The most common types of company are the public limited company, Ltd (AG), the limited liability company, LLC (GmbH), the general partnership, and the sole enterprise. This summary provides you with an overview of these four company types.
The public limited company, Ltd. (AG), is an important and popular legal structure in Switzerland. Foreign companies often use this legal form when establishing a subsidiary. An Ltd. (AG) is a corporation with a legal entity whose liabilities are covered exclusively by its own assets. The base capital, determined in advance, is divided into shares. The Ltd. (AG) is not only the ideal structure for large companies, it is also suitable for small and medium-sized companies. It is the most commonly used legal form for holdings and financial companies.
Requirements:
• Minimum capital: CHF 100,000.--
• Number of persons: at least one shareholder and one member of the board of directors, whereby these may be the same person.
• At least one shareholder with authorization to sign has to reside in Switzerland
Advantages:
• Widely anonymous for investors
• Limited liability
• Simple transfer of shares
Disadvantages:
• Costs
• Minimum Capital
Foundation costs: CHF 3,500 − 7,000 (including entry in the commercial register)
A limited liability company, LLC, (GmbH) is a company with an own legal entity formed by at least one or more individuals or companies with a predetermined capital (nominal capital). Each partner participates by paying in an initial share of the capital. The partner's liability is limited to the predetermined nominal capital.
Requirements:
Advantages:
Disadvantages:
Foundation costs: CHF 1,750 − 4,500 (including entry in the commercial register)
A general partnership consists of two or more natural persons who together form a corporation to run a trade, manufacturing, or other commercial business. All partners are jointly liable, with no limitations towards the company's creditors.
Requirements:
Advantages:
Disadvantages:
Foundation costs: CHF 1,250 − 4,000 (including entry in the commercial register)
One-man businesses usually engage in trade, manufacturing or commerce business and have no legal personality. This legal structure is often chosen by young entrepreneurs wanting to establish a small business on their own. Everyone can start up a one-man business any time and start working right away. No dedicated seed capital is needed. However, the proprietor is liable for debts incurring from the one-man business with his personal assets.
A one-man business can easily be transformed into a limited liability company or a public limited company at a later point. It is the easiest legal structure to dissolve.
Main purpose of the sole enterprise:
Requirements:
Advantages:
Disadvantages:
Foundation costs: CHF 700 − 1,200 (including entry in the commercial register)
This article has been submitted by STARTUPS.CH