Comparison of legal forms:

Find the right solution for your project

The most common legal forms in Switzerland are the stock corporation (Ltd), limited liability company (Ltd Liab Co), sole proprietorship and general partnership (KLG). In the following table you will find the most important differences. We would be happy to advise you personally in this regard (click here for a consultation).

Please also read our article about the advantages and disadvantages of the different types of companies to get a better overview of the possible legal form of your company.

Ltd Liab Co Ltd Sole proprietorship General partnership
Capital Mind. CHF 20’000.- Mind. CHF 100’000.- (partial payment: at least CHF 50’000.-) No capital investment No capital investment
Liability No personal liability No personal liability Personal and unlimited liability Personal and unlimited liability
Name «Fantasy name» + Ltd Liab Co «Fantasy name» + Ltd «Fantasy name» + Surname «Fantasy name» + KLG
Number of people Mind. 1 person Mind. 1 person 1 person Mind. 2 persons
Bookkeeping Always double-entry bookkeeping Always double-entry bookkeeping Double-entry bookkeeping from turnover of CHF 500’000.- Double-entry bookkeeping from turnover of CHF 500’000.-
Participation Possible Possible Not possible Possible
Taxes Separate tax return; only shares in private tax return (more on taxes at the Ltd and Ltd Liab Co) Separate tax return; only shares in private tax return (more on taxes at the Ltd and Ltd Liab Co)

Profit goes into private tax declaration (more about taxes for partnerships)

Profit goes into private tax returns (more on taxes for private companies)
AHV wage is decisive wage is decisive Profit is decisive Profit is decisive
Advantages
  • No liability
  • Transfer of the company possible
  • low minimum capital
  • No liability
  • Transfer of the company possible
  • Anonymity
  • high acceptability
  • cost-effective foundation
  • no capital necessary
  • Withdrawal of the pension fund possible
  • cost-effective foundation
  • no capital necessary
  • Withdrawal of the pension fund possible
Disadvantages
  • no anonymity
  • deeper acceptance than Ltd
  • double taxation
  • high capital requirement
  • double taxation
  • personal liability
  • Transmission not possible
  • No ALV reference possible
  • personal liability
  • No ALV reference possible