What is Joint-stock company?

A joint-stock company, known as a société anonyme (SA) in French or an Aktiengesellschaft (AG) in German, is a legal business structure in Switzerland that allows for the issuance of shares to raise capital. It is one of the most popular forms of companies in Switzerland, particularly for larger businesses and those planning to attract investors or go public.

Key Features of a Joint-Stock Company in Switzerland

  1. Legal Entity
    A joint-stock company is an independent legal entity, meaning it is separate from its shareholders. This distinction limits shareholder liability to their invested capital.
  2. Share Capital Requirements
    The minimum share capital is CHF 100,000, with at least CHF 50,000 paid up at the time of incorporation. Share capital is divided into shares, which can be freely transferred unless restricted by the company’s Articles of Association.
  3. Management Structure
    A joint-stock company must have a Board of Directors responsible for overall governance. Additionally, at least one director or authorized representative must reside in Switzerland.
  4. Registration
    The company must be registered with the Swiss Commercial Register, and its Articles of Association must outline the company’s purpose, share structure, and governance.

Advantages of a Joint-Stock Company

  • Limited Liability: Shareholders are not personally liable for the company’s debts beyond their share contributions.
  • Capital Raising: The ability to issue shares allows for significant capital inflow, supporting growth and expansion.
  • Credibility: A joint-stock company structure enhances trust and reputation with investors and clients.

The joint-stock company is a versatile and scalable business structure, making it an ideal choice for Swiss enterprises seeking to operate domestically or internationally. Its robust legal framework and flexibility make it one of the most preferred corporate forms in Switzerland’s competitive business environment.