Restructuring a company in Switzerland is a strategic decision that can unlock growth, optimize taxes, and attract investors. Whether you're converting from a sole proprietorship to a GmbH, transforming a GmbH into an AG, or relocating to a tax-efficient canton, understanding the legal framework and procedural requirements is essential. This guide walks you through the entire process, from initial decision-making to final registration in the Commercial Register. Disclaimer: This information is for general guidance only and does not replace professional legal, tax, or financial advice. Swiss corporate law and tax regulations vary by canton and individual circumstances. Always consult qualified specialists before making structural changes to your company. ## Why and when to change your business structure in Switzerland? Business restructuring is rarely a spontaneous decision. It typically responds to specific operational, financial, or strategic triggers. Understanding these drivers helps you determine whether restructuring is the right move for your company.

Key reasons for changing business structure in Switzerland: growth, taxes, liability, investment

Growth and
Scaling

Tax
Optimization

Liability
Limitation

Attracting
Investment

### Growth and the need for scaling A sole proprietorship may serve well in the early stages, but as your business expands, the limitations become apparent. Converting to a GmbH or AG provides a formal corporate structure that facilitates hiring, contracting with larger clients, and entering new markets. This growth often necessitates a shift to a limited liability structure to manage increased operational complexity and risk. ### Tax optimization and reducing the burden Switzerland's federal system means corporate tax rates vary significantly by canton. Cantonal corporate tax rates in Switzerland range approximately from 11.9% to 21.6% (Chambers and Partners, 2025). Changing your company's registered office to a lower-tax canton or restructuring into an AG can unlock substantial tax savings. Participation relief can significantly reduce taxation on dividends and capital gains when certain ownership conditions are met. ### Limiting personal liability Under Swiss law, sole proprietors bear unlimited personal liability for business debts. This means creditors can pursue your personal assets if the business fails. Transitioning to a GmbH or AG limits your liability to the amount of share capital contributed. Minimum capital: GmbH — CHF 20,000; AG — CHF 100,000; foundational changes require notarization (Swisspreneur.org, 2025). This legal separation protects your personal wealth and provides peace of mind as your business grows. ### Attracting investors or partners Investors and venture funds strongly prefer formalized corporate structures. An AG, in particular, offers clear shareholder rights, transparent governance through mandatory annual general meetings, and the ability to issue shares and convertible bonds. Capital band allows the board to change capital within a range of 50%–150% over five years (Mercator, 2024). This makes the AG the preferred vehicle for startups seeking venture capital or established businesses planning equity fundraising. {{cta:cta-1}} ## What does Swiss company restructuring involve? Swiss company restructuring encompasses several distinct legal processes, each governed by specific provisions of the Swiss Code of Obligations and the Merger Act. The most common forms include changing the legal form (e.g., sole proprietorship to GmbH, GmbH to AG), relocating the registered office (within or across cantons), and amending the articles of association to reflect changes in capital, purpose, or governance. Companies must update articles by December 31, 2024 for virtual meetings and capital flexibility (CGS Registered Agent, 2024). Failure to update means losing access to these modern governance tools. ### Comparing key legal forms in Switzerland: sole proprietorship vs. GmbH vs. AG

Comparative table of legal forms in Switzerland
Criterion	Sole Proprietorship (Einzelfirma)	GmbH (Sàrl)	AG (SA)
Personal liability	Unlimited personal liability	Limited to capital contribution	Limited to capital contribution
Minimum share capital	None	CHF 20,000 (100% paid in)	CHF 100,000 (50% paid in at registration)
Management	Owner-managed	One or more managing directors; decisions by general meeting of members	Board of directors; more complex corporate structure
Corporate tax rate	Progressive personal income tax	Combined rate 11.9–21.6% (federal + cantonal + municipal)	Combined rate 11.9–21.6%; participation relief available under conditions
Confidentiality	Low	Medium; transfer of shares requires consent of other members	High; shares can be freely transferred
Target audience	Individual entrepreneurs	Small and medium businesses, family enterprises	Large companies, attracting investors

Cantonal corporate rates vary substantially, approximately 11.9%–21.6% (Chambers and Partners, 2025). The choice of legal form depends on your business goals, capital availability, and growth plans. Sole proprietorships suit individual professionals with low liability risk. GmbHs are ideal for small to medium enterprises seeking limited liability without the complexity of an AG. AGs are preferred for larger businesses, those planning to raise capital, or companies requiring high governance standards and investor confidence. ## How to change the legal form of your company in Switzerland: a step-by-step process Changing your company's legal form is a formal legal procedure governed by the Swiss Merger Act and the Code of Obligations. The process involves internal decision-making, document preparation, notarial certification, and registration with the cantonal Commercial Register. Below is a detailed breakdown of each step.

Step-by-step process for changing the legal form of a company in Switzerland

Decision

Document Preparation

Notary

Filing with Register

Publication in SHAB

### Step 1: decision-making and preparation (shareholder or board meeting) The first step is to formally approve the restructuring at a general meeting of shareholders (for an AG) or members (for a GmbH). The process begins with a general meeting decision and preparation of mutation documents (CGS Registered Agent, 2024). The decision must be documented in meeting minutes, which serve as the legal basis for subsequent steps. Quorum and majority requirements are defined by your company's articles of association and Swiss law. Typically, a simple or qualified majority is required; for significant changes such as legal form conversion, a two-thirds majority or higher may be necessary. The meeting minutes must clearly state the decision to change the legal form, the new structure, and any amendments to the articles of association. This document will later be notarized and submitted to the Commercial Register. ### Step 2: gathering and preparing necessary documents (mutation documents) Mutation documents are the official certificates, minutes, and updated articles required for registry submission. For a legal form change, you will need: - The notarized meeting minutes approving the restructuring - A new or amended articles of association reflecting the new legal form - A conversion balance sheet (not older than six months) - A conversion plan and conversion report - An auditor's report confirming compliance with legal requirements (for GmbH to AG conversions) GmbH and AG require notarized articles; conversion typically includes balance sheet and auditor's report (Swisspreneur.org, 2025). ### The crucial role of notary approval in a company change Notarial certification is mandatory for most structural changes, including legal form conversions and amendments to the articles of association. Notarial certification is mandatory for changes to articles, capital, and form transformations (Swisspreneur.org, 2025). The notary verifies the authenticity of signatures, confirms the legal capacity of the parties involved, and certifies the public deed (Errichtungsakt) that formalizes the restructuring. Without notarial certification, the restructuring has no legal effect and cannot be registered. The notary's role includes due diligence to prevent invalid or fraudulent filings, ensuring the integrity of the Commercial Register.

Notarial certification is not a formality but a guarantee of legitimacy. The notary verifies the authenticity of signatures and ensures compliance with the law, which is a mandatory condition for registration in the Commercial Register.

### Step 3: filing the application with the cantonal Commercial Register (Handelsregister) Once the documents are notarized, they must be submitted to the Commercial Register of the canton where the company is registered. The Handelsregister is the official public register maintained by each canton under federal oversight. It records all registered companies, their key data, and corporate changes, providing legal recognition, transparency, and enforceability. Registration in the Handelsregister triggers the legal existence of the new entity or the legal effect of the restructuring. Average processing times in the register are 5–20 days, depending on the canton (CGS Registered Agent, 2024). ### Step 4: publication in the Swiss Official Gazette of Commerce (SHAB) After registration, the changes are published in the SHAB (Schweizerisches Handelsamtsblatt), the official federal publication for commercial legal announcements. After registration, changes are published in SHAB for official notification (CGS Registered Agent, 2024). Publication in SHAB is legally required for transparency and public notification of company-related legal acts. These publications have official legal significance and serve as proof of public disclosure under Swiss law. The SHAB publishes legally binding announcements such as company formations, changes in company details, dissolutions, mergers, and bankruptcies. This ensures that third parties, including creditors, investors, and business partners, are informed of the restructuring. ## Deep dive into transformation cases: from GmbH to AG and other changes ### Common case: the process for a GmbH to AG conversion Converting a GmbH to an AG is one of the most common restructuring scenarios, particularly for companies seeking to attract investors or scale operations. The process is governed by the Swiss Merger Act, which allows the change of legal form without liquidation, transferring all rights and obligations to the AG by operation of law. Key requirements: - Capital increase: The share capital must be increased to at least CHF 100,000, with CHF 50,000 paid in before conversion. - Conversion balance sheet: A balance sheet prepared based on financials not older than six months. - Auditor's report: Minimum AG capital CHF 100,000; often requires conversion balance and auditor's report (Swisspreneur.org, 2025). An independent licensed auditor must audit the conversion balance sheet, conversion plan, and conversion report, issuing a formal opinion confirming compliance with incorporation requirements and protection of shareholder rights. - Notarized shareholders' meeting: The conversion and capital increase must be approved at a notarized general meeting; the new board of directors must be appointed or reappointed. The conversion becomes legally effective upon registration in the Commercial Register. Notary up to CHF 2,000; registration fees CHF 500–2,500 depending on canton (Swisspreneur.org, 2025). Costs typically include legal fees, notary, Commercial Register, blocked bank account, and auditor. ### Other common changes and their specifics #### Changing the legal address (within canton and across cantons) Relocating your company's registered office requires updating the Commercial Register. Relocation of domicile within Switzerland requires notification to the commercial register and may change tax jurisdiction (CGS Registered Agent, 2024). Moving within the same canton involves simpler administrative steps, as jurisdiction remains unchanged. However, relocating to another canton is more complex: it requires re-registration in the new canton's Commercial Register, effectively a form of redomiciliation. Key details for address changes: - Fee within municipality: The fee for entry, modification, or deletion of domicile or additional address is CHF 30 (kmu.admin.ch, 2024). - Online form: The company relocation form has been available on the online desk since fall 2024 (kmu.admin.ch, 2024). - Language of publication: If the entries are to be made in a language differing from that of the previous headquarters, then all the particulars to be published shall be entered in that language (kmu.admin.ch, 2024). - Automatic notification: Please note that other authorities are not automatically notified of any changes (kmu.admin.ch, 2024). For SA or Sàrl, the application must include the resolution to amend the articles of association, a certified copy of the new articles (if amended), and legally certified signatures of the persons applying for registration. Incorrect execution of an address change can lead to penalties or forced company liquidation. The final step is registration of the new address in the Handelsregister, which takes about 5–10 working days depending on the canton. #### Changing the company name or business purpose Amendments to the company name or business purpose require approval at a general meeting and must be reflected in the updated articles of association. Changes to name or purpose are approved by meeting, reflected in articles, and entered in the register (CGS Registered Agent, 2024). The amended articles must be notarized and submitted to the Commercial Register. After registration, the changes are published in SHAB to ensure public notification. #### Increasing or decreasing share capital For a GmbH, capital increases require a resolution by the general meeting with a two-thirds majority and an absolute majority of the voting capital, amendment of the articles, and registration in the Commercial Register. The capital increase must be completed within six months of the resolution. For an AG, the 2023 company law reform introduced the "capital band" mechanism. Reform introduced capital band: board can change capital within 50%–150% for five years (Deloitte Switzerland, 2024). This allows the board of directors to increase or decrease capital within a range of 50% to 150% of the registered capital over five years, without requiring repeated shareholder approval. This provides significant flexibility for companies managing capital needs dynamically.

AG Capital Band Flexibility

50%

Minimum

100%

Registered Capital

150%

Maximum

Board can change capital within a range of 50%-150% for up to five years.

#### Changing directors, board members, or auditors Changes to the board of directors or auditors must be approved at a general meeting and registered with the Commercial Register. The new directors must be appointed or reappointed, and their details (name, nationality, residence) must be submitted to the registry. At least one authorized signatory must be a Swiss resident. {{cta:cta-1}} ## Breakdown of costs for company restructuring in Switzerland Restructuring costs vary depending on the complexity of the change, the canton, and the services required. Below is an approximate breakdown of typical expenses for a legal form conversion or major structural change.

Approximate cost of company restructuring in Switzerland
Expense item	Approximate cost (CHF)
Commercial Register filing fee	500 – 700
Notarial services	600 – 1,500
Legal consultation	2,500 – 6,600
Tax consultation	1,000 – 3,000
Auditor's report (if required)	800 – 2,500

*Prices are indicative and may vary depending on the canton and complexity of the case. Notarial fees typically CHF 500–2,000; registry fees — hundreds to low thousands of francs (CGS Registered Agent, 2024). Additional costs may include early termination of lease agreements, insurance contracts, and potential court fees if disputes arise with creditors. Companies should budget for these contingencies when planning a restructuring. ## Legal and tax consequences: what you need to know ### Impact of changing canton on corporate tax rate Switzerland's federal tax system means that corporate tax rates vary significantly by canton. Cantonal rates vary substantially; changing domicile affects tax burden (Chambers and Partners, 2025). The combined rate (federal + cantonal + municipal) ranges from 11.9% in Zug to 21.6% in Geneva. Relocating your company's registered office to a lower-tax canton can reduce your effective tax rate by up to 9.7 percentage points.

Map of corporate tax rates by canton in Switzerland in 2024

Tax Rate Level

High (e.g., ~21.6%)

Medium-High

Medium-Low

Low (e.g., ~11.9%)

However, changing canton requires re-registration in the new canton's Commercial Register and may trigger additional formalities. Tax obligations are recalculated based on the new canton's rates. Additionally, Switzerland implemented the OECD Pillar Two rules effective 1 January 2025. The income inclusion rule is effective from January 1, 2025; minimum rate 15% for MNE (Swiss Federal Tax Administration, 2025). This introduces a minimum corporate tax rate of 15% for multinational companies, affecting tax planning for large groups and influencing restructuring decisions. ### Notification obligations: who else needs to be informed? After restructuring, you must notify several authorities and stakeholders: - Federal Tax Administration (FTA/ESTV): Update VAT registration and tax records. - Social security institutions (AHV/AVS): Inform them of changes to company identity and contribution records. - Cantonal Commercial Register: Submit updated documents reflecting the new legal form or address. - Banks: Update legal entity information and authorized signatories. - Trade licenses and permits: Update if affected by the change. Failure to notify the Commercial Register of a business address change can result in legal sanctions (Swiss Code of Obligations, Article 937). Failure to notify may result in fines under Article 937; the Commercial Register does not verify accuracy — it is solely the responsibility of the company's management (KB Bürgi, 2025). Failure to properly notify these authorities can lead to penalties, delays, or forced liquidation. {{cta:cta-1}} ## Common mistakes when changing structure and how to avoid them ### Mistake 1: incomplete documentation or incorrect formatting Partial or faulty documentation is a common cause of processing delays or denial of registration. Incomplete packages and violations of internal formalities lead to refusals and registration delays (CGS Registered Agent, 2024). Ensure all mutation documents are complete, accurate, and comply with Swiss legal requirements. Engage a qualified lawyer or notary to review your documents before submission. ### Mistake 2: ignoring tax consequences of relocation Relocating to a new canton without considering tax implications can result in unexpected liabilities. Consult a tax advisor to model the tax impact of the move and ensure compliance with cantonal and federal tax laws. ### Mistake 3: failing to observe internal procedures (meeting protocols) Internal resolutions must be properly documented in meeting minutes to validate decisions. Missing or invalid meeting minutes can invalidate the restructuring legally. Ensure quorum and majority requirements are met and that minutes are notarized where required. ### Mistake 4: missing the 2023 reform deadline Missing the update of articles by 31.12.2024 deprives benefits (online meetings, capital band) (Deloitte Switzerland, 2024). Companies that fail to update their articles of association by the deadline lose access to modern governance tools introduced by the 2023 reform. ## Get expert guidance on your company restructuring Restructuring a company in Switzerland requires careful planning, legal expertise, and compliance with federal and cantonal regulations. Whether you're converting from a GmbH to an AG, relocating to a tax-efficient canton, or updating your articles of association, professional guidance ensures a smooth and legally compliant process.

Growth and Scaling

Tax Optimization

Liability Limitation

Attracting Investment

Changing your business structure in Switzerland: a complete guide