Types of companies that can be set up in Switzerland

Choosing Switzerland as the location to set up a company is a popular decision recently among investors. In the context of a volatile world, this stable business environment creates peace of mind for investors, minimizes risks and facilitates long-term development plans. Besides, Switzerland’s tax system is considered extremely competitive and transparent. With reasonable corporate tax rates and a network of double taxation avoidance agreements, companies operating here can optimize their tax obligations and retain more profits for reinvestment. However, what type of company can investors establish here, Viet An Law would like to provide some information through the article below.

Types of companies that can be set up in Switzerland

Some other types can be set up in Switzerland

Sole proprietorship

• Characteristics: Owned and operated by a single individual. There is no legal separation between the owner and the business.
• Liability: The owner bears unlimited liability with all of his personal assets for the debts of the business.
• Capital: No minimum capital required.
• Suitable for: Freelancers, craftsmen, small traders.

Partnerships

• Characteristics: Established by two or more individuals who cooperate in business under a common name.
• Liability: All general partners are liable for unlimited and joint liability with their personal assets for the company’s obligations.
• Capital: No minimum capital required.
• Best for: Small businesses run by multiple people, e.g. law firms, small auditors.

Limited Partnership

• Characteristics: There is at least one general partner with unlimited liability and at least one capital contributor with limited liability within the scope of his or her capital contribution.
• Capital: There is no specific minimum capital requirement, but capital contributors must fully contribute the committed capital.
• Suitable for: Cases where capital needs to be raised from people who do not want to participate in direct management and want to limit risk. This type is less common.