Comparison of Legal Forms

Comparison of Legal Forms

You would like to start your business idea? Welcome to the business world! From now on, it's decision-making time. The first important decision is the choice of a legal form. Here is an overview of the most important facts:

 

Owner-Managed Company (Sole Proprietorship)

GmbH (LLC)

AG (PLC)

KlG (General Partnership)

Seed Capital

No requirements

from CHF 20‘000

from CHF 100‘000

No requirements

Liability

Personal

Limited

Limited

Personal

Company Name

+ Surname

+ GmbH

+ AG

+ KlG

Number of Founders

One person

At least one associate

At least one shareholder

At least two persons

Company Register

Mandatory for annual sales of CHF 100‘000 or more

Mandatory registration

Mandatory registration

Mandatory registration

Taxes

No separate tax return, declaration in private tax return.

Separate tax return

Separate tax return

No separate tax return, declaration in private tax return.

Commercial Accounting

Mandatory for annual sales of CHF 500‘000 or more 1)

Commercial accounting mandatory

Commercial accounting mandatory

Mandatory for annual sales of CHF 500‘000 or more 1)

Social Insurance

Mandatory. Individual registration

Associates working for the company are considered employees

Shareholders working for the company are considered employees

Mandatory. Individual registration

Advantages
  • Low founding cost
  • No legal requirements regarding seed capital
  • Lower seed capital than for AG
  • No personal liability
  • Participations possible
  • Tax optimization
  • Anonymity of the shareholders
  • No personal liability
  • Participations possible
  • Tax optimization
  • Easy share transfer
  • No legal requirements regarding seed capital
  • More than one owner
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1) In principle, accounting is only required for annual sales of CHF 500,000 or more. For annual sales of CHF 100,000 or more, a company is subject to VAT and the commercial accounting becomes mandatory for the purpose of VAT accounting.