The Real Cost of Opening an SARL in Switzerland in 2026

Starting a business in Switzerland offers compelling advantages: political stability, a robust economy, and access to European markets. But here's what most guides won't tell you upfront: you'll need at least CHF 21,000-22,000 to get started, with ongoing annual costs of CHF 5,000-11,000.

The #1 Cost: CHF 20,000 Minimum Capital Requirement

Before we dive into formation fees, let's address the elephant in the room.

Every SARL in Switzerland requires CHF 20,000 in share capital, fully paid upon registration. This isn't a fee—it's your company's equity that stays in the business bank account. But it's capital you must have available.

What This Means For You

The CHF 20,000 must be deposited into a blocked bank account (Sperrkonto) before registration
You cannot access these funds until your SARL is officially registered
The money becomes your company's working capital once formation is complete
This requirement applies regardless of your business model or revenue projections

Alternative: Contributions in Kind

Don't have CHF 20,000 in cash? You can contribute assets instead:

Real estate or property
Equipment or machinery
Intellectual property
Inventory or stock

Important: Contributions in kind require professional valuation and notarial verification, which adds CHF 1,000-2,000 to your formation costs. The asset value must still equal CHF 20,000.

Formation Options

Initial Formation Costs: Two Paths in 2026

Swiss company formation has evolved dramatically. You now have two distinct options with vastly different price points.

Online Formation

CHF 1,100-1,300 total. Everything happens remotely through secure portals in 2-3 weeks.

Traditional Formation

CHF 3,100-3,600 total. Working with a physical notary in your canton takes 3-4 weeks.

Path 1: Online Formation (CHF 1,100-1,300)

Digital platforms like NewCo and Entreprendre.ch have revolutionized SARL formation. Everything happens remotely through secure portals.

What's Included:

Document preparation and templates: CHF 490-590
Notary fees (remote notarization): Included in package
Commercial Register submission: CHF 550-600
Signature legalization: CHF 40-50 per signature
Bank account introduction: Usually included

Total Package Cost: CHF 1,080-1,240

Timeline:

Document preparation: 24 hours
Bank account opening: 48 hours
Notarization: 48 hours (remote video appointment)
Commercial Register entry: 1-2 weeks
Total: 2-3 weeks to operational company

Path 2: Traditional Formation (CHF 3,100-3,600)

Working with a physical notary in your canton follows the established process most Swiss entrepreneurs know.

Cost Breakdown:

Notary fees: CHF 2,000-2,500
Commercial Register fee: CHF 600
Document preparation: CHF 300-400
Signature legalization: CHF 200-300 (multiple signatories)
Legal consultation: Variable

Total Cost: CHF 3,100-3,600

Timeline: 3-4 weeks (requires in-person appointments)

Additional One-Time Costs (Both Methods)

Cost Item	Amount (CHF)	Notes
Bank account opening	200-350	Some banks waive for SARL accounts
Initial accounting setup	500-800	Chart of accounts, bookkeeping system
Business insurance setup	300-500	Liability, property, professional
Company seal/stamp	50-100	Optional but recommended
Website domain & basic site	200-500	Essential for credibility

Additional Initial Costs: CHF 1,250-2,250

Your Complete Initial Investment (2026)

Here's what you actually need to open an SARL in Switzerland:

💻

Minimum Investment (Online)Share capital CHF 20,000 + Formation CHF 1,240 + Setup CHF 1,250 = CHF 22,490 total

🏛️

Traditional InvestmentShare capital CHF 20,000 + Formation CHF 3,600 + Setup CHF 1,250 = CHF 24,850 total

💰

You Save CHF 2,360The online method saves you CHF 2,360 on formation costs alone

Annual Costs

Ongoing Annual Costs: What You'll Pay Every Year

Formation is just the beginning. Budget for these recurring expenses:

Essential Services

Domiciliation, Accounting & Tax Filing

Every SARL needs these core services to stay compliant and operational.

Domiciliation Services: CHF 1,140-2,400/year for registered address and mail handling
Accounting Services: CHF 1,800-4,000/year for bookkeeping and annual accounts
Tax Filings: CHF 800-1,500/year for corporate and VAT returns
Audit Fees: CHF 0-3,000/year (most SARLs can opt out if under 10 employees)

Conditional Costs

Additional Services as You Grow

These costs apply depending on your business structure and growth stage.

Swiss Resident Director: CHF 2,900-6,000/year (only if you're non-resident)
Payroll Administration: CHF 480-3,600/year (once you hire employees)
Social Insurance: 15-20% of gross salaries for all employees
Professional subscriptions and industry memberships: CHF 800-3,000/year

Total Annual Operating Costs

Lean Operation (no employees, audit opt-out):

Domiciliation: CHF 1,140
Accounting: CHF 1,800
Tax filing: CHF 800
Insurance: CHF 600
Total: CHF 4,340/year

Standard Operation (3 employees, audit opt-out):

Domiciliation: CHF 1,800
Accounting: CHF 3,000
Tax filing: CHF 1,200
Payroll: CHF 2,160
Insurance: CHF 1,200
Total: CHF 9,360/year (+ salary costs)

Growing Operation (10+ employees, mandatory audit):

Domiciliation: CHF 2,400
Accounting: CHF 4,000
Audit: CHF 3,000
Payroll: CHF 3,600
Tax filing: CHF 1,500
Insurance: CHF 1,800
Total: CHF 16,300/year (+ salary costs)

Legal Requirements

What You Must Have Before Registration

Before you can register your SARL, you need these essential elements in place:

Company Structure

Minimum 1 shareholder, 1 Swiss resident director, CHF 20,000 capital (100% paid)

Swiss Presence

Registered office, resident director, local shareholder register access

Documentation

Articles of association, shareholder agreement, beneficial ownership declaration

Compliance Setup

Commercial Register entry, VAT registration, social insurance, industry permits

Timeline: Week by Week to Launch

Here's what happens from decision to operational company:

Week 1: Preparation

Choose company name (verify availability)
Draft articles of association
Identify shareholders and directors
Select formation method (online vs. traditional)

Week 2: Capital & Banking

Open blocked bank account (Sperrkonto)
Deposit CHF 20,000 share capital
Receive bank confirmation
Submit to notary

Week 3: Notarization & Submission

Sign articles of association (notarized)
Notary submits to Commercial Register
Commercial Register reviews application

Week 4: Registration & Activation

Commercial Register approves entry
Receive company registration number
Bank releases blocked capital
VAT registration (if applicable)

Total Timeline: 3-4 weeks from start to finish

Traditional methods may add 1-2 weeks due to appointment scheduling and physical document handling.

Hidden Costs Most Entrepreneurs Miss

Budget for these often-overlooked expenses:

Permit and License Fees

Depending on your industry:

Restaurant/food service: CHF 500-2,000
Healthcare/medical: CHF 1,000-3,000
Financial services: CHF 2,000-5,000
Construction/trades: CHF 300-1,500

Multi-Language Requirements

Switzerland has four official languages. You may need:

Multilingual website: Add CHF 1,000-3,000
Document translations: CHF 150-300 per document
Bilingual business materials: Add 50-100% to design costs

Professional Subscriptions

Chamber of Commerce membership: CHF 300-800/year
Industry associations: CHF 500-2,000/year
Professional liability insurance: CHF 1,000-5,000/year

Technology and Tools

Accounting software: CHF 300-600/year
Customer relationship management (CRM): CHF 600-1,800/year
Cloud storage and productivity tools: CHF 300-800/year
Cybersecurity and data protection: CHF 500-1,500/year

Business Structures

SARL vs. Other Business Structures

Choosing the right structure impacts your costs significantly. Here's how SARL compares:

Feature	SARL	AG (SA)	Einzelfirma
Minimum Capital	CHF 20,000	CHF 100,000	None
Formation Cost	CHF 1,100-3,600	CHF 3,000-8,000	CHF 100-500
Liability	✓ Limited	✓ Limited	✗ Unlimited
Ideal For	SMEs, Family Business	Growth, Investors	Solo, Testing Ideas
Share Transfer	Restricted, Notarized	Freely Transferable	N/A

Cost Savings

9 Proven Strategies to Reduce Your SARL Costs in 2026

Smart entrepreneurs know where to invest and where to save. Here are the strategies that make the biggest difference:

Choose Online Formation

Save CHF 2,360 on formation costs by using digital platforms with identical legal validity.

Start with Domiciliation

Save CHF 1,800-5,600/year by using registered address services instead of physical office space.

Opt Out of Audit

Save CHF 3,000/year if you have fewer than 10 employees by legally waiving mandatory audit.

Use Accounting Software

Save CHF 1,500-2,000/year by handling daily bookkeeping yourself with annual professional review.

Choose Tax-Favorable Canton

Save CHF 3,000-9,000/year by selecting cantons with lower corporate tax rates like Zug or Schwyz.

Start Part-Time First

Save CHF 21,500 in year one by testing your business model as sole proprietor before SARL formation.

Cantonal Cost Variations: Where to Establish Your SARL

Switzerland's federal structure means costs and taxes vary by canton. Here are the key considerations:

Most Business-Friendly Cantons (2026)

Zug:

Corporate tax rate: 11.85%
Commercial Register: CHF 600
Reputation: International business hub
Consideration: High cost of living, competitive talent market

Schwyz:

Corporate tax rate: 14.60%
Commercial Register: CHF 550
Reputation: Growing startup scene
Consideration: Good balance of taxes and living costs

Lucerne:

Corporate tax rate: 12.32%
Commercial Register: CHF 600
Reputation: Central location, German-speaking
Consideration: Lower living costs than Zurich

Major City Cantons

Zurich:

Corporate tax rate: 19.70%
Commercial Register: CHF 600
Reputation: Financial center, largest talent pool
Consideration: Higher costs offset by market access

Geneva:

Corporate tax rate: 20.00%
Commercial Register: CHF 600
Reputation: International organizations, French-speaking
Consideration: Excellent for international business

Basel:

Corporate tax rate: 21.00%
Commercial Register: CHF 600
Reputation: Pharmaceutical and life sciences hub
Consideration: Highest tax rate but strong industry cluster

Cantonal Decision Factors

Choose your canton based on:

Tax rate: Direct impact on profitability
Language: Match your target market (German, French, Italian)
Industry cluster: Proximity to partners and customers
Talent availability: Access to qualified employees
Living costs: Affects salary requirements

Note: You must have a genuine business connection to the canton where you register. Pure tax optimization without actual business activity can be challenged.

VAT Registration

VAT Registration: When It's Required and What It Costs

You must register for VAT when annual turnover exceeds CHF 100,000. The process is free through the Federal Tax Administration and takes 2-4 weeks. Ongoing VAT compliance costs are typically included in your accounting package (CHF 1,800-4,000/year).

VAT Rates (2026)

Standard rate: 8.1%
Reduced rate: 2.6% (food, beverages, books, medications)
Special rate: 3.8% (accommodation)

Ongoing VAT Compliance Costs

Included in accounting fees:

Quarterly VAT returns: Usually covered in your CHF 1,800-4,000 annual accounting package

Additional if separate:

VAT return preparation: CHF 200-400 per quarter
Annual VAT reconciliation: CHF 300-500

When to Hire Professional Help

Do It Yourself (with online tools)

Document preparation
Ongoing bookkeeping
Expense tracking
Invoice generation

Hire Professionals For

Notarization (legally required)
Annual financial statements
Tax returns and optimization
Legal contracts and agreements
Audit (if required)
Payroll setup and administration

Cost-Effective Approach: Use digital tools like Magic Heidi for daily operations, then engage professionals for compliance, tax filings, and strategic advice. This hybrid approach typically saves CHF 2,000-4,000 annually compared to full-service packages.

Your 2026 SARL Cost Summary

Total first-year investment breakdown by business size:

No Employees

Lean Startup

^CHF26,830_/month

First Year Total

Formation and setup: CHF 22,490
Domiciliation: CHF 1,140
Accounting: CHF 1,800
Tax filing: CHF 800
Insurance: CHF 600
Annual ongoing: CHF 4,340

Start Planning

Most Common

Standard Business

^CHF33,850_/month

First Year + Salaries

Formation and setup: CHF 22,490
Annual operations: CHF 9,360
3 employees supported
Domiciliation: CHF 1,800
Accounting: CHF 3,000
Payroll: CHF 2,160
Ongoing: CHF 9,360/year

Get Started

10+ Employees

Growth Company

^CHF45,150_/month

First Year + Salaries

Formation and setup: CHF 24,850
Annual operations: CHF 16,300
Mandatory audit included
Full payroll services
Priority accounting
Ongoing: CHF 16,300/year

🛡️All costs shown are 2026 estimates. Actual costs may vary by canton and service provider.

Ready to Start Your Swiss SARL?

Opening an SARL in Switzerland is a significant investment, but with proper planning, you can minimize costs while building a solid foundation for growth. Magic Heidi simplifies accounting, invoicing, and expense tracking for Swiss entrepreneurs—so you can focus on growing your business instead of wrestling with bookkeeping.

Start Free Trial Learn More About Features

App Store Google Play Microsoft Store Web App

FAQ

Frequently Asked Questions

Can I form an SARL without living in Switzerland?

Yes, but you must appoint at least one director with Swiss residency. You can hire a nominee director service (CHF 2,900-4,000/year) or partner with a Swiss resident.

How long does the CHF 20,000 capital stay blocked?

The capital is blocked in a consignment account only until your SARL receives its Commercial Register entry (typically 1-2 weeks). Once registered, the funds become your company's working capital.

Can I use the CHF 20,000 capital for business expenses?

Yes, once your SARL is registered and the capital is released, you can use it for any legitimate business expenses. It's your company's money.

What happens if my SARL loses money and capital drops below CHF 20,000?

You're legally required to notify the Commercial Register if capital falls below CHF 20,000 or if the company is over-indebted. Directors must prepare interim balance sheets and may need to file for insolvency if the situation doesn't improve.

Do I need a Swiss bank account?

Yes, every SARL must have a business bank account at a Swiss financial institution. The CHF 20,000 capital must be deposited in a Swiss bank.

How do taxes work for SARL owners?

The SARL pays corporate income tax on profits (average 14.4%). When you distribute dividends to yourself as a shareholder, you pay personal income tax on those dividends (typically ~35% withholding, then declared on your tax return).

Is SARL the right structure for my business?

Choose SARL if you want liability protection, plan to hire employees, need business credibility for B2B clients, and can commit CHF 20,000+ in capital. It's ideal for small to medium businesses with 1-50 employees.

Can I convert from Einzelfirma to SARL later?

Yes, many entrepreneurs start as sole proprietors and upgrade to SARL once revenue grows. The conversion process requires full SARL formation plus transfer of assets and liabilities. Budget CHF 3,000-5,000 for the conversion process beyond standard formation costs.

What if I want to close my SARL?

SARL liquidation costs CHF 2,000-4,000 in legal and notary fees, plus final tax and accounting settlements. The process takes 6-12 months due to mandatory creditor notification periods and Commercial Register formalities.