If you want to open a financial company in Switzerland, there are several subsectors in which it can operate. Depending on this aspect, there are specific laws to respect and even licenses to obtain.
Our team of lawyers in Switzerland can provide legal assistance on the rules of law regulating the incorporation and operation of financial businesses in this country.
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Steps to set up a financial enterprise in Switzerland
If you decide to open a company in Switzerland and launch it as a financial business, there are a few aspects to consider, apart from the regular incorporation process. For example:
- it is recommended to use the joint-stock company which is more suitable for insurance and banking institutions;
- the same type of entity is also recommended if you want to create a crypto business;
- speaking of cryptocurrencies, you also need to apply for a specific license for such activities;
- you will also need to consider specific share capital requirements for certain activities.
- choosing an appropriate Swiss canton also matters from a taxation point of view, given the unique system this country has.
| Quick Facts | |
|---|---|
| Specific applicable law |
– the Banking Act, – the Banking Ordinance, – the Law on Financial Market Supervision. |
|
Types of financial companies in Switzerland |
– banking institutions, – insurance companies, – investment companies, – wealth management companies, etc. |
|
Activities completed by financial entities |
– financial and insurance advisory, – wealth management, – factoring/leasing/credit, – investment management, – crypto creation, – trustee, banking services, etc. |
| Special licensing requirements (YES/NO) | Yes. |
| Types of licenses available |
– banking, – security trading, – fintech, – crypto licenses. |
| Licensing authority |
FINMA (Financial Market Supervisory Authority). |
| Special requirements (if any) |
– specific share capital, – certain requirements for Directors/Management |
| Legal form recommended to open a financial company in Switzerland |
The joint stock company. |
| Special business forms for foreign companies (if any) |
In some cases, financial companies operate through branch offices. |
| Local management requirements (YES/NO) | Yes, at least one manager must be a Swiss resident. |
| Local registered address required (YES/NO) |
Yes. |
| Other considerations when setting up a financial business |
The canton in which the company is registered will impact the taxes paid by the company. |
| Company registration time frame (approx.) |
Approx. 2 weeks. |
| Licensing time frame (approx.) |
The minimum period is 6 months, however, it can also take longer. |
| Support in opening a financial company in Switzerland (YES/NO) | Yes, our law firm in Switzerland can assist with the creation of this type of company. |
The registration procedure can then be completed by following the usual steps. Our law firm in Switzerland can handle the process on your behalf. We will only need a power of attorney for representation with the authorities.
One of the possibilities for starting a company in Switzerland in the financial sector is to set up an insurance company. The field is regulated under the Insurance Supervision Ordinance, which was last modified in 2015.
When registering this type of company, according to the legislation on the matter, foreign investors can benefit from numerous advantages, one of them being that it allows 100% foreign direct investment.
Common types of financial activities developed by Swiss financial companies
One of the reasons for establishing a financial company in this country is the wide range of services such enterprises can offer. Among the most sought are:
- financial and insurance advisory services;
- wealth management;
- retirement planning;
- factoring, leasing, and credit-related services;
- securitization solutions;
- investment fund management services;
- blockchain and crypto-related solutions;
- private banking services;
- trustee services.
For service providers, the minimum share capital for setting up a financial company is CHF 100,000. For fund management companies, however, other conditions apply. Our Swiss lawyers can offer the necessary details when it comes to the legal requirements to meet for creating such a business.
Here is also an infographic on this subject:
Licenses required for carrying out financial activities in Switzerland
Licensing is one of the most important parts of opening a financial company in Switzerland. Here are the permits you need to apply for based on the activities of your future operations:
- the asset management license available for investment companies, fund managers, and custodian banks;
- the banking license;
- the security trading license;
- the fintech license;
- the crypto license.
Regulatory framework for Swiss financial companies
Legal entities in Switzerland performing economic activities in the Swiss financial sector are regulated under specific rules of law. Companies registered as banking institutions are regulated by the following:
- the Banking Law;
- the Law on Financial Market Supervision;
- the Banking Ordinance.
Specific regulations can also be imposed by the Swiss Financial Market Supervisory Authority (FINMA). The institution is the main regulator for financial activities developed in this country, having the right to supervise companies registered as banking institutions and other related activities. Our team of Swiss lawyers can offer assistance with the main requirements established by FINMA for financial businesses.
The following video offers a short presentation on the registration of a Swiss financial company:
The Swiss financial sector in numbers
According to recent data, at the level of 2022:
- the financial industry accounted for 234,600 employees, approximately 5.4% of the total number of jobs in the country;
- its gross value added to the economy was CHF 70.9 billion;
- banks and insurance companies generated 7.6% of the public revenue, amounting to CHF 7.8 billion.
Businessmen can find out more information on the Swiss financial sector from our attorneys. Please contact our law firm in Switzerland for professional advice on the policies applicable in this field, as well as on the minimum requirements foreign investors should meet when setting up a financial company.