Einzelfirma vs. GmbH vs. AG: choosing a Swiss company form in 2026
Updated · 2 sources
Direct answer
Switzerland's three main company forms are the Einzelfirma (CHF 0 minimum capital, unlimited personal liability, Commercial Register entry mandatory at CHF 100,000 turnover), the GmbH / Sàrl (CHF 20,000 minimum capital, company-only liability, partners public in Zefix), and the AG / SA (CHF 100,000 share capital with at least CHF 50,000 paid in, company-only liability, private shareholders).
Key facts
- Einzelfirma: CHF 0 min. capital, unlimited personal liability, HR entry ≥ CHF 100,000 turnover
- GmbH / Sàrl: CHF 20,000 min. capital (100% paid in), limited liability, public partners in Zefix
- AG / SA: CHF 100,000 min. capital (min. CHF 50,000 paid in), limited liability, anonymous shareholders
- Mandatory Swiss VAT (MWST) registration threshold: CHF 100,000 annual turnover
When to start with an Einzelfirma
A sole proprietorship (Einzelfirma / Raison individuelle) is formed automatically as soon as you begin independent economic activity under your own family name. There is no minimum capital and no notary deed. However, you are personally and unlimitedly liable with your private assets.
Once annual turnover reaches CHF 100,000, both Commercial Register (Handelsregister) entry and VAT (MWST) registration become mandatory.
GmbH vs. AG: the CHF 20,000 vs. CHF 100,000 decision
The GmbH (CO Art. 772 ff.) is the standard choice for Swiss SMEs, agencies, and consultancies: it requires CHF 20,000 fully paid into a Swiss capital deposit account (Kapitaleinzahlungskonto) and shields your private assets.
The AG (CO Art. 620 ff.) is preferred for venture-backed startups, holding structures, and firms that want shareholder privacy (only board members appear on Zefix, whereas GmbH quotaholders are public) or flexible employee equity schemes.
FAQ
- How much capital do I need for a Swiss GmbH?
- CHF 20,000, which must be 100% paid in before notary incorporation.
- How much capital do I need for a Swiss AG?
- CHF 100,000 nominal share capital, of which at least 20% and at least CHF 50,000 must be paid in at founding.
- Who can represent a Swiss GmbH or AG?
- At least one person authorized to represent the company with single signature (or two with joint signature) must reside in Switzerland (CO Art. 718 para. 4 / Art. 814 para. 3).
Related guides
- How to start a GmbH in Switzerland: 7 steps, cost and timelineTo start a Swiss GmbH you need CHF 20,000 capital paid in full into a blocked capital deposit account, a notarised deed of incorporation, and entry in the Commercial Register (Handelsregister), which is what makes the GmbH a legal person. The sequence name check → articles → capital account → notary → register takes days to a few weeks; at least one authorised signatory must live in Switzerland.
- Einzelfirma vs GmbH: when to switch and what changesStart as an Einzelfirma if you are alone, low-risk and testing demand: it costs nothing, but you are personally liable and pay self-employed AHV on the whole profit. Switch to a GmbH (CHF 20,000 capital) when contracts, employees or debt put your private assets at risk, or when leaving profit in the company beats being taxed on every franc of profit personally.
- Swiss VAT rates in 2026: 8.1%, 2.6% and 3.8%Switzerland has three VAT rates in 2026: 8.1% standard, 2.6% reduced and 3.8% for accommodation. They have applied since 1 January 2024.