Setting up a LLC: what you need to know

Establishing a GmbH offers a wide range of benefits for entrepreneurs in Switzerland. Here are some of the top reasons why you should consider setting up a LLC:

1. Liability limitation

One of the most outstanding features of a LLC is the limitation of liability. As a shareholder, you are only liable up to the amount of your contributions. This means that your personal assets are protected from the debts and liabilities of the GmbH.

2. Tax benefits

LLCs enjoy tax advantages in Switzerland. They generally pay less tax than sole proprietors or other forms of business. This can mean significant savings.

3. Legal structure

The LLC offers a clear and stable legal structure. This makes management easier and enables transactions to be carried out more efficiently.

4. Professional image

A LLC gives your company a professional image. This can strengthen the trust of your customers and business partners and help you open up new business opportunities.

5. The founding process

Establishing a LLC requires a few steps, which must be carried out carefully. Here's a summary of the process:

5.1 Name selection

Choosing a suitable company name is crucial. It must be unique and not already registered. Observe the legal requirements when naming.

5.2 Social contract

The preparation of a social contract is mandatory. This is where you define the internal regulations of your LLC, including the distribution of shares and management.

5.3 Raising capital

You must deposit the minimum capital in accordance with legal requirements. This varies from canton to canton and is normally CHF 20,000 or more.

5.4 Commercial register

The LLC must be entered in the commercial register. This is done at the responsible commercial register office in your canton.

6. Taxes and accounting

6.1 Tax registration

After incorporation, you must register with the tax administration. This allows you to bill VAT and fulfill other tax obligations.

6.2 Accounting

Proper bookkeeping is crucial. Record all financial transactions carefully and prepare regular reports.

7. The benefits of a GmbH at a glance

• Liability limitation
• Tax benefits
• Stable legal structure
• Professional image

Conclusion

Establishing a LLC in Switzerland offers numerous benefits that can take your business to a new level. From limitation of liability to tax benefits and a professional image — a GmbH is a first-class choice for entrepreneurs. If you carry out the start-up process carefully and meet the legal requirements, nothing stands in the way of your entrepreneurial success.