Latvian citizens and companies can establish and own Swiss GmbH and AG companies. This practical guide explains Swiss company formation for Latvian entrepreneurs, resident director requirements, corporate tax and VAT, banking, relocation, Latvia-Switzerland business links and the Latvian community in Switzerland.
Latvian citizens and companies can establish and own Swiss GmbH and AG companies. For Latvian entrepreneurs, Switzerland offers access to a stable legal system, an internationally recognised corporate environment, sophisticated banking infrastructure and competitive corporate taxation in selected cantons.
The most common structures are a Swiss GmbH, broadly comparable to a Latvian SIA, and a Swiss AG, broadly comparable to a Latvian AS.
One important Swiss-specific requirement is that a GmbH or AG must be capable of being represented by at least one person resident in Switzerland.
Official Swiss SME Portal – Company formation and legal forms
For Latvian entrepreneurs, Switzerland is also less foreign than it may initially appear. There is a long historical relationship between the two countries, an established Latvian community already living in Switzerland, direct air connections with Riga and increasingly visible Latvian business activity in the Swiss market.
Latvia and Switzerland: a relationship going back more than a century
Switzerland played an interesting role in the development of modern Latvia.
Several political congresses connected with the development of Latvian independence were held in Switzerland. Switzerland formally recognised the Republic of Latvia in 1921 and never recognised Latvia's incorporation into the Soviet Union.
Diplomatic relations were restored after Latvia regained independence in 1991.
Swiss Federal Department of Foreign Affairs – Switzerland and Latvia
One of the strongest cultural connections between Latvia and Switzerland can be found in Lugano in the canton of Ticino.
Latvian writers and political figures Rainis and Aspazija came to Switzerland after the 1905 Revolution and lived for many years in Castagnola near Lugano.
They remained in Switzerland from 1906 until their return to Latvia in 1920, and an important part of their literary and intellectual work was created during this period.
Their connection with Lugano remains visible today.
In 2025, a street in Castagnola was officially named Via Rainis e Aspazija. The inauguration took place in the presence of Swiss Federal Councillor Ignazio Cassis and Latvian Minister of Culture Agnese Lāce.
City of Lugano – Via Rainis e Aspazija
The historical relationship between Latvia and Switzerland therefore extends far beyond modern business relations.
A strong Latvian community already exists in Switzerland
Latvians considering Switzerland are not entering a country without an established Latvian community.
According to Latvia's Population Register, 2,820 Latvian nationals were registered as living in Switzerland as of 1 January 2026, including 2,746 Latvian citizens.
Latvian Office of Citizenship and Migration Affairs – Population statistics
There are also established Latvian organisations and cultural initiatives in Switzerland.
The Latvian Ministry of Foreign Affairs lists organisations including Biedrība Šveice–Latvija and the Auseklis Latvian Language and Culture School in Zurich.
Latvian Ministry of Foreign Affairs – Latvian organisations abroad
The Latvian community maintains its language, traditions and cultural identity through schools, cultural groups and regular community events.
Traditional Jāņi and summer-solstice celebrations continue to bring Latvian families together in Switzerland. These celebrations include Latvian music, folk traditions, wreath-making, dancing, bonfires and the traditional zaļumballe.
Latviesi.com – Latvian Midsummer celebration in Switzerland
Latvia's national day on 18 November is also celebrated by the Latvian community in Switzerland. Latvian diaspora organisations and representatives have organised Independence Day gatherings in Switzerland, including events in Zurich.
Latvian Ministry of Foreign Affairs – Latvian national celebrations abroad
For Latvians relocating to Switzerland, professional and social integration therefore does not mean losing the connection with Latvian language, culture and traditions.
Latvian names with strong Swiss connections
The Latvian-Swiss relationship is not limited to Rainis and Aspazija.
Latvian ice hockey goalkeeper Elvis Merzļikins developed through the youth system of HC Lugano and built his professional career in Switzerland before moving to the NHL.
Latvians have also reached senior management positions within major Swiss companies.
Girts Cimermans, a Latvian citizen, served as CEO of Swiss-listed medtech company medmix from 2021 until 2024 after previously holding senior positions within Swiss industrial group Sulzer.
These examples illustrate that Switzerland has long been a place where Latvians have worked, studied, developed businesses and built international careers.
Latvian companies are already doing business with Switzerland
Latvian businesses are increasingly visible in the Swiss market.
One particularly visible example can literally be seen at Swiss airports.
airBaltic aircraft flying for SWISS
SWISS International Air Lines uses aircraft operated by Latvia's airBaltic under a wet-lease arrangement.
According to SWISS's official fleet information, as of 1 March 2026 its wet-lease fleet included five airBaltic Airbus A220-300 aircraft.
Under a wet lease, the operating airline provides the aircraft together with crew and agreed operational services.
SWISS – Official company and fleet information
For Latvian passengers and entrepreneurs living in Switzerland, this is a particularly visible example of a Latvian company being trusted to provide operational capacity to Switzerland's national airline.
airBaltic also provides direct connections between Riga and Zurich.
airBaltic – Flights from Riga to Zurich
Latvian technology, e-commerce and life-science businesses
Latvian-founded companies also serve customers in the Swiss market.
For example, Printful applies Swiss VAT to relevant transactions involving Switzerland and Liechtenstein.
Printful – Swiss VAT information
Switzerland is also increasingly relevant for Latvian life-science businesses.
In 2026, Latvian biotechnology, pharmaceutical and biomedical companies participated in Swiss Biotech Day in Basel through an official Latvian business delegation organised by the Investment and Development Agency of Latvia, LIAA.
LIAA – Latvian companies at Swiss Biotech Day 2026
For a growing Latvian business, the relevant question may therefore no longer be whether it can sell into Switzerland, but when establishing a local Swiss corporate presence starts to make commercial sense.
Can a Latvian citizen establish a company in Switzerland?
Yes. A Latvian citizen can establish and own a Swiss GmbH or AG.
Swiss company law permits foreign ownership.
Depending on the chosen structure, a Swiss company can be owned by:
- a Latvian individual
- several Latvian individuals
- a Latvian SIA
- another Latvian or international legal entity
- a combination of different investors
The shareholder does not have to be Swiss.
What Switzerland does require is local representation.
Does a Swiss company need a Swiss resident director?
Yes. A Swiss GmbH or AG must be capable of being represented by at least one person resident in Switzerland.
For a GmbH, that person may be a managing director, or Geschäftsführer.
For an AG, that person may be a member of the board of directors, or Verwaltungsrat, or another appropriately authorised person.
The Swiss resident representative does not necessarily need to own shares in the company.
Official Swiss SME Portal – GmbH
Official Swiss SME Portal – AG
This requirement is particularly important for Latvian entrepreneurs who want to own a Swiss company while continuing to live in Latvia.
Swiss GmbH vs Latvian SIA
For many Latvian entrepreneurs, the easiest way to understand a Swiss GmbH is to compare it with a Latvian SIA.
The structures are not legally identical, but both are private limited-liability companies commonly used by SMEs and owner-managed businesses.
Latvian SIA
- Common private limited-liability company in Latvia
- Frequently used by SMEs and owner-managed businesses
- Standard minimum share capital: EUR 2,800
- Foreign ownership is permitted
- A legal entity can own shares
Latvian Enterprise Register – Compare business types
Swiss GmbH
- Common private limited-liability company in Switzerland
- Frequently used by SMEs and owner-managed businesses
- Minimum share capital: CHF 20,000
- The capital must be fully paid at incorporation
- Foreign ownership is permitted
- A Latvian individual or Latvian SIA can own shares
- GmbH shareholders are entered in the Swiss Commercial Register
- At least one person with authority to represent the company must be resident in Switzerland
Official Swiss SME Portal – GmbH
For many Latvian entrepreneurs establishing their first operational company in Switzerland, a GmbH is therefore the natural starting point.
Swiss AG vs Latvian AS
For larger businesses, holding structures, companies expecting investors or businesses where ownership flexibility is particularly important, a Swiss AG – Aktiengesellschaft may be more appropriate.
The closest Latvian comparison is an AS – akciju sabiedrība.
Latvian AS
- Corporate form generally used for larger businesses and investment structures
- Minimum share capital: EUR 25,000
- Shareholder liability is limited
- Foreign shareholders are permitted
Latvian Enterprise Register – Share capital requirements
Swiss AG
- Frequently used for larger businesses, international groups, holdings and companies with investors
- Minimum share capital: CHF 100,000
- At least 20% of the share capital must be paid at incorporation
- At least CHF 50,000 must be paid in under the standard minimum-capital rules
- Foreign shareholders are permitted
- A Latvian individual or Latvian company can own the shares
- At least one person authorised to represent the AG must be resident in Switzerland
Latvia vs Switzerland: key business differences
Instead of comparing only headline tax rates, Latvian entrepreneurs should look at the broader structural differences between the two jurisdictions.
Company structures
- Latvia's typical private company is the SIA
- Switzerland's comparable private company is the GmbH
- Latvia's larger corporate form is the AS
- Switzerland's comparable form is the AG
Minimum capital
- Latvian SIA: EUR 2,800
- Swiss GmbH: CHF 20,000
- Latvian AS: EUR 25,000
- Swiss AG: CHF 100,000
VAT
- Latvia standard VAT: 21%
- Switzerland standard VAT: 8.1%
Corporate taxation
- Latvia primarily taxes distributed and conditionally distributed corporate profits
- Switzerland generally taxes annual corporate profits
- Swiss corporate taxation consists of federal, cantonal and municipal components
Currency and market structure
- Latvia uses the euro
- Switzerland uses the Swiss franc
- Latvia is an EU member state
- Switzerland is not an EU member state but has extensive bilateral arrangements with the EU, including the free-movement framework
Local representation
- Switzerland requires a GmbH or AG to have at least one person resident in Switzerland who can represent the company
The most important point is that corporate tax rates cannot simply be compared as 20% in Latvia versus approximately 12% in Switzerland, because the two countries tax corporate profits differently.
Corporate tax in Latvia vs Switzerland
Latvia generally applies corporate income tax when profit is distributed or treated as distributed rather than applying conventional annual taxation to retained corporate profits.
Latvian State Revenue Service – Corporate Income Tax
Switzerland follows a different model.
Swiss companies are generally taxed annually on their profits, with taxation consisting of federal, cantonal and municipal components.
The effective corporate tax rate therefore depends significantly on where the company is located.
This makes the choice of canton and municipality an important element of Swiss company structuring.
Why Wollerau and Canton Schwyz are attractive for companies
Many international entrepreneurs initially consider Zurich or Zug when establishing a Swiss company.
However, Canton Schwyz, and particularly municipalities such as Wollerau, Freienbach and Feusisberg, can provide a highly attractive alternative.
The Canton of Schwyz states that companies located in its most tax-efficient municipalities can face an effective total corporate income-tax burden of approximately 11.8% including direct federal tax.
Canton Schwyz Tax Administration – Corporate taxation
Wollerau is located close to Zurich while benefiting from the tax environment of Canton Schwyz.
For businesses whose customers, banks, advisers or management activities are concentrated around Zurich, this combination can be particularly attractive.
VAT: Switzerland 8.1% vs Latvia 21%
Another immediately visible difference is VAT.
Latvia's standard VAT rate is 21%.
Latvian State Revenue Service – VAT rates
Switzerland's standard VAT rate is 8.1%, with reduced rates applying to certain categories.
Swiss Federal Tax Administration – VAT rates
For many businesses, Swiss mandatory VAT registration becomes relevant when the applicable worldwide turnover reaches CHF 100,000, although the precise treatment depends on the nature of the business and place of supply.
Swiss Federal Tax Administration – VAT liability
For businesses selling directly to consumers, the difference between Swiss and Latvian VAT rates can be commercially significant.
Can a Latvian citizen live and work in Switzerland?
Yes, subject to Swiss registration and residence-permit requirements.
Latvia is an EU member state.
Under the Swiss-EU free-movement framework, EU/EFTA nationals can live and work in Switzerland subject to the applicable registration and residence-permit procedures.
Swiss government portal ch.ch – Working in Switzerland
However, two questions should be considered separately:
- ownership of a Swiss company
- personal residence and employment in Switzerland
A Latvian entrepreneur can therefore own a Swiss GmbH or AG without necessarily becoming resident in Switzerland.
Can a Latvian SIA own a Swiss GmbH or AG?
Yes.
A Swiss GmbH or AG can have a legal entity as shareholder.
This means that a Latvian SIA can establish a wholly owned Swiss subsidiary rather than requiring the Latvian business owner to hold the shares personally.
A simple structure could therefore be:
Latvian SIA ↓ Swiss GmbH or AG
This can be relevant for Latvian companies entering the Swiss market, serving Swiss customers locally or developing a broader international corporate structure.
Cross-border ownership can, however, create additional considerations involving taxation, transfer pricing, management and economic substance.
Latvia and Switzerland have a double-taxation agreement.
Swiss Federal Tax Administration – Double taxation agreement with Latvia
Opening a Swiss corporate bank account
Establishing a Swiss company and obtaining a Swiss corporate bank account are related but separate processes.
For a standard GmbH or AG formation, incorporation capital is generally deposited into a capital contribution account before registration.
After the company has been entered in the Swiss Commercial Register, the capital can normally be released according to the bank's procedures.
An operational bank account remains subject to the individual bank's onboarding and compliance approval.
Swiss financial institutions have obligations to identify contracting parties and beneficial owners and to understand the economic background of business relationships.
FINMA – Combating money laundering
A Swiss bank may request information concerning:
- shareholders and ultimate beneficial owners
- source of funds
- source of wealth
- expected annual turnover
- customers and suppliers
- countries involved in the company's business
- expected payment flows
- contracts and invoices
- business plan
- reason for establishing the company in Switzerland
- expected Swiss operational substance
Latvian nationality itself is not an obstacle to Swiss banking.
What generally matters more is whether the business model, ownership, funding and expected transaction profile are understandable and acceptable to the bank.
When does a Swiss company make sense for a Latvian business?
A Swiss company should normally have a genuine commercial purpose rather than being created only because Switzerland has a strong international reputation.
Typical reasons include:
- entering the Swiss market
- building a DACH or European headquarters
- contracting with Swiss or international clients
- creating a Swiss sales company
- conducting international trading
- establishing an investment or holding structure
- raising international capital
- bringing investors into an AG
- establishing operational substance in Switzerland
- employing staff in Switzerland
- accessing Swiss professional, financial and business infrastructure
A Latvian company already generating significant international revenue may therefore reach a point where a Swiss subsidiary or separate Swiss company becomes commercially more appropriate than conducting all activity directly from Latvia.
Switzerland is not only Zurich and Zug
International founders frequently begin with the question:
Should I establish my company in Zurich or Zug?
Switzerland, however, has 26 cantons with different tax conditions, administrative characteristics and business environments.
The appropriate location depends on factors such as:
- corporate taxation
- where management will actually operate
- office requirements
- banking relationships
- proximity to clients
- employee location
- regulated activities
- availability of a resident director
- long-term purpose of the company
For international entrepreneurs who want proximity to Zurich combined with competitive taxation, Wollerau and the wider Höfe region in Canton Schwyz deserve particular consideration.
How Alpine Capital supports Latvian entrepreneurs in Switzerland
Alpine Capital has Latvian roots combined with practical Swiss business experience.
This provides a particular understanding of the questions Latvian entrepreneurs typically face when moving from the familiar Latvian SIA or AS environment into the Swiss GmbH and AG system.
Concepts such as Swiss-resident representation, cantonal taxation, capital contribution accounts, Commercial Register procedures and Swiss bank onboarding can operate differently from the systems familiar to Latvian entrepreneurs.
Depending on the project, Alpine Capital can coordinate or assist with:
- Swiss GmbH and AG formation
- comparison of possible Swiss company structures
- Swiss registered business address
- resident director solutions
- office and operational presence in Wollerau
- capital contribution and corporate bank-account processes
- shareholder and beneficial-owner documentation
- compliance and onboarding preparation
- Swiss accounting and administrative coordination
- VAT and employer-registration coordination
- recruitment and Swiss staffing solutions
- relocation and practical Swiss market-entry support
For regulated industries, international trading or higher-risk business models, licensing, regulatory, sanctions and AML implications should be assessed before establishing the company or approaching banks.
Frequently Asked Questions about Switzerland for Latvian entrepreneurs
Can a Latvian citizen open a company in Switzerland?
Yes.
A Latvian citizen can establish and own a Swiss GmbH or AG.
Foreign ownership is permitted, but the company must have at least one person resident in Switzerland with sufficient authority to represent it.
Official Swiss SME Portal – GmbH
What is the Swiss equivalent of a Latvian SIA?
The closest practical comparison is the Swiss GmbH – Gesellschaft mit beschränkter Haftung.
A Swiss GmbH requires minimum share capital of CHF 20,000.
Official Swiss SME Portal – GmbH
What is the Swiss equivalent of a Latvian AS?
The closest practical comparison is a Swiss AG – Aktiengesellschaft.
The minimum share capital is CHF 100,000, with at least CHF 50,000 required to be paid under the standard minimum-capital rules.
Official Swiss SME Portal – AG
Can a Latvian SIA own 100% of a Swiss company?
Yes.
A legal entity may hold shares in a Swiss GmbH or AG, meaning a Latvian SIA can establish a wholly owned Swiss subsidiary.
Do I need a Swiss business partner?
Not necessarily.
The Swiss resident representative does not have to be an independent shareholder or Swiss business partner.
The legal requirement concerns Swiss-resident representation, not mandatory Swiss ownership.
Do I personally have to move from Latvia to Switzerland?
No.
Ownership of a Swiss company and personal residence in Switzerland are separate questions.
A Latvian entrepreneur may remain resident in Latvia while owning a Swiss company, provided the company's Swiss legal requirements are fulfilled.
What is the corporate tax rate in Switzerland?
There is no single Swiss corporate tax rate.
Companies pay federal, cantonal and municipal taxes.
In some of the most tax-efficient municipalities of Canton Schwyz, the effective total corporate income-tax burden is approximately 11.8%, including direct federal tax.
Canton Schwyz Tax Administration – Corporate taxation
Is Switzerland's corporate tax lower than Latvia's?
The systems cannot be compared simply by looking at headline rates.
Latvia primarily taxes distributed and conditionally distributed profit, while Switzerland generally taxes annual corporate profits.
The correct comparison therefore depends on the individual company's profits, distributions, reinvestment and structure.
What is Swiss VAT?
The standard Swiss VAT rate is 8.1%, compared with 21% in Latvia.
Swiss Federal Tax Administration – VAT rates
Latvian State Revenue Service – VAT rates
Can a Latvian obtain a Swiss residence permit?
Yes, subject to the applicable Swiss requirements.
Latvian citizens are EU citizens and benefit from the EU/EFTA free-movement framework applicable between Switzerland and the European Union.
Swiss government portal ch.ch – Working in Switzerland
Is opening a Swiss company bank account guaranteed?
No.
Every Swiss bank performs its own KYC, AML and commercial-risk assessment.
Establishing a Swiss company does not oblige a Swiss bank to accept the business as a client.
Are there many Latvians living in Switzerland?
Yes.
According to Latvia's Population Register, 2,820 Latvian nationals were registered as living in Switzerland as of 1 January 2026.
Switzerland also has established Latvian associations, cultural groups and a Latvian language and culture school in Zurich.
Latvian Office of Citizenship and Migration Affairs – Population statistics
Is there an active Latvian community in Switzerland?
Yes.
Latvian organisations in Switzerland organise cultural activities, community gatherings and traditional celebrations.
Latvian Jāņi and 18 November Independence Day celebrations continue to bring members of the Latvian community together.
Latviesi.com – Latvian Midsummer celebration in Switzerland
Latvian Ministry of Foreign Affairs – Latvian national celebrations abroad
Did Rainis and Aspazija really live in Switzerland?
Yes.
Rainis and Aspazija lived in exile in Switzerland, particularly in Castagnola near Lugano.
Their connection with the region is commemorated today by Via Rainis e Aspazija.
City of Lugano – Via Rainis e Aspazija
Does SWISS really use airBaltic aircraft?
Yes.
SWISS has officially reported airBaltic Airbus A220-300 aircraft operating as part of its wet-lease fleet.
SWISS – Official company and fleet information
Can Alpine Capital help Latvian entrepreneurs establish a company in Switzerland?
Yes.
Alpine Capital has Latvian roots and practical Swiss market experience and can assist Latvian entrepreneurs with company formation, resident director solutions, registered addresses, offices, banking preparation, compliance coordination, recruitment and wider Swiss market-entry support.
Latvia and Switzerland: small countries with international ambitions
Latvia and Switzerland are different in scale, history and economic structure, but they also share certain characteristics.
Neither country can rely purely on a very large domestic market. Successful businesses therefore tend to think internationally.
Latvia has produced internationally competitive businesses in aviation, technology, fintech, manufacturing and digital services.
Switzerland has developed one of the world's most internationally connected business environments, particularly in finance, pharmaceuticals, life sciences, technology, commodities, advanced manufacturing and professional services.
The relationship between the two countries also has an unusual human dimension.
From Rainis and Aspazija in Lugano, to today's Latvian community across Switzerland, to airBaltic Airbus A220 aircraft operating for SWISS, Latvia has a much stronger connection with Switzerland than many Latvian entrepreneurs initially realise.
For a Latvian business that has already outgrown its domestic market, Switzerland can therefore be more than another export destination.
It can become the next stage of an international corporate structure.
Planning to establish a Swiss company from Latvia?
If you are considering establishing a Swiss GmbH or AG, relocating part of your business to Switzerland or creating a Swiss subsidiary for an existing Latvian company, the first step is to determine the appropriate company structure, canton, local representation and banking strategy.
Alpine Capital has Latvian roots and practical Swiss market experience, giving us a particular understanding of both the Latvian business environment and the practical requirements of establishing and operating a company in Switzerland.
Alpine Capital can assist with:
- Swiss GmbH and AG formation
- Swiss resident director solutions
- registered business address and office solutions in Wollerau
- Swiss corporate bank account preparation
- compliance and beneficial-owner documentation
- accounting and administrative coordination
- recruitment and staffing in Switzerland
- relocation and Swiss market-entry support
For an initial assessment of your planned Swiss structure, contact Alpine Capital GmbH in Wollerau, Switzerland.
- Email: [team@alpinecapital.ch](mailto:team@alpinecapital.ch)
- Website: Alpine Capital
When contacting us, it is helpful to briefly describe your planned business activity, current Latvian company structure, ownership, expected markets and intended activities in Switzerland.
Official and Supporting Sources
This article provides general information and does not constitute individual legal, tax, banking or investment advice. Cross-border structures should be assessed according to the specific ownership, business activities, tax residence and transaction profile involved.