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The Swiss Company Act

Updated on Tuesday 01st September 2015

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Company formation in Switzerland is regulated by a Company Act in Switzerland. This procedure falls under the Swiss Code of Obligations which is part of the Civil Code in Switzerland. Just like the Polish Company Act that contains laws and regulations regarding the formation of companies in Poland, the Swiss legislation, is mainly based on the French Napoleonic Code. Each Swiss canton has its own commercial register office. For registration companies need to address the office situated in the same canton as the company’s domicile.

The Company Act in Switzerland has been evaluated and modified in 2008, especially regarding the aspects of incorporation for a limited liability company or GmbH in Switzerland. However, this is not the only type of business mentioned in the Swiss legislation. Sole proprietorships, joint stock corporations, partnerships are also mentioned in the text of the Company Act in Switzerland.

The Company Act in Switzerland is rather flexible when it comes to the limited liability companies, although some restrictions regarding the residency of directors and existence of general meeting are quite firm. On the other hand, the Swiss joint stock company is mentioned by the Code of Obligations in Switzerland under other requirements.

The Swiss Company Act mentions that a license is required whenever a new company set up in Switzerland wants to develop activities in banking, insurance, fund management or collective investment. This happens in order to keep a close supervision on the sector of banking or finance industry in Switzerland, which is considered to be one of the safest in the world.

The employment act goes hand in hand with the Company Act in Switzerland. The legislation regarding both company formation and employment are stipulated by the Code of Obligations in Switzerland. The labour law does not require an employment contract, therefore the agreement can be completed either in written or verbally.  The recommendation is however to sign an employment contract, according to the Swiss Code of Obligations and the Federal Law on labor in industry, craft industry and trade.

For more information we invite you to contact our company formation specialists in Switzerland and ask for a personalized consultancy.In case you require more detailed legal consultancy from a Swiss attorney please feel free to ask for the advice of our partners.

 

 

 

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