Switzerland: The most popular types of companies for investors

Updated time: 26 Jul, 2021, 16:50 (UTC+08:00)

Switzerland is a civilized, modern and highly developed country, which attracts many investors around the world.

One IBC^® - With many years of experience in corporate service consultancy, we give you a closer look about the 3 most popular types of companies in Switzerland for setting up offshore companies.

Switzerland is a beautiful country located in the heart of Europe

Swiss Limited Liability Company (GmbH/Sàrl)

Swiss Limited Liability Company (LLC) is one of the most common types of companies for foreign investors when setting up a company in Switzerland.

The abbreviation “GmbH” (Gesellschaft mit beschränkter Haftung) means “Limited Company” in German. Moreover, Swiss LLCs are also known as “Société à Responsabilité Limitée” (Sàrl) in French.

Here are some requirements for setting up a Swiss LLC (GmbH/Sàrl):

The minimum capital required to form a Swiss LLC is 20,000 CHF and must be paid up at the time of incorporation.
At least one Director/Shareholder, who is a Swiss resident.
Par value of shares: minimum of 100 CHF.
Companies having more than 10 employees are required to carry out annual audits.
Must have an office in Switzerland and a local registered agent to accept letters, legal documents, etc.
Swiss LLCs are required to hold shareholder meetings at least once a year.
Shareholders’ information and amount of their shares must be disclosed.

When establishing a Swiss LLC (GmbH/Sàrl), international investors have many advantages, e.g. 100% foreign-owned company, one shareholder can have full control, shareholders' liability are limited by their share contributions.

One IBC^® has many years of experience in business consultancy in Switzerland

Swiss corporation/Joint-stock company (AG/SA)

Besides Swiss LLC (GmbH/Sàrl), Swiss corporation (AG/SA) is also a common business entity in Switzerland. A Swiss corporation is called “Aktiengesellschaft” (abbreviated AG) in German, or Société Anonyme (abbreviated SA) in French.

Below are some features of Swiss corporation:

A minimum share capital of 100,000 CHF is required for Swiss corporation registration. The amount to be paid is 20% of the nominal capital or 50,000 CHF, whichever amount is greater.
At least one Director/Shareholder, who is a Swiss resident.
Par value of shares: minimum of 1 Swiss cent.
A Swiss corporation normally ought to file financial statements and audits. However, small companies with fewer than 10 employees are not required to undergo audits.
Must have an office in Switzerland and a local registered agent to accept letters, legal documents, etc.

For a Swiss corporation, shareholders’ information and the number of their shares do not need to be publicly disclosed, thus investors' identities are more secure. Shares in a Swiss corporation can be freely sold or transferred to another person.

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Swiss sole proprietorship

Starting a Swiss sole proprietorship is probably the fastest and least expensive way of setting up a business in this country. There is no minimum capital, no signing of the articles and no need for a notary.

Following are some features of a Swiss sole proprietorship:

It is not required to register a Swiss sole proprietorship at the Swiss trade registry unless the company’s annual turnover is more than 100,000 CHF.
The company name must include the last name of the business owner.
A non-Swiss resident registering a sole proprietorship in Switzerland must request a work permit (G permit). The filing must include a business plan and the description of the infrastructure to be used.
If a sole proprietorship has a turnover of less than 100,000 CHF, declaring VAT is not required.

Above is basic information about 3 most common forms of business in Switzerland. Normally, it will take One IBC^® at least 12 days to set up a Swiss business with reasonable cost. Please contact One IBC^® at Hotline 18006758 or email [email protected] for more advice on setting up an offshore company in Switzerland.