It’s no secret: Switzerland is considered one of the world’s leading locations for crypto and blockchain companies. Would you like to start a company with crypto? In this article, you will find out the things to keep in mind.

The essentials in brief:

• Switzerland is a leading location for crypto and blockchain companies – with clear regulations, attractive tax advantages and an innovation-friendly environment.
• When founding the company, cryptocurrencies such as Bitcoin, Bitcoin Cash and Ethereum can be used as a contribution in kind. Legal requirements such as accounting capacity, availability and usability must be met.
• The value of cryptocurrencies as a contribution in kind is determined based on the current market price, taking into account market volatility to ensure fair value.
• The choice of location, the company form and banking are decisive factors for founding a company successfully in Switzerland.

Why start a crypto company in Switzerland?

Switzerland is an attractive destination for companies. For some years now, this has also been the case for companies that specialize in crypto currencies or blockchain technologies. Here are 4 reasons:

1. Legal framework: Switzerland has a clear regulatory framework for cryptocurrencies and blockchain technologies. The country recognizes cryptocurrencies as assets and allows companies to align their business models with these new technologies.
2. Tax aspects: Switzerland offers an attractive tax system for companies. Crypto companies have to pay tax on their profits like other companies do, but they can benefit from various tax advantages.
3. Registration process: Starting a business in Switzerland is relatively easy. This includes preparing the articles of association, contributing share capital, registering in the commercial register and arranging compliance with the relevant requirements.
4. Location advantages: Switzerland is an attractive destination for crypto companies – mainly due to the ongoing support available here for innovators in the field of blockchain and crypto currencies.
5. There is no doubt: Switzerland is the most crypto-friendly 
country in Europe. The government is continuously working to improve 
the overall conditions for crypto companies 
and to establish Switzerland as a global crypto hub.

What should you consider when founding a company?

Whether your companies uses crypto or not: If you want to start a company in Switzerland, you have to contribute share capital. In the case of a GmbH [company with limited liability], this amounts to at least CHF 20,000 and in the case of an AG to CHF100,000 – either in the form of cash or in kind contributions. You can use crypto currencies for the in-kind contribution. Please keep the following points in mind:

• Legal requirements: when founding the company by means of a contribution in kind, an auditor must confirm the value of the contribution in kind. The contribution in kind must meet the following criteria: 1) it must be recognizable, 2) it must be available and 3) it must be marketable.
• Suitability of crypto currencies: not all crypto currencies are suitable for in-kind contributions. Currently, you can choose between Bitcoin, Bitcoin Cash and Ethereum as contributions in kind.
• Valuation of crypto currencies: the value of a crypto currency is determined at the time of valuation based on the current market price. When it is valued, market volatility is taken into account in order to determine a fair and transparent value for the deposit.
• Risks: Of course, the use of cryptocurrencies as a contribution in kind also carries risks. The value of the crypto currency can change between the date of the valuation and the date it is contributed as capital. It is important to be aware of these risks.

Tip: For the foundation by means of a contribution in kind, a contribution in kind contract, a founding report and an audit confirmation are also required.

Three final questions

1. Which location is suitable for crypto companies?

In Switzerland, the canton of Zug (also known as “Crypto Valley”) is a hotspot for crypto companies. Zug offers an attractive tax policy and has established itself as a center for blockchain innovations. But other cantons such as Zurich are also popular locations for crypto startups.

2. Which type of company should I choose?

The most common legal forms for companies in Switzerland are the limited liability company (GmbH) and the stock corporation (AG). Both forms have their advantages and disadvantages: for example, an AG has a higher capital requirement, but also offers more flexibility in terms of the shareholder structure.

3. What should you consider when banking?

Although Switzerland is crypto-friendly, not every bank wants to enter into business relationships with crypto companies. However, there are specialized financial institutions and crypto banks that are tailored to the needs of blockchain companies.

Final remarks

Switzerland offers excellent conditions for founding crypto currency businesses. Thanks to its advanced system of regulations, attractive tax policy and the concentration of expertise in the field of blockchain and crypto currencies, Switzerland is an ideal location for anyone who wants to start a company that uses crypto.