LLC and PLC – Withdrawing of the share capital
The paid-in share capital or stock capital is blocked during the incorporation process. Once the company has been founded, the capital can be used freely to achieve the company’s purpose.
The capital can be withdrawn
The share capital of the LLC (at least CHF 20,000) and the share capital of the PLC (at least CHF 50,000 paid up) must be deposited in a blocked account at a Swiss bank at the time of incorporation. The money is then blocked until the company is entered in the commercial register. Once the company this has been done, a business account has to be opened. The money deposited in the blocked account can then be transferred to this account.
Money transfer to a private account is not possible
The share capital must be transferred to a business account in the name of the newly established company. This is because it is now the newly established company that is the owner of the capital and not the founder anymore. Bank transfer from the business account into a private account is therefore not permitted and would be refused by the bank.
The assets, i.e., the capital, can then, in principle, be used freely for the purpose of the company. In particular, the following requirements have to be fulfilled.
- The assets must be used in the interest of the company. The granting of interest-free loans, e.g., to the founders, would therefore not be permitted as they are of no use to the company.
- Both the LLC and the PLC are subject to commercial accounting. Any use of capital must be properly accounted for.
- Mixing with private assets without accounting justification or paying out to the founders without a legal reason is not permitted. In the event of non-compliance, the owner might be deprived of his liability limited to the amount of his assets and have his private assets seized.
Conclusion
In addition to creditor protection, the share capital serves precisely to intensify the economic development of the LLC or the PLC by allowing the capital to be spent on commercial purposes (production facilities, vehicles, furniture, etc.). Therefore, it is wrong to assume that the capital paid into the blocked account can no longer be used.
