Requirements for the formation of a limited liability company

Requirements for the formation of a limited liability company

The limited liability company comes into existence with the entry in the commercial register. A number of requirements must be met in order to be able to register in the commercial register. Company founders must observe the following when registering: The articles of association for the limited liability company must be in writing, the managing directors and the auditors must have been appointed.

Minimum capital and number of persons

For the formation of a limited liability company, capital of at least CHF 20,000 must be fully paid up (Art. 773 CO). The individual shares must have a nominal value of at least CHF 100 and must be issued at nominal value. Both cash and non-cash contributions may be made as share capital.
A single person can set up a limited liability company. However, several people can of course form a limited liability company together. Legal entities can also form a limited liability company. Article 775 of the Swiss Code of Obligations is decisive here.

Purpose and name

The exact purpose of the limited liability company must be described in the articles of association. The company name can be freely chosen. However, it should be noted here whether another company has already chosen the same name. In this case, the planned name would no longer be available and the founders would be forced to look for another name. Company names that give rise to deception or that do not correspond to the facts are prohibited. In any case, the abbreviation “LLC” must be added to the company name.