Business

Switzerland — Business: Limited Company

Switzerland's two limited-liability company forms are the GmbH/Sarl (limited liability company, minimum CHF 20,000 capital, common for SMEs and founders) and the AG/SA (corporation, minimum CHF 100,000 capital, used for larger companies or those seeking outside investment). Both provide liability protection separating personal and business assets, are subject to corporate tax (federal + cantonal + communal, effective ~11-21%), and require annual financial statements; an AG additionally offers anonymity of shareholders in the public Commercial Register (only GmbH shareholders are publicly listed) and is generally preferred for companies planning to raise external capital.

Swiss Code of Obligations (Company Law provisions) · Last verified 2026-07-20

Why This Matters

The choice between GmbH and AG affects not just upfront capital but shareholder privacy and investor perception — a GmbH publicly lists its shareholders in the Commercial Register while an AG does not, which matters for founders who want to keep ownership private or plan to bring in outside investors.

Key Facts

  • GmbH/Sarl: minimum capital CHF 20,000, shareholders (Gesellschafter) are publicly listed in the Commercial Register — less privacy but lower capital barrier.
  • AG/SA: minimum capital CHF 100,000 (at least CHF 50,000 paid in), shareholders are not publicly disclosed in the Commercial Register — preferred for external investment and shareholder privacy.
  • Both structures provide full liability protection: shareholders/owners are not personally liable for company debts beyond their capital contribution.
  • Combined effective corporate tax rate (federal + cantonal + communal) ranges roughly 11-21% depending on canton of registered seat.
  • Annual statutory accounts and, above certain size thresholds (turnover, balance sheet, employee count), a statutory audit are required for both forms.

Steps

  1. Choose GmbH or AG — GmbH for lower capital and simpler structure; AG for shareholder privacy and investor readiness.
  2. Draft articles of association — Define share structure, governance, and signing authorities.
  3. Deposit capital and notarize formation — Complete capital deposit and notarization before Commercial Register filing.
  4. Maintain annual accounts and audit compliance — File annual statutory accounts; determine if a limited or ordinary statutory audit applies based on company size.

Costs

  • GmbH minimum capital: CHF 20,000
  • AG minimum capital: CHF 100,000 (CHF 50,000 paid in)
  • Combined effective corporate tax rate: ~11-21%, canton-dependent

Required Documents

  • Articles of association
  • Notarized founding deed
  • Annual statutory accounts

Common Mistakes

  • Choosing GmbH without realizing shareholder names become public in the Commercial Register — a real consideration for privacy-conscious founders.
  • Underestimating the audit requirement thresholds and being surprised by a required statutory audit once the company grows.
  • Assuming AG status alone attracts investors — investors care about governance and growth prospects, not just legal form.

Related Topics

company-formationcorporate-taxaccounting
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