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Are Shelf Companies a Good Fit for Start-ups?

SwissFirm advising entrepreneurs on shelf company solutions in Switzerland

What Is a Shelf Company in Switzerland?

A shelf company (Firmenmantel) is a business entity that has been legally registered but has never traded. It sits “on the shelf” until someone purchases it to begin operations.
For entrepreneurs eager to launch quickly, a shelf company might seem like a shortcut. But is it the right option for your start-up?

The Advantages of Shelf Companies

  1. Faster Market Entry
  2. Instead of waiting for the incorporation process, you can use an existing entity and start business activities almost immediately.
  3. Perceived Credibility
  4. A shelf company comes with a prior registration date, which can create the impression of longevity—sometimes valuable for tenders, contracts, or partnerships.
  5. Practical for Certain Opportunities
  6. Some industries require companies to be a minimum age before qualifying for bids or financing. Shelf companies can meet this requirement.

The Risks and Downsides

  1. Higher Upfront Cost
  2. Shelf companies usually cost more than founding a company online.
  3. Compliance Risks
  4. Without due diligence, you could inherit liabilities or administrative issues.
  5. No Trading History
  6. Despite an older registration date, a shelf company has no real financial records—something investors and banks will check.
  7. Regulatory Scrutiny
  8. Swiss authorities carefully monitor shelf companies to prevent misuse. Compliance and transparency remain essential (see FINMA – Swiss Financial Market Supervisory Authority for details).

When Shelf Companies May Make Sense

  • Tender Requirements – Certain bids require companies to be established for a minimum period.
  • International Expansion – Foreign entrepreneurs can gain quicker entry into the Swiss market.
  • Brand Strategy – A perception of history may strengthen credibility in some industries.

Alternatives for Start-ups in Switzerland

If speed and credibility are your main concerns, SwissFirm offers tailored alternatives:

Conclusion – Strategic Choice for Start-ups

Shelf companies can be useful in specific cases, but they are not always the best solution for every start-up. For most entrepreneurs, forming a new company with professional support offers greater transparency, lower costs, and fewer risks.
👉 SwissFirm helps you decide whether a shelf company or a new incorporation is the smarter option—and ensures your business is fully compliant in Switzerland.
📞 +41 (0)41 410 61 61
🏢 Blegistrasse 7, 6340 Baar, Switzerland