Which legal form is most suitable?

Sole proprietorship, general partnership, limited liability company or public limited company: the legal form determines many things including capital requirements, accounting obligations, liability, taxes and insurance.

Most founders opt for either a sole proprietorship, a public limited company (AG) or a limited liability company (GmbH).

  • Setting up a sole proprietorship is straightforward and doesn't require any minimum capital contributions. If the company goes bankrupt, the owners are liable with their personal assets.
  • With a public limited company, you can exclude personal liability. What's more, this legal form enjoys a good reputation among the general public.
  • The most popular legal form in Switzerland is now the limited liability company (GmbH). Just like with a public limited company (AG), partners' personal liability is also excluded in a GmbH.