What is Limited liability company (LLC)?
A Limited Liability Company (LLC), known in Switzerland as Gesellschaft mit beschränkter Haftung (GmbH) in German or société à responsabilité limitée (SARL) in French, is a popular legal structure for small and medium-sized businesses. It combines the limited liability protection of a corporation with the operational flexibility of a partnership, making it a favored choice in Switzerland’s business landscape.
Key Characteristics of an LLC in Switzerland
- Separate Legal Entity
- An LLC is recognized as a distinct legal entity. It can own property, enter contracts, and bear legal obligations independently from its shareholders.
- Limited Liability
- Shareholders’ liability is restricted to their capital contributions, safeguarding personal assets from the company’s debts.
- Capital Requirements
- The minimum share capital for an LLC is CHF 20,000, which must be fully paid at the time of registration. Capital is divided into individual shares held by the members.
- Management Structure
- The LLC is managed by one or more directors, who can also be shareholders. At least one director must reside in Switzerland.
- Registration and Transparency
- LLCs must be registered in the Swiss Commercial Register. The names of shareholders and their capital contributions are publicly disclosed, ensuring transparency.
Advantages of an LLC in Switzerland
- Liability Protection: Members are not personally liable for company debts beyond their investment.
- Flexibility: Suitable for businesses of various sizes, with adaptable management structures.
- Credibility: Registration as an LLC enhances trust and reliability in business relationships.
An LLC is ideal for entrepreneurs and businesses looking to establish a secure and scalable presence in Switzerland. It offers a balance of limited liability and operational flexibility within a robust legal framework.