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

  1. 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.
  2. Limited Liability
    • Shareholders’ liability is restricted to their capital contributions, safeguarding personal assets from the company’s debts.
  3. 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.
  4. Management Structure
    • The LLC is managed by one or more directors, who can also be shareholders. At least one director must reside in Switzerland.
  5. 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.