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Aktiengesellschaft (AG) in Switzerland — Dropshipping Formation Guide

Focus on high-margin niches or private labeling to offset rising ad costs. Ensure your chosen jurisdiction has favorable tax treaties and access to top-tier payment gateways like Stripe or PayPal.

Last verified: June 13, 2026

Corporate Tax

8.5%

State Tax

6.0%

Formation Cost

$1,000

Annual Fee

$0

Forming a Aktiengesellschaft (AG) in Switzerland as a Dropshipping means a total tax burden of 14.5% and an official formation cost of $1,000. The minimum capital requirement is 100,000 CHF. Standard formation takes 14-21 days, or 5-7 days expedited. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$10,600

Ongoing (per year)

$8,500

Detailed cost calculator →

Why Aktiengesellschaft (AG) for Dropshipping?

A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third-party supplier who ships it directly to the customer.

Ideal for

  • E-commerce beginners
  • Digital nomads
  • Location-independent entrepreneurs
  • Marketers testing new products

Challenges to watch

  • Low profit margins (typically 15-20%)
  • High competition and rising ad costs
  • Supplier reliability and shipping delays
  • Payment gateway holds and high chargeback rates

Key decision criteria

  • Access to global payment gateways (Stripe, PayPal)
  • Corporate tax rates and VAT/Sales Tax obligations in target markets
  • Limited liability protection against product liability claims
  • Ease of remote company management

Aktiengesellschaft (AG) formation requirements

Minimum capital

100,000 CHF

Standard timeline

14-21 days

Expedited timeline

5-7 days

Local director

Required

Registered office

Virtual office allowed

Notarization

Required

At least one member of the board of directors or a director with sole signatory rights must be a Swiss resident.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $40,000 revenue)

Gross Revenue$40,000
Corporate Tax-$3,400
State/Local Tax-$2,400
Formation Cost-$1,000
Annual Fee-$0
Net Profit$33,200

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 8%. Registration threshold: 100,000 CHF. Foreign companies providing electronic services to Swiss consumers must register for VAT if their global turnover exceeds CHF 100,000.

Banking & payments for Dropshipping

Opening a corporate bank account for a Swiss AG is straightforward if the directors are Swiss residents. For non-resident founders, traditional banks often require an in-person visit, a solid business plan, and higher initial deposits. Digital banks and specialized private banks offer more accessible remote onboarding options.

Supported payment gateways

StripePayPalDatatransPayrexxWorldlineTWINT

Remote-friendly accounts

  • CIM Bank

    A private Swiss bank that allows remote account opening for non-residents and companies, offering multi-currency accounts and personalized service.

  • Revolut Business

    A popular digital alternative offering multi-currency accounts, low FX fees, and seamless remote onboarding for Swiss companies.

  • Wise

    Excellent for international Swiss AGs needing to hold and transfer multiple currencies with transparent, low fees.

Switzerland incentives & advantages

Patent Box

Up to 90% reduction on cantonal and communal taxes for qualifying IP income.

R&D Super Deduction

Up to 150% deduction of qualifying R&D expenses for cantonal and communal tax purposes.

Aktiengesellschaft (AG) formation steps

1

Step 1: Choose a unique company name ending in 'AG' and select the canton of incorporation, as this dictates your corporate tax rate.

2

Step 2: Draft the Articles of Association, Stampa Declaration, and Lex Friedrich Declaration.

3

Step 3: Open a blocked capital contribution account at a Swiss bank and deposit the minimum paid-up capital (at least CHF 50,000).

4

Step 4: Hold the incorporation assembly before a Swiss notary public to sign the public deed of incorporation.

5

Step 5: Submit the notarized documents to the Cantonal Commercial Register for official registration.

6

Step 6: Receive the Commercial Register extract and use it to unblock the capital account, transferring funds to your active corporate bank account.

7

Step 7: Register for VAT (if global turnover exceeds CHF 100,000) and enroll in the mandatory social security system (AHV).

Dropshipping FAQ

Which country is best for a dropshipping company?

Popular choices include the US (LLC) for access to Stripe/PayPal and US customers, and the UK (LTD) for low setup costs and fast incorporation. Estonia (OÜ) is excellent for digital nomads wanting to reinvest profits tax-free.

Do I need a registered company to start dropshipping?

While you can start as a sole proprietor, forming an LLC or LTD protects your personal assets from product liability and makes it easier to get approved by major payment gateways and suppliers.

How do I handle sales tax or VAT as a dropshipper?

Tax obligations depend on where your customers are located and your sales volume. In the US, you may need to collect sales tax if you reach economic nexus. In the EU, you must comply with VAT rules (like the OSS scheme) if selling to EU consumers.

Ready to form your Aktiengesellschaft (AG)?

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