Do You Need a Swiss Resident Director? Here’s What You Must Know

Swiss company law requires that at least one person in your company’s management (board of directors) has official residency in Switzerland. If you’re not a resident yet, you’ll need someone who is.

Yes – There Are Consultants Who Offer This Service

This is a common situation for foreign founders. Many law firms and consulting companies offer resident director services to help you meet this legal requirement temporarily.

No Salary Required – But Read This Carefully!

❗ You don’t have to pay a salary to your appointed director.

That sounds simple… but there’s a catch:

❗❗❗ A director has full legal authority.

They can sign contracts, represent the company, open bank accounts, and make decisions – even without your direct approval, unless limited.

So while it may feel like just a formality, the legal power of this person is very real.

What You Must Clarify Before You Appoint a Director

Always ask the service provider:

• Is the director’s role purely formal, or are they actively involved?

• What is the fee – monthly or yearly? Are there extra costs?

• Is there a fixed term for this service, or can they remain indefinitely?

• Can you easily replace them once you gain Swiss residency?

• Are legal limitations (e.g. joint signature) defined in the company’s registration?

Choose Carefully – This Is Not a Box to Tick

While many consultants are trustworthy, it's critical to know who you're giving signing power to. This isn't just compliance issue - it's a business risk if not handled properly.

If your goal is to become a resident later, make sure your service contract reflects that - with clear end dates and replacement options.

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Why You Need a Swiss-Resident Director