In the Code of Obligations (CO), Swiss law makes a distinction between partnerships and corporations. Each presents advantages and disadvantages, but partnerships correspond in general to smaller-sized businesses.
The choice of legal form is fundamental, as it has legal, economic and tax consequences that need to be carefully evaluated. It is therefore advisable to choose the company type that best suits the needs and business purpose.
- Sole proprietorship (raison individuelle)
- Simple partnership (société simple)
- General partnership (société en nom collectif)
- Limited partnership (société en commandite simple).
This type of legal form is very economical to set up, but the founder of the business and his possible partners have unlimited responsibility on all their assets.
- Limited liability company (société à responsabilité limitée Sàrl)
- Corporation (société anonyme SA)
- Corporate partnership limited by shares (société en commandite par actions)
These are more costly to set up, but the responsibility of the owner is limited to the extent of his participation in the capital.