Open a Recruitment Company in Switzerland

Federal Act on Employment and Labor Leasing is the main law governing the activities of recruitment agencies in Switzerland. According to it, such a company must obtain a special business license before starting its operations.

Below, our Swiss company formation specialists explain the steps and licensing procedure when starting a recruitment agency.

How to register a recruitment company in Switzerland

Any company in Switzerland must be registered at the Swiss Commercial Register. Companies that activate in the recruitment field must clearly specify that they will engage in placement activities and must also appoint an individual who will be in charge of the business and will also observe the following:

• the person in charge of the company’s activities must have a resident permit; and
• he or she must be qualified to provide professional placement services.

A Swiss recruitment company must work in the best interest of the job seekers and must also have appropriate offices to conduct recruitment and placement activities. Our agents can help with more information about the business field and the requirements for companies. 

Types of recruitment companies in Switzerland

The Swiss legislation divides recruitment agencies into:

• placement agents that connect employers and potential employees;
• temporary recruitment agencies that imply workforce leasing, and as such, the worker will carry his/her work on behalf of a company, while employed by the agency.

Based on these activities, when you open a recruitment company in Switzerland, you must meet the following requirements when applying for a business license:

• it must be incorporated with the Companies Register;
• it is required to have a suitable place of doing business enabling it to carry out interviews and other connected activities;
• it must have at least one Swiss representative who is also subject to specific criteria;
• it is required not to engage in other activities that may harm the interest of the parties it represents (companies and workers).

With respect to the Swiss representative, the appointed person must:

• have a good reputation and a clean criminal record;
• have a certificate indicating he/she has completed a private placement and labor leasing services course or several years of experience in the recruitment field.

If you decide to open a recruitment agency, you can rely on our company registration consultants in Switzerland to ensure you meet the incorporation conditions.  We are also at your disposal with accounting services for your recruitment agency in Switzerland.

Here is also an infographic on this type of business:

Recruitment licenses in Switzerland

After setting up the company, there are two licenses under which a Swiss recruitment agency can operate:

• the cantonal permit, which enables it to offer employment and temporary recruitment services within Switzerland;
• the federal business license if it will perform the same activities but at an international level.

Foreign companies can operate through branches which must apply for cantonal recruitment agency licenses. Companies carrying out their activities online are subject to the same requirements.

No matter the type of permit obtained, it does not need renewal. However, it may be revoked in case the company fails to respect the law.

How to file for a recruitment license in Switzerland

There are two situations to consider when filing for a recruitment agency permit in Switzerland:

• the first one addresses companies that must obtain a single permit;
• the second one applies to businesses that need both the federal and cantonal licenses.

The application can be lodged electronically or in person with both authorities at the same time. If you want to avoid delays, our company registration agents in Switzerland can handle the procedure on your behalf.

Documents required to obtain a recruitment license in Switzerland

As mentioned above, there are two types of Swiss recruitment licenses available for companies seeking to offer job placement services. No matter the type of permit sought, the company representative must file for authorization by submitting the following documents:

• a standard application form;
• the CV of the future license holder;
• copy of the documents attesting to the qualifications of the applicant;
• the applicant’s employment certificate;
• a valid ID/residence permit or work visa;
• the applicant’s clean criminal record;
• a certificate of good character for the company representative;
• an extract from the Tax Office indicating the company has no debts.

Our Swiss company formation agents can assist with the documentation for obtaining the recruitment license. With respect to the certificate indicating the staffing agency has no debts, you can discuss it with our accountants in Switzerland.

The SECO license in Switzerland

The SECO permit in Switzerland is a business license issued by the State Secretariat for Economic Affairs, hence its short form, and can be obtained by staffing agencies to ensure they comply with the requirements of recruitment and staff leasing regulations.

This license helps Swiss recruitment companies protect themselves and the clients they serve. The SECO license can also be obtained by foreign employment agencies operating in Switzerland.

If you want to open a company in Switzerland to start a recruitment business, our local experts can offer detailed information on this type of license.

Conditions to obtain a SECO permit in Switzerland

To obtain such a recruitment license in Switzerland, a company must meet 2 important conditions:

1. to be registered in this country (have a Swiss legal address);
2. to have at least one qualified employee in the recruitment field who performs 50% of his/her work in Switzerland.

Another important aspect is that a company can apply for a Swiss SECO license alone, or it can operate through an intermediary.

The intermediary can:

• be the liaison between the recruiter and Swiss clients;
• administer the contracts and invoicing requirements, as well as offer communication and feedback solutions between the two parties;
• ensure compliance with the employee placement proceedings.

If you are not sure about which option suits you better, our Swiss company formation agents can advise you. We also want to inform you that should you decide to operate through an intermediary, the service provider must be appointed prior to filing for this recruitment license in Switzerland.

The premises of a recruitment company in Switzerland

An important aspect to consider when setting up a recruitment agency in Switzerland is having a suitable business location. According to Article 3 in the Federal Act on Employment and Labor Leasing, such enterprises must ensure:

• sufficient space for all the activities of the staffing agency (including interviewing candidates);
• the space must also be equipped with all the telecommunications devices for recruitment activities.

Apart from these, please note that each canton can also have its own regulations.

Another requirement related to the location is that when advertising jobs or posting positions on websites or dedicated platforms, the agency must clearly state the whole address.

Please note that after receiving the license, the agency will undergo periodic inspections from the cantonal authorities.

Feel free and send us your inquiries about applying for a recruitment license in Switzerland. We can also assist with finding the appropriate location for such activities.

Foreign recruitment companies in Switzerland

Foreign employment agencies cannot provide any kind of recruitment service without being registered in the Swiss commercial register and having a local address in this country. So, to legally operate here, they can apply for SECO licenses and operate through intermediaries in Switzerland.

Based on this type of recruitment license in Switzerland, a foreign staffing company can also engage in cross-border operations which entail:

• placement and leasing of personnel in other countries;
• hiring or placement of EU/EFTA citizens based on B and L residence permits, as well as of cross-border commuters who hold G licenses (often the case of Italian people);
• mediation and leasing of people who have obtained the refugee and temporarily admitted refugee status.

Clients can rely on us for support in setting up a recruitment agency as well as for accounting services in Switzerland.

Services offered by Swiss recruitment companies

Recruitment companies in Switzerland help those who want to work in the country by making the right match between the individual looking for a job and the company looking for a qualified professional for their available jobs. Employment and placement agencies in Switzerland need to observe the country’s legislation in relation to the employment of European or third-state nationals in the country.

While the law allows for foreign employment in Switzerland, the laws are different for citizens of the European Union and those of the Economic Free Trade Association than for third-state nationals. Investors who want to open a company in Switzerland in the recruitment business can rely on the services of our Swiss company formation experts.

To activate in the recruitment sector, Swiss companies need to obtain special licenses (authorization). Recruitment agencies based outside Switzerland cannot recruit for jobs in the country or recruit employees from Switzerland for jobs in another country.

Any recruitment company incorporated in Switzerland must observe the provisions of the Federal Act dated October 6 1989 on the Recruitment and the Hiring of Services. Non-authorized recruitment agencies are subject to fines of up to 100,000 CHF. In order to avoid any fines and make sure that your business is legitimate, our company registration consultants in Switzerland can help you open a Swiss company.

Here is also a video on this type of activity:

Labor market statistics in Switzerland

According to data obtained by the Swiss Federal Statistics Bureau, at the level of 2023:

• 67.7% of the population aged 15 and over was registered for work:
• in terms of gender, 62.6% were women, while 72.9% were men.

For detailed information on how to start a staffing agency in Switzerland, you can contact our company registration specialists in Switzerland.