The company formation process

Louis Mummenthaler
21. März, 2025

Table of Contents

  1. Introduction
  2. Understanding the Company Formation Process
  3. Steps to Form a Company
  • Decide on a Legal Structure
  • Reserve a Company Name
  • Prepare Incorporation Documents
  • Register with Authorities
  • Open a Corporate Bank Account
  • Publish Official Notice (if required)
  • Register for Tax and VAT
4. Business Incorporation Process: Timelines
5. Legal Requirements for Company Formation
6. Company Incorporation Procedure for Foreign Founders
7. Benefits of a Structured Company Formation Process
8. Tools to Support Your Business Setup Process
9. Conclusion – Build the Right Foundation

A Step-by-Step Legal and Practical Guide

Setting up a company is a defining milestone for entrepreneurs and businesses aiming to enter new markets, establish legitimacy, and grow sustainably. The company formation process may sound bureaucratic, but when understood clearly, it becomes a straightforward sequence of actions designed to protect both the business and its stakeholders. Whether you're launching a Swiss AG, setting up a Swiss GMBH, or forming a startup elsewhere, knowing the exact steps to form a company is crucial.

This article walks you through the complete company incorporation procedure, exploring timelines, regulatory details, and practical tips that align with international standards.

Understanding the Company Formation Process

The company formation process refers to the formal steps required to legally establish a business as a separate legal entity. It includes choosing a structure, preparing documentation, fulfilling statutory obligations, and registering with the appropriate authorities. While each jurisdiction has its own requirements, the business incorporation process generally follows a global pattern.

More information on international company registration is available via the OECD: https://www.oecd.org/investment/investment-policy/business-registration.htm

Steps to Form a Company

1. Decide on a Legal Structure
The first step in the company formation process is selecting the appropriate legal form. Common options include:
  • Sole proprietorship
  • Limited Liability Company (LLC or GmbH)
  • Corporation (AG or Inc.)
Choosing between a Swiss AG and Swiss GMBH, for example, depends on your capital, tax planning, and shareholder preferences.

2. Reserve a Company Name
Every company must have a unique name. This name should comply with local naming laws and not infringe on existing trademarks.
Use official registries, like the Swiss Commercial Registry, to verify availability.

3. Prepare Incorporation Documents
One of the most critical company formation steps is drafting and notarizing incorporation documents such as:
  • Articles of Association
  • Shareholder agreements
  • Director and founder identification documents
The legal requirements for company formation often mandate notarization and certified translations (in multilingual jurisdictions).

4. Register with Authorities
This is the core of the company registration procedure. Companies must register with:
  • Commercial or corporate registry
  • Tax authority
  • Social security office (for employing staff)
This stage formalizes the process of incorporating a business and creates a separate legal identity for your company.

5. Open a Corporate Bank Account
Once registration is confirmed, a corporate bank account is opened in the name of the company. For Swiss AG and Swiss GMBH, capital must be deposited before registration is finalized.
Refer to your jurisdiction's central bank or financial supervisory authority for capital deposit requirements: https://www.finma.ch/en/

6. Publish Official Notice (if required)
Some jurisdictions require a formal announcement in an official gazette to finalize the incorporation.

7. Register for Tax and VAT
All companies must register for tax. Depending on your business type and size, you may also need:
  • VAT number
  • Import/export licenses
  • Sector-specific permits
This part of the business setup process ensures full operational compliance.

Business Incorporation Process: Timelines

  • Name reservation: 1–3 days
  • Document preparation: 3–5 business days
  • Notarization and submission: 1–2 days
  • Registry approval: 1–3 weeks depending on jurisdiction
  • Tax and VAT registration: 1–2 weeks
Overall, the full starting a company process can take 2–4 weeks depending on complexity and jurisdiction.

Legal Requirements for Company Formation

The legal requirements for company formation vary across borders but typically include:
  • Minimum share capital (e.g., CHF 20,000 for Swiss GMBH, CHF 100,000 for Swiss AG)
  • At least one director or managing officer
  • Registered office address
  • Valid identification and business purpose
Visit local legislative bodies or government portals for official statutes. For Swiss law, refer to: https://www.fedlex.admin.ch

Company Incorporation Procedure for Foreign Founders

Foreign founders often need to comply with extra rules:
  • Visa or residence permit (if based locally)
  • Nominee directors or shareholders (in some jurisdictions)
  • Use of a virtual office or local representative to meet physical address requirements
These additional steps require guidance and, often, professional support.

Benefits of a Structured Company Formation Process

  1. Legal Protection – Separates business assets and liabilities
  2. Market Credibility – Boosts trust with banks, clients, and partners
  3. Scalability – Easier to raise capital or add shareholders
  4. Compliance – Meets all statutory obligations from day one
  5. Tax Planning – Allows strategic planning for local and international taxation
The process also ensures your company is aligned with national company formation steps and global business norms.

Tools to Support Your Business Setup Process

Consider using digital platforms and professionals to streamline your business setup process, including:
  • Online legal service providers
  • Document automation tools
  • Startup incubators or chambers of commerce
If you’re dealing with the company incorporation procedure remotely, tools like e-signatures and cloud-based compliance dashboards become essential.

Conclusion – Build the Right Foundation

The starting a company process might seem overwhelming, but a well-defined roadmap helps turn vision into legal reality. By understanding each stage of the company formation process, including the business incorporation process, company registration procedure, and the legal requirements for company formation, entrepreneurs can take confident and compliant steps forward.

Whether you're forming a Swiss GMBH, a Swiss AG, or expanding internationally, following these steps to form a company ensures your foundation is both solid and scalable.

FAQ

The company formation process is the series of legal and administrative steps required to establish a business as a registered legal entity with regulatory authorities.