Limited Company (Swiss GMBH)
The Limited Company has, like the corporation, its own legal entity. It has high similarities with the Corporation so that reference can be made to the descriptions relating to the Corporation with regard to company, registered office and statutes. The Limited Company differs basically from the corporation through the fact that only two persons are required for foundation., the equity capital may not be less than 20'000 CHF and more than 2.0 million CHF and that contrary to the corporation one shareholder of the Limited Company may hold one equity share of any amount. In addition, unlike the shares of a corporation, the equity shares are only assignable under more difficult conditions.
For a corporation the only obligation of the shareholders is to pay up the capital stock. The statutes of Limited Companies may however provide other obligations, e.g. obligation to provide further cover by the shareholders.
Analogous to the corporation, three organs are provides for the limited company by law:
- the meeting of shareholders,
- the management
- an auditing department (facultative)
Although there are more corporations founded substantially there are many arguments for the establishment of a limited company.