Switzerland is one of the most attractive staffing markets in Europe. A stable economy, highly specialised client demand and premium pricing structures make it particularly appealing for staffing firms active in pharma & life sciences, financial services, engineering, and technology.

Yet despite the strong fundamentals, many German staffing companies struggle with their Swiss market entry. In most cases, this is not due to lack of demand, but because of structural and regulatory missteps that could have been avoided with the right preparation.

Based on HUCAI’s hands-on experience supporting international staffing firms entering Switzerland, three recurring mistakes stand out.

One of the most critical and most common errors is commencing or preparing operations without fully understanding Switzerland’s regulatory framework for personnel leasing.

In Switzerland, temporary staffing activities require a licence issued by the State Secretariat for Economic Affairs (SECO). Depending on the business model, this licensing regime can be two-tiered:

• Cantonal licence (for operations limited to a single canton)
• Federal licence (mandatory when operating across multiple cantons or internationally)

Non-compliance carries significant consequences:

• Fines of up to CHF 100,000
• Severe reputational damage with clients, candidates and regulators
• Risk of operational shutdowns or contract terminations

Best practice:
Clarify licensing requirements at an early stage and structure the market entry accordingly. Regulatory compliance in Switzerland is not a formality, it is a prerequisite for sustainable growth.

Many staffing firms focus heavily on sales and client acquisition, assuming operational topics can be addressed “once revenue starts flowing.” In Switzerland, this approach often backfires.

Common operational bottlenecks include:

• Lack of a compliant and scalable Swiss payroll solution
• Delays in opening a Swiss bank account (often underestimated by foreign firms)
• Absence of a suitable factoring or financing structure to bridge payroll and client payment cycles

Without these elements in place, firms struggle to execute contracts even after winning business, leading to missed opportunities and strained client relationships.

Best practice:
Regulatory setup and operational infrastructure must be developed in parallel. Payroll, banking and financing are not back-office topics, they are core enablers of growth and liquidity.

In Switzerland, a “light-touch” market entry rarely works. Authorities, clients and partners expect substance, not symbolic presence.

Key requirements typically include:

• Establishment of a Swiss legal entity (commonly a GmbH)
• Appointment of a locally responsible individual meeting regulatory criteria
• A physical office presence
• Swiss-compliant employment contracts aligned with local labour law and collective agreements where applicable

Firms that treat these elements as box-ticking exercises often face delays, rework or credibility issues in the market.

Best practice:
Local presence should be viewed as a strategic investment, not a regulatory burden. A well-structured Swiss setup increases trust, speeds up client onboarding and supports long-term scalability.

A German staffing firm planned to enter the Swiss market simultaneously via Zurich and Zug. Initially, the company underestimated the two-stage licensing requirement and had not yet established payroll, banking or factoring solutions.

Together with HUCAI, the following steps were implemented:

• Formation of a Swiss GmbH as the legal operating vehicle
• Identification and preparation of the responsible local manager
• Setup of office infrastructure and Swiss-compliant employment documentation
• Selection and onboarding of payroll and factoring partners
• End-to-end management of the SECO licensing process, including the CHF 100,000 security deposit

Outcome:
Following licence approval, the company was able to invoice its first high-margin Swiss client projects within weeks, fully compliant, operationally stable and positioned for scalable growth across multiple cantons.

Entering the Swiss staffing market is not a plug-and-play expansion. However, for firms that approach it with the right regulatory, operational and strategic framework, Switzerland offers exceptional margin potential and client quality.

The key is to address compliance, infrastructure and local presence holistically from day one.