New foundation record: 38,331 new Swiss companies

The data from 01.01.2023 to 30.09.2023 shows an impressive rise. More and more people are deciding to become entrepreneurs. The number of company start-ups this year is at a record high level and, if the start-up frequency continues, will exceed the start-up record of 2021 with 50,545 company start-ups. It is also exciting to see that many entrepreneurs with foreign citizenship are founding companies in Switzerland. According to the Avenir Suisse study "Grenzenlos innovativ" (based on company foundations in 2022), 45% of companies, 73% of start-ups and 88% of unicorn start-ups have at least one foreign founder. Swiss companies can only maintain their international competitiveness through innovation. These innovations are produced by highly qualified workers, who are hard to find in times of skills shortages. As a business location, Switzerland offers excellent conditions for start-ups and is therefore very attractive to founders from abroad.

Proportion of founders with foreign nationality in 2023

Founders of public limited companies who do not have a registered function or signature authorization are not entered in the commercial register, but only in the company's internal share register. For this reason, the survey of nationality relates to the two most frequently chosen legal forms, sole proprietorship and limited liability company. According to the current study, almost half (48.6%) of sole proprietorships are foreign nationals. The figure for limited liability companies is 30.4%. If the two legal forms are combined, the figure is around 44%. This corresponds to one percent less than in 2022 (Avenir Suisse study). However, it should be noted here that some of the start-ups are mixed founding teams (Swiss and foreign nationality). In summary, it can be said that foreign nationals play an important role in the corporate world and help shape the Swiss corporate landscape.

The latest national analysis by the IFJ shows how company formations in Switzerland are changing

have:

Positive start-up mood prevails in the major regions

In the first to third quarter of 2023, Northwestern Switzerland (+7.3%), Eastern Switzerland (+5.5%) and Espace Mittelland (+4.5%) are the major regions with the strongest growth in new start-ups. At +3.3%, Zurich also recorded significant growth compared to the same period last year. Only slight growth was recorded in the regions of Central Switzerland (+2.4%), Ticino (+0.6%) and Southwestern Switzerland (+0.5%).

Cantons with a high start-up

In 18 cantons, the number of new start-ups increased in the first nine months of 2023 compared to the same period of the previous year. These are currently the cantons with growth in Swiss company start-ups: Graubünden (+18.5%), Uri (+13.2%), Nidwalden (+9.8%), Lucerne (+9.2%), Basel- Landschaft (+9.1%), Aargau (+7.6%), Neuchâtel (+7.6%), Bern (+6.6%), Thurgau (+6.6%), Basel-Stadt (+4.9%), Fribourg (+4.1%), St. Gallen (+3.6%), Zurich (+3.3%), Schwyz (+2.5%), Vaud (+1.8%), Ticino (+0.6%), Valais (+0.6%) and Schaffhausen (+0.3%).

Fewer start-ups are currently being founded in these cantons

The cantons with only slight percentage decreases are Geneva (-1.1%), Solothurn (-1.4%), Zug (-2.5%), Jura (-2.9%) and Glarus (-3.2%). The largest percentage decreases in company formations were recorded in the commercial register offices of the cantons of Appenzell Ausserrhoden (-6.9%), Appenzell Innerrhoden (-8.2%) and Obwalden (-13.3%).

Legal forms in comparison

In Switzerland, the limited liability company (GmbH) is by far the most popular legal form when it comes to founding a new company. A total of 15,077 (+2.4%) new limited liability companies were registered in the period from 01.01.2023 - 30.09.2023. The increase in newly founded general partnerships is surprisingly high, with 1,210 new entries, an increase of 23.1% compared to the same period in 2022. A decrease of -5.4% was recorded for public limited companies.

5-year comparison

On average, 35,921 new companies were registered in the period from January 1 to September 30 from 2019 to 2023. With growth of +3.3% compared to the same period of the previous year, the first three quarters of 2023 are at a record level and well above average with 38,331 new start-ups.

Start-ups by industry

The top growth sectors in the current year include B2B (including coaching and tour operators) & B2C services (including photography, facility management, horticulture) with +23.2%, retail with +12.7% and consulting with +11.8%. The highest percentage declines were recorded by the agriculture & forestry sector with -12.2%, printing & publishing with -18.9% and high-tech with -21.9%.

Most companies are founded in the trades, consulting, real estate and retail sectors. These four sectors account for 43.8% of all new start-ups.

Switzerland remains attractive for start-ups

Switzerland continues to be an attractive business location for start-ups. Despite major global challenges and economic pressure.

The advantages of Switzerland as a business location are manifold and also attractive for founders with foreign citizenship. Cutting-edge research, a high level of education, a stable political climate and an attractive tax system are just as convincing locational advantages as the high quality of life, central location in Europe and comprehensive support for start-ups. Switzerland therefore occupies top positions in global rankings for innovation, efficiency, patent applications and competitiveness.

Company formations by Swiss and foreign nationals are fundamental to a well-functioning Swiss economy, which thus remains internationally competitive.

Source: www.ifj.ch