Profile

Switzerland is a federal republic of 26 cantons in the heart of Europe, with a permanent resident population of just over 9.1 million as of end-2025 (Federal Statistical Office). It consistently ranks among the world's most competitive and innovative economies, built on precision manufacturing, private banking, pharmaceuticals, and — since the mid-2010s — a genuine crypto and blockchain cluster centred on the canton of Zug, widely nicknamed "Crypto Valley." Switzerland is not an EU member state, but it has deep bilateral trade access to the EU single market and its own network of over 100 double taxation treaties.

Otonomos structures Swiss entities as a GmbH (limited liability company) registered in Zug — the canton with the lowest cantonal tax burden and the highest concentration of blockchain foundations, exchanges, and Web3 infrastructure providers in the country.

Political

Switzerland is a direct democracy layered on top of a federal parliamentary system. A seven-member Federal Council governs collectively, with the presidency rotating annually among its members — deliberately designed to avoid concentrating power in a single figure. Citizens can force a binding referendum on almost any federal law, and cantons retain wide autonomy over taxation, making Switzerland one of the most politically stable and predictable jurisdictions in the world. Switzerland has also maintained a long-standing policy of armed neutrality, which continues to shape its foreign and financial policy today.

Tax

Switzerland taxes corporate profit at two levels: a flat 8.5% federal rate on profit after tax, plus a cantonal and communal rate that varies by canton. Zug consistently ranks among the lowest, with a combined effective corporate tax rate close to 11.9% in 2026 — among the most competitive in the OECD for a jurisdiction with full treaty access and no blacklist exposure. Dividends are subject to a 35% withholding tax (Verrechnungssteuer), refundable in full for Swiss residents and partly or fully for non-residents under an applicable tax treaty. VAT is charged federally at a standard 8.1%. Large multinational groups (global turnover above EUR 750 million) are also subject to a 15% minimum top-up tax under the OECD's Pillar Two framework, introduced in Switzerland from 2024 — this does not affect the vast majority of founders incorporating a standalone Swiss entity.

Legal

Switzerland is a civil law jurisdiction, with company law set out in the Swiss Code of Obligations. The two standard company forms are the GmbH (limited liability company, the structure Otonomos uses) and the AG (public limited company, generally used for larger or later-stage structures). Both must be entered in the commercial register of the relevant canton — searchable centrally and free of charge via Zefix, the Federal Office of Justice's central business names index — before they legally exist. Both forms require at least one director or manager who is a natural person resident in Switzerland, which is why a local physical director service is a standard add-on for founders incorporating from abroad.

Privacy

Commercial register filings are public and disclose a company's name, registered seat, purpose, share capital, and authorised signatories — but not its beneficial owners. From 1 October 2026, Switzerland introduces a new, non-public Swiss Transparency Register, run by the Federal Office of Justice, which will record the natural person(s) who ultimately own or control 25% or more of a Swiss entity. Access is restricted to designated authorities and regulated financial intermediaries, not the general public. A nominee shareholder structure remains available for founders who want an additional layer of separation between their name and the public commercial register entry.

KYC and AML Regulations

Switzerland's Anti-Money Laundering Act (GwG) is enforced by FINMA, the Swiss Financial Market Supervisory Authority, together with self-regulatory organisations for non-financial intermediaries. Financial intermediaries — including anyone helping a client open bank or exchange accounts — must verify identity, establish the beneficial owner, and monitor the business relationship on an ongoing basis. Since a 2023 revision, these due-diligence duties have also been extended to certain advisory activities historically outside their scope, part of a broader tightening that continues with the Transparency Register launching in October 2026.

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