When establishing a business in Switzerland, selecting the appropriate legal structure is crucial. One popular choice among entrepreneurs is the limited company (LLC), known for its flexibility and limited liability.
Key Features of a Limited Company
- Legal Entity: An LLC is a separate legal entity, providing protection for personal assets.
- Share Capital: Minimum share capital of CHF 20,000.
- Liability: Shareholders’ liability is limited to their share capital contributions.
- Shares: Shares are not publicly traded, providing control over ownership.
- Governance: Governed by a board of directors and a general meeting of shareholders.
Advantages of Forming an LLC
- Limited Liability: Protects personal assets from business debts.
- Credibility: Often perceived as more professional and credible than sole proprietorships or partnerships.
- Investment Opportunities: Easier to attract investors compared to other structures.
- Perpetual Existence: Continues to exist even if shareholders change.
Steps to Form a Limited Liability Company in Switzerland
- Choose a Company Name: Must be unique and include “LLC” or “Sàrl” or “GmbH” to denote limited liability.
- Draft Articles of Association: Defines the company’s purpose, structure, and regulations.
- Appoint Directors: At least one director must be a Swiss resident.
- Register with the Commercial Register: Provides legal status to the company.
- Open a Bank Account: Deposit the initial share capital.
- Obtain Business Permits: Depending on the business type, specific permits might be required.
- Register for Taxes: Including VAT and social security contributions.
Financial and Tax Considerations
- Taxation: Subject to corporate taxes at federal, cantonal and communal levels.
- Accounting: Must adhere to Swiss accounting standards.
- Auditing: Statutory audit required for large companies; smaller companies may be exempt.
- Domicile: Must have a registered office in Switzerland.
Table: Summary of Requirements for an Ltd Company
| Requirement | Details |
| Minimum Share Capital | CHF 20,000 |
| Board of Directors | At least one Swiss resident |
| Commercial Register | Mandatory registration |
| Business Permits | Varies by business type |
| Tax Registration | Includes VAT and social security |
| Auditing | Required for large companies |
| Domicile | Must have a registered office in Switzerland |
Forming a limited liability company in Switzerland offers numerous benefits, particularly in terms of liability protection and credibility. Our firm specializes in financial analysis, company formation and tax consultations. Contact us today to explore how we can assist you in establishing your Swiss Limited Liability Company.
