GmbH: minimum share capital CHF 20,000 · AG: minimum share capital CHF 100,000 (of which at least CHF 50,000 paid up at formation)
How much start-up capital do you have available?
With a sole proprietorship, creditors can pursue your personal assets. A GmbH or AG limits liability to the company's capital (with exceptions).
How would you rate the liability risk of your activity?
Are you founding alone or with others?
A sole proprietorship must register with the commercial register once annual turnover exceeds CHF 100,000. VAT liability starts at CHF 100,000 for all legal forms.
What annual turnover do you expect in the first 2-3 years?
A GmbH and AG are always listed in the commercial register - publicly visible including shareholders. A sole proprietorship is only registered once turnover exceeds CHF 100,000.
How do you feel about a public commercial register entry?
Is this your main income or a side activity?
Investor participation (equity stakes, convertible loans) is technically most straightforward with an AG.
Do you plan to bring in investors or external capital providers?
A sole proprietorship is the best fit for your start. It can be set up in a matter of hours, requires no minimum capital, and involves the least administrative overhead. As a side activity or for low-risk work, it is the most cost-efficient option. If your turnover grows past CHF 100,000 or your liability risk increases, converting to a GmbH later is straightforward.
Advantages
- No minimum capital
- Simplest setup
- Full profit without distribution resolution
- Minimal administration
Disadvantages
- Unlimited personal liability
- Less professional appearance
- No investor participation possible
- Commercial register entry above CHF 100k turnover
This result is a non-binding orientation and does not replace individual legal or tax advice. Please consult a trustee or lawyer before forming your company.
The GmbH is the most popular structure for growth-oriented ventures in Switzerland. The CHF 20,000 share capital protects your personal assets and signals professionalism. It suits main-income businesses, partnerships, and activities with medium to high liability exposure. Administrative requirements are higher than for a sole proprietorship, but manageable. Note: in Switzerland the GmbH is the standard LLC equivalent - widely recognised and used.
Advantages
- Liability limited to share capital
- Professional standing
- Multiple shareholders possible
- Well-known and trusted legal form
Disadvantages
- Min. CHF 20,000 share capital required
- Commercial register entry mandatory (public)
- Accounting obligations
- More involved incorporation process
This result is a non-binding orientation and does not replace individual legal or tax advice. Please consult a trustee or lawyer before forming your company.
The AG is the structure for ambitious growth projects, investor participation, and international credibility. The minimum capital of CHF 100,000 (of which at least CHF 50,000 must be paid in at formation) sets a clear threshold. In return, the AG offers maximum flexibility in capital structure, shareholder participation, and future company sales. Note: in Switzerland the AG is the standard stock corporation used for larger or investor-backed companies.
Advantages
- Investor- and VC-ready structure
- Highest credibility
- Shareholder anonymity possible
- Easy transfer of shares
Disadvantages
- Min. CHF 100,000 share capital
- Highest administrative burden
- Audit requirements above certain thresholds
- More complex incorporation
This result is a non-binding orientation and does not replace individual legal or tax advice. Please consult a trustee or lawyer before forming your company.