Set Up a Liaison Office in Switzerland

Companies seeking to do market research or have a contact point for potential clients and/or business associates can open a liaison office in Switzerland. Below, our company formation agents in Switzerland review the steps associated with setting up a liaison or representative office and offer assistance for registration.

Quick Facts
Applicable legislation	Company Law in Switzerland
Status	The liaison office does not have a separate legal status from its parent company.
Uses of a liaison office	The activities of a liaison office are limited to marketing and representation.
Restrictions of a representative office (if any)	Yes, the Swiss representative office cannot engage in economic operations.
Minimum share capital (YES/NO)	No, there are no share capital requirements for Swiss liaison offices.
Local representative required (YES/NO)	Yes, having a legal representative in Switzerland is mandatory for a liaison office.
Documents to be filed by parent company	– declaration of existence; – details of the parent company; – rental contract for the legal address; – information about the appointed agent.
Local address requirement (YES/NO)	Yes
Authority to be enrolled with	Swiss Commercial Registry, local office of the canton to operate in
Liability of the parent company	The parent company is liable for the representative office's actions.
Taxation of a liaison office in Switzerland	No income or corporate tax
Possibility of hiring local staff (YES/NO)	Yes, it is possible to hire local workers in a representative office in Switzerland.
Travel requirements for setting up a representative office (YES/NO)	No, the registration can be completed through the local representative.
Advantages of a liaison office	– access to the particulars of the Swiss market through testing techniques; – easy to set up and maintain; – available to various types of foreign businesses.
Support in opening a representative office	Yes, we offer support in setting up companies and liaison offices in Switzerland.
Special requirements related to the trading name (YES/NO)	Yes, the liaison office must bear the name of the parent company.
Steps to open a Swiss liaison office	– documents drafting, – filing the papers with the local Trade Register Office
Special licensing requirements (if any)	Yes, for foreign companies working in the financial sector.
Authorization timeframe (where applicable)	The duration to obtain the operating license depends on a case-to-case basis.
Employment registration requirement (YES/NO)	Yes, registration for social security is required.
Option to transfer employees from the headquarters (YES/NO)	Yes
VAT registration requirement (YES/NO)	No, however, the parent company can register for VAT in order to claim back VAT-related payments.
Registration timeframe (approx.)	Approx. 14 business days
Liability	The parent company is liable for the Swiss representative office.
Difference between a liaison office and a branch	The branch office can engage in commercial activities under the supervision of the parent company, unlike the liaison office which cannot complete any trading operations.
Possibility to enter contracts on behalf of the parent company (YES/NO)	No
Special requirements for the local representative (if any)	Yes, the agent must be a Swiss resident or citizen.
Possibility to hire a specialized service provider as a local representative (YES/NO)	Yes, our company formation agents offer such a service.
Option to convert a liaison office into a branch (YES/NO)	Yes, the liaison office can be converted into a branch.

What types of companies can expand their operations in Switzerland through representative offices?

The liaison office can be created by foreign companies, given the operations restrictions this business form has.

IMPORTANT: In Switzerland, in particular, representative offices are often established by foreign banks and financial institutions, as this country is not a European Union member state, and the expansion licensing requirements are more complex.

What are the steps to create a representative office in Switzerland?

Here are the steps associated with setting up a Swiss liaison office:

finding a suitable place for the office;
appointing a local representative;
file a Declaration of Existence with the Trade Register in the canton in which its activity will take place;
enroll employees for social security services (this requirement mainly applies to the representative(s)).

The procedure for establishing a liaison office is much simpler compared to when opening a company in Switzerland.

What are the documents the parent company must supply for registration?

In addition to the declaration of existence, the following papers must be submitted to the Swiss Trade Register in order to establish a representative office:

certified copies of the articles of incorporation and bylaws,
information on the officers in Switzerland who are the foreign company’s representatives.

Here is an infographic about this legal entity in Switzerland:

What is the authority to register Swiss representative offices?

Liaison offices are not normally entered in the cantonal commercial register, since they carry on no commercial business, which makes the setup procedure simpler than in the case of a branch office, for example.

What are the main features of a liaison office in Switzerland?

This business form:

is not an independent one, as it does not have a legal status;
depends entirely on the parent company, meaning it cannot make operational or management decisions;
cannot carry out commercial operations.

What are the operations a representative office can undertake in Switzerland?

A Swiss liaison office will mainly represent the parent company through:

promotional activities;
participating in fairs, exhibitions, events;
completing marketing activities and feasibility studies;
acting as a contact point with Swiss clients and business partners.

What are the advantages of a representative office in Switzerland?

The following:

it can be a good marketing tool for foreign businesses that have not dealt with the European market before;
it can also be set up by other types of associations that do not engage in commercial activities at all, but need to have a presence in Switzerland;
it is simple to create, although the parent company remains liable for it;
it is not subject to taxation in Switzerland, but only for payroll taxes for its employees;
it does not require obtaining any licenses;
it is the simplest form of having a presence in Switzerland for a limited period of time.

Are there specific requirements for a foreign company to open a representative office in Switzerland?

It must be duly registered in its home country.

NOTE: In the case of foreign financial institutions, additional licensing requirements may apply.

Depending on the operations of your foreign business, our Swiss company formation agents can advise on the opening conditions.

Here is also our video on the Swiss representative office:

Can a Swiss representative office hire employees?

It is possible for a Swiss liaison office to hire staff from local or foreign sources. It is also allowed to detach personnel from the main headquarters to Switzerland. Even if in small numbers, employees must be registered for various purposes, among which is social security.

Must representative offices pay taxes in Switzerland?

Liaison offices are not subject to the regular taxes applied to companies in Switzerland, such as the corporate levy. However, they may incur other taxes, such as municipal ones.

Additionally, it is exempt from VAT because it makes no sales and only performs services for the overseas enterprise.

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

The procedure can take approximately one month to complete.

Contact our Swiss company formation specialists for further information and legal advice for setting up a liaison office in Switzerland.