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Comparing Forms of Foreign Companies in Switzerland |
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Switzerland is a primary foreign investment location in the world. The country boasts of a high-quality standard of living and a successful industrial economy. It has attracted numerous independent entrepreneurs and various companies, large, medium-sized and small, to invest in the country.
There are about five types of foreign companies. These forms of companies include Proprietorship, Partnership, Corporation, Limited Liability, and Branch. The process of setting up a company in Switzerland differs from one company to another. A proprietorship does not require any particular association files. Most of the time, it is not required to register with the commercial register. The inception of this form of business starts with its operations. A partnership, similar to a proprietorship, is not required to submit any particular organization files. It is, however, required to declare its existence with the commercial register. Corporations and limited liability companies are required to go through a formal organization process and to secure an entry in their canons’ commercial register. A foreign company branch, however, is merely required to secure an entry in the commercial register without having to go through any formal organization process.
Typically, a proprietorship company’s purpose is to operate a commercial enterprise in Switzerland. Corporations, limited liability corporations and partnerships are primarily established in order to enter into trade or manufacturing. A branch operates as a franchise of a foreign principal company. In terms, however, of minimum capital requirement, the Swiss law does not impose any capital requirement to sole proprietorships and partnerships. It is different with corporations, limited liability corporations and branch. A corporation is required to have a minimum capital of at least 100,000 Swiss Francs with a paid up capital of at least 20% of the required capital. A limited liability corporation is required to have a minimum capital of at least 20,000 Swiss Francs with a fully paid up capital of at least 10,000. A branch is merely required to have an endowment capital from the principal company.
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