Notary and public deed | approx. CHF 800 to CHF 2'000 |
Incorporation consulting or incorporation service | approx. CHF 500 to CHF 2'000 |
Notarizations, bank, documents | approx. CHF 100 to CHF 500 |
As a rule of thumb, a simple stock corporation incorporation often costs around CHF 2'000 to CHF 6'000 without the paid-up share capital. In addition, you must provide at least CHF 50'000 as paid-up share capital.
What commercial registry fees should you budget for?
The commercial registry fees are government fees. They apply when you initiate a registration or a service of the commercial registry office (Art. 1 Abs. 1 GebV-HReg).
For initial cost planning, you can guide yourself by the amounts currently stated by the SME Portal:
Registration | Basic fee |
|---|---|
Sole proprietorship | approx. CHF 120 |
LLC or stock corporation | approx. CHF 600 |
Signing authority | approx. CHF 20 per entry |
Role | approx. CHF 20 per entry |
These amounts are important, but they do not explain the total company incorporation costs. For a LLC and stock corporation, notary fees, capital, articles of association, and consulting are usually significantly more relevant than the pure basic commercial register fee.
Are there additional costs after incorporation?
Yes. Many founders underestimate the costs that arise directly after registration.
Depending on the business, these include:
Accounting and annual financial statements
VAT assessment and, if applicable, VAT registration
Social security registrations
Business account and bank fees
Insurances
Payroll administration
Auditor, if opting-out of an audit is not possible
Domicile address, if you do not use your own business address
Permits for regulated activities
In the case of a LLC and stock corporation, you must also separate private money from company assets. While this reduces liability risks, it adds more administration.
What is the difference between costs and capital?
The most common misconception is: "A LLC costs CHF 20'000." This is not entirely correct.
The CHF 20'000 is the minimum share capital of the LLC (Art. 773 Abs. 1 OR). This capital is paid in at the time of incorporation and belongs to the company thereafter. It is therefore tied start-up capital, not simply an external fee.
It is similar with a stock corporation. The share capital is at least CHF 100'000 (Art. 621 Abs. 1 OR). However, at least CHF 50'000 must actually be paid in during incorporation (Art. 632 Abs. 2 OR).
Real costs, on the other hand, are amounts that you pay to third parties, for example to the commercial register office, notary, bank, fiduciary, or incorporation service provider.
Which legal form is the cheapest?
The cheapest legal form is usually the sole proprietorship. It requires no minimum capital, no public notarization, and often only low commercial register costs.
The LLC is more expensive, but in return, it offers its own legal personality and a clear capital structure. It is often suitable for small and medium-sized enterprises that want to structure liability and presentation more professionally.
The stock corporation is usually useful when raising capital, participations, investors, or a particularly professional market appearance are important. However, it comes with the highest capital requirements.
In short: Anyone who wants to start very cheaply often considers the sole proprietorship first. Anyone who wants to separate liability and company structure more strongly often ends up with a LLC. Anyone who needs investor readiness and a larger capital structure considers the stock corporation.
Conclusion: What costs for company incorporation should you expect?
The costs for setting up a company in Switzerland depend primarily on the legal form. A sole proprietorship can be set up very cheaply. A LLC requires at least CHF 20'000 in share capital and usually causes an additional several thousand francs in incorporation and fee costs. A stock corporation requires at least CHF 100'000 in share capital, of which at least CHF 50'000 must be paid in upon incorporation.
For realistic planning, you can roughly calculate with these guidelines:
Legal form | External incorporation costs | Capital requirement |
|---|---|---|
Sole proprietorship | approx. CHF 0 to CHF 500 | no minimum capital |
LLC | approx. CHF 1'500 to CHF 4'000 | at least CHF 20'000 |
Stock corporation | approx. CHF 2'000 to CHF 6'000 | at least CHF 100'000, of which at least CHF 50'000 is paid up |
The most important decision is therefore not just which incorporation is the cheapest. The decisive factor is which legal form fits the risk, growth, financing, and administrative effort of your company.
