What is a Swiss public limited company (AG) and what are the advantages and disadvantages of this legal form?
The AG is probably the most adaptable legal form in Switzerland. The flexible structure of the holdings and the separate legal personality are decisive for this. Below we have compiled a list of what you can and cannot do with an AG.
Summary
If you want to make profits, exclude personal liability and be flexible in your shareholding structure, then the AG is probably the right legal form for you:
Advantages
- Flexible ownership structure and number of owners.
- Simple sale of shares without adapting the articles of association.
- Liability is limited to the company capital - your private assets are protected.
Disadvantages
- High minimum capital requirement of CHF 100,000 (of which at least 20% / CHF 50,000 paid up).
- Strong regulation and relatively large administrative effort (a board of directors as well as a general meeting are mandatory even with only one person involved).
- No legal binding of shareholders, therefore a shareholders' agreement (ABV) is necessary.
- There is double taxation: first the company pays tax on the profit and then, in the case of a distribution, also on the persons involved.