Interview with Dr. Patrick Stach: Legal insights for young entrepreneurs

1. In your opinion, what are the most common legal pitfalls facing young entrepreneurs in Switzerland – and how can they be avoided?

A common pitfall is unclear or missing contractual arrangements between founders. Without clear agreements on roles, responsibilities, and shares, conflicts can quickly arise. Neglecting intellectual property, such as trademarks or patents, is also problematic. In addition, labor law aspects are often underestimated, especially when hiring employees. These risks can be minimized through early legal advice and careful contract drafting.

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2. What legal form do you most often recommend to founders – and why?

The choice of legal form depends on various factors, such as capital requirements, liability risks, and growth plans. For many start-ups, a limited liability company (GmbH) is a suitable form because it offers a clear structure and limits liability to the company's assets. For companies with greater growth ambitions or external investors, a stock corporation (AG) may be advantageous because it offers more flexible capital raising options.

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3. When should a start-up seek legal advice, and what issues should be addressed?

Ideally, legal advice should be sought as early as the start-up phase. Important issues include choosing the legal form, drafting articles of association, protecting intellectual property, labor law issues, and data protection regulations. Legal support is also essential when preparing for financing rounds or entering new markets.

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4. What role does legal provision play for start-ups that want to grow quickly?

Legal provision is crucial for sustainable growth. It enables risks to be identified and managed at an early stage. This includes clear contracts with partners and customers, the protection of intellectual property, compliance with regulatory requirements, and preparation for possible exit scenarios. A solid legal basis creates trust among investors and partners.

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5. What personal advice would you give to a founder who is just implementing their first business idea?

Believe in your idea, but remain realistic and open to feedback. Surround yourself with a strong team and seek professional support early on, including in legal matters. Good preparation and clear structures are the key to success.

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