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10 Reasons to Start Your Startup in Switzerland

Choosing your business location is an essential part of today’s economy is so competitive. Being a meeting point of top European cultures: French, German, and Italian, you will have unique advantages to start a business in Switzerland.

10 Reasons to Start Your Startup in Switzerland

Its Mediterranean coast areas, breathtaking countryside, Alpine landscapes, and business hubs make Switzerland a very versatile country for business.

Switzerland’s most important industries are health and pharmaceutical, chemicals, musical instruments, measuring instruments, banking, tourism, real estate, and international organizations.

If you are planning to start a business in Switzerland, here are ten reasons why you should consider it:

  • Strategic location
  • Stable economy
  • Exceptional infrastructure
  • Moderate tax rates
  • A center of innovation
  • Business transparency
  • Political environment stability
  • Very skilled workforce
  • A very stable currency
  • High living standard and life quality

1. Strategic location

Located in Western Europe, Switzerland offers the best business activities and logistical operations. Being in the heart of Europe, this country benefits from stable economies like Italy, Germany, and France, which makes it an excellent starting point for all those businesses that want to get into the European market.

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European Union is the largest trading partner of Switzerland, with 80% of Swiss imports from the EU and approximately 60% of its export going to EU countries.

Although not a member of the EU, Switzerland is a member of EFTA (European Free Trade Association) and has several bilateral agreements with different European Union places.

2. Stable economy

Switzerland is one of the most affluent, successful, and thriving economies globally, with a 5% growth rate. Furthermore, starting a business makes it even more interesting as they see a low unemployment rate and very skilled human resources.

Their economy has increased with its GDP by 0.7%, with significant manufacturing and export growth.

3. Exceptional infrastructure 

A safe business environment, quality of life, and high living standard make Switzerland one of the most attractive places to start a business.

With an excellent health care system, one of the most beautiful sceneries globally, and efficient public transportation, it attracts many professionals who want to start a business in Switzerland or even move and live there.

Telecommunication and health care system are some of the best in the world, which give you security for the life quality that a lot of entrepreneurs seek to establish.

4. Moderate tax rates

We heard some rumors or a general misconception about Switzerland’s taxes over the roof. Still, Switzerland has more than 60 double-tax treaties in place, which provides a straightforward opportunity for entrepreneurs and companies to benefit from low-rate taxes.

There are different forms of taxes, from federal, cantonal to municipal taxes, and they are considered some of the lowest taxes in our region.

The most used forms of businesses/companies are considered the GmbH & AG. AG consists of Stock Corporation or public limited liability, whereas the GmbH is a private limited liability and partnership.

Both AG and GmbH require the minimum share capital to operate. All foreign investors looking to invest or start a business in Switzerland can receive outstanding assistance from different Swiss teams of lawyers for each company type.

5. A center of innovation 

Due to many industries and their productivity in creating intellectual property, Switzerland has constantly received many patents. Research institutes and universities produce highly qualified professionals with excellent research areas.

Strict legislation can protect all these patents and innovations regarding intellectual property. More than 2% of total GDP is spent on research and development, which is higher than anywhere else in Europe.

6. Business transparency

To attract more investors, many cantons in Switzerland compete with each other. One of the most accurate results is that they provide business-friendly environments due to their particular tax regime and legal structure.

Setting up or starting a business in Switzerland is very easy. You will quickly get incorporated in Switzerland due to its friendly legal system, which takes no more than two weeks.

Most of the Swiss cantons offer their tax incentives to all those businesses that bring benefits to the economy or create new jobs.

7. Political environment stability

Switzerland has e neutral political relationship with others, but the local government gives strength to its political system.

Swiss cantons have their governments and legislature, which provides them with the opportunity to be able to compete with each other in various areas.

8. Very skilled workforce

Swiss schools have a very high reputation around the world. Switzerland’s educational structure exceptionally reflects linguistic and cultural diversity. Schools can teach in three national languages: Italian, German, and French, with English on the side becoming an unofficial language.

The only reason is that many Anglo-Saxon businesses were incorporated into the local system. For this fact, Swiss is known for excellent language skills workforce.

Aside from the education system, companies based in Switzerland have created many training programs and internships, giving them experience and qualifying employees in return.

9. A very stable currency

With the Swiss franc being one of the stable and strongest currencies in the world, it makes Switzerland’s economy one of the most durable in the world.

This attracts many international investors, and it can be a good reason for anyone who considers starting a business there. 

10. High living standard and life quality

Cities in Switzerland are ranked among the top places to live in the world. The country is also very well known for the well-being index in the OECD Better Life Index.

It is ranked above many other countries in jobs, well-being, income, earnings, health, wealth, environmental quality, education and skills, work-life balance, and personal security.

These are few reasons that are what makes Switzerland the ideal location to start a business. From a high amount of business opportunities to the excellent infrastructure, make you consider starting a business in Switzerland.

The ecosystems there are constantly developing, but they are moving in a good direction. Switzerland is a small but powerful country that has laid roots in one of the most solid startup ecosystems with funding, talent, and supportive networks.

Although not easy to start a business, Switzerland’s economy is based on the free trade principle and industry, which the Constitution guarantees.


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