Stock Corporation Law Revision: Share Capital in Foreign Currency
The revision of company law, which came into force on 1 January 2023, brings with it various new possibilities in the area of capital. Among other things, share capital can be held in a foreign currency. This article explains which requirements must be met for this.
The revision of the company law takes into account the need to create coherence between bookkeeping, accounting, tax law and the capital structure under company law.
However, the determination of the share capital in a foreign currency or the subsequent change to a foreign currency is subject to certain conditions. Thus, not just any foreign currency can be determined as share capital. The following points must be fulfilled cumulatively:
- The foreign currency must be essential for the company;
- At the time of incorporation, the equivalent value of the share capital must be at least CHF 100,000 converted;
- The accounts and bookkeeping must be kept in the same currency;
- The foreign currency is either British Pound (GBP), Euro (EUR), US Dollar (USD) or Yen (JPY).
The currency is material to the company if it is the currency that is predominantly used for transactions in the company’s primary field of activity. For example, a bakery in the Zurich Oberland can hardly keep its share capital in yen.
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