What are the pros and cons of starting a business in zurich?

Are you planning to start a business in Zurich or open a branch there? Zürcher Treuhand is here for you. We support you every step of the way and show you the key advantages and disadvantages of starting a business in Switzerland's largest city. This list primarily focuses on the city of Zurich, although some points also apply to the entire canton.

Advantages of starting a business in zurich:

• Location: Zurich is considered the economic powerhouse of German-speaking Switzerland and an international transport hub. The city has over 440'000 residents and attracts more than 200'000 commuters daily. Its central location in Europe and proximity to the German border make it an attractive spot for international companies. Zurich Airport offers numerous direct flights worldwide.
• Customer potential: As a leading financial and service center, Zurich is home to many affluent customers - ideal for providers of high-end products or services. B2B companies also benefit from the dense network of national and international firms.
• Innovation: Zurich is a major hub for research and technology, thanks in part to ETH Zurich and other universities. The city attracts startups and investors, especially in industries like fintech, medtech, artificial intelligence, and sustainability.

To make the most of these advantages, Zürcher Treuhand supports entrepreneurs with business formation, location selection, and legal structuring. Contact us for personalized and long-term advice in the areas of company formation, accounting, and taxes.

Disadvantages of starting a business in Zurich:

• Rental costs: Commercial rents in Zurich are among the highest in Switzerland. For a centrally located office for around ten employees, expect monthly costs between CHF 5'000 and 8'000.
• General operating costs: Zurich is one of the most expensive cities in the world. The cost of materials, electricity, and services tend to be higher than in other regions of Switzerland. Professionally managed accounting is essential to keeping an overview and preventing emergency situations. 
• Taxes: The combined corporate income tax rate (federal, cantonal, municipal) in the canton of Zurich was around 19.6% until 2023. With the cantonal tax rate reduction from 7% to 6%, the tax burden dropped to about 18.2% in 2024—depending on the municipality. This still places Zurich above the Swiss average, especially when compared to cantonal “tax havens” like Zug (~11.8%).
• Talent competition: Zurich attracts many highly qualified professionals, but competition for them is fierce. Companies must increasingly offer attractive working conditions, fringe benefits, and flexible models to recruit talent.

These hurdles are substantial, but with professional support, they can be effectively managed. Find out how a proactive accounting partner can support your company so you can fully focus on your day-to-day operations.

Facts about starting a business in Zurich:

• Around 7'000 new companies are founded annually in the canton of Zurich.
• 38% of them are sole proprietorships, followed by GmbHs (37%) and stock corporations (around 20%).
• About 60% of startups survive the critical first three years.
• A growing share—about one-third—of new businesses are founded by foreign nationals or expats.

Can I start a company in Zurich?

Yes - there are no specific barriers preventing company formation in Zurich. The nationwide requirements apply:
• Sole proprietorship: Requires residence or business location in Switzerland.
• GmbH: At least one authorized signatory must be resident in Switzerland (not necessarily a managing director).
• AG: Also requires at least one board member residing in Switzerland by law.
• EU/EFTA citizens: Need a valid residence permit to carry out self-employment (usually a B or L permit).
• Third-country nationals: Must hold a permanent residence permit (C) or a residence permit (B) that allows self-employment—or appoint a signatory residing in Switzerland.

Zurich offers many opportunities as a location for starting a business, but also some challenges. Zürcher Treuhand supports you with experience, know-how, and foresight – for a secure, well-structured, and successful business formation.