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Swiss Market Desk

Guide

Foreign company hiring in Switzerland

You can employ someone in Switzerland without a Swiss company, but it is rarely the comfortable option. Here is what the employer duties look like, and when a Swiss entity becomes the better route.

Employer duties are the same for everyone

An employer of staff working in Switzerland registers with a cantonal compensation office for old-age, disability and unemployment insurance, affiliates to an occupational pension fund once the salary exceeds the entry threshold, and insures staff against accidents. Contributions are shared between employer and employee and deducted from salary each month.

Without a Swiss entity

A foreign company with no Swiss establishment can still be an employer in Switzerland. In practice it must register with a compensation office as a foreign employer, or agree with the employee that the employee pays the contributions. Payroll, deductions at source and correspondence with authorities are then handled from abroad, in a system built for Swiss employers.

Permits

EU/EFTA nationals obtain a residence permit on presentation of a Swiss employment contract. Non-EU nationals require a work permit granted by the canton and approved federally, within annual quotas, on proof that no suitable candidate was found in Switzerland or the EU/EFTA. Our sister desk Swiss Work Permit Partners carries this procedure.

When to open the entity

From the second employee, or the first management position, a Swiss Sàrl is usually simpler: Swiss payroll, Swiss contracts, a local signatory, and a structure banks and landlords recognise. The Swiss Employer Setup product covers the registrations from the first salary.

  • AVS/AI/APG and unemployment: compensation office
  • Occupational pension: from the entry threshold
  • Accident insurance: mandatory
  • Non-EU hires: quotas and labour market test

Authorities decide; we prepare and carry the file. No timeline or outcome is guaranteed.