Founding of a company with cash contribution in Switzerland – The complete guide 2025

Introduction – What does a cash contribution mean?

In a cash contribution, the required share capital of a Limited Liability Company (LLC) or a Public Limited Company (PLC) is deposited into a blocked capital deposit account at a bank. These funds remain blocked until the company is officially registered in the Swiss Commercial Register.

After registration, the capital is released and becomes available for business use.

Cash contributions are the most common method of company formation in Switzerland because they are:

• simple
• fast
• low-risk
  
  

However, processing may be delayed if banking or document errors occur.

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Requirements for a cash contribution

Minimum share capital

• Limited Liability Company (LLC): 20,000 CHF, fully paid in cash
• Public Limited Company (PLC): 100,000 CHF total, with at least 50,000 CHF paid in cash

Capital must be personal funds

Swiss company law requires that the capital:

• is legally obtained
• is fully available to the founders
• is not borrowed and does not involve repayment obligations

Proof of source of funds

Banks must verify where the money comes from under the Swiss Anti-Money Laundering Act (AMLA).

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The complete process for forming a company with a cash contribution

1. Select a bank

Startups.ch collaborates with leading Swiss banks to streamline the capital deposit process.

2. Open a capital deposit account

Usually required:

• valid identification documents
• company formation details
• financial information if necessary

3. Deposit the capital

Via bank transfer or, depending on the bank, cash payment.

4. Obtain the capital deposit confirmation

A mandatory document for the Commercial Register filing.

5. Commercial Register registration

Startups.ch handles the full administrative procedure.

6. Release of the capital

Once registration is completed, the funds are transferred to the company’s business account and are immediately available.

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^{‍Complete start-up process with Startups.ch}

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Differences between LLC and PLC cash contributions

Limited Liability Company (LLC)

• Full payment of 20,000 CHF required
• No partial deposit allowed

Public Limited Company (PLC)

• 100,000 CHF capital
• At least 50,000 CHF must be paid in cash
• More attractive to investors

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^{Not sure which structure fits your business? We can help you decide.}

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Advantages of founding a company with a cash contribution

• fastest incorporation method in Switzerland
• no audit or valuation of assets required
• capital becomes immediately usable
• ideal for founders without business assets

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You may also be interested in:

^{Advantages & disadvantages of an LLC in Switzerland}

^{Advantages & disadvantages of a PLC in Switzerland}

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Common mistakes during cash contributions

• capital financed by a private loan – not permitted
• incorrect or incomplete bank documentation
• changing banks during incorporation
• delayed identity verification

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Comparison: Cash contribution vs. Contribution in kind

| Criterion              | Cash Contribution                 | Contribution in Kind    |
| ---------------------- | --------------------------------- | ----------------------- |
| Speed                  | Very fast                         | More complex and slower |
| Documentation          | Minimal                           | Extensive               |
| Auditor required       | No                                | Yes                     |
| Asset valuation needed | No                                | Yes                     |
| Liquidity              | Capital must be deposited in cash | Assets replace cash     |

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Related articles

• Forming an LLC with a cash contribution
• ‍Forming a PLC with a cash contribution
• Forming a company with a contribution in kind

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Conclusion

Using a cash contribution is the simplest, fastest and most secure way to establish a company in Switzerland. With Startups.ch, you receive professional support throughout every stage — from opening the capital deposit account to the Commercial Register entry.

^{How to open a capital deposit account in Switzerland — full guide}

^{How to form an LLC in Switzerland}

^{How to form a PLC in Switzerland}

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