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Old 23.12.2019, 14:33
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Is there anyway to register a business in Switzerland as an South Asian?

I live in an south Asian country want to start a tech startup in Switzerland.

Why I want to base in Switzerland?

As the first phase of my startup it an productivity app, but second phase it will be extended to a social network where user of the existing app will be able to interact with each other. One of main concern of my startup going to be privacy and data protection. Since Switzerland is a country with good privacy and data protection, I want to base in Switzerland.

I have to make this choice from early on since I want to choose the data center in the base country so data reside in a country with good data privacy and protection. And there is a restriction with Firebase services where I cannot change the project location when its set for the first time, so I have pick right project location from the start.


As I read online you have to live in Switzerland to start a business there, even for a sole proprietorship one.

At first I want to start as sole proprietorship and then move to GmbH (LLC). Is there any way to register a sole proprietorship business in Switzerland as an south Asian without living there?
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Old 23.12.2019, 15:31
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Re: Is there anyway to register a business in Switzerland as an South Asian?

This link to a Swiss Federal government webpage called "Setting up a company as a citizen of a third state" might assist you (English):

https://www.kmu.admin.ch/kmu/en/home...ird-state.html
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Old 23.12.2019, 15:51
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Re: Is there anyway to register a business in Switzerland as an South Asian?

Nothing to stop you setting up a Swiss company. I'd suggest a visit to the Swiss Embassy in your country and speak to the commercial attache. This is exactly the type of business Switzerland wants to attract and there is even the possibility of government subventions to help you. Good luck with it all and keep us posted.
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Old 23.12.2019, 15:59
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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I live in an south Asian country want to start a tech startup in Switzerland.

Why I want to base in Switzerland?

As the first phase of my startup it an productivity app, but second phase it will be extended to a social network where user of the existing app will be able to interact with each other. One of main concern of my startup going to be privacy and data protection. Since Switzerland is a country with good privacy and data protection, I want to base in Switzerland.

I have to make this choice from early on since I want to choose the data center in the base country so data reside in a country with good data privacy and protection. And there is a restriction with Firebase services where I cannot change the project location when its set for the first time, so I have pick right project location from the start.


As I read online you have to live in Switzerland to start a business there, even for a sole proprietorship one.

At first I want to start as sole proprietorship and then move to GmbH (LLC). Is there any way to register a sole proprietorship business in Switzerland as an south Asian without living there?
Nope, you can't be a sole proprietor here, it would have to be a GmbH or Sarl since you'd need a Swiss national or somone resident here as a director of the company. Owning a business here doesn't grant you residency rights so that rules out the sole proprietor option. You'd have to be a resident here for that to be possible. A GmbH is going to need CHF20,000 capital as part of the requirements.
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Old 23.12.2019, 16:05
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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Nothing to stop you setting up a Swiss company. I'd suggest a visit to the Swiss Embassy in your country and speak to the commercial attache. This is exactly the type of business Switzerland wants to attract and there is even the possibility of government subventions to help you. Good luck with it all and keep us posted.



Government subventions.....? can you give some more information please or a link as i've never heard of this for "start-up" companies


To set up a company in Switzerland, you need to have a Swiss address, if you don't have one your lawyer/accountant may be willing to allow his address to be used for a fee, think around Chf 200.-- per month.



You will also need a physical person who is officially resident of Switzerland to act as a director and this does have responsibilities too so there needs to be an strong element of trust on both sides. The going rate for a "Rented Director" is around Chf 400.-- per month and any dicking around, the guy resigns leaving you with a BIG problem.



You will need a minimum of Chf 20k as seeed capital to create the company, as you live outside Switzerland yxou cannot put any of this money in as assets such as a computer, a car or whateveer else you want to get away with. You will get about Chf 17k back once company is formed, the notary has been paid and ther canton/federal taxes paid,



Switzerland is certainly not the cheapest place to set up a company, i should certainly think about other locations.
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Old 23.12.2019, 19:07
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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I live in an south Asian country want to start a tech startup in Switzerland.

Why I want to base in Switzerland?

As the first phase of my startup it an productivity app, but second phase it will be extended to a social network where user of the existing app will be able to interact with each other. One of main concern of my startup going to be privacy and data protection. Since Switzerland is a country with good privacy and data protection, I want to base in Switzerland.

I have to make this choice from early on since I want to choose the data center in the base country so data reside in a country with good data privacy and protection. And there is a restriction with Firebase services where I cannot change the project location when its set for the first time, so I have pick right project location from the start.


As I read online you have to live in Switzerland to start a business there, even for a sole proprietorship one.

At first I want to start as sole proprietorship and then move to GmbH (LLC). Is there any way to register a sole proprietorship business in Switzerland as an south Asian without living there?
You have a complete misunderstanding of how data privacy law works. There is absolutely no reason whatsoever to choose Switzerland over any other EU/EEA country since legislation allows private data to flow easily between those countries. And indeed several Swiss companies that I have worked for, have their principle data centers outside Switzerland.

This is a complete non starter as a justification for obtaining a work permit BTW.
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Old 23.12.2019, 19:08
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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Government subventions.....? can you give some more information please or a link as i've never heard of this for "start-up" companies
To set up a company in Switzerland, you need to have a Swiss address, if you don't have one your lawyer/accountant may be willing to allow his address to be used for a fee, think around Chf 200.-- per month.

You will also need a physical person who is officially resident of Switzerland to act as a director and this does have responsibilities too so there needs to be an strong element of trust on both sides. The going rate for a "Rented Director" is around Chf 400.-- per month and any dicking around, the guy resigns leaving you with a BIG problem.

You will need a minimum of Chf 20k as seeed capital to create the company, as you live outside Switzerland yxou cannot put any of this money in as assets such as a computer, a car or whateveer else you want to get away with. You will get about Chf 17k back once company is formed, the notary has been paid and ther canton/federal taxes paid,

Switzerland is certainly not the cheapest place to set up a company, i should certainly think about other locations.
You'd have to ask your cantonal office or a Swiss Embassy abroad, and it depends on the capital invested, jobs created and other criteria.

You need a Swiss resident director and address, and this would be a nominee director and the lawyer would be acting in a fiduciary capacity. OP can also be a director and he can be the sole shareholder giving him complete control. He can also require 2 signatures to further safeguard himself.

You cannot just take the remaining balance back. This forms part of the company's capital and will remain on the company bank account. It can be used for expenses related to the business, capital purchases, salaries and so on. It's a mistake to think it can just be put back in your pocket.

Switzerland is not the cheapest, nor is it the most expensive, but a Swiss company has a lot of credibility and this type of business is ideally suited to Switzerland.

For a company formation look at www.startups.ch where you'll find plenty of information regarding costs, payroll etc etc..
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Old 24.12.2019, 03:17
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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The going rate for a "Rented Director" is around Chf 400.-- per month and any dicking around, the guy resigns leaving you with a BIG problem.
What are the usual safeguards against the local director dicking around - with the bank account especially?
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Old 24.12.2019, 09:36
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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What are the usual safeguards against the local director dicking around - with the bank account especially?



If he doesn't have access or has to sign with 2 signatures what "safeguarding" is necessary.



Just because you are a director doesn't necessarily mean you have access to the bank accounts although most "Rent a Director" insist having a certain amount available to pay usual running costs, can be quite chunky, depending in the business.
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Old 24.12.2019, 09:41
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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You'd have to ask your cantonal office or a Swiss Embassy abroad, and it depends on the capital invested, jobs created and other criteria.


I have never heard of subsidies from Govt or canton, they may agree to a tax break but it certainly won't be cash up front or anything like it !


You need a Swiss resident director and address, and this would be a nominee director and the lawyer would be acting in a fiduciary capacity. OP can also be a director and he can be the sole shareholder giving him complete control. He can also require 2 signatures to further safeguard himself.


OP can only be sole director if he lives here officially; he doesn't and is unlikely to ave access to an easy permit.


You cannot just take the remaining balance back. This forms part of the company's capital and will remain on the company bank account. It can be used for expenses related to the business, capital purchases, salaries and so on. It's a mistake to think it can just be put back in your pocket.


The balance reverts to the companies' bank account. What happens to it afterwards is another matter. You do have to account for it though, but nothing stopping you taking a holiday, sorry, i mean a "Business trip".....



Switzerland is not the cheapest, nor is it the most expensive, but a Swiss company has a lot of credibility and this type of business is ideally suited to Switzerland.


This is why Switzerland does not need to offer subsidies to attract business !!


For a company formation look at www.startups.ch where you'll find plenty of information regarding costs, payroll etc etc..

In canton of Vaud, a Srl costs around Chf 2'300.-- to set up which are the taxes, inscription in Commercial Register and Notary fees, I set one up 2 weeks ago !
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Old 24.12.2019, 13:17
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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This link to a Swiss Federal government webpage called "Setting up a company as a citizen of a third state" might assist you (English):

https://www.kmu.admin.ch/kmu/en/home...ird-state.html
Thanks for reply.

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FNA
What are the demands of FNA at higher level?

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Only holders of a valid C permit
I do not have C permit, so it seems I have to partner with someone in Switzerland? Which I do not think is a good idea?
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Old 24.12.2019, 13:24
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Re: Is there anyway to register a business in Switzerland as an South Asian?

Thanks for reply!

Do you think embassy will help out for a solo proprietorship? They may help out if it is a GmbH.

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This is exactly the type of business Switzerland wants to attract.
Why you think so?
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Old 24.12.2019, 13:28
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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If he doesn't have access or has to sign with 2 signatures what "safeguarding" is necessary.
As a director he could create new accounts, issue invoices, channel money into the new accounts etc..... once someone is registered as a director, they can do a lot of damage. And I'm speaking from experience.

At one time I worked in the fraud/liquidation/insolvency side of accounting and in one case I worked on I was on first name terms with most of the Garda (Irish police) in county Wexford as the result of what one rogue director got up to. Once you have a valid registration as a director, most people will assume you have the authority to do what ever.

I would never give some random individual that kind of access to my business affairs.
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Old 24.12.2019, 13:28
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Re: Is there anyway to register a business in Switzerland as an South Asian?

Thanks for reply!

I also think buying out someone is not a good idea.

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i should certainly think about other locations.
Which country would you choose I you were in my shoes?
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Old 24.12.2019, 13:38
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Re: Is there anyway to register a business in Switzerland as an South Asian?

Thanks for reply!

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You have a complete misunderstanding of how data privacy law works. There is absolutely no reason whatsoever to choose Switzerland over any other EU/EEA country since legislation allows private data to flow easily between those countries.
Switzerland is neither EU or EEA. They are not in 14 eyes which is also good.


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And indeed several Swiss companies that I have worked for, have their principle data centers outside Switzerland.
May I ask where there main data centers reside? and why they choose some other country instead?
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Old 24.12.2019, 13:43
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Re: Is there anyway to register a business in Switzerland as an South Asian?

Thank you for the reply!

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this type of business is ideally suited to Switzerland..
Why do you think so?
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Old 24.12.2019, 19:09
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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May I ask where there main data centers reside? and why they choose some other country instead?
Because as I have already said there is no difference between the Europe countries when it comes to data protection. And Switzerland’s bilateral agreements with the EU bring them into the same arrangement.

There were a few startups over the years that tried to sell the idea of Switzerland as a secure place for your data and they all failed.

Ireland would probably be a better choice than Switzerland, as they have far more experience in this area and given the large number of international data centers located there a vested interest in ensuring compliance as evidenced in the Microsoft case.
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Old 25.12.2019, 10:41
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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Because as I have already said there is no difference between the Europe countries when it comes to data protection. And Switzerlands bilateral agreements with the EU bring them into the same arrangement.

There were a few startups over the years that tried to sell the idea of Switzerland as a secure place for your data and they all failed.

Ireland would probably be a better choice than Switzerland, as they have far more experience in this area and given the large number of international data centers located there a vested interest in ensuring compliance as evidenced in the Microsoft case.
Thank you very much for your information!
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Old 25.12.2019, 11:29
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Re: Is there anyway to register a business in Switzerland as an South Asian?

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I would never give some random individual that kind of access to my business affairs.



I never said to a random person, this i fully agree with you, it borders on insanity !
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