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.
| Criteria | Limited Company (GmbH / Sàrl) | Joint Stock Company (AG/SA) |
| Abbreviations/Original Names | GmbH / Sàrl | AG/SA |
| Number of Members | Minimum 1 (individual or legal entity) | Minimum 1 (individual or legal entity) |
| Liability | Limited (within the scope of the company’s assets) | Limited (within the scope of the company’s assets) |
| Minimum charter capital | CHF 20,000 (must contribute 100% at the time of establishment) | CHF 100,000 (must contribute at least CHF 50,000 or 20%, whichever is greater) |
| Organizational Structure | General Meeting of Members, Management Board | General Meeting of Shareholders, Board of Directors, Audit Agency |
| Transfer of capital | Relatively easy (Notarized contract required) | Easy (Transfer of shares, no notarization required if it is registered shares) |
| Owner anonymity | Members recorded in the commercial register (public) | Shareholders are usually anonymous (except for major/listed shareholders) |
| Suitable for | Small and medium-sized enterprises (SMEs), family companies | Large company, needs to raise capital widely, intends to list |
