Switzerland at a company formation peak

Switzerland is at a high point in terms of company foundations: for 136 years - that's how long the Swiss Commercial Register has existed - this high number of company foundations has never been reached. The current year 2019 is on the home stretch to become the year of the founders. The Institute for Young Enterprises IFJ compiles quarterly statistical data on start-ups based on the publications in the commercial register.

The quarter with the highest number of start-ups in recent years
The year 2019 impresses with more company formations than ever. The analysis of the quarters shows that Q1 and Q3 / 2019 each record values. In the third quarter of 2019, more than 10,000 new companies were founded for the first time in the statistically weakest quarter of the year, with 10,109 start-ups. In the last quarter of the current year, the Institute for Young Entrepreneurs IFJ expects more than 11,000 new start-ups. This means that 2019 is likely to end as the year with the highest number of start-ups since the Swiss Commercial Register came into existence. The SOGC was first published on 6 January 1883.

The most popular legal forms
With 12,670 start-ups, the limited liability company (GmbH) is the most popular legal form for starting a new company. The GmbH has even recorded 3 % more company formations than in the record-high comparative period January to September 2018, followed by the sole proprietorship with 10 724 formations (+3 %), the joint-stock company (AG) with 6347 registrations (-1 %) and the general partnership (KlG) with 997 new registrations (+3 %). The analysis of the IFJ shows that 93 % of all GmbH formations are founded with the legal minimum of CHF 20,000 share capital, while 85 % of the Ak-tiengesellschaften are registered with the minimum of CHF 100,000 share capital. The highest registered share capital of a limited liability company is also a record CHF 1.81 billion (Procter & Gamble International Sàrl, based in Petit-Lancy GE). The highest registered share capital of an AG is CHF 425 million (Central Real Estate Holding AG, domiciled in Zurich).

Cantonal differences in company formation peak
The number of new start-ups increased in 15 cantons, while 11 cantons recorded declines; however, this was mainly the case in cantons with a low number of start-ups. Most cantons show a slight to strong increase in the number of start-ups compared to the previous year. The cantons with the strongest percentage growth are Appenzell Innerrhoden +34 %, Glarus +15 %, Nidwalden, St. Gallen and Thurgau +10 % each, Bern +9 %, Fribourg +8 %, Vaud +7 %, Aargau and Basel-Stadt +4 % each, Zurich +3 %, Solothurn, Graubünden and Geneva +2 % each as well as Schwyz +1 %. The cantons with percentage losses are Ticino (-8 start-ups) and Schaffhausen (-1 start-up) with -0 %, Basel-Landschaft, Lucerne and Valais -2 %, Neuchâtel -3 %, Jura -4 %, Zug -10 %, Appenzell Ausserrhoden -12 %, Obwalden -14 % and Uri -19 %. From the point of view of the major regions, it is above all Eastern Switzerland (+7 %), the Espace Mittelland (+6 %), Zurich and Southwestern Switzerland (+3 %) that are setting positive accents. Central Switzerland recorded a decrease in the number of start-ups compared to the previous year, with -5%.

Start-ups by sector
In terms of company start-ups, there are some sectors that are really booming in the current year. In particular, the sectors with the highest number of start-ups in absolute terms - trades, consulting, gastronomy and accommodation, IT and ICT, healthcare as well as architecture and engineering - are setting a very positive tone. Fewer companies will be founded in the trade, finance and insurance and real estate sectors in 2019.