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Changing Your Business Structure in Switzerland

Updated on Tuesday 17th May 2016

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Changing-Your-Business-Structure-in-Switzerland.jpgInvestors who have opened a company in Switzerland should know that they are allowed to change the legal structure under which the company functions if the situation may require such a modification. Although the change of the legal entity is not a common action, as most of the businesses remain under the same structure they’ve established at the incorporation, the procedure is prescribed by the local legislation. It is recommended to change to business structure in the situation in which the current legal entity does not provide sufficient advantages or if that particular entity is no longer representing the best interests of the company. Our team of Swiss company formation specialists can provide assistance on this matter to both local and foreign investors. 
 

Sole proprietorship into a limited liability company in Switzerland 

 
One of the most popular types of companies is represented by the sole proprietorship, a business carried out by a natural person, who is performing business activities in his or her own name. 
 
The local legislation prescribes that that sole proprietorship should have minimum three customers in order to register for social security. 
 
In the situation in which the business will grow and the businessmen will have to process the request of many customers, it can become much more advantageous to change the legal structure into a limited liability company (LLC). The LLC makes a clear distinction between the business and its founders, who can become liable for the company’s issues only in respect to the shares owned in the company; our team Swiss company incorporation agents can offer assistance throughout this process. 

 

Register the new Swiss legal entity 

 
The process of changing the legal structure of the company is performed by closing down the current legal entity; the company will have to be de-registered from the Commercial Registry, and registered again under the new legal entity, alongside with all the documentation required by the institution. 
 
The investor should receive assistance for the drafting of the statutory documents of the company –such as the memorandum and the articles of association, which will prescribe the main rights and obligations of the parties who have founded the company. 
 
Persons who need to receive further information on the ways in which a legal structure can be modified in Switzerland can address to our team of Swiss company formation consultants
 
 

Comments

  • Tyler 2016-05-17

    It is good to know that such measure is possible under the Swiss law. However, the procedure should be performed only if it is a real need for change.

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