SECO license Switzerland complete guide 2026

Switzerland's regulatory framework for employment services and export control operates through the State Secretariat for Economic Affairs (SECO). Companies entering the Swiss labour market or engaging in cross-border trade face mandatory licensing requirements that carry significant compliance obligations. Operating without a required SECO license can result in fines up to CHF 100,000 (Access Financial, 2024–2025).

Disclaimer: This information is general in nature and does not replace consultation with a specialist.

SECO (State Secretariat for Economic Affairs) serves as Switzerland's primary economic regulator. The term "SECO license" typically refers to two distinct authorization categories: employment services permits and export control licenses. Each addresses different business activities under separate legal frameworks.

Employment services licensing governs staffing agencies, recruitment firms, and temporary employment providers. The 2024 – 2027 Staff Leasing CBA imposes minimum wages, pension duties, and audit obligations (HUCAI AG, 2024 – 2025). Export control licensing regulates the cross-border movement of dual-use goods, military materials, and sanctioned products. Understanding which category applies to your business determines the application path and compliance obligations.

The Federal Act on Employment Services and the Hiring of Services (AVG/LSE) establishes the regulatory foundation for companies providing workforce solutions in Switzerland. SECO's Labour Directorate administers this framework through cantonal and federal licensing mechanisms.

SECO's Labour Directorate functions as the federal authority overseeing employment services regulation. Its responsibilities include issuing licenses, monitoring compliance with labour standards, and enforcing collective bargaining agreements (GAV). The directorate coordinates with 26 cantonal labour authorities to implement consistent standards across Switzerland's decentralized regulatory structure.

The directorate also manages the unemployment insurance compensation fund. It supervises regional employment centres (RAV). For staffing companies, SECO ensures adherence to wage protection measures and working conditions outlined in sector-specific collective agreements.

Two distinct business models require authorization under Swiss employment law:

Staff leasing (Personalverleih / Temporärarbeit): Companies provide temporary workers to client businesses while maintaining the employment relationship. The staffing agency remains the legal employer. It handles payroll, social security contributions, and benefits. Workers perform duties at the client's premises under the client's operational direction. Staff leasing requires a financial security deposit; private placement does not (F Trust AG, 2024 – 2025).

Private placement (Private Arbeitsvermittlung): Agencies act as intermediaries, matching candidates with employers for direct hire. The employment contract forms between the candidate and the hiring company, not the agency. Recruitment company in Switzerland and headhunters operate under this category. No security deposit is required.

Example: A Zürich-based agency supplying IT contractors to banks for three-month projects operates under staff leasing rules. A Geneva recruitment firm placing permanent CFOs with multinational corporations requires a private placement license.

The AVG/LSE framework establishes comprehensive standards for license applicants. Requirements span legal, professional, and financial domains.

Source: Federal Act on Employment Services and the Hiring of Services (AVG), as amended January 1, 2026. Full text available at fedlex.admin.ch.

Businesses must be entered in the Swiss commercial register before starting operations (KMU.admin.ch, 2024 – 2026). Registration of a company in Switzerland confirms legal existence. It provides transparency regarding ownership structure and authorized signatories.

Premises must include at least one lockable room for confidential employment work (F Trust AG, 2024 – 2025). A virtual office or mail forwarding service does not satisfy this requirement.

The company's articles of association must explicitly state employment services as a business purpose. Generic language about "consulting" or "business services" will not pass regulatory review.

At least one member of senior management must hold Swiss citizenship, permanent residence (Permit C), or EU/EFTA nationality with appropriate work authorization. This individual must possess signature authority. They bear operational responsibility for compliance.

The responsible manager needs vocational training and several years' experience in recruitment or staff leasing (F Trust AG, 2024 – 2025). SECO evaluates experience based on employment history, references from previous employers, and knowledge of Swiss labour law.

Authorities assess integrity. This includes criminal records and financial reliability when evaluating applications (Access Financial, 2024 – 2025). Any history of regulatory violations in employment services triggers additional scrutiny. This applies whether violations occurred in Switzerland or abroad.

Security deposit (Sicherheitshinterlegung): Deposit is CHF 50,000 for a cantonal license and CHF 100,000 for federal scope (F Trust AG, 2024–2025). The deposit must be held in a Swiss bank account or provided through a bank guarantee. It remains frozen throughout the license validity period. Workers or authorities can claim it if the company fails to meet wage obligations.

Private placement agencies are exempt from deposit requirements. They do not employ workers directly.

Companies must maintain current status on all tax and social security payments. Outstanding debts to cantonal or federal authorities result in automatic application rejection.

The licensing procedure follows a two-tier structure. It requires sequential approvals from cantonal and federal authorities.

Step 1: Preparation. Gather required documentation. Complete company registration in the Commercial Register. Open a Swiss bank account and arrange the security deposit. Verify that all management personnel meet residency and qualification standards.

Step 2: Jurisdiction selection. Determine whether cantonal or federal authorization is needed. Cantonal licenses permit operations within a single canton. Federal licenses enable nationwide and cross-border activities. Most companies serving multiple regions or recruiting foreign nationals require both.

Step 3: Cantonal application. Apply first to the canton; federal SECO authorization follows after cantonal approval (Access Financial, 2024 – 2025). Submit the application to the labour authority in the canton where your company is registered. Include all supporting documents: commercial register extract, office lease agreement, management CVs and certificates, bank confirmation of security deposit, and business plan describing operational procedures.

Step 4: Federal application. After receiving cantonal approval, apply to SECO in Bern for federal authorization. The cantonal authority forwards your file with their recommendation. SECO reviews compliance with federal standards and cross-border employment regulations.

Step 5: Review period. Processing timelines are not standardized. Application completeness strongly influences duration (Access Financial, 2024 – 2025). Cantonal authorities typically respond within 4 – 6 weeks. Federal review adds another 4 – 8 weeks. Incomplete applications trigger requests for additional information. This extends timelines by several months.

Step 6: License issuance. Employment service permits are issued without a fixed expiry date (Access Financial, 2024 – 2025). Approved applicants receive an unlimited-duration license subject to ongoing compliance monitoring. Licenses do not expire but can be revoked for violations of labour law or collective agreements.

For detailed guidance on the SECO license for recruitment process, consult our comprehensive knowledge base.

Cross-border staff leasing requires federal authorization in addition to cantonal approval (F Trust AG, 2024 – 2025). Foreign staffing companies placing workers in Switzerland face additional requirements beyond standard licensing. The federal license is mandatory for any cross-border personnel deployment.

The 2024 – 2027 Staff Leasing CBA mandates minimum wages and compliance audits (HUCAI AG, 2024 – 2025). Companies must comply with Swiss minimum wage standards as defined in applicable collective bargaining agreements. For staff leasing, the CBA for Staff Leasing (2024 – 2027) establishes wage floors, pension contribution rates, and working conditions. Violations expose foreign companies to fines and potential license suspension.

Work permits for deployed personnel follow standard Swiss immigration rules. EU/EFTA nationals benefit from simplified procedures under bilateral agreements. Employers must still register workers with cantonal migration authorities. Third-country nationals require full work authorization before commencing assignments.

Operating via a SECO-licensed Swiss intermediary is allowed if set up before any activity (Accurity, 2024). Foreign companies often partner with Swiss-licensed intermediaries to navigate regulatory complexity. The intermediary handles compliance, payroll, and regulatory reporting. The foreign company maintains client relationships and candidate sourcing.

Case example: Goldblum & Partners advised one of the UK's market leaders in temporary employment on expanding into Switzerland. We obtained SECO federal authorization for cross-border staffing operations. We structured the corporate entity to comply with Swiss labour law. The client now operates throughout Switzerland with full regulatory compliance. (Deal value: €20 million, HR/employment sector)

Switzerland's export control framework operates under the Goods Control Act (GKG) and War Materials Act. SECO's Export Control and Sanctions division administers licensing for products that pose security or proliferation risks.

Disclaimer: This information is general in nature and does not replace consultation with a specialist.

The Goods Control Act, revised January 1, 2016, establishes Switzerland's export control regime. The law aims to prevent the proliferation of weapons of mass destruction, conventional arms, and dual-use technologies that could be diverted to military applications.

Switzerland maintains independent control lists aligned with international regimes. These include the Wassenaar Arrangement, Nuclear Suppliers Group, and Australia Group. The lists are updated regularly to address emerging technologies and evolving security threats.

Dual-use goods: Items with both civilian and military applications. Examples include advanced semiconductors, quantum computing components, certain chemicals, encryption software, and precision manufacturing equipment. The Swiss dual-use list was expanded in April 2025. It now includes AI systems, advanced lithographic equipment, and specific biotechnology tools.

Military goods: Weapons, ammunition, military vehicles, and related equipment. This category includes components and technology for manufacturing military systems.

Sanctioned destinations: Exports to countries under Swiss or international sanctions require special authorization regardless of product type. Current sanctions target Russia, Belarus, North Korea, Iran, and other jurisdictions.

Recent regulatory update: The Federal Council amended the Goods Control Ordinance on April 2, 2025. It introduced mandatory export licenses for quantum computing technologies, advanced AI systems, and next-generation semiconductors. The changes took effect May 1, 2025, in response to geopolitical tensions blocking multilateral control harmonization. (Source: Federal Council press release, admin.ch, April 2, 2025)

SECO operates the Electronic Licensing System (Elic) for export control applications. The platform replaced paper-based procedures in October 2014. It handles all requests for dual-use goods and military materials.

Registration: Companies must register for Elic access through SECO's website. Registration requires a Swiss business identification number and authorized signatory designation.

Application submission: Exporters complete online forms specifying product details, destination country, end-user information, and intended use. Supporting documentation includes technical specifications, end-user certificates, and purchase orders.

Review process: SECO evaluates applications against control lists and sanctions frameworks. Processing times vary based on product sensitivity and destination risk. Routine applications for low-risk destinations may be approved within days. High-risk scenarios involving sensitive technologies or sanctioned regions can take several weeks.

License issuance: Approved licenses specify authorized products, quantities, destinations, and validity periods. Exporters must retain licenses and supporting documentation for five years. This facilitates customs clearance and regulatory audits.

For assistance with Elic, contact SECO at armscontrol@seco.admin.ch or +41 58 464 50 94.

Operating employment services or conducting controlled exports without proper SECO authorization constitutes a violation of Swiss federal law. Penalties include:

Administrative fines: Operating employment services without required authorization may attract fines up to CHF 100,000 (Access Financial, 2024–2025). Export control violations carry fines up to CHF 1 million depending on the severity and products involved.

Profit confiscation: Authorities can seize revenues generated through unlicensed activities. This applies to both employment services and export control violations.

Criminal liability: Serious violations, particularly in export control, can result in criminal charges against company directors. Penalties include imprisonment up to five years for willful violations. These involve weapons proliferation or sanctions evasion.

License revocation: Companies that begin operations before receiving authorization face automatic rejection of pending applications. They risk potential blacklisting from future licensing.

Incomplete documentation: Missing apprenticeship certificates, insufficient proof of industry experience, or incomplete financial statements account for the majority of application delays. SECO and cantonal authorities will not process incomplete submissions.

Management qualification gaps: Appointing directors without documented recruitment experience or proper residency status. Many applicants underestimate the professional qualification requirements. They attempt to satisfy them with general business experience rather than specific staffing industry background.

Premature operations: Do not begin recruitment or leasing activities before licenses are granted (Accurity, 2024). This is the most serious error. It often results in permanent rejection plus financial penalties.

Deposit errors: For staff leasing licenses, failing to establish the security deposit before application submission or using incorrect deposit instruments. The deposit must be confirmed by a Swiss bank. It must remain frozen for the license duration.

Collective agreement non-compliance: Staff leasing companies must align contracts with the 2024 – 2027 CBA requirements (HUCAI AG, 2024 – 2025). This applies to both Swiss and foreign companies operating in Switzerland.

SECO licensing procedures require detailed knowledge of Swiss regulatory frameworks. They demand careful attention to documentation standards. Our team provides comprehensive support throughout the application process. We assist from initial consultation through license issuance and ongoing compliance management.

We help with document preparation, management qualification verification, and security deposit arrangements. We provide regulatory liaison with cantonal and federal authorities. Our experience includes successful licensing for staffing agencies, recruitment firms, and companies engaged in cross-border employment services.

Contact us to discuss your licensing requirements. Receive a detailed cost estimate for professional services.