Every Swiss AG and GmbH must be represented by at least one person resident in Switzerland who holds single signatory authority — this is set out in Article 718 of the Swiss Code of Obligations. For founders based abroad, this is a structural requirement, not a formality. A professional resident director mandate satisfies it and typically starts from CHF 12,000 per year for standard, non-regulated activity.
What the law actually requires
Article 718 of the Swiss Code of Obligations (CO) requires that a company can be represented by at least one person domiciled in Switzerland. In practice this means at least one director or managing officer must be a Swiss resident with the power to bind the company on their own signature.
This is not about controlling the company or owning shares — a foreign founder can still own 100% of the entity. It is about ensuring there is always a locally reachable representative for authorities, the Commercial Register, and banks.
Why it exists
The requirement gives Swiss authorities and counterparties a reliable local point of contact. Tax authorities, the Commercial Register, and your principal bank all expect someone in Switzerland who can act for the company. Without this, the entity cannot be validly registered.
How a resident director mandate works
When no founder or officer lives in Switzerland, a professional resident director provides the required representation. A properly run mandate is more than a name on paper:
- Single-signatory directorship for your AG or GmbH.
- Attendance at the annual general meeting.
- Signing of routine corporate documents and filings.
- Liaison with the Commercial Register and the tax authority.
- A local point of contact for your principal bank.
Cost and scoping
A standard, non-regulated resident director mandate — for holding companies, software, consultancy, or ordinary trading — starts from CHF 12,000 per year. Active operating companies with higher transaction volumes and more counterparties start from CHF 18,000 per year, and FINMA-supervised activity is scoped individually.
Reputable providers scope every mandate before accepting it and decline activities outside their risk appetite. This protects both parties and is exactly what banks and regulators expect to see behind a Swiss entity.
Alternatives
If a founder, co-founder, or senior employee already lives in Switzerland and is willing to take on the representation role and liability, you may not need an external mandate. For everyone else, a professional resident director is the standard, compliant solution — often combined with Zug domiciliation for the legal seat.