Most common business entity in Switzerland
The GmbH (Sarl) is the standard choice for most small- to mid-size businesses in Switzerland. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. GmbH min capital CHF 20k. AG min CHF 100k. Notarisation required.
The full menu of Switzerland business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| GmbH (Sarl) | Limited | 14.6% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 14.6% on Switzerland-source profits | Foreign companies entering Switzerland market |
| Public limited company | Limited | Same as GmbH (Sarl) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Switzerland? Self-employed structure if simple, GmbH (Sarl) if you want liability protection.
- Software / e-commerce / agency? GmbH (Sarl) — standard, scalable.
- Operating an existing foreign company in Switzerland? Branch (simpler) or subsidiary GmbH (Sarl) (more substance).
- Planning to raise venture capital? Confirm investors accept Switzerland entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? GmbH (Sarl) with minimal substance requirements.
The GmbH (Sarl) in one paragraph
GmbH (Sarl) is Switzerland's primary limited liability vehicle. Minimum paid-up capital: $22,000. Headline corporate tax: 14.6%. Federal 8.5% + cantonal varies. Effective combined ~12-21% depending on canton (Zug ~11.85%).. Banking accessibility: 9/10. Privacy: 6/10 (UBO non-public). Remote formation: in-person typical. Processing time: 14 business days.
For US comparison, see Switzerland vs USA. For non-resident formation specifics, see forming a Switzerland company as a non-resident.