Establish a Branch in Switzerland

Foreign companies that aim to enter the Swiss market typically have two effective options: they can either open a subsidiary or establish a branch office. Companies looking to enter the Swiss market can choose between opening a Subsidiary or a branch office, depending on their business objectives and legal requirements. The decision depends on several key factors, including liability structure, taxation, and corporate governance.

While subsidiaries are legally independent entities, branch offices are entirely dependent on their parent companies. This makes the branch office an appropriate choice for companies seeking to retain direct control and central management while extending operations abroad. For foreign investors aiming to maintain control over their operations, a branch office can be the ideal structure, allowing them to continue operating under the Business Structure in Switzerland.

Our team of experts in company formation in Switzerland can help foreign investors understand which option best fits their business strategy. We provide step-by-step assistance, especially for entrepreneurs opting to register a branch, which involves specific documentation and legal compliance.

The primary defining feature of a Swiss branch office is its complete legal and operational dependence on the foreign parent company. The parent entity bears full responsibility for the debts and obligations of the branch. Companies planning to establish a branch in Switzerland can benefit from reviewing the various Types of Swiss Companies to identify the most suitable structure.

Unlike a subsidiary, a Swiss branch is not considered a separate legal personality. However, it must still be registered with the Swiss Commercial Register. One major advantage is that branches do not require a minimum share capital, simplifying the incorporation process.

Swiss branches may benefit from international double taxation treaties signed by Switzerland, which can result in significant tax relief depending on the country of origin. Our experts in company registration can provide tailored advice on how your business structure may qualify.

Registering a branch in Switzerland involves submitting a specific set of documents to the Swiss Companies Register.

The parent company must provide:

All documents submitted to Swiss authorities must be notarized and translated into one of the official languages of the canton where the branch will operate (German, French, or Italian). Some cantonal Commercial Register offices may accept English documents, depending on their administrative policies. Investors must be aware of the implications for Swiss Shareholders when opting for a branch structure, as liability remains with the parent company.

In 2025, additional documents are required as part of the registration process, including a certified statement of the parent company’s share capital and auditor credentials.

One crucial piece of documentation is the original, signed minutes of the board meeting that approved the branch formation.

All Swiss branch offices must register with the Federal Tax Administration (FTA) for Value Added Tax (VAT) purposes. Registration is mandatory if the branch performs taxable business activities in Switzerland.

One of the key tax benefits available to branches in Switzerland is the potential exemption from the 35% withholding tax on profits repatriated to the parent company, provided that a double tax treaty (DTT) is in place between Switzerland and the home country of the parent entity.

In practice, branches may claim full or partial relief from Swiss withholding tax under applicable DTTs, offering substantial savings on intercompany payments.

Swiss branches are required to file:

Switzerland uses a three-tier tax system, so a branch must comply with all layers of taxation. Tax rates may vary depending on the canton in which the branch is located. ntrepreneurs looking to diversify their investment portfolio can also consider the opportunity to Start a Cryptocurrency Company in Switzerland.

To meet compliance standards, accurate bookkeeping and timely filing are essential. Our certified accountants in Switzerland can help ensure that all tax obligations are fulfilled.

We also assist in:

Establishing a branch in Switzerland involves several important legal and operational considerations. While the branch remains an extension of the foreign parent company, it must operate under the Swiss legal framework and fulfill all local obligations.

The branch must use the same name as its parent entity and maintain a registered office within Switzerland. Although it lacks a separate legal personality, it may engage in any activity consistent with the parent company’s core business sector.

From a taxation standpoint, the Swiss branch is only subject to taxes on income earned in Switzerland. This territorial taxation approach allows companies to benefit from optimized tax exposure, especially if supported by favorable double taxation treaties.

Additionally, branches are entitled to repatriate earnings and capital to the parent company without restriction, depending on applicable DTT provisions.

One of the critical early steps is opening a Swiss bank account, which is essential for handling day-to-day financial operations. This can be done with a Swiss or international banking institution authorized to operate locally.

Our specialists in company formation can provide step-by-step guidance throughout this process and ensure compliance with all Swiss corporate obligations.

When forming a branch office in Switzerland, the parent company must designate one or more official representatives. These individuals are authorized to act exclusively on behalf of the branch and must be registered with the Swiss Commercial Register.

At least one person, or alternatively two with joint signing authority, must reside in Switzerland. Their names and powers must be formally recorded in the Commercial Register and clearly limited to branch-related responsibilities—they cannot represent the parent company as a whole.

These officers play a vital role in managing the branch’s operations, interacting with Swiss authorities, and ensuring legal compliance. For this reason, careful selection of individuals with appropriate qualifications and experience is crucial.

Additionally, parent companies may transfer employees from their home office to the Swiss branch. However, such transfers require valid Swiss work permits, which must be obtained in accordance with national immigration and labor laws.

Understanding the obligations related to local representation and cross-border employment is essential. Our incorporation experts can assist with the legal registration of officers and the visa process for transferring employees.

Branch offices operating in Switzerland must follow the same accounting and reporting rules as local companies. These include mandatory bookkeeping standards, submission deadlines, and multi-level tax compliance.

Here are the main compliance elements:

Switzerland applies a three-tier tax system—federal, cantonal, and municipal—which means that branches must adhere to multiple sets of tax obligations simultaneously. The effective corporate tax rate may vary depending on the location of the branch.

Under Swiss accounting standards, branches must prepare financial statements annually.

These include:

Companies can use either Swiss GAAP or IFRS (International Financial Reporting Standards) to compile their financials, provided the chosen standard is accepted by local authorities.

In terms of commercial bookkeeping, Swiss branches are required to maintain double-entry accounting, including detailed inventories, general ledger balances, and profit and loss statements.

Adhering to these compliance measures is essential to maintaining legal and financial transparency. Our local specialists in Swiss company law can help you meet every requirement.

In addition to financial and tax compliance, Swiss branch offices must meet several legal obligations. One of the key requirements is adopting a compliant corporate name.

According to Swiss law, the branch name must include:

Appointed representatives of the branch must also be properly registered in the Swiss Commercial Register. Their names and authorized powers must be officially recorded. These individuals must be residents of Switzerland and act exclusively on behalf of the branch—not on behalf of the parent company.

Swiss legal provisions clearly define that even though the branch is fully dependent on its parent, all legal matters and operations within Switzerland fall under Swiss jurisdiction.

This means that the branch can:

Additionally, the branch must submit the parent company’s financial statements to the Companies Registry in Switzerland. These statements, alongside required filings for employees and corporate tax, must match those applicable to the parent company’s domestic obligations.

Foreign investors are encouraged to work with local legal representatives to ensure all these obligations are met effectively. Our experts in Swiss company registration offer full support in preparing, translating, and legalizing the required documents.

Switzerland remains a prime location for foreign investors seeking to establish a foothold in Europe. Opening a branch in 2025 offers considerable advantages due to the country’s political stability, strong legal infrastructure, and transparent regulatory environment.

Branches offer a cost-effective and streamlined way for foreign companies to operate in Switzerland. They allow full control by the parent company, avoid the need for share capital, and benefit from reduced tax burdens through applicable double tax treaties. Swiss cantons also offer competitive corporate tax rates and, in many cases, favorable tax regimes tailored to branch operations.

Additionally, Switzerland’s world-class infrastructure, access to EU markets, and highly skilled multilingual workforce make it one of the most business-friendly jurisdictions in Europe.

Foreign investors interested in opening a branch in Switzerland can receive expert support from our local consultants, ensuring a compliant and efficient incorporation process.

The Swiss economy in 2025 is expected to show modest but stable growth. The Swiss National Bank (SNB) forecasts a 1.4% GDP increase, improving from 1.1% growth in 2024. While slightly below the 1.7% long-term average, this trend confirms the resilience of the domestic economy, supported primarily by strong local demand.

Inflation is projected to remain low, with core inflation expected to average around 0.7%, down from 1.1% in 2024. This places it well within the SNB’s target range of 0% to 2%, signaling price stability and economic predictability.

The SNB is also anticipated to reduce its policy rate by 25 basis points, potentially bringing it to 0% by September 2025. This monetary easing is intended to further encourage growth and support long-term investments.

Our representatives can assist you in opening a bank account for your branch and offer ongoing guidance throughout the incorporation process. Whether you opt for a limited liability company, joint-stock company, or partnership structure, our team is prepared to assist you at every step.

Opening a branch in Switzerland is a strategic move for foreign companies looking to access the European market through a stable and business-friendly environment. A branch structure allows for full operational control by the parent company while benefiting from Switzerland’s extensive tax treaty network, transparent regulations, and economic resilience.

Thanks to a simplified incorporation process, no minimum capital requirements, and access to highly skilled professionals, Switzerland remains one of the most attractive destinations for international business expansion. Additionally, favorable cantonal tax regimes and the absence of withholding tax under certain conditions provide notable fiscal advantages.

By working with experienced local consultants, foreign investors can ensure full compliance with Swiss legal and tax obligations while optimizing the long-term success of their operations. Whether your goals include expanding your reach, accessing new markets, or benefiting from Switzerland’s financial and political stability, opening a branch office here can be a decisive step toward achieving sustainable growth.