The sole proprietorship
No minimum capital, no notarised incorporation, simplified accounting below certain thresholds: it is the fastest and cheapest form. Entry in the commercial register becomes compulsory from 100,000 francs of annual turnover.
Its decisive feature is liability: the owner answers for the debts of the business with the whole of their private assets, without limit. It suits an activity with a low financial commitment and a low risk of loss.
The limited liability company
Minimum capital of 20,000 francs, fully paid in at incorporation. Liability is limited to the share capital, which separates the assets of the business from those of the members. The members are entered in the commercial register and are therefore publicly identifiable.
It is the most widespread form for an independent business in Switzerland, because it places the protection threshold in the right spot for a commitment of a few tens to a few hundreds of thousands of francs.
The public limited company
Minimum capital of 100,000 francs, of which at least 50,000 paid in at incorporation. Shareholders do not appear in the commercial register, and shares are transferred more simply than LLC quotas.
It is justified when the anonymity of the holders matters, when several investors enter the capital, or when a structured sale is envisaged in due course.
What really changes day to day
- Liability: unlimited for a sole proprietorship, limited to the capital for an LLC and a PLC.
- Social status: the owner of a sole proprietorship is self-employed for OASI purposes; the managing member of an LLC is in principle an employee of their own company, with the corresponding contributions and different unemployment cover.
- Taxation: the profits of a sole proprietorship are added to private income; an LLC or a PLC is taxed on its profit, and dividends are then taxed in the hands of the member.
- Costs: a few hundred francs for a sole proprietorship, a few thousand for a capital company, notarial deed included.
- Credibility: some landlords and suppliers deal more readily with a capital company — while frequently asking for a personal guarantee that partly cancels out the effect.
Moving from one form to another
Converting a sole proprietorship into an LLC is a common and regulated operation, often carried out once the activity is confirmed. Starting as a sole proprietorship to test the concept, then switching, is a legitimate path — provided the risk of the test phase can genuinely be absorbed by private assets.
A personal guarantee demanded by a landlord or a bank cancels the limitation of liability in practice for the commitments concerned. Read it for what it is before considering your private assets protected.
Frequently asked questions
What capital is required for an LLC in Switzerland?
20,000 francs, fully paid in at incorporation. For a public limited company, 100,000 francs of which at least 50,000 paid in.
Must a sole proprietorship register in the commercial register?
Yes, from 100,000 francs of annual turnover. Below that, registration is optional but often useful for commercial credibility.
Can you change legal form later?
Yes. Moving from a sole proprietorship to an LLC is a classic operation, governed by the Merger Act, generally carried out when the activity and the risk grow.
Ready to test an address?
The analysis is free and takes under a minute.
The figures, canton by canton
Population, income, benchmark commercial rent, taxation and flows — official data, refreshed at every import.
Related guides
- Opening a business in Switzerland: the steps, in the order that matters
- Business plan for a shop in Switzerland: what goes into it
- The operating costs of a business, item by item