Legal form
The legal shell of your company: sole proprietorship, GmbH or AG. It determines liability, capital, taxes and administrative effort. The right choice depends on risk, size and plans — we clarify this with you before a company formation.
The legal form (Rechtsform) is the legal structure of your business — most commonly a sole proprietorship (Einzelfirma), a limited liability company (GmbH) or a stock corporation (AG). It governs liability, the capital required, taxation and administrative effort. The right choice depends on your risk appetite, size and plans: a sole proprietorship is quick and capital-free but exposes private assets, while a GmbH or AG limits liability but needs share capital and more formalities.
Example: A freelancer with low risk starts as a sole proprietorship with no minimum capital. When she takes on partners and bigger contracts, she converts to a GmbH (CHF 20'000 capital) so that liability is limited to the company's assets rather than her private wealth.
About the glossary
Which legal form should I choose in Switzerland?
It depends on liability, capital and growth plans. A sole proprietorship suits low-risk one-person ventures; a GmbH limits liability with CHF 20'000 capital; an AG (CHF 100'000) suits higher capital needs and investors. We compare them with you before forming.
What is the difference between a GmbH and an AG?
A GmbH needs CHF 20'000 fully paid-in capital and lists its partners publicly; an AG needs CHF 100'000 (at least CHF 50'000 paid in) and lets shareholders stay anonymous. Both limit liability to company assets.