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 issues, their risk is limited to the contributed share capital. This provides entrepreneurs with 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 consist of shareholders or third parties. The flexible structure allows the company to be tailored to the individual needs of the business.
Flexibility in Profit Sharing
A limited liability company offers flexibility in how profits are distributed among shareholders. Profit shares and dividends do not have to be proportional to the amount of share capital. This is particularly beneficial for companies that wish to distribute profits in a manner different from their financial contributions.
Tax Advantages
Switzerland offers favorable tax conditions for limited liability companies. There are many cantons with varying tax rates, allowing entrepreneurs to choose the most tax-efficient location for their business. Additionally, in some cases, dividends received from other companies may be exempt from taxation.
Credibility and Trust
Limited liability companies have a strong reputation and are viewed as reliable and trustworthy business entities. In commercial transactions and collaborations with clients or contractors, having the legal form of a limited liability company can enhance trust and increase the credibility of the business.
Conclusion
A limited liability company remains a popular choice for many entrepreneurs in Switzerland due to its flexibility, limited liability, and tax benefits. However, before forming a company, it is always advisable to consult with a lawyer or tax advisor to gain a full understanding of the structure and align it with your specific business needs and goals.
