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Cash isn't the only thing that counts: if you want to found a limited company or an LLC, you need a capital contribution. But it doesn't have to be in Swiss francs! You can also make so-called in-kind contributions to the foundation of your corporation.
Your stock portfolio, stamp collection, real estate, construction equipment or electric car – you can use many things as a contribution in kind for the foundation of your LLC or limited company. As with a foundation with a cash contribution, the nominal capital of an LLC must be at least CHF 20,000 and that of a limited company at least CHF 100,000. This means that the contribution in kind must reach this value. In the case of a limited company, you can also found a company with a partial contribution and then you have to contribute 20% of the capital (but at least CHF 50,000). You then owe the company the rest and have to pay it later.
However, there are a few things to keep in mind when using this form of foundation: for example, you have to have an audit report prepared by an authorised auditing company. Depending on the type and complexity of the contribution in kind, this audit can cost between CHF 400 and 3,000. That's why it's important to be well prepared!
Foundera will help you to pass the audit of your contribution in kind with flying colours. So that you can quickly found your LLC or Ltd. with a contribution in kind.
Becoming self-employed is always a big step. But sometimes you have a great idea for a company, but not enough money for the nominal capital that you need for the foundation of a limited company or LLC. The good news is: you can still found a company – with a contribution in kind.
But there are strict rules for this scenario. For example, your contribution in kind must fulfil the following points:
Okay, so those are the requirements. But what exactly is suitable as a tangible fixed asset?
Tangible fixed assets that occur frequently usually incur rather low costs for the auditors. These include, for example:
Rather unusual are stamp or coin collections, vintage cars or the inherited Ming vase. Of course, real experts are needed to value these. This makes these contributions in kind more expensive.
The type of valuation of your contribution in kind that you need to found an LLC or a limited company depends on the purpose for which an item is valued:
As you can see, there are a few things to consider. But with Foundera, you have an experienced partner at your side who will also provide you with comprehensive advice on these points – and also make recommendations.
✅ More liquidity: If you found a limited company or LLC with a contribution in kind, you may have more free company capital to invest.
✅ Less paperwork: If no cash capital is paid into the nominal capital, you do not need a capital contribution confirmation from your bank.
✅ Many possibilities: For example, you can transparently contribute vehicles to the company assets.
✅ Contribution of an existing business: For example, if you have already run a successful business as a sole proprietor, you can contribute it to the foundation of an LLC or a limited company.
❌ Additional costs: You have to hire an auditing company, which will cost you extra money. This also applies in particular if you only contribute part of the nominal capital in the form of a non-cash contribution – because then you have to pay for both the audit report and the setting up of a capital contribution account.
❌ Loss of value: It is possible that your non-cash contribution, such as a block of shares, may unexpectedly lose value.
❌ Different valuations: Depending on the auditing company, the valuation can turn out differently – especially when it comes to special contributions in kind such as software.
As you can see, you should think carefully about whether you want to pursue a foundation with a contribution in kind. And, of course, you should also think carefully about which contribution in kind you choose as nominal capital for your limited company or LLC.
A foundation with a contribution in kind is also called a ‘qualified foundation’ or a ‘contribution in kind foundation’. In this case, special auditing companies check whether the contributions in kind correspond to the stated value and can replace the necessary cash contribution. For cars, the usual valuation lists help. It becomes more difficult if the contribution in kind is unusual, such as a coin collection.
Incidentally, the items that serve as a non-cash contribution to your foundation will be recorded in the commercial register, along with their value.
Audit firms are responsible for evaluating contributions in kind during the foundation of an LLC or a limited company. They prepare the necessary expert opinions that are required for this special type of start-up financing.
A qualified foundation of this kind differs significantly from a foundation with a cash contribution in only one respect: you need an evaluation of your contribution in kind by an auditing company.
You will also need additional documents such as a contribution agreement, the inclusion of the contribution in kind in the formation report, and of course the audit report from the auditing company. Foundera takes care of all of this.
However, in the case of a foundation with a contribution in kind, the capital payment confirmation that you need from your bank when founding with cash does not apply.
In principle, anything of value can be used as a contribution in kind to found a limited company or LLC: real estate, cars, PCs, printers, software or warehouses, for example. Or even valuable pieces of furniture, a vintage car or a stamp collection. But one thing is important: the rarer the contribution in kind, the more expensive the valuation by the auditing company tends to be.