The best tips for successfully founding an LLC
Jun 19, 2025
The LLC is one of the most popular legal forms for business startups in Switzerland. This type of company offers economic flexibility and legal security – a crucial advantage for entrepreneurs.
The creation of an LLC offers:
Personal protection through limited liability
Tax planning opportunities for managing directors
Professional external appearance in business transactions
The establishment process requires careful planning and legal knowledge. With the right steps and a structured approach, an LLC can be set up efficiently and legally secure. This guide highlights the key aspects and practical tips for a successful LLC formation in Switzerland.
The advantages of an LLC
The limited liability company (LLC) is a corporation that separates the private assets of the shareholders from the business assets. This legal form offers crucial advantages for entrepreneurs:
Limited liability: Shareholders are liable only with their initial contribution - personal assets remain protected
Low minimum capital: CHF 20,000 must be contributed at the establishment
Tax advantages:
The LLC allows for professional business management with clear structures and enjoys high reputation among business partners and banks. The CHF 20,000 equity contribution provides a solid foundation for sustainable growth.
Minimum capital and formation costs
The founding of an LLC requires a legally established minimum capital of 20,000 CHF. This amount must be fully paid at the establishment.
The formation costs comprise various components:
Notary fees: 500-1,000 CHF for public notarization
Commercial register entry: 600-800 CHF
Equity capital blocked account fee: 150-300 CHF
Signature authentication: CHF 20-100
The actual costs vary depending on the canton and the individual requirements of the company.
The formation process step by step
The systematic formation of an LLC requires careful planning and the execution of various steps.
1. Choosing the name
The first decisive step is the choice of the company name. This choice is subject to strict legal requirements:
The name must be clearly distinguishable from existing companies
The legal form "LLC" must be included in the name
Fanciful names are allowed but must be truthful
The name must not be a purely descriptive term of the business activity (examples of inadmissible names: Department Store stock corporation, Gardening LLC, Social Worker LLC)
Important checking steps when choosing a name:
Check in the central company index zefix.ch
Check for registered trademarks in the trademark register of the IGE to avoid later trademark conflicts
Ensure availability of the name as a domain
Verification for misleading or deceptive designations
If there are doubts that the desired company meets all legal requirements, it is advisable to have the desired company name reviewed early by the cantonal commercial registry office. This avoids complications in the formation process later on and saves time and costs. Further information is available on the websites of the cantonal commercial registry offices.
2. Drafting the shareholder agreement
The shareholder agreement is optional when establishing an LLC, but it can regulate the basic relationships between the shareholders. It serves as a supplement to the legal and statutory provisions.
For contract drafting, you can use either standardized templates or have a tailored partnership agreement prepared. The standardized protocols offer a cost-effective and straightforward solution, while a tailored agreement can be customized to the specific needs of your company.
Professional legal advice can ensure that the contract meets all legal requirements and optimally protects the interests of the shareholders.
3. Business account and equity capital
The deposit of the equity capital requires a specific blocked account at a Swiss bank. The minimum equity capital of CHF 20,000 must be fully paid before the LLC can be registered in the commercial register.
Procedure of the equity deposit:
Opening a capital deposit account with a Swiss banking institution
Deposit of the equity capital by the shareholders
Issuance of a confirmation by the bank of the deposit
Blocking of the account until registration in the commercial register
The bank issues a capital deposit certificate - an essential document for the commercial register registration. After successful registration, the money is released from the blocked account to a regular business account. The company can then freely dispose of the deposited capital.
4. Notarial certification
The notarial certification is a legally mandatory step in the incorporation of an LLC in Switzerland. The notary conducts a careful review of all relevant aspects. This includes, among other things, the confirmation of the identity of all founding members by presenting valid identification documents. After successful review of all documents, the notary issues the official founding document, which serves as the basis for the subsequent steps of the corporate formation.
The certification usually takes place in the personal presence of all shareholders at the notary. Alternatively, certification can also be done by power of attorney, allowing an authorized person to conduct the formation on behalf of the absent shareholders. Notary fees vary depending on the canton between 500 and 1,200 CHF. The notary prepares a public document, which serves as a legally valid basis for the commercial register entry.
The selection of an experienced notary is crucial for a smooth formation process. Prior appointment scheduling and the preparation of all required documents accelerate the certification process.
5. Entry in the cantonal commercial register
With the entry in the cantonal commercial register of the company's domicile canton, the LLC acquires its legal existence and can participate in business as an independent legal entity. The application for registration is made at the competent cantonal commercial registry office and requires certain documents.
The commercial registry office checks the submitted documents for completeness and legality. Depending on the workload of the commercial registry office, this review takes approximately 1-3 weeks. After successful review, the entry is published in the Swiss Official Gazette of Commerce (SHAB). With the official publication in the SHAB, your LLC is now fully operational, and the company is liable with its assets, while the personal liability of the shareholders is limited to their initial contributions.
The processing time is generally one to three weeks. The commercial register entry is publicly accessible and serves as official proof of your LLC's existence.
6. Registrations with authorities
Following successful registration in the commercial register, further official registrations may become relevant:
Value-added tax (VAT): Mandatory registration with the Federal Tax Administration from an annual turnover of CHF 100,000
AHV compensation fund: Registration as an employer for employees' social insurance
Accident insurance (UVG): Completion of mandatory accident insurance for all employees
Occupational benefits (BVG): Connection to a pension fund for employees with an annual salary over CHF 22,050
Cantonal tax administration: Registration for business taxation at the business location
Timely completion of these registrations ensures the legally compliant start of the LLC's business activities.
Conclusion
The formation of an LLC is an important step for entrepreneurs. Investing in establishing an LLC offers numerous advantages. These include the clear separation of private and business assets, optimized tax planning opportunities, and a professional market presence. The structured formation process requires careful planning and professional support. The steps described - from choosing a name to government registrations - are crucial for a successful start.
A well-planned LLC establishment lays the foundation for sustainable business growth. Support from experienced experts reduces risks and accelerates the formation process. With the right preparation and competent guidance, nothing stands in the way of a successful LLC formation.
