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Elevate your Scale-Up's Potential: How Foreign Companies Can Succeed in Switzerland

by Switzerland Global Enterprise


Expanding into Europe can be a strategic move for businesses looking to grow their international footprint. While many countries offer opportunities, Switzerland consistently stands out as a top destination for companies across diverse industries. In this interview, Sirpa Tsimal, Director Global Marketing at Switzerland Global Enterprise, shares her insights on Switzerland’s business-friendly environment, the industries that thrive there, and why Switzerland continues to attract companies seeking a strategic European base.


 


Many companies from diverse industries are looking to expand their operations in Europe, and Switzerland stands out as a key destination. Could you share why Switzerland is such an attractive location for foreign businesses? 


Sirpa Tsimal: Switzerland is uniquely positioned in Europe for several reasons. It offers a stable political environment, a strong economy, and a highly skilled workforce, all of which are essential for businesses seeking long-term growth. One of the key differentiators is our innovation-friendly ecosystem. Switzerland consistently ranks at the top in global innovation indices, driven by world-class universities, renowned research institutions, and strong public-private collaboration. Examples are the Global Innovation Index, European Innovation Scoreboard and the Bloomberg Innovation Index, where Switzerland ranks in first place.  

Switzerland’s central location in Europe allows companies to access the broader European market efficiently. It’s also outside the European Union, which gives the country the flexibility to maintain independent trade agreements while still being closely integrated with the EU market. 


Could you elaborate on the industries that tend to thrive in Switzerland?  

Sirpa Tsimal: Switzerland has a diverse economy, and many sectors can benefit from its advantages. Some industries, however, stand out due to Switzerland’s strengths: 

  • The life sciences, biotech and pharmaceutical industry: Switzerland is home to some of the largest pharmaceutical companies in the world, like Novartis and Roche. The presence of such big industry names, along with a strong regulatory framework and top-tier universities, makes it an ideal hub for R&D in biotechnology, medical devices, and pharmaceuticals. Switzerland’s biotech and life sciences industry is concentrated in key hubs such as Basel (biopharma and research), Zurich (medical technology and digital health), Lausanne and Geneva in the Lake Geneva region (biotech startups and innovation, supported by EPFL and UNIL), and Lugano (specializing in biotech R&D).  

  • Digital technology focusing on blockchain, VR/AR, AI, data management and quantum: With Switzerland ranking highly in AI and data science, tech companies benefit from strong intellectual property protection and innovation-friendly policies. Switzerland's digital technology hubs include Geneva (cybersecurity), Lausanne (digital health) , Zurich (AI, fintech), Bern (IoT), Lugano and Zug (blockchain and crypto hubs).  

  • Advanced manufacturing and engineering: Swiss precision and engineering are renowned worldwide. The manufacturing industry, particularly in areas like precision instruments, watches, and high-tech machinery, thrives due to Switzerland’s skilled labor force and strong research institutions like the Swiss Federal Institute of Technology, the École Polytechnique Fédérale de Lausanne, the Swiss Center for Electronics and Microtechnology or the Paul Scherrer Institute.  


However, any business that prioritizes quality, precision, and innovation will likely find Switzerland to be a conducive environment for growth.  


For companies unfamiliar with Switzerland’s regulatory landscape, how easy is it to set up and start operating? What can companies expect in terms of regulatory processes and incentives? 


Sirpa Tsimal: Switzerland is known for its efficient bureaucracy. Setting up a business here is generally straightforward compared to other countries. There are various legal forms a company can choose from, such as a GmbH (LLC) or an AG (corporation), and the process can be completed relatively quickly. You can find detailed information on how to open a business in Switzerland in our free Handbook for Investors.  


One of the most attractive features of Switzerland is its tax environment. While corporate tax rates vary between cantons (most are in the range of 12-15%), Switzerland offers competitive rates in comparison to other European countries. In fact, many cantons provide tax incentives for companies involved in high-tech industries or those creating significant local employment. 


There are also several incentive programs available, particularly for R&D-heavy companies. An example is the Patent Box Regime, where income derived from qualifying intellectual property is taxed at a reduced rate at the cantonal level. Companies can also claim enhanced deductions for qualifying R&D expenses incurred in Switzerland. Super deductions of up to 150% of R&D expenditures are allowed in some cantons. 


There are also innovation platforms and accelerator programs like Innosuisse and Kickstart Innovation, aimed at fostering collaboration between startups, scale-ups, established corporations, academic institutions, and government organizations.  

And then there is Switzerland Global Enterprise - the official Swiss organization for export and investment promotion. Our Swiss Business Hubs around the world and our team in Switzerland help companies with their location analysis, organize site visits and provide them with contacts and introductions that kick-off and accelerate their growth in Switzerland - free of charge. 

 


For companies considering other European destinations, how does Switzerland compare to countries like Germany, Ireland or the Netherlands in terms of business opportunities and lifestyle? 


Sirpa Tsimal: Switzerland offers several distinct advantages compared to other European countries. While places like Germany and the Netherlands are certainly attractive, Switzerland’s political neutrality, economic stability, and high quality of life make it stand out. Our multilingual workforce—where many people are fluent in German, French, English, and Italian—allows companies to operate easily across borders. The work-life balance here is also excellent, and we consistently rank high in terms of quality of living


In terms of lifestyle, Switzerland offers a safe, clean environment with access to incredible natural beauty—mountains, lakes, and outdoor activities—all of which are attractive to both employees and expatriates. According to the Global Liveability Index, Zurich (#3) and Geneva (#5) were among the world’s top livable cities in 2024.   

 

What advice would you give to foreign companies that are planning to enter the Swiss market? What should they prioritize in their planning? 

Sirpa Tsimal: My first piece of advice would be to do your homework. Switzerland is a canton-based federation, and each canton offers different incentives and regulatory nuances, so it’s important to choose the right location based on your industry and business model. 


Second, leverage Switzerland’s strengths. Whether it’s the innovation ecosystem, access to world-class talent, or our financial infrastructure, understanding how your business can benefit from these aspects will help you succeed. 


Finally, build relationships early on. Switzerland places a strong emphasis on personal connections, so networking with local partners, suppliers, and even competitors can be highly beneficial. Switzerland Global Enterprise is here to help at every step, offering local expertise and a wide network of contacts. 

 

Ready to internationalize your business?  

Switzerland Global Enterprise (S-GE) is a partner of Kickstart Innovation and the official Swiss organization for export and investment promotion. Our team in Switzerland and our Swiss Business Hubs around the world will help you with your location analysis, organize site visits and provide you with contacts and introductions that kick-off and accelerate your growth in Switzerland. Our service is free of charge.  

Contact us at invest@s-ge.com.  


For more information on how to set up a business in Switzerland, download the Handbook for Investors.


If you are a startup interested in collaboration with corporates such as AXA, Coop and Ikea, you can learn more about our program and pre-register.

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