Insights
Reorganization of a Sole Proprietorship into a Limited Liability Company or a Stock Corporation
Many companies that have limited capital requirements in the start-up phase commence their business activities as sole proprietorships. As soon as they have reached a certain size and investors come into play, a reorganization into a legal entity (GmbH or AG) becomes an obvious choice.
New Company Law: Important Changes to Capital Requirements
From 1 January 2023, amendments to Swiss company law mean that some changes will take effect. These are also of interest to startups and SMEs, as they enable a more flexible form of capital structure and simplify certain aspects of company foundation.
What Rights Do Substantial Minority Shareholders Have in a Swiss Company Limited by Shares?
Swiss company law is based on the majority principle. A simple majority is sufficient for most decisions. However, minority shareholders also have rights which cannot be taken away from them. Clarity about the type and scope of these rights should be sought prior to founding a company.
Sole Proprietorship, Limited Liability Company or Company Limited by Shares? What Startups Ought to Know
For anyone looking to found a company, there are a range of potential legal forms available under Swiss law. On closer examination, however, only a few of these forms will typically be viable. The appropriate form is determined by the number of stakeholders, the size of the company and the seed capital available.
The Virtual Shareholder Meeting Becomes a Legal Reality
The revised Swiss company law allows virtual shareholder meetings and enables company formation, capital increases or other shareholders’ resolutions via video conferencing. While the law is not expected to enter into force before 2022, parts of it have already been implemented under temporary Covid-19 provisions.