Frequently Asked Questions
Starting Your Own Business
In theory, if the application is complete, it can be entered into the cantonal daily register within two days and then published in the Swiss Official Commercial Gazette (FOSC) within two days. The processing time at the Commercial Register (CR) is therefore four business days.
As for the preparatory work at the notary’s office, the time required depends on the complexity of the case (ranging from one day to several months). The notary must gather the relevant and necessary information to draft the standard documents and coordinate with the trust company, which is usually required to be incorporated into the legal structure.
The necessary procedures by legal structure are detailed on the website of the Neuchâtel Canton Commercial Registry. The procedures will depend on the legal status of the business. For public limited companies (SA), limited liability companies (Sàrl), and foundations, for example, you must go through a notary.
The costs of forming a company in the canton depend on the cost of registration with the commercial registry, notary fees for drafting the articles of incorporation, and the desired fiduciary services. Notary fees and fiduciary services will depend on the complexity of the case. The capital contribution required to establish certain legal structures is also part of the costs to be anticipated.
Registration in the Commercial Register:
To register with the cantonal Commercial Register, you will need to pay a federal registration fee and a cantonal fee. On average, this will cost a few hundred francs, depending on the legal form of the company.
Hire Staff
The canton of Neuchâtel is home to internationally renowned universities of applied sciences, universities, and research centers (EPFL, Haute École-Arc, University of Neuchâtel, CSEM, etc.) as well as vocational schools (CIFOM and CPLN). Several hundred future employees and skilled workers in a wide variety of sectors are trained each year and are ready to contribute to companies. Companies have access to a large pool of skilled labor, not only in Switzerland but also in neighboring France. Recruitment in Europe is also facilitated by agreements with the European Union.
Recruitment can be easily conducted through vocational schools and universities, through job postings on specialized online recruitment sites, in local newspapers, or—when seeking specific profiles—through headhunting firms.
The staff at the Neuchâtel Labor Market Office also have access to an extensive regional, cantonal, national, and European network to help you find your future employees. Their advisors carefully identify the profiles that best match your business and quickly connect you with potential candidates for permanent or temporary positions.
Swiss legislation is very flexible, promoting business competitiveness. The Swiss labor market is characterized by a very high labor force participation rate, low unemployment (figures from the canton of NE), and highly flexible regulations. Both employers and employees benefit from this flexibility and legal protection. An employee may resign or be terminated by the employer at any time, provided that Swiss law, the terms of the employment contract, and—if the company is a member—collective bargaining agreements are complied with. This is one of the reasons why Switzerland is very attractive to foreign companies as well as to workers. It allows for rapid adaptation to both positive and negative changes in the company’s economic situation.
Companies in the canton of Neuchâtel benefit from a large talent pool, as Swiss employees and cross-border workers are generally flexible when it comes to their commutes. Mobility is encouraged by an efficient transportation infrastructure. In addition, temporary work and remote work have also grown significantly in recent years, which encourages applications from more distant regions.
Switzerland is highly competitive in terms of labor productivity thanks to a high labor force participation rate, longer working hours (40 to 44 hours per week), and fewer vacation days (4 to 5 weeks per year) compared to neighboring countries. Absenteeism is very low, and union action is virtually nonexistent. These factors make Switzerland a very attractive location for businesses. Wages are relatively high, but this reflects the country’s strong performance and high level of prosperity: high wages are a sign of success and attract a skilled workforce.
In a 2015 comparison of cities, gross salaries in Zurich and Geneva ranked first, even surpassing Luxembourg and New York in this regard. Naturally, salary levels vary depending on the region within Switzerland. It should be noted that payroll taxes (taxes and social insurance contributions) are lower than those in other countries, placing Switzerland in first place for net income.
To learn more about labor costs, employment contracts, working hours, leave, social insurance, and recruitment, visit the Greater Geneva Berner Area (GGBa) website
By comparison, the canton of Neuchâtel has a lower cost of living than other cantons or regions with a similar lifestyle (the Riviera, wine-growing regions, cities with universities, etc.). In particular, average rent is 30% to 80% lower than in the cantons of Zurich, Zug, Vaud, or Geneva. Wage levels are therefore generally lower than in these other regions, which allows companies to maintain lower payroll costs when hiring qualified employees with identical profiles and career backgrounds.
Work Permit
For third countries, work permits are granted to nationals who possess specialized skills and whose presence is essential to the proper development of society.
Each application will be reviewed. The procedure for obtaining a residence and work permit for a national of a third country is explained on the website of the cantonal migration office.
Currently, the procedure for hiring a European Union citizen has been simplified. The citizen simply needs to have an employment contract with a company in Switzerland, and the necessary steps are taken directly with the relevant municipality (the municipality where the company is located for cross-border workers, or the municipality of residence for workers moving to the region).
The procedure for obtaining a work permit for a European Union citizen is explained on the website of the cantonal migration office.
Insurance
There are two types of insurance for businesses. Social insurance (AVS/AI, accident insurance, etc.) covers the business owner and their employees, while business insurance covers the company itself.
The need for social insurance depends on the legal form of the business. Business-related insurance will depend on the risks involved (product liability, property damage, export risks, health risks, etc.).
You can purchase social insurance from the insurer of your choice.
The Swiss Confederation's website will provide you with all the information you need about the insurance policies you should purchase if you're starting a business in Switzerland.
To learn more about the job market, labor costs, and social insurance, visit the Greater Geneva Bern Area (GGBa) website.
Legal Structures for a Legal Entity
The Neuchâtel Commercial Registry website lists the various legal forms available. For the main types of businesses, it has created fact sheets that summarize the original documents that must be filed for initial registration in the commercial registry, for amendments, or for deregistration.
The Confederation's website also provides a detailed comparison of the various legal structures (advantages, disadvantages, legal basis, capital contributions, organization, etc.)
Business Services
If you are a business or a project leader and have questions regarding your economic activities, your company’s growth, a plan to establish a business, or your interactions with other government agencies, please contact NECO. The Department of Economic Affairs can answer your questions, provide guidance, offer support, or connect you with the right partners.
Learn about the various services offered by the Department of Economic Affairs.
Yes, the Economic Development Department can facilitate business connections under certain conditions. The service or product offered by the company must be strategic and not already available in the region (no direct competition with companies already operating in the canton). There must also be mutual benefit for both companies involved in the connection. The Economic Development Department cannot handle customer acquisition or marketing on a company’s behalf.
The Department of Economic Affairs does not offer coaching services directly, but it can connect you with partner organizations that can assist you with business innovation projects (product and service innovation, organizational innovation, distribution development, identifying new markets, securing funding, etc.).
To qualify for coaching from the Platinn innovation platform, a company must generally be an SME or a startup based in Western Switzerland with a project that has a multiplier effect (job creation, increased revenue, etc.). Services are provided by a network of accredited coaches. If necessary, they can bring in partners specializing in areas such as intellectual property protection, finance, technical and legal issues, etc.
Microcity Innovation Hub will also be offering an innovation support program by the end of 2019, specifically designed for Neuchâtel-based small and medium-sized enterprises (SMEs). In the meantime, you can already contact the Department of Economic Development to tell us about your innovation projects. We’d love to learn more about them and see how we can help or guide you.
For innovative projects that are not technology-based, the Genilem Foundation can also provide support in the form of coaching.
Cantonal Funding
Several types of projects are eligible for support. These include projects that generate economic added value through exports, as well as projects that fall within the canton’s ten strategic areas of activity (DAS).
The Economic Development Support Act (LADE) also encourages diversification of the economic landscape. As a result, projects outside the scope of the DAS may be supported if they provide significant added value to the regional economy.
Tourism projects that raise the canton’s profile and generate economic value for the region may also be eligible for supplementary support from the Department of Economic Affairs.
The regional economic impact is therefore central to every funding decision, and the potential leverage effects on private investment are naturally taken into account. It is also important to note that the grants are supplementary in nature and are intended to provide a boost to a project that must ultimately become self-sustaining.
The Canton of Neuchâtel, through its Department of Economic Affairs, also supports business creation and promising development projects by providing certain forms of financial assistance. The projects supported must generate economic added value through exports and must fall within the canton’s ten strategic areas of activity (DAS).
Under certain conditions, Cautionnement Romand can facilitate access to bank credit for self-employed individuals and small and medium-sized enterprises (SMEs) by providing a counter-guarantee for their bank loans (maximum amount guaranteed: CHF 1,000,000).
The Finergence Foundation can also provide financial support in the form of loans to help launch new companies with innovative scientific or technological projects. Its support comes before other sources of funding, such as banks or venture capital firms.
Also at the cantonal level, the Platinn innovation platform offers a funding search service for innovative companies in French-speaking Switzerland.
The Foundation for Technological Innovation (FIT) also works to support and foster the growth of startups in the French-speaking part of Switzerland through targeted financial assistance.
To secure financing, companies can turn to a bank:
Swiss Funding
For companies with high growth potential and the prospect of quick returns (startups active in new technologies or in high-value-added niche sectors), venture capital firms may invest in the company’s equity. The amounts invested can be substantial and represent an undeniable risk. Generally, these firms exit the startup quickly by selling their stakes to other investors. In Switzerland, venture capital firms are organized under the umbrella association SECA (Swiss Private Equity & Corporate Finance Association).
Business angels are also private investors who support the same type of innovative, high-growth companies as venture capital firms. Their expectations in terms of return on investment are the same. The amounts invested are generally smaller. Often entrepreneurs themselves, business angels also share their experience. They are usually very involved in the startup phase, serving as advisors and mentors.
Recognized as a nonprofit organization serving the public interest, the Swiss Solidarity Microcredit Foundation also helps people who are striving for economic independence but lack access to bank loans to start their own businesses. Microcredits of up to CHF 30,000 are granted to selected projects at preferential interest rates and with flexible repayment terms.
The INNOSUISSE “Manufacturing Technologies” initiative aims to support innovation projects at the intersection of research and technology transfer carried out by Swiss companies in collaboration with research institutions in the fields of Industry 4.0 and modern manufacturing technologies based on digital technologies.
The European Union’s Eurosearch programs also support research and technological development in Europe to address the major societal challenges of the future. Close collaborations between R&D institutes, universities, and industry are established on an international scale, promoting technology transfer and job creation.
An official application must be submitted along with a detailed project proposal and financial data (business plan, detailed projected budget, etc.). The project’s impact and its economic or tourism-related benefits for the region must also be highlighted. For project leaders or entrepreneurs who have difficulty providing these materials, coaching services can help them put together an application. In all cases, a summary of the project must be provided in advance, and the project must already have reached a certain level of maturity (be well-defined).
Link to the business plan template.
Innovation
You can contact the Microcity Innovation Hub to find scientific, industrial, or innovation partners in the canton as part of a technology transfer project.
From a financial standpoint, funding may be available under certain conditions for pilot technology transfer projects aimed at developing prototypes for a feasibility study.
You can also contact Alliance (an organization that builds bridges between companies and research laboratories with the aim of boosting technology transfer, to the mutual benefit of entrepreneurs and researchers in French-speaking Switzerland) for assistance, particularly with setting up Innosuisse (formerly CTI) projects.
For cross-border projects, Arcjurassien.ch can provide you with information on the eligibility requirements for Interreg projects.
The Department of Economic Affairs is available to review your project, provide guidance, offer financial support if certain conditions are met, and, most importantly, connect you with partner organizations that can assist you in growing your business.
For startups, the Microcity innovation hub offers, among other things, a coaching, workspace, and incubation program. This allows them to benefit from in-house expertise in innovation, business development, business management, accounting, and communications. The Microcity innovation hub is thus the central hub for entrepreneurs in the canton of Neuchâtel. It supports the creation and development of startups and facilitates technology transfer and collaboration with regional industry.
The Platinn innovation platform also offers coaching services and assistance with securing funding to startups in Western Switzerland that have a project with a multiplier effect (job creation, increased revenue, etc.). These services are provided by a network of accredited coaches. If necessary, they can bring in partners specializing in areas such as intellectual property protection, finance, technical matters, legal issues, and more.
By the end of 2019, the Microcity Innovation Hub will also offer an innovation support program specifically designed for Neuchâtel-based SMEs. In the meantime, whether you’re an SME or a large company, you can already contact the Department of Economic Development to tell us about your innovation projects. We’d be delighted to learn more about them and see how we can help or guide you.
The Microcity innovation cluster brings together a range of organizations (EPFL, CSEM, HE-ARC, the University of Neuchâtel, CIFOM, CPLN, etc.), combining world-class academic, research, and industrial expertise across a variety of fields. However, micro- and nanotechnology and its derivatives, microfabrication, and industrialization processes are truly at the heart of the region’s expertise.
Please feel free to contact the Microcity Innovation Hub to determine which partner is best suited to assist you with your innovation project. We can help connect you with the appropriate partner.
Neuchâtel's Economic Ecosystem
Neuchâtel is the canton that specializes in small, precise, complex, reliable, and high-value-added products.
With watchmaking as its starting point, the canton has naturally diversified and specialized. Today, Neuchâtel’s industrial landscape is home to global industry leaders from a variety of sectors, including medtech, pharmaceuticals, luxury goods, machine tools, precision instruments, information and communication technologies (ICT), and renewable energy.
However, thanks to the presence of the CSEM and numerous companies in the field, the canton stands out particularly in the areas of microtechnology and nanotechnology. Its expertise in the production of IoT components with low-power electronics is particularly noteworthy. The canton is also a hub for renewable energy and is developing a center of excellence in space technology.
The canton’s main industries are watchmaking and luxury goods, pharmaceuticals, photovoltaics, information and communication technologies (ICT), machine tools and precision instruments, and strategic services. These industries also benefit from the presence of many other companies based in the region that provide strategic services (wealth management, financial services, IT services, etc.).
A strategic business sector is an area that is a priority for the Canton of Neuchâtel in terms of development and support, in line with the policy of strengthening existing key sectors and diversifying the economic base.
The Economic Development Support Act (LADE) thus prioritizes companies and projects in the following ten sectors:
- Watchmaking,
- Luxury Industry,
- Machinery industry,
- Medical device industry,
- Pharmaceutical industry,
- Electronics and Microelectronics,
- Information Technology and Telecommunications,
- Renewable energy,
- Agri-food industry,
- Strategic and Financial Services for Businesses.
In Switzerland, taxing authority traditionally rests with the cantons. The federal government has only limited authority to levy taxes. As a result, there are differences in taxation among the cantons, which encourage local governments to provide efficient services and high-quality infrastructure for their regions.
The Swiss Tax System Explained
At the cantonal level, corporations (public limited companies, SA; limited liability companies (Sàrl); limited partnerships with share capital (SCA); cooperatives; associations, foundations, and other legal entities that have their registered office, effective management, or an economic connection (e.g., a business branch or ownership of real estate) in the canton of Neuchâtel are required to file a tax return.
Explanations from the Tax Department on Taxes for Corporations
Calculate Your Company's Taxes
For individuals, your tax return will be used to determine your taxable income and assets. This includes your income and assets, minus the statutory deductions to which you are entitled.
Moving to the Canton of Neuchâtel
Yes, in Switzerland, every resident must purchase basic LAMAL health insurance for themselves and their family from the health insurance provider of their choice. The many insurers offer rates that vary based on different factors, such as age, gender, canton of residence, or the amount of the annual deductible. It is important to know that the benefits covered under this basic plan are governed by Swiss law and are therefore exactly the same from one health insurance provider to another.
Access to health care, including care from specialists, is guaranteed regardless of income. The legal provisions of the “LaMal” are very strict to prevent any discrimination. Thus, insurers are not allowed to refuse to cover an individual, exclude them, or adjust their monthly premium in the event of illness. Furthermore, they are not allowed to require a health questionnaire.
People who wish to receive specialized care can purchase supplemental insurance. Various optional coverage options are available, depending on the services desired: alternative medicine, dental care, treatment at a private clinic, etc. Unlike basic insurance, health insurance providers may require a health questionnaire when you purchase supplemental coverage.
Please note that medical care resulting from an accident is covered by the employer’s insurance for employees. Otherwise, you must add this option to your basic LAMAL insurance coverage.
The canton of Neuchâtel is strategically located between the international airports of Geneva, Zurich, and Basel. More than 600 flights depart from these airports daily, and they are accessible via direct trains from Neuchâtel—taking 1 hour and 15 minutes to Geneva, 1 hour and 30 minutes to Basel, and 2 hours to Zurich. The same travel times apply when traveling by car, thanks to an efficient road network.
With the Eplatures Airport located in La Chaux-de-Fonds, Neuchâtel also has its own business airport equipped for instrument flights and offering round-the-clock customs services. As a result, private planes and helicopters can land right in the heart of Neuchâtel’s economic hub and connect to all of Switzerland, including the intercontinental airports in Geneva and Zurich.
Geneva International Airport
Zurich International Airport
Basel International Airport
Les Eplatures Business Airport
Housing prices always depend on the area of residence within the canton. The cities of Le Locle and La Chaux-de-Fonds, whose architecture is listed as a UNESCO World Heritage Site, offer, for example, spacious, charming apartments with moldings and fireplaces at very affordable prices compared to other cantons and regions. Housing prices in the Val-de-Travers and Val-de-Ruz are also very affordable compared to neighboring cantons (Fribourg, Vaud, Bern) and offer an idyllic living environment in the heart of nature. The Neuchâtel lakeside area, with its lake and vineyards, is naturally more sought-after, with higher rents than in the rest of the canton or in the rural areas of neighboring cantons. However, renting or buying an apartment or house on the Neuchâtel Riviera is much more affordable and easier in Neuchâtel than in the Lake Geneva region or the Zurich area.
For comparison, the average rent is 30% to 80% cheaper than in the cantons of Zurich, Zug, Vaud, or Geneva.
The canton offers a rich and varied cultural scene. Several websites provide information on concerts, dance performances, plays, exhibitions, festivals, and other entertainment events that take place each week in the canton’s various theaters, cities, and towns.
The Jura3lacs and Neuchâtel tourism websites also provide a non-exhaustive list of the many sports activities you absolutely must try, as well as cultural activities and food-related events you won't want to miss.
Calendar of Cultural Events in the Jura Region
A few must-see events mark the canton’s calendar throughout the year. These include, for example, the NIFFF International Fantastic Film Festival, the Festi’Neuch music festival, the Six Pompes Beach, the Buskers Festival, the Arts Festival, and the famous Grape Harvest Festival, which draws some 200,000 people to Neuchâtel every last weekend in September.
The InterNations Neuchâtel expat network regularly organizes events that allow expats in the region to get together and build connections. The network’s website also facilitates the exchange of advice, which is already a first step toward helping expats integrate successfully into the region.
A website dedicated to expatriates from France is also currently under development
However, it is through cultural and sports activities, school events, and festive occasions—as well as through their professional activities—that expatriates will have the best chance of integrating into the local community and learning French. Some municipalities offer French classes to newcomers, just as public schools do for children who have recently moved to Switzerland.
Certain public establishments (bars, restaurants, pubs) are also known as gathering places for expats—particularly those from the English-speaking community—and will allow you to build connections with other expats or members of other foreign communities.
If needed, the Department of Economic Affairs can also recommend relocation agencies that can help expatriate employees settle into the canton of Neuchâtel (housing, schools, administrative procedures, networking, etc.). The Department of Economic Affairs can also connect newcomers with other expatriates living in the region.
When you move to one of the municipalities in the canton of Neuchâtel, you must register with the municipality’s residents’ registry within 14 days of moving in and provide certain required documents (at a minimum, your birth certificate, family record book, and identification document).
Depending on your region or country of origin (Switzerland, EU/EFTA, or a non-European country) and your status (employee, student, family reunification, etc.), you will be required to provide different documents in order to obtain your certificate of residence and that of your family.
Please contact your local municipality in advance (via their website or by phone) to find out what documents you need to provide and the exact procedure.
Examples:
Information about the City of Neuchâtel
Information about the city of La Chaux-de-Fonds
Training
The Swiss education system is considered one of the best in the world. The World Economic Forum (WEF) consistently ranks Switzerland among the top three countries in the world, alongside Finland and Norway, in terms of the education of its population (the ability to maximize human capital).
Swiss public schools do indeed offer a very high standard of education, and the curricula are standardized at the regional level. Regardless of the municipality where your child will attend school, the curriculum and academic requirements will be identical; this is why private schools are not very common throughout Switzerland. You can therefore confidently enroll your child in school in the municipality where you wish to live. If your child does not speak French, remedial classes will be offered directly at the school.
However, if you prefer a private school, you can enroll your child at the Catholic School of Neuchâtel (open to all faiths) or at the École moderne.
Enrollment in an international school is also available at the International School of Neuchâtel (bilingual French-English immersion program) for children up to age 12 (through 8th grade in the Harmos system), and at the École Moderne for children ages 13 to 16 (through 11th grade in the Harmos system). Both schools are located on the same campus in Neuchâtel.
Yes, you can enroll your children ages 3 to 12 (up to 8th grade in the Harmos system) at the International School of Neuchâtel (bilingual French-English immersion program). Students aged 13 to 16 (9th through 11th grades under the Harmos system) can continue their education at the École Moderne, a private school offering a bilingual French-English curriculum. Both schools are located on the same campus in Neuchâtel.
There are other private schools in the canton, but they are not bilingual.
What options does the canton offer for childcare on weekdays?
There are several options for childcare during the week. The choice will depend on your child’s age and your specific needs regarding their care and education.
Daycare centers are very professional and generally care for children between 3 months and 4 years of age. They are open continuously throughout the day and provide lunch. Rates vary depending on the type of daycare center (state-subsidized or private).
There are also drop-in daycare centers or kindergartens with limited hours that allow parents to have their preschool-aged children cared for for a few hours or half-days per week. They sometimes offer themed workshops (music, painting, drawing, etc.).
If you’d like a more personalized care experience, licensed in-home child care providers also care for children—either individually or in small groups—in their own homes. Often parents themselves, they offer more flexible schedules than those at group childcare centers. This system also receives subsidies from the Canton of Neuchâtel.
You can also arrange for in-home childcare by hiring private nannies, babysitters, and au pairs.
List of Preschool Facilities in the Canton of Neuchâtel
Daycare centers are very professional and generally care for children between 3 months and 4–5 years of age. They are open continuously throughout the day and provide lunch.
After-school programs, on the other hand, care for schoolchildren outside of school hours through the end of elementary school, or until they are about 10–12 years old. Their hours vary somewhat depending on the facility, but in general, all of them care for children before school starts—including lunch—and in the afternoon after school.
In terms of fees, subsidized daycare centers and after-school programs—whether public or private—charge an hourly or daily rate based on a scale established by the Canton of Neuchâtel. This scale takes into account the parents’ taxable income, as well as the number of children enrolled per family. Unsubsidized private facilities, on the other hand, charge fixed rates that vary by facility.
Parents who wish to enroll their child in after-school care can sign up for the cantonal waiting list, indicating their preferred care facility or facilities.
The Canton of Neuchâtel’s policy supports families in general. In addition to offering subsidized childcare facilities with rates that are affordable—particularly when compared to the Lake Geneva region—it is adapting to the growing demand from families seeking quick and easy access to preschool and after-school care spots. In addition to the currently available spots, the canton has committed to creating, by 2020, nearly 2,400 preschool spots, as well as 3,000 after-school care spots.
List of Preschool Facilities in the Canton of Neuchâtel