Open a Limited Liability Company in Switzerland
Switzerland, a central European country with banking and finance as its key industries, is one excellent choice for setting up businesses. Its watches and chocolates are world renowned, attesting to the high level of excellence the country exhibits. It is particularly an attractive location for the registration of a company for foreigners, thanks to business-friendly registration procedures and its highly efficient banking and finance industry.
Among the types of commercial companies that may be established and operated in Switzerland in the Limited Liability Company (LLC). The LLC is a company whose liability is limited to the contributions of its members, this is why its name is a “Société à Responsabilité Limitée” (SARL) which is translated into “Society with Limited Responsibility”. It is also designated by the abbreviation “GmbH” (Gesellschaft mit beschränkter Haftung) which is German for “company with limited liability”. It is one of the popularly operated types of companies in the country, due to the numerous benefits it offers and the advantages it gives to its owners and partners.
One major benefit of setting up a Limited Liability Company in Switzerland is the ease and straightforward process through which one can be set up. This helps to eliminate unnecessary inconveniences and time-wasting, ultimately leading to a quick and efficient business set up.
In Switzerland, an LLC requires a minimum shareholders’ equity of CHF 20,000 (which is relatively little), of which CHF 10,000 must be fully paid for. Also, at least one managing director who is authorized to sign on behalf of the company must be resident in the country. All members participate jointly in the management and representation of the LLC, however, the management of the company may be conferred to non-members.
Another benefit is that it allows for 100% (total) ownership of the business by foreigners. This means that foreign investors are given the same treatment as their Swiss counterparts under the law, with equal rights to have complete ownership of the entire business. Also, only one founding person is necessary.
Limited Liability Companies in Switzerland have low taxes (8.5 to 15%). This is definitely a point of attraction for any investor because it ultimately results in more returns and profits for the investors and shareholders in the company.
The liability in an LLC is limited to the (fully deposited) share capital, not the personal assets of investors. This way, no shareholder will incur more loss than the other, with respect to their level of investments in the company and this undoubtedly brings relief to any willing investor. It should be noted that an LLC, a single shareholder can have total control of the business.
So, in need of an optimal vehicle for most business uses, including trading with Swiss customers and abroad and having local manufacturing/services operations? Then, setting up a Limited Liability Company in Switzerland is one answer you definitely will want to act on.