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+41 41 266 0070
Company Formation Switzerland



When to Close a Business in Switzerland

Written by: Bridgewest

When-to-Close-a-Business-in-Switzerland.jpgA business can be closed in Switzerland as an effect of many factors. Some can be determined by the way in which the company was managed, while others can be determined by external factors, such as an economic crisis. However, businesses can be shut down in the situation in which the investors no longer want to participate in that particular business. The liquidation process is performed following specific steps and businessmen can find assistance of the legal requirements from our team of specialists in company formation in Switzerland.

Constant problems on the company’s cash flow 

In the first years of operations, companies do not usually register a high value in terms of profits. However, in several years most of the companies should become profitable and enjoy a constant level of cash flow. In the situation in which a company in Switzerland is operating on the local market for more than 5 years and the business is in constant need of cash flow, then it might be necessary to close the company. The main effect of a reduced cash flow is that the company is unable to pay its debts, expenses and other current costs, which will affect the overall business activity

Low customer engagement 

If the products or services provided by the company do not meet the customer’s needs, the company will either have to provide better products, either to close the business. Our team of company formation representatives in Switzerland can offer assistance if the investors deal with this issue. 

Low-skilled employees  

One of the most important aspects when investors open a Swiss company is the value of the workforce. Although the workforce in Switzerland is known for its high level of skills, it sometimes may be the case that the level of employees’ abilities does not meet the needs of the company, which can affect the business activity. In this sense, it is necessary to study the characteristics of the local workforce, prior to starting a company
Businessmen interested in closing a company or those who need advice on this matter can address to our team of company formation agents in Switzerland


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