“Companies with share capital” eligible in Switzerland
In the Swiss country there are four social forms; in this article we examine the “companies of capital”, with its own legal personality and therefore much less risky for the owners, even if more expensive.
In the Swiss country there are four social forms; in this article we examine the “companies of capital”, with its own legal personality and therefore much less risky for the owners, even if more expensive
In Switzerland, basically, there may be four legal forms of company.
The limited liability company and the limited liability company are the so-called “companies with share capital”; as “companies with limited liability companies” the company in the collective name and the individual company can be constituted.
The choice of the most suitable legal form will depend on various criteria, such as capital requirements, anonymity rather than entrepreneurial risk and other aspects.
It should be noted that, with regard to “companies with share capital”, they have their own legal personality, which exempts members from liability in excess of their share in the capital of the company.The limited company, or SA, requires a minimum share capital of 100,000 francs, of which at least half is payable at the time of its formation. There must be at least one shareholder and one Board of Directors, although this may consist of a single person. At least one board member with the right to sign must be resident in Switzerland.
This model is suitable for all profit-oriented companies, as there is the aforementioned exclusive responsibility of share capital, easy transferability of shares and anonymity of investors.
The disadvantages, on the other hand, are high start-up costs and the minimum capital required, which is quite high.
The limited liability company, or Sagl, requires a minimum capital of 20,000 francs and at least one partner and one director, which may be the same person. At least one director with the right to sign must be resident in Switzerland.
This model is suitable for small and medium-sized enterprises, because there is a minimum initial capital required not very high and the “usual” exclusive responsibility of the share capital.
The most significant disadvantage, on the other hand, is the obligation to publish the distribution of shares.
The legal personality of these two corporate models is certainly a lower risk factor for those who choose to use capital in the Swiss country.
On the other hand, with regard to the so-called “partnerships” – that is to say, partnerships and sole proprietorships -, which do not have legal personality and which do not have a limitation on the liability of members to the paid-up capital, but unlike SA and SAGL do not require a minimum amount of capital for them to undertake the business, “companies” need a much higher initial investment.