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Knowledgebase
Set up a Liaison Office in Switzerland
Alex Buri, Off-Counsel
16 April, 2025
Table of Contents
1. Introduction to Liaison Offices in Switzerland
2. Quick Facts: Liaison Office in Switzerland
3. Characteristics of Swiss Representative Offices
4. Filing a Declaration of Existence
5. Documents Required from the Parent Company
6. The Representative Agent for a Swiss Liaison Office
7. Can a Representative Office Hire Employees?
8. Advantages of Opening a Representative Office
9. Permitted Activities of a Liaison Office in Switzerland
10. Facts on the Swiss Economy
11. FAQ - Frequiently Asked Questions about Office in Switzerland
2. Quick Facts: Liaison Office in Switzerland
3. Characteristics of Swiss Representative Offices
4. Filing a Declaration of Existence
5. Documents Required from the Parent Company
6. The Representative Agent for a Swiss Liaison Office
7. Can a Representative Office Hire Employees?
8. Advantages of Opening a Representative Office
9. Permitted Activities of a Liaison Office in Switzerland
10. Facts on the Swiss Economy
11. FAQ - Frequiently Asked Questions about Office in Switzerland
Foreign companies that want to test the Swiss market or establish a contact point for prospective clients or partners — without engaging in direct trade or sales — can open a liaison office in Switzerland. This is a suitable model for international firms that do not yet require a commercial entity but wish to establish local visibility.
A Swiss liaison office is not a separate legal entity under the Swiss Company Law. Instead, it is an administrative extension of the foreign parent company, with a strictly non-commercial function. It cannot conduct business transactions, sign contracts, or invoice clients. However, it plays an important role in marketing, networking, communication, and information gathering.
However, companies exploring local expansion strategies should still consider taxes in Switzerland, particularly if the liaison office transitions into a taxable entity such as a branch or subsidiary.
Unlike a branch or subsidiary, setting up a liaison office involves fewer formalities and offers a lower-cost presence in Switzerland. It is commonly used by corporations entering the Swiss or broader European market for the first time.
Our firm provides comprehensive support with the setup of representative offices in Switzerland, including legal paperwork, tax structuring, and local representation. As part of this service, Goldblum and Partners offers end-to-end project management — from strategic planning and PoA preparation to long-term compliance and employment structuring.
A Swiss liaison office is not a separate legal entity under the Swiss Company Law. Instead, it is an administrative extension of the foreign parent company, with a strictly non-commercial function. It cannot conduct business transactions, sign contracts, or invoice clients. However, it plays an important role in marketing, networking, communication, and information gathering.
However, companies exploring local expansion strategies should still consider taxes in Switzerland, particularly if the liaison office transitions into a taxable entity such as a branch or subsidiary.
Unlike a branch or subsidiary, setting up a liaison office involves fewer formalities and offers a lower-cost presence in Switzerland. It is commonly used by corporations entering the Swiss or broader European market for the first time.
Our firm provides comprehensive support with the setup of representative offices in Switzerland, including legal paperwork, tax structuring, and local representation. As part of this service, Goldblum and Partners offers end-to-end project management — from strategic planning and PoA preparation to long-term compliance and employment structuring.
Quick Facts: Liaison Office in Switzerland
Aspect | Details |
Applicable Legislation | Swiss Company Law (liaison office is not a separate entity) |
Legal Status | Not independent; part of the parent company |
Allowed Activities | Marketing, research, representation only |
Commercial Restrictions | Cannot perform economic or trade operations |
Minimum Share Capital | Not required |
Local Representative | Mandatory; must be a Swiss resident or citizen |
Documents Required | Declaration of Existence, parent company details, lease, agent info |
Local Address Needed | Yes |
Registration Authority | Local canton’s Commercial Registry (administrative filing only) |
Liability | Fully borne by the parent company |
Taxation | Exempt from income and corporate tax |
Can Hire Employees | Yes |
Travel Needed to Register | No — local agent can complete the process |
Main Advantages | Simple to set up, tax-exempt, low compliance burden |
Naming Requirements | Must include the parent company’s name |
Setup Steps | Document preparation, local filing |
Special Licensing | May be required in financial sectors |
License Timeframe | Depends on the business area (case-by-case basis) |
Social Security Registration | Required for employees |
Transfer of Employees | Permitted |
VAT Registration | Not required unless reclaiming VAT |
Setup Timeline | 7–14 business days on average |
Contract Authority | Cannot sign contracts on behalf of parent company |
Agent Criteria | Must be Swiss resident or specialized firm |
Can Be Converted to Branch | Yes |
For example, representative offices operating in finance, asset management, or insurance may require specific authorizations from FINMA Switzerland, the country’s financial market supervisory authority.
Requirements include:
- A valid Declaration of Existence, signed by an authorized person of the parent company;
- Identification and contact information of the Swiss-based representative;
- A Swiss address as the official domicile of the liaison office;
- Corporate documents of the foreign parent, including proof of its lawful existence;
- A Power of Attorney (PoA) granted to the Swiss representative.
Depending on the canton, the liaison office may also be subject to:
- Local registration with the tax office (for wage tax or employer obligations);
- Social security registration if employees are hired locally;
- Notification to the Swiss Federal Statistical Office.
Characteristics of Swiss representative offices
Swiss liaison offices have a unique legal and operational profile. They are not treated as independent business entities but must still function under strict compliance guidelines to preserve their non-commercial status.
Core characteristics:
- No legal personality: A liaison office operates as an extension of the foreign company and is not autonomous under Swiss law;
- No commercial activities allowed: It cannot conduct sales, issue invoices, sign contracts, or generate revenue;
- Information and representation functions: Its role is to collect market intelligence, build local networks, and represent the parent company in administrative or promotional matters;
- Exempt from corporate income tax: Since it generates no income, it is not subject to taxation, although obligations may arise if it hires local staff;
- Simple legal structure: It requires no capital deposit, board of directors, or public registry entry;
- No obligation for annual reporting: Since it does not generate income, it is not subject to corporate audits or annual balance sheet disclosures;
- Flexible termination: Liaison offices can be closed quickly and without complex deregistration procedures, offering flexibility to companies adapting their international strategy.
Liaison offices are suitable for companies testing the market or preparing for future expansion, providing a risk-free, low-cost platform to establish visibility.
This form of entry is often a first step toward fully operational companies in Switzerland, especially for firms looking to gradually expand their European footprint.
This form of entry is often a first step toward fully operational companies in Switzerland, especially for firms looking to gradually expand their European footprint.
Filing a Declaration of Existence
The Declaration of Existence is a key document that formalizes the liaison office’s presence in Switzerland. While it is not a commercial registration, this declaration is mandatory in many cantons for administrative recognition.
What the declaration includes:
- Full name and address of the foreign parent company;
- The Swiss address of the liaison office;
- A statement confirming the non-commercial nature of its activity;
- Identification and contact details of the Swiss representative;
- A brief summary of the office’s intended functions (e.g., research, meetings, marketing support);
- Confirmation that no contracts or sales will be conducted.
This declaration must be signed by a representative of the parent company and submitted to the local cantonal authority. It may be required for purposes such as:
Our legal team assists with preparing and filing the Declaration of Existence to ensure compliance and avoid delays. We also liaise directly with cantonal officials on behalf of our clients to clarify requirements and expedite approvals.
- Leasing office space;
- Hiring staff;
- Setting up a telephone line or company signage;
- Submitting applications to local administrative or immigration offices (in case of expatriate management);
- Opening a bank account for administrative expenses, even if not used for revenue purposes.
Our legal team assists with preparing and filing the Declaration of Existence to ensure compliance and avoid delays. We also liaise directly with cantonal officials on behalf of our clients to clarify requirements and expedite approvals.
What are the documents the parent company must supply for registration?
To establish a liaison office in Switzerland, the foreign parent company must provide several official documents that prove its legal existence and define the nature of its presence in the country. These documents form the backbone of the Declaration of Existence and must comply with Swiss administrative and legal standards.
Required documentation:
- Certificate of Incorporation of the parent company — an official document issued by the registrar in the company’s home jurisdiction.
- Articles of Association or Statutes — outlining the legal structure, objectives, and governance mechanisms of the parent entity.
- Board Resolution — a formal decision by the board of directors authorizing the creation of a liaison office in Switzerland and the appointment of a local representative.
- Power of Attorney (PoA) — granting authority to the appointed Swiss representative to act on behalf of the parent company in administrative matters.
- Declaration of Non-Commercial Intent — a written statement confirming that the liaison office will not engage in revenue-generating activities.
- Copy of the Representative’s Passport or ID and proof of residence in Switzerland.
- Lease agreement or proof of address for the liaison office’s Swiss premises.
Legalization and translation:
- All documents issued abroad must be apostilled or legalized, depending on whether the parent company is based in a country that is part of the Hague Apostille Convention.
- Documents must also be translated into the official language of the canton where the liaison office is based (German, French, or Italian) by a certified translator.
Failure to properly legalize or translate documents can lead to delays or rejections. Our firm assists with certified translations, coordination with notaries, and submission to local authorities to ensure full acceptance of your file.
Get in touch
Please contact us directly or via email if you require assistance. We are here to help you move forward.
The representative agent for a Swiss liaison office
Each Swiss liaison office must designate a local representative who will act as the point of contact between the foreign parent company and Swiss authorities. This individual plays a key role in ensuring the office operates within the scope of local regulations.
Requirements for the representative:
- Must be a Swiss resident, either a Swiss national or a foreign national with a valid residence permit;
- Must be of legal age and possess the legal capacity to act on behalf of the company;
- Must have a valid Power of Attorney (PoA) issued by the parent company;
- Should be familiar with the scope and limitations of the liaison office.
The representative is responsible for:
- Receiving correspondence and notifications from Swiss administrative bodies;
- Representing the parent company in non-commercial matters, such as office leasing, document filing, and staff management;
- Ensuring the office does not exceed its non-commercial mandate;
- Assisting with social insurance registration if employees are hired.
This individual does not need to be a company director or shareholder but must be a trusted person or professional service provider. Many foreign companies opt to appoint a local fiduciary or law firm as their representative to ensure compliance and reduce risk.
Our firm offers experienced Swiss representatives for liaison offices, providing clients with legal security and efficient administrative handling of all local matters.
Our firm offers experienced Swiss representatives for liaison offices, providing clients with legal security and efficient administrative handling of all local matters.
Can a representative office hire employees?
Yes, Swiss liaison offices are generally allowed to hire local or foreign employees, provided that such employment is strictly related to non-commercial support activities. Employment is permitted as long as the office remains within the boundaries of administrative and representational functions.
Permissible employment roles:
- Administrative assistants to manage office logistics, communication, and documentation;
- Marketing coordinators responsible for gathering market data and organizing non-sales promotional activities;
- Legal or compliance officers who support filings and regulatory monitoring;
- Project managers coordinating local events, meetings, and stakeholder relations.
Employment conditions:
- Employment contracts must comply with Swiss labor law, including mandatory insurance coverage (social security, accident, unemployment);
- The liaison office must be registered as an employer with the Swiss social security system (AHV/AVS);
- Withholding tax obligations apply if the employee is subject to income tax in Switzerland;
- Work permits are required for non-Swiss, non-EU/EFTA nationals, in accordance with Swiss immigration regulations;
- Salaries must meet local minimum thresholds and standard working conditions.
Hiring staff can be beneficial for foreign companies aiming to build a permanent local presence, even without conducting commercial transactions. It increases visibility, enhances communication, and facilitates future transition into a branch or subsidiary. Alternatively, companies with philanthropic goals or long-term asset management needs may explore establishing a Swiss foundation as part of their presence strategy.
Our HR compliance specialists assist in drafting employment agreements, payroll registration, and ensuring full compliance with all labor and tax obligations.
Our HR compliance specialists assist in drafting employment agreements, payroll registration, and ensuring full compliance with all labor and tax obligations.
Are there any advantages linked to opening a representative office?
Establishing a liaison office in Switzerland provides foreign companies with numerous benefits — particularly for those seeking to explore the Swiss or European market without committing to a full-scale commercial operation.
Key advantages:
- Simplified setup process: No need for capital contribution, notarized founding documents, or commercial registration in most cases;
- Cost-effective structure: Reduced compliance and reporting obligations result in lower administrative expenses;
- No income taxation: Since liaison offices are non-commercial, they are generally exempt from corporate tax and VAT;
- Increased market visibility: A Swiss address and local representative enhance credibility with clients and partners;
- Access to European business culture: Allows foreign firms to understand regulatory, linguistic, and professional norms before launching commercial activities;
- Scalability: Liaison offices can serve as a foundation for future transition into a branch or subsidiary as business operations grow.
Liaison offices are particularly suitable for industries such as pharmaceuticals, finance, manufacturing, IT, legal services, and energy, where early-stage representation can be critical for establishing credibility.
Activities that can be completed by a liaison office in Switzerland
Swiss liaison offices are restricted to non-commercial operations. Any activity that generates income or results in the signing of contracts must be avoided.
Permitted activities include:
- Market research and analysis of consumer trends or competitors;
- Establishing professional relationships with local clients, suppliers, or regulatory bodies;
- Attending or organizing trade fairs, exhibitions, and networking events;
- Providing information about the parent company and promoting its reputation;
- Internal administrative coordination, such as setting up meetings or preparing future legal filings.
The scope of these activities must be well-defined and documented in the Declaration of Existence to avoid any misclassification by Swiss authorities.
Our legal consultants help define the limits of permissible functions, ensuring that your liaison office remains compliant while achieving its strategic objectives.
Our legal consultants help define the limits of permissible functions, ensuring that your liaison office remains compliant while achieving its strategic objectives.
Facts on the Swiss economy
Switzerland has earned a global reputation for economic strength, innovation, and stability — making it an ideal location for foreign companies seeking a foothold in Europe. The Swiss economy is driven by a highly educated workforce, advanced infrastructure, and a legal system that fosters entrepreneurship and international investment.
Economic highlights:
- GDP per capita exceeds CHF 87,000, among the highest in the world;
- Top industries include finance, pharmaceuticals, watchmaking, precision engineering, IT, and clean energy;
- The country ranks consistently among the top 5 in the Global Competitiveness Index and Global Innovation Index;
- Switzerland maintains low unemployment rates (typically under 3%) and high labor productivity;
- Strong banking sector, including both global giants and private banks;
- Over 120 free trade agreements, including with the EU via EFTA, offering global access without EU membership;
- The Swiss franc (CHF) is among the world’s most stable currencies.
These economic features make Switzerland one of the most attractive destinations for foreign direct investment (FDI). The nation also provides reliable protection for intellectual property, a transparent tax system, and efficient dispute resolution.
Opening a liaison office in such an environment enables foreign businesses to:
Opening a liaison office in such an environment enables foreign businesses to:
- Establish brand credibility with Swiss and EU partners;
- Access innovation networks and skilled professionals;
- Build relationships that facilitate future transition into commercial operations.
FAQ - Frequiently Asked Questions about Office in Switzerland
A liaison office is a non-commercial presence of a foreign company in Switzerland, established for administrative, marketing, or research purposes without engaging in sales or contract activities.
No. Liaison offices are strictly non-commercial and cannot perform revenue-generating activities, sign contracts, or invoice clients.
Yes. While not entered in the Commercial Register as a separate legal entity, a liaison office must file a Declaration of Existence with the relevant cantonal authority and may need to register with tax and social security offices if hiring staff.
Yes. A local Swiss-resident representative must be appointed, either an individual or a professional firm, to handle administrative matters and interface with local authorities.
Yes. It can hire employees for non-commercial roles such as administration, marketing, or coordination, subject to Swiss labor laws and social insurance registration.
Liaison offices are exempt from corporate income tax and VAT, as they do not conduct commercial activity. However, they must comply with employment-related taxes if they hire staff.
Key benefits include ease of setup, low operating costs, no tax liability on profits, improved market visibility, and a foundation for future expansion.
The Swiss representative is responsible for acting as the point of contact between the foreign parent company and Swiss authorities. They ensure that the liaison office complies with local regulations, assist with administrative tasks, and represent the company in non-commercial matters. The representative must be a Swiss resident or a foreign national with a valid residence permit and must have a valid Power of Attorney from the parent company.
Yes, a liaison office can be converted into a branch or subsidiary in Switzerland as the company’s operations grow and it starts engaging in commercial activities. The conversion would involve registering as a new legal entity, adhering to additional regulatory requirements, and possibly contributing capital as required for the new structure.
A liaison office in Switzerland has limited ongoing compliance obligations compared to a full commercial entity. It is exempt from corporate income tax and VAT, and it is not subject to annual reporting. However, if the office employs staff, it must comply with social security registration and wage tax obligations. It must also ensure that its non-commercial activities remain within the bounds outlined in the Declaration of Existence.