Legal forms comparison:

Anyone who wants to start a business must decide on a legal form.
In Switzerland, tartups most often choose one of the following four legal forms:
Sole proprietorship, general partnership (KlG), limited liability company (GmbH) or public limited company (AG).
But which one should it be? Which one suits your business idea?

In the following, we discuss the most important criteria and give you a tabular overview of the four most important legal forms.

Sole proprietorshipGeneral partnership (KIG)Limited liability company (GmbH)Public limited company (AG)
NameFreely selectable + owner's surnameFreely selectable + addition "KlG" is mandatoryFreely selectable + addition "GmbH" is mandatoryFreely selectable + "AG" is mandatory
Number of personsA natural person Sole ownerAt least one shareholderAt least one shareholder (natural or legal entity)At least one shareholder (natural person or legal entity)
CapitalNo minimum capitalNo minimum capitalAt least CHF 20,000At least CHF 100,000 (partial payment: at least CHF 50,000.-)
LiabilityPersonal and unlimited liabilityPersonal and unlimited liabilityLimited to company assets, no liability of the shareholdersLimited to company assets, no personal liability
FoundationFrom the beginning of economic activityFrom the beginning of economic activityFounders' meeting of the shareholders at the notary's office, entry in the Commercial RegisterFounders' meeting of shareholdersat the notary's office, entry in the commercial register
Entry in the commercial registerFrom annual sales ofCHF 100,000 is mandatoryEntry is mandatory but has only declaratory effectGmbH only comes into existence with the entry in the commercial registerAG only comes into existence with the entry in the commercial register
AccountingFrom sales of CHF 500,000 double-entry bookkeepingFrom sales of CHF 500,000 double-entry bookkeepingAlways double entry bookkeepingAlways double entry bookkeeping
TaxesProfit runs in private tax returnProfit runs in private tax returnSeparate tax return; only common shares in private tax returnSeparate tax return; only shares in private tax return
Old age and survivors insuranceProfit is the decisive factorProfit is the decisive factorWage is the decisive factorWage is the decisive factor
Advantages-Cost-effective foundation-No minimum capital is required-Pension fund withdrawal is possible-Cost-effective foundation-No minimum capital is equired-Pension fund withdrawal is possible-No liability-Transfer of the company is possible-Anonymity-high trustworthinessW-No liability-Transfer of the company is possible-Anonymity-high trustworthiness
Disadvantages- Personal liability- Transfer is not possible- No entitlement tounemployment compensation-Personal liability-No entitlement tounemployment compensation-No anonymity-lower acceptance than AG-double taxation-high capital requirements-double taxation