Switzerland Aktiengesellschaft (AG)
Switzerland
The Swiss Aktiengesellschaft (AG) is a public limited company structure used for medium-to-large business operations and as the typical holding-company vehicle in Switzerland. Minimum share capital is CHF 100,000 with at least CHF 50,000 paid up at incorporation. Critically, Swiss AGs require at least one director with Swiss residence and signing authority — a structural cost driver via nominee director services (~CHF 5,000-15,000/year). Cantonal corporate-tax rates vary materially: Zug, Schwyz, and Lucerne offer the lowest combined rates (~11.85-12.5%), while Geneva, Zürich, and Bern run higher (~17-21%). Swiss AGs benefit from extensive treaty network (108 double-tax treaties), strong banking infrastructure, and credibility for cross-border holdings — but carry materially higher setup and annual costs than EU equivalents.
Formation Details
- Setup Time
- 7 days
- Setup Cost
- $8,000
- Annual Cost
- $6,000
- Corporate Tax
- 11.85% to 21.0% effective combined federal + cantonal + communal (cantonal variation extreme — Zug 11.85%, Geneva 14%, Zürich 19.7%)
- VAT Threshold
- $110,000
- Nominee Directors
- Allowed
- Public Register
- Yes
- Residency Required
- At least one Swiss-resident director with signing authority required. Beneficial owner residency not required.
- Banking Difficulty
- High
Economic Substance Requirements
- Physical Office
- Not required
- Local Director
- Required
- Minimum Staff
- —
- Annual Local Spend
- —
Mandatory Swiss-resident director with signing authority. Registered Swiss address required (can be domiciliation provider). No mandatory office space or staff but cantonal substance expectations have tightened post-BEPS — pure brass-plate structures attract challenge from tax authorities. CHF 100,000 minimum share capital with CHF 50,000 paid in at incorporation (or full capital for single-shareholder AG).
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| Mandatory Swiss-resident director (nominee) | $8,000 | CHF 5,000-15,000/yr depending on canton and provider. Major recurring cost driver for non-resident-owned AGs. |
| Registered office / domiciliation | $1,500 | CHF 1,000-2,500/yr in major commercial cantons. |
| Accounting + audit | $5,000 | CHF 4,000-10,000/yr. Audit is required for AGs above certain size thresholds (CHF 20M total assets, CHF 40M revenue, 250 FTE) — most small AGs opt out via shareholder unanimity (Reduced Audit), reducing this cost to ~CHF 2,000. |
| Annual general meeting + statutory filings | $1,500 | AGM minutes, commercial register filings, federal tax filings. Lower if integrated with accountant. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
Swiss AG owned by US persons is typically a controlled foreign corporation (CFC) under US rules. Form 5471 filing required. The US-Switzerland tax treaty provides treaty-rate withholding on dividends and other passive income. FATCA reporting via Swiss financial institutions to IRS is automatic.
Other Jurisdictions
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