Switzerland Fact-File Part 1:
Business Formation for Individuals

1.5 Switzerland Foreigners in Business

Limitations on Foreigners in Business

In general terms, the Swiss constitution allows freedom to trade in Switzerland, whether a Swiss national or a foreign national. Anyone (with the exception of EU-17 and EFTA country nationals, who are generally treated as Swiss nationals for the purposes of employment and business; ‘newer’ EU nationals are still subject to certain restrictions, although these are being lifted) wishing to live and work in Switzerland requires a work permit and a residence permit – after five years of living in Switzerland continuously a person may apply for a permanent residence permit.

Although citizens of EU/EFTA countries may enter the country and remain for up to three months in a calendar year, they must register with the authorities upon arrival. For stays exceeding three months, a residence permit is required. A business owner does not necessarily have to be domiciled in Switzerland.

Citizens of countries that join the EU in the future will not automatically be afforded the same freedom of movement as is available to current member states.

The situation for non-EU citizens is more difficult. A work permit will only be issued if it can be proved that the job they wish to do cannot be filled by a Swiss or EU citizen, although these restrictions are usually less stringent in the case of highly qualified and specialist occupations.

If forming a joint stock company, there is no requirement for the founder or founders to be either Swiss nationals or resident in Switzerland. With other forms, including a sole proprietor, the business owner is required to be resident in the country.