a. Joint-Stock Company/corporation (AG/SA)
This the most common type of structures adopted by companies in Switzerland. The corporations are legally independent. At least one of the board members or one of the directors should be a legal Swiss and have sole signatory rights.
Shareholder's equity in such a company should be a minimum of CHF 100,000 and half of this amount must be cleared.
b. Sole proprietorship
This is a company that has a single owner. It comes second on the list of the most common types of companies in Switzerland. The individual must be a Swiss resident. Individual entrepreneurs, freelancers and small businesses are all under this category of companies. These companies feature unlimited liability. When the sales are more than CHF 100,000 per annum, you have to register with the Chamber of Commerce.
c. General partnership
This is like sole proprietorship only with more people running it. It has no limitations on capital and features unlimited liability. However, Swiss residential status is mandatory for all partners with at least one of their names featuring on the Company name; and a Swiss address is a must for the company. These organisations have to be registered under the chamber of commerce and maintain accounts of all profit and loss statements.
d. Limited partnership
This type of company is a form of general partnership where two types of partners are featured: the general partner and limited partner. The former has unlimited liability while the latter only has liability up to an amount agreed upon.
e. Limited liability (GmbH/Sàrl)
This is a company where its members have joint liability for the company's debt until the registered capital amount has been attained. The members participate jointly in the management of the firm and nonmembers can also partake in it. The minimum equity for the shareholders is CHF 20,000 half of which must be fully cleared. One of the managing directors with signing authorisation has to be a Swiss resident.
f. Subsidiary
This is a company that is legally independent; however, it has affiliations with a foreign corporation. It operates less like a branch of the parent company and more of a Swiss company. In cases of regulated financial subsidiaries, obtaining a proper
Swiss Financial Services License becomes a mandatory step to legally engage in wealth or asset management. It can either be structured as limited liability or corporate company.
g. Branch
This is a company that is financially independent but legally dependent on a parent company which is based in another country. The liability falls on the parent company, but the taxes are the liability to the branch independently. To operate a branch in Switzerland, you will need a Swiss citizen who has legal authorisation.