Formation · Lesson 5 of 5
Timeline, Costs & Common Mistakes
Realistic expectations and how to avoid costly errors
Realistic Incorporation Timeline
Foreign entrepreneurs often underestimate the time required. Here is a realistic breakdown:
Week 1Name check + notary engagement
Week 2Capital deposit account opened
Week 3Notarization + capital deposited
Week 4–5Commercial Register entry
Total: 3–5 weeks for a standard GmbH. Rush processing is possible (additional fees) if the Canton allows it.
True Cost Breakdown
- Notary fees: CHF 800 – 1,500 (depending on complexity and canton)
- Commercial Register fee: CHF 600 – 900
- Capital deposit account: CHF 0 – 300 (varies by bank)
- Share capital (GmbH): CHF 20,000 (remains your asset in the company)
- Domiciliation (Year 1): CHF 530
- Accounting setup: CHF 500 – 1,500
With VOZ + "Zéro Souci" Package
Notary fees: CHF 0 (covered by UBS & Baloise partnership). Capital deposit account at UBS: CHF 0. Total out-of-pocket beyond capital: approximately CHF 1,030 – 1,530 for full incorporation.
Common Mistakes to Avoid
- Wrong company name: Too generic, conflicts with existing companies, or includes prohibited words (Swiss, National, Federal). Always check ZEFIX first.
- Underestimating banking timeline: Account opening at traditional banks takes 4–8 weeks. Start early.
- Missing Swiss resident manager: The law requires at least one manager with Swiss residence. Professional domiciliation services include this.
- Wrong canton: Registering in Zurich or Geneva instead of Zug means paying 30–50% more corporate tax.
- Forgetting VAT registration: If annual turnover exceeds CHF 100,000, VAT registration is mandatory within 30 days.
- Inadequate Articles of Association: Boilerplate articles can create problems later. Invest in proper legal drafting.
Next Step
Once incorporated, take the Zug Tax Optimization course to ensure you maximize the financial benefits of your Swiss structure. Tax planning post-incorporation can reduce your effective rate significantly.