Switzerland at a company formation high
Positive news from Swiss company foundations: In the first nine months of 2019, 32,785 new companies were founded. This record number of new entries in the commercial register represents an increase of 3% percent compared to the previous year.
Switzerland is at a company formation high: For 136 years - that's how long the Swiss Commercial Register has existed - this high number of company formations has never been reached. The current year 2019 is on the home stretch to become the year of the founders.
The quarter with the highest number of start-ups in recent years
The year 2019 impresses with more company formations than ever. The analysis of the quarters shows that Q1 and Q3 / 2019 each record values. In the third quarter of 2019, with 10,109 start-ups, more than 10,000 new companies were founded for the first time in the statistically weakest quarter of the year. In the last quarter of the running year, the IFJ Institute for Young Enterprises expects more than 11,000 new start-ups. Thus, 2019 is expected to end as the year with the highest number of start-ups since the existence of the Swiss Commercial Register. The SOGC was first published on January 06, 1883.
The most popular legal forms
With 12,670 start-ups, the limited liability company (GmbH) is the most popular legal form for starting a new company. The GmbH has even recorded 3% more company formations than in the record-high comparison period Jan. to Sep. 2018. This is followed by the sole proprietorship with 10,724 formations (+3%), the stock corporation (AG) with 6,347 registrations (-1%) and the general partnership (KlG) with 997 new registrations (+3%). The analysis of the IFJ shows that 93% of all GmbH formations are founded with the legal minimum of CHF 20,000 share capital, while 85% of the public limited companies are registered with the minimum of CHF 100,000 share capital. The highest registered share capital of a limited liability company is also a record CHF 1.81 billion (Procter & Gamble International Sàrl, domiciled in Petit-Lancy GE). The highest registered share capital of an AG is CHF 425 million (company Central Real Estate Holding AG, domiciled in Zurich).
Cantonal differences in company formation high
The number of new startups increased in 15 cantons, while 11 cantons recorded declines; however, this was mainly the case in cantons with a low number of startups. Most cantons show a slight to strong increase in the number of startups compared to the previous year. The cantons with the strongest percentage growth are Appenzell Innerrhoden +34%, Glarus +15%, Nidwalden, St. Gallen and Thurgau each +10%, Bern +9%, Fribourg +8%, Vaud +7%, Aargau and Basel-Stadt each +4%, Zurich +3%, Solothurn, Graubünden and Geneva each +2% and Schwyz +1%. The cantons with percentage losses are Ticino (-8 startups) and Schaffhausen (-1 startup) with -0%, Basel-Landschaft, Lucerne and Valais -2%, Neuchâtel -3%, Jura -4%, Zug -10%, Appenzell Ausserrhoden -12%, Obwalden -14% and Uri -19%. From the perspective of the major regions, Eastern Switzerland (+7%), Espace Mittelland (+6%), Zurich and Southwestern Switzerland (+3%) in particular set positive accents. Central Switzerland recorded a decrease in start-ups compared with the same period of the previous year, with -5%.
Start-ups by industry
In terms of company start-ups, there are some sectors that are really booming in the current year. In particular, the sectors with the highest number of startups in absolute terms - trades, consulting, catering and accommodation, IT and ICT, healthcare, and architecture and engineering - are setting a very positive tone. Fewer companies will be founded in the trade, finance and insurance, and real estate sectors in 2019.
Source: IFJ Institute for Young Enterprises AG
