Open a Representative Office in Switzerland

Opening a representative or liaison office in Switzerland is a suitable step before expanding a business in this country. Discover below what makes this entity stand out and how our lawyers can help you with its registration.

Who can set up a liaison office in Switzerland?

The Swiss representative office is a structure employed by foreign companies only.

NOTE: In most cases, foreign banks are the ones to open such offices in Switzerland.

What are the characteristics of a Swiss representative office?

The liaison office:

• does not have its own legal status;
• does not have assets or liabilities;
• cannot carry out commercial undertakings.

IMPORTANT: The parent company is liable for the liabilities and makes the operational decisions in a Swiss representative office.

What is the procedure for opening a liaison office in Switzerland?

A liaison office is not required to perform the standard procedure applicable to commercial companies set up in Switzerland.

The minimum requirements are the following: 

• the appointment of a representative;
• declaring the existence of the office;
• complying with the regulations of the Swiss social insurance system (as the office is allowed to hire personnel). 

What are the documents required to establish a representative office in Switzerland?

The following:

• the parent company’s Articles of Association and a Declaration of Existence;
• an extract from the Trade Register in the foreign country indicating the registration of the parent company there;
• the resolution through which the opening of the liaison office was approved;
• the details of the local representative.

What activities can I complete through a representative office in Switzerland?

The activities of a liaison office in Switzerland are limited to:

1. representing the parent legal entity or group of companies in Switzerland;
2. promoting the activities of the parent company;
3. acting as a channel of communication between the parent company and Swiss collaborators or clients;
4. participating in fairs and events relevant to the parent company;
5. completing market research activities;
6. carrying out operations that enable the entry on the Swiss market for the parent company (feasibility studies, reports).

Why should I open a liaison office in Switzerland?

Among the advantages of a Swiss representative office, we mention the following:

1. it is simpler to set up compared to the other two business forms;
2. the foreign enterprise can also hire staff in its office;
3. it does not need to undergo registration with the cantonal office of the Trade Register;

The liaison office is an excellent marketing tool through which foreign enterprises can present their goods or services.

If you are interested in creating such an entity, our lawyers in Switzerland can help you.

Are there any specific requirements when setting up a Swiss liaison office on behalf of a foreign bank?

Yes, in this case, the foreign bank must obtain authorization from FINMA before starting its operations here. Also, the duration of the license may be limited.

Can I hire employees in a Swiss representative office?

Yes, the representative office is allowed to have employees who can complete various tasks.

Are liaison offices subject to taxation in Switzerland?

Even if the representative office is not required to register with the Swiss Tax Administration, as it is not subject to corporate tax, it must pay the property tax if the parent company purchases office buildings, as well as other municipal taxes, as established at a local level.

How long does it take to open a liaison office in Switzerland?

Around one month.

We can also put you in touch with our partners from Montenegro in case you are thinking of starting a Montenegro business and want to begin your project with setting up a local liaison office first.

Businessmen interested in receiving more details on how to register a representative office in Switzerland can address our Swiss law firm for legal representation.