In Switzerland, a limited liability company (Sàrl or GmbH) is one of the preferred forms of running a business. Here are some reasons why Sàrl is a popular company form in Switzerland:
Limited Liability: One of the main advantages of a limited liability company is that the owners (shareholders) are not personally liable for the company’s debts and obligations. In the event of financial difficulties or legal problems, their risk is limited to the contributed share capital. This gives entrepreneurs a greater sense of security.
Simple structure and management: A limited liability company is relatively easy to set up and manage. It requires one or more shareholders and is managed through a board of directors, which may be either a shareholder or a third party. The flexible structure allows the company to be adapted to the individual needs of the company.
Flexibility in profit sharing: A limited liability company offers flexibility in the distribution of profits among shareholders. They may establish shares in profits and dividends, which do not have to be proportional to the share capital. This is beneficial for companies that want to divide profits in a way other than in proportion to the financial contribution.
Tax advantages: Switzerland offers favorable tax conditions for limited liability companies. There are many cantons with different tax rates, which gives entrepreneurs the opportunity to choose the optimal place for their business. Additionally, in some cases, dividends received from other companies may be tax-free.
Credibility and trust: Limited companies have a strong reputation and are considered reliable and reliable business entities. In the case of commercial transactions and cooperation with clients or contractors, having the status of a limited liability company can bring trust and increase the credibility of the company.
A limited liability company is a popular choice for many entrepreneurs in Switzerland due to its flexibility, limited liability and tax advantages. However, before deciding to form a company, it is always a good idea to consult with an attorney or tax advisor to obtain a full understanding and tailor the company structure to your specific business needs and goals.