Overview of Legal Structures

Depending on your situation and goals, different legal structures may be suitable. You can find a helpful overview and in-depth guidance in the Zurich Startbox from the Zurich Chamber of Commerce.

Sole Proprietorship

The sole proprietorship is the most commonly chosen legal form in Switzerland. It is particularly suitable for activities that are closely tied to you as an individual. Typical examples include skilled trades, architecture, or consulting. Setting up a sole proprietorship is simple and can be done informally. It takes effect upon the commencement of self-employed economic activity. There is no minimum capital requirement. Entry in the Commercial Register is mandatory only if annual turnover exceeds CHF 100,000. However, you are personally and fully liable with your entire private assets.

Limited Liability Company (GmbH)

The LLC is particularly popular among family businesses and small and medium-sized enterprises (SMEs). It can be established by one or more persons. Liability is generally limited to the company’s assets. Your personal assets remain protected. The minimum capital is CHF 20,000 and must be fully paid in. The company is established through a notary public by means of a public deed. To commence business operations, a public deed, approval of the articles of association, and entry in the commercial register are required.

Stock Corporation (AG)

The stock corporation (AG) is suitable for almost all types of for-profit companies, particularly those that require significant start-up capital or wish to involve investors. The minimum capital is 100,000 Swiss francs, of which at least 50,000 Swiss francs must be paid in at the time of incorporation.

The company is incorporated through a notary public by means of a public deed. In principle, only the company’s assets are liable for the AG’s obligations. Your personal assets remain protected.

To commence business operations, a public deed, approval of the articles of incorporation, the election of a board of directors and an auditor, as well as registration in the commercial register are required.

Other Legal Structures

In addition to the three most common legal forms, there are other forms that are suitable for specific projects. You can find information on these as well as the necessary steps for registration directly at the Commercial Registry Office of the Canton of Zurich:

Note:
The information on this page is for guidance only and is not exhaustive. Details should be clarified with experts or the relevant authorities as early as possible.

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