Legal forms of companies in Switzerland

Under Swiss law, there are four main legal forms of companies, each with distinct characteristics and advantages. Understanding these legal forms is essential for choosing the right structure for your business. Preferably, you establish or convert your company with STARTUPS.CH, which provides professional guidance before and after the foundation. Here is an overview of the legal forms.

Legal forms in Switzerland

1. Sole Proprietorship (Einzelfirma)

A sole proprietorship is the simplest and most common form of business in Switzerland. It is suitable for small businesses and individual entrepreneurs.

• Ownership: Owned and operated by a single individual.
• Liability: The owner has unlimited personal liability for all business debts and obligations.
• Taxation: Income from the business is taxed as personal income of the owner.
• Registration: Requires registration with the commercial register if the annual revenue exceeds CHF 100,000.

2. General Partnership (Kollektivgesellschaft)

A general partnership is formed by two or more individuals who agree to run a business together.

• Ownership: Owned by two or more partners.
• Liability: Partners have unlimited personal liability, jointly and severally, for all business debts and obligations.
• Taxation: Each partner is taxed individually on their share of the profits.
• Registration: Must be registered in the commercial register.

3. Limited Liability Company (GmbH – Gesellschaft mit beschränkter Haftung)

A GmbH is a popular choice for small to medium-sized businesses due to its flexible structure and limited liability.

• Ownership: Owned by one or more individuals or entities (shareholders).
• Liability: Shareholders’ liability is limited to their capital contributions.
• Taxation: The company itself is taxed on its profits, and dividends paid to shareholders are subject to withholding tax.
• Capital Requirements: Minimum capital requirement is CHF 20,000.
• Registration: Must be registered in the commercial register.

4. Company Limited by Shares (AG – Aktiengesellschaft)

An AG is ideal for larger businesses and those looking to raise capital through the issuance of shares.

• Ownership: Owned by one or more shareholders.
• Liability: Shareholders’ liability is limited to their capital contributions.
• Taxation: The company is taxed on its profits, and dividends paid to shareholders are subject to withholding tax.
• Capital Requirements: Minimum capital requirement is CHF 100,000, with at least CHF 50,000 paid up.
• Registration: Must be registered in the commercial register.

Why Choose STARTUPS.CH?

Preferably, you establish or convert your company with STARTUPS.CH. They provide comprehensive advice, answer your questions, and help you determine the most suitable legal form for your business. By choosing STARTUPS.CH, you benefit from their professional guidance, ensuring a smooth and efficient company formation process.

Benefits of Using STARTUPS.CH

• Expert Guidance: Professional advice on selecting the right legal form and navigating the registration process.
• Cost-Effective: Access to partner offers that help minimize the costs of setting up your business.
• Support: Ongoing support before and after the company formation.

You can apply for a counselling interview and request free documentation on the STARTUPS.CH website. Their resources and expertise greatly simplify the incorporation process and help you make informed decisions about your business structure.

For more information and to start your company formation process, visit the STARTUPS.CH homepage.