A shell company in Switzerland is a business entity that has been established but does not engage in operational activities. Instead, it serves as an "empty corporate shell"—it exists as a legal entity but has no active business activities, assets, or liabilities. Shell companies are often utilized by entrepreneurs or investors looking to save time and costs typically associated with starting a new company.

These entities can be useful in acquisitions or mergers, allowing the buyer to quickly acquire the shell and activate it for their own purposes without undergoing extensive incorporation processes. Investors planning an IPO may also resort to shell companies to avoid the lengthy and costly process of a new public offering.

However, even shell companies in Switzerland must adhere to certain legal requirements. This includes regular tax filings and compliance with applicable regulations to maintain their legal status.