Best Legal Structures for Startups in Switzerland

Choosing the right legal structure is one of the most important decisions for your Swiss startup. The choice impacts taxes, liability, and administrative requirements.

Common Legal Structures

• Sole Proprietorship: Easy to set up, but unlimited personal liability.
• GmbH: Limited liability company, suitable for small-to-medium businesses.
• AG (Aktiengesellschaft): A public limited company, best for larger businesses.

GmbH vs. AG

Feature	GmbH	AG
Minimum Capital	CHF 20,000	CHF 100,000 (CHF 50,000 paid-in)
Shareholders	Names are public	Can remain private
Flexibility	Suitable for SMEs	Better for larger companies

Sole Proprietorship

This structure is ideal for freelancers or solo entrepreneurs. It is easy to register but does not provide liability protection.

Pros and Cons

• GmbH: Limited liability, but requires higher setup costs than sole proprietorship.
• AG: Ideal for raising capital but more expensive and complex to maintain.
• Sole Proprietorship: Simple and low-cost, but risky for personal assets.

Conclusion

For most startups, a GmbH strikes a balance between cost and liability protection. AG structures are recommended for ventures aiming to raise significant capital.

Hyer.ch can guide you in selecting the optimal structure for your business goals.