Basic constitutional rights also apply to foreigners. Except in specific  industries, no special permit from the government is needed to establish a company. However, to pursue gainful employment a work and residence permit is needed.

Private persons from foreign countries who invest and wish to manage a business in Switzerland, or managers and specialists generally are granted such a permit.

The procedures and the type of work permit required vary depending on whether the persons are EU (European Union) nationals or citizens of a country outside the EU.

Permits are no longer required for the acquisition of land and premises used in the performance of an economic activity.

Permits are no longer required for the acquisition of land and premises used in the performance of an economic activity.

Foreigners who enter Switzerland with the intent to stay must comply with the rules concerning access to the labor market.

Foreigners who wish to stay in Switzerland without becoming gainfully employed, e.g. tourists, can stay up to 3 months without any permit. However, if they wish to pursue gainful employment, they need a work and residence permit.

Private persons from foreign countries who invest in Switzerland and wish to manage a business, as well as managers of foreign companies, are generally granted such a permit, in particular if high-value jobs are created.

B EC/EFTA Permit: The residence permit for EC/EFTA nationals

Resident foreign nationals are foreign nationals who are resident in Switzerland for a longer period of time for a certain purpose with or without gainful employment.

The residence permit for EC/EFTA nationals is valid for five years if they are in possession of an employment contract of at least twelve months' duration or of unlimited duration. Provided the conditions laid down for the transitional period (payment and working conditions, national priority and quotas) are satisfied, EC/EFTA nationals are entitled to a permit. The residence permit will be renewed for another five years without any further procedures if the foreign national satisfies the relevant requirements. On the occasion of its first renewal, however, the permit can be limited to one year if the holder has been involuntarily unemployed for more than twelve consecutive months.

C EC/EFTA Permit: The settlement permit for EC/EFTA nationals

Settled foreign nationals are foreign nationals who have been granted a settlement permit after five or ten years' residence in Switzerland. The right to settle in Switzerland is not subject to any restrictions and must not be tied to any conditions. The Swiss Federal Office of Immigration, Integration and Emigration fixes the earliest date from which the competent national authorities may grant settlement permits.

In the case of EC/EFTA nationals, the issue of settlement permits is governed by the provisions of the ANAG and the settlement treaties since the AFMP does not comprise any provisions concerning settlement permits. EC/EFTA nationals are granted settlement permits pursuant to settlement treaties and unilateral declarations of the Federal Council after five years' regular and uninterrupted residence in Switzerland. In analogy with the residence permit, settlement permits are checked every five years.

G EC/EFTA Permit: Cross-border commuters from EC/EFTA member states

Cross-border commuters are foreign nationals who are resident in a foreign border zone and are gainfully employed within the neighbouring border zone of Switzerland. The term "border zone" describes the regions with have been fixed in cross-border commuter treaties concluded between Switzerland and its neighbouring countries. Cross-border commuters must return to their main place of residence at least once a week.

Cross-border commuters from EC/EFTA member states are granted professional and geographical mobility within all Switzerland's border zones. Foreign nationals who meet the requirements that are applicable during the transitional period are entitled to this permit. The EC/EFTA cross-border commuter permit is valid for five years, provided there is an employment agreement of unlimited duration or of more than one year's duration. If an employment contract is concluded whose duration amounts to less than a year, the period of validity of the cross-border commuter permit is identical with the duration of this employment contract.

L EC/EFTA Permit: The short-term resident for EC/EFTA nationals

Short-term residents are foreign nationals who are resident in Switzerland for a limited period of time, usually less than a year, for a certain purpose with or without gainful employment.

EC/EFTA nationals are entitled to this permit provided that the labour market conditions are satisfied and that - in the case of stays of at least four months' duration - the ceilings provided by Art. 10 FZA are not exceeded. The period of validity of the permit is identical with the term of the employment contract. It can be extended for up to twelve months. Provided that the new quota has not been exhausted, the permit can be renewed after an overall stay of one year without the foreign national having to interrupt his or her residence in Switzerland.

Trainees are also granted short-term residence permits. The period of validity of the permit is limited to one year but can be extended by another six months in exceptional cases. Trainees are persons who are aged 18-30, have completed their occupational training and want to undergo some advanced occupational or linguistic training in the context of gainful employment in Switzerland. Trainees are subject to special rules, which have been laid down in special treaties. Thus they are subject to special quotas, and the legal provisions concerning national priority are not applicable to them. These treaties provide trainees with a legal position that is more advantageous than that granted by the AFMP. For this reason, the admission of trainees from EC/EFTA member states is governed by these treaties.

For more information see www.auslaender.ch

Permit B: Residence permit for Non-EU/EFTA nationals

Resident foreign nationals are foreign nationals who are resident in Switzerland for a longer period of time for a certain purpose with or without gainful employment.

As a rule, the period of validity of residence permits for third-country nationals is limited to one year when the permit is granted for the first time. First-time permits for gainful employment may only be issued within the limits of the ceilings and in compliance with Arts. 7-11 BVO. Once a permit has been granted, it is normally renewed every year unless there are reasons against a renewal, such as criminal offences, dependence on social security or the labour market. A legal entitlement to the renewal of an annual permit only exists in certain cases. In practice, an annual permit is normally renewed as long as its holder is able to draw a daily allowance from the unemployment insurance. In such cases, however, the holder is not actually entitled to a renewal of the permit.

Permit C: Settlement permit for Non-EU/EFTA nationals

Settled foreign nationals are foreign nationals who have been granted a settlement permit after five or ten years' residence in Switzerland. The right to settle in Switzerland is not subject to any restrictions and must not be tied to any conditions. The Federal Office of Immigration, Integration and Emigration fixes the earliest date from which the competent national authorities may grant settlement permits.

As a rule, third-country nationals are in a position to be granted a settlement permit after ten years' regular and uninterrupted residence in Switzerland. US nationals are subject to a special regulation. However, third-country nationals have no legal entitlement to settlement permits. Apart from the provisions of settlement treaties, such a claim can only be derived from Arts. 7 and 17 ANAG and Art. 60 of the Asylum Act. Persons who hold a settlement permit are no longer subject to the Limitation Regulation, are free to choose their employers, and are no longer taxed at source.

Permit L: Short-term residence permit for Non-EU/EFTA nationals

Short-term residents are foreign nationals who are resident in Switzerland for a limited period of time, usually less than a year, for a certain purpose with or without gainful employment.

Subject to the provisions of Arts. 7-11 BVO, third-country nationals can only be granted a short-term residence permit for a stay of up to one year, as long as the ceiling for the number of third-country nationals which is fixed annually by the Federal Council has not been reached. The period of validity of the permit is identical with the term of the employment contract. In exceptional cases, this permit can be extended to an overall duration of no more than 24 months, provided the holder works for the same employer throughout this time. Employment as an au-pair and basic and advanced training practicals in Switzerland are also regarded as short-term residences. Permits which are granted to foreigners who are gainfully employed for a total of no more than four months within one calendar year are not subject to the quota regulation.

Trainees eare also granted short-term residence permits. The period of validity of the permit is limited to one year but can be extended by another six months in exceptional cases. Trainees are persons who are aged 18-30, have completed their occupational training and want to undergo some advanced occupational or linguistic training in the context of gainful employment in Switzerland. Trainees are subject to special rules, which have been laid down in special treaties. Thus they are subject to special quotas, and the legal provisions concerning national priority are not applicable to them.

For more information see www.auslaender.ch

On 1 May 2004, the European Union was enlarged by ten new member countries. Following the accession of Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia, the Czech Republic, Hungary, Malta and Cyprus, the EU now has 25 members. This largest extension in its history is an important contribution towards the promotion of peace, stability and welfare in Europe. It is also to Switzerland's advantage.

As a consequence of the extension, the bilateral agreements concluded between Switzerland and the EU in 1999 are extended to the new member countries. Six of the total of seven agreements have been adapted automatically1. The Agreement on the Free Movement of Persons required contractual adaptations, which were the object of negotiations between Switzerland and the EU. These adaptations provide a gradual introduction of the free movement of persons with transitional periods up to 2011. Appropriate transitional rules are intended to control and limit immigration, in the same way as is already possible within the Agreement on the Free Movement of Persons with the previous 15 EU countries that is in force today. The new member countries (with the exception of Cyprus and Malta) are subject to separate transitional periods. From 1 June 2004, additional accompanying measures against wage dumping and social dumping offer additional protection. Moreover, there will be an additional possibility of a referendum regarding the continuation of the agreement in 2009.

The Federal Council considers the extension of the bilateral agreements as an advantageous step and an opportunity for Switzerland. This step provides Switzerland with privileged access to the 75 million potential consumers of the East European growth markets, which have a great need to catch up with their counterparts in the West. The EU expects the extension to result in additional economic growth. The additional increase in Switzerland's gross domestic product (GDP) is estimated at 0.2-0.5%. This corresponds to an annual 1-2 billion francs.

The extension of the Agreement on the Free Movement of Persons opens up a significant potential of both qualified and unskilled personnel for Switzerland. It is in line with the Federal Council's migration policy, which provides an opening towards EU/EFTA countries while limiting immigration from any other country to qualified personnel. Conversely, the free movement of persons also applies to Swiss nationals who want to live and work in an EU country.

The extension of the Agreement on the Free Movement of Persons will be subject to a decision by the Federal Assembly, which will be subject to an optional referendum. If the extension is rejected, then Switzerland would have to expect the EU to rescind this agreement. On the strength of a so-called guillotine clause, this would result in the automatic termination of all the other sectorial agreements of 1999.