Establishing a Joint Stock Company in Switzerland

Swiss joint stock companies       

Joint stock companies are business vehicles in which shareholders buy and incorporate different stocks. In Switzerland, the joint stock company (Aktiengesellschaft,AG) is a very common type of business entities and are mostly employed by foreign investors wanting to start a medium size or a large corporation. The greatest advantage of the joint stock company is that its Swiss shareholders will have limited liability with respect to the company’s assets. The Swiss joint stock company can undertake different business activities:

• -          trading,
• -          manufacturing,
• -          financial activities.

The joint stock company can also be employed as a Swiss holding company or as a subsidiary of a foreign entity.

More details on the joint stock company in Switzerland are available below: 

What are the requirements of Swiss joint stock companies?

It is quite simple to open a company in Switzerland  as a joint stock company once the owner knows all the requirements of the Swiss Commercial Law with respect to this type of company. However, it is best to verify the accuracy of the information with a Swiss law firm before incorporation.

In order to set up a joint stock company in Switzerland, foreign investors must take into account the following:

• -          a minimum share capital of 100,000CHF is required to register a Swiss joint stock company,
• -          it must have at least three shareholders of which one must be a Swiss resident,
• -          the board must have at least one member who must be a Swiss resident.

The shareholders must deposit at least 50,000CHF of the share capital before the company is registered with the Swiss Commercial Register.

What are the advantages of the joint stock company in Switzerland?

The main advantages of Swiss joint stock companies are:

• -          the limitation of responsibility to the company’s assets for shareholders,
• -          the shareholders can remain anonymous,
• -          the audited accounts of Swiss joint stock companies must be published only if the company is listed on the Stock Exchange.

From a taxation point of view, Swiss joint stock companies will be subject to the same taxes as any other companies. However, due to Switzerland’s double taxation agreements the taxation of dividends and interests can be subject to deductions.

For more information about opening a joint stock company, please contact our lawyers in Switzerland. They can also help you open a corporate bank account in Switzerland.