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MANDATES

Nominee director in Switzerland — the resident director requirement solved

Every Swiss GmbH and AG must be capable of being represented by at least one person resident in Switzerland (Art. 718 para. 4 OR). A nominee — more precisely, a fiduciary resident director — fulfils that requirement for foreign owners. Our mandates cost CHF 2'750–2'950 per year.

Last updated: 23 July 2026 · Louis Mummenthaler, Fiduciary expert, company formation author

The residence requirement is the one rule every foreign founder of a Swiss company meets sooner or later: under Art. 718 para. 4 OR (applied to the GmbH via Art. 814 para. 3), the company must be able to be represented by at least one person resident in Switzerland — a director, board member or registered signatory. If nobody in your structure lives in Switzerland, a fiduciary resident director (widely marketed as a nominee director) closes the gap: a Swiss-resident professional joins the board or management, is entered in the commercial register and holds signing authority. Our mandates cost CHF 2'750–2'950 per year (as of July 2026) and are governed by a written mandate contract.

Art. 718 ORresident signatory requirement
CHF 2'750–2'950mandate fee per year
1 personminimum with Swiss residence
100%foreign ownership stays possible

What the resident director actually does

The mandate has a statutory core and an agreed perimeter. The statutory core cannot be contracted away: the director is a company organ, owes duties of care and loyalty, signs where the law demands an organ's signature and answers personally for social security and withholding-tax arrears. The agreed perimeter defines everything else — whether the mandate holder approves payments, signs contracts, deals with banks or stays out of daily operations entirely. In a typical set-up the foreign owner keeps operational signing rights, while the fiduciary director provides the register entry, receives official correspondence and reviews the annual accounts before signing them off. The wider service context — board mandates, management mandates, domiciliation — is described on the mandates page.

Cost structure of a fiduciary mandate

ComponentIncludedPrice
Board / managing director mandateRegister entry, signing authority, oversightCHF 2'750–2'950 / year
Registered addressLegal domicile in Zug or Zurich, mail forwardingsee business address
BookkeepingAccounts, annual statements — required for sign-offfrom CHF 1'200 / year
Extra operational actsPayments, contract signing, bank meetingsper agreement

Providers advertising resident directors at a few hundred francs per year rarely price in what the role legally is; the fee reflects personal liability, not minutes worked. The administration package covers the day-to-day layer — correspondence, deadlines, authorities — beneath the mandate.

Representation services beyond the board seat

The director mandate is one piece of what foreign owners usually need as a package — representation services that make the company actually operable from abroad. In practice that bundle has four parts: the registered business address with the domicile declaration for the register; the resident director or managing director who satisfies Art. 718/814 OR; signing authority arranged so that filings, bank instructions and contracts can be executed in Switzerland without flying in; and the administrative layer — bookkeeping, VAT returns, payroll and register filings — described under administration. Buying these from one provider is not just convenience: banks and tax authorities read a coherent setup (address, director and accounting in the same hands, in the same canton) as substance, while a patchwork of unrelated providers across cantons invites questions.

Compliance: what a mandate is not

Swiss practice draws a hard line between a fiduciary director and a straw man. The mandate holder must know the business, the money flows and the beneficial owner — banks verify the beneficial owner independently under anti-money-laundering rules, and the register entry of a GmbH shows the quota holders regardless. Expect a serious mandate holder to run KYC on you, demand access to the accounts, and refuse structures whose only purpose is to obscure control. If a provider promises invisibility, walk away: the promise fails at the first bank onboarding, and the director's liability makes such mandates unstable — they end abruptly the moment risk materialises.

When a nominee director is the wrong tool

If the requirement applies to your formation — most commonly a Swiss GmbH or AG owned from abroad — describe the set-up through the contact form; you will receive a fixed quote and the mandate contract draft within one working day.

Frequently asked questions

Is a nominee director legal in Switzerland?
Yes, with an important nuance: Swiss law knows no purely passive nominee. The registered director is a real organ of the company with full legal duties and personal liability — for unpaid social security contributions and withholding taxes among other things. What is commonly sold as a nominee is legally a fiduciary director mandate: a professional who genuinely holds the office, with duties, oversight and the right to information.
How much does a resident director cost in Switzerland?
Our fiduciary board or managing director mandates cost CHF 2'750–2'950 per year (as of July 2026), depending on legal form and scope. The fee covers the statutory role, register entry and standard oversight; operational involvement beyond the mandate contract — payments, contracts, hiring — is agreed and priced separately.
Does a nominee director hide the owner of the company?
No. The director appears in the commercial register, but ownership sits elsewhere: GmbH quota holders are public in the register anyway, and for an AG the company must keep a share register and beneficial-owner records under Art. 697l OR. Banks identify the beneficial owner in any case during onboarding. A mandate solves the residence requirement — it is not an anonymity tool.
What liability does the resident director carry?
The same as any Swiss director: personal, joint and several liability for damage caused by breach of duty (Art. 754 OR), plus statutory liability for unpaid AHV social security contributions and for withholding tax. That is why serious providers demand information rights, indemnities and often collateral before accepting a mandate — a director who asks no questions is a warning sign, not a convenience.
Can I replace the nominee with my own person later?
At any time. Once you or an employee take Swiss residence, the general meeting appoints the new director and the register entry is amended; the fiduciary mandate ends per the contract's notice period. Many clients use the mandate as a bridge for the first one or two years until a local managing director is hired.

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