The process of setting up a company in Switzerland is significantly bureaucratic.  Businesses and companies are governed by Switzerland’s Federal Civil Code; although there are rules and regulations that apply to some businesses but not to others depending on what canton a specific business is fortunately or unfortunately located in.  Majority of companies incorporated in Switzerland are required to register with the local Commercial Register of the Canton where they are domiciled. It is also mandatory that companies provide the government with the entries in the Register, which is a public document.

There are many forms of offshore companies in Switzerland.  These include stock corporations, partnership (General and Limited), sole proprietorship, and the limited liability corporation.  The stock corporation can be further subdivided into a holding, domiciliary, auxiliary, mixed, service and branch company.  

A stock corporation is the Switzerland’s typical form of foreign companies.  Swiss law requires only a minimum of 3 subscribers and authorized capital of 100,000 Swiss Francs with at least 20% paid up authorized share.  Stock corporations can issue ordinary, preferred, voting, nonvoting shares, as well as shares with premiums and bearer shares.  It is required that majority of the directors of a stock corporation must be residents and citizens of Switzerland.

A holding company is a stock company, with taxes reduced in the federal and cantonal levels.  A holding company net worth tax is also reduced at a cantonal level.  A domiciliary company is another form of stock corporation that is run and controlled abroad.  This company does not physically exist in Switzerland.  An auxiliary company is basically a domiciliary company.  The difference lies in the fact that unlike a domiciliary company, an auxiliary company has physical presence in Switzerland.  A service company is a stock corporation that is primarily geared towards providing service to foreign companies.  A mixed company is a stock corporation that has is neither a domiciliary company nor a holding company but exhibits the characteristics of these two companies.  Branches are subsidiaries of a foreign stock corporation.