Types of Swiss Companies

Switzerland offers an ideal combination of political and economical stability as well as a welcoming environment for foreign entrepreneurs. Corporate taxes are relatively low and there are opportunities for every need. These advantages make Switzerland a perfect choice for starting a new business. Usually the most common forms of business used in Switzerland are Stock Corporation and limited liability companies.

Set up a Stock Corporation in Switzerland
Foreign investors seem to prefer this business type and even though it was initially designated for large business, now it has become popular for small and medium sized companies. Swiss Stock corporations can be established by a minimum of three subscribers. In order to establish this company type a minimum authorized capital of 100.000 Swiss Francs is required. A stock corporation in Switzerland must have a board of directors who must be shareholders. The liability of the members is limited to company assets.

Set up a Limited Liability Company in Switzerland
The Swiss limited liability company can be formed by two or more persons or companies providing at least 20.000 Swiss francs. The liability of the partners is limited to the amount of capital invested in the company. In order to function legally a limited liability company must be entered in the Register of Commerce and have articles of incorporation. Minimum one director is compulsory for this company type, and also at least one of the directors must be resident in Switzerland.

Set up a General Partnership in Switzerland
The Swiss general partnership represents an association of at least two individuals who are called partners. They hold unlimited joint and several liability. A general partnership functions on the basis of an agreement which must be entered in the Commercial Register. There is no minimum capital required.

Open a Limited Partnership in Switzerland
A Swiss limited partnership is similar to a general partnership being founded by at least two individuals. At least one partner is the general partner an must assume full liability for the partnerships' obligations and at least one partner is the limited partner, being liable to the company's obligations only to the extent of his or her contribution. The limited partnership has the same registration requirements as the general partnership.

Open a Sole Proprietorship in Switzerland
A Swiss company is run and represented by one person who is the owner and has to assume unlimited liability for the obligations of his or her company, to the extent of his personal assets. A sole proprietorship has to be entered in the Register of Commerce only if the annual turnover exceeds 100.000 Swiss francs.

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