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When setting up a business in Switzerland, choosing the right legal structure is critical to long-term success. Two of the most popular and widely used business forms are the Swiss AG (Aktiengesellschaft) and the Swiss GmbH (Gesellschaft mit beschränkter Haftung). Both offer limited liability, but they serve different purposes depending on your growth strategy, capital investment, and management structure.
A Swiss AG is a public limited company that is particularly suited for medium to large enterprises, or for businesses that intend to attract investors and possibly list shares in the future.
Minimum Share Capital: CHF 100,000, with at least CHF 50,000 paid in at incorporation.
Shareholder Privacy: Shareholder identities are not publicly disclosed.
Ease of Share Transfer: Shares can be transferred without restrictions.
Board of Directors Required: A Swiss resident director is mandatory.
Public Image: The AG structure offers higher prestige and is often used by multinational corporations.
The Swiss AG is ideal for businesses that need significant capital, plan to expand internationally, or require a high degree of anonymity for shareholders.
A Swiss GmbH is a private limited liability company that is more flexible and easier to manage for small to medium-sized enterprises (SMEs).
Minimum Share Capital: CHF 20,000, fully paid at incorporation.
Shareholder Transparency: Shareholders are listed in the Commercial Register.
Restricted Share Transfer: Transfers require shareholder approval.
Management Flexibility: Can be managed directly by owners or by appointed managers.
Lower Initial Costs: Lower capital requirements and reduced administrative burden.
A Swiss GmbH is perfect for businesses that are owner-managed, have long-term partnerships, or want a leaner and more affordable corporate setup.
| Feature | Swiss AG | Swiss GmbH |
|---|---|---|
| Share Capital | CHF 100,000 (min. CHF 50,000 paid-in) | CHF 20,000 (fully paid-in) |
| Shareholder Disclosure | Private | Public |
| Share Transfer | Freely transferable | Requires approval |
| Suitable For | Larger or international companies | SMEs and startups |
| Public Listing | Possible | Not allowed |
| Legal Prestige | High | Moderate |
Your choice between a Swiss AG and a Swiss GmbH will depend on your long-term business goals, capital availability, and preference for transparency or privacy.
The incorporation process for both a Swiss AG and Swiss GmbH includes several key steps:
Choose the Legal Structure – Decide whether AG or GmbH suits your needs.
Open a Swiss Bank Account – Deposit the required capital.
Draft Legal Documents – Articles of Association, appointment of directors or managers, etc.
Notarisation and Registration – Submit documentation to the Commercial Register.
Tax and Social Security Registration – Finalise formalities to begin operations.
With the guidance of our team at swisscompanyformation.com, this process becomes efficient, compliant, and tailored to your strategic vision.
Both the Swiss AG and Swiss GmbH offer unique strengths for business formation in Switzerland. Whether you require the flexibility of a GmbH or the prestige and scalability of an AG, choosing the right structure is essential to aligning your business with Swiss legal and financial advantages.
Start your journey with expert help at swisscompanyformation.com, where we support entrepreneurs in selecting, forming, and managing Swiss legal entities.