Entrepreneurs and investors who own or manage companies in Switzerland are able to restructure the legal framework of the business if there are circumstances requiring it to be changed. As it is not a common practice, most businesses legal frameworks remain unchanged since establishment.
Situations, when it is advocated to change the business framework or structure, is when the company is no longer able to provide required business advantages or if the business cannot adequately represent it's best interests.
To find out more about corporate restructuring, please speak with one of our consultants.
Sole proprietorship into a limited liability company in Switzerland
Switzerland's popular sole proprietorship company structure can be simply described as a business operated by a single person, under their own name.
The local legislation states that for a sole proprietorship to be able to register for social security it should have at least 3 customers.
Continued growth of a sole proprietorship to the point where it has a number of customers and operates services for a number of businesses would mean that it is more beneficial for the company's framework to be overhauled from it's original sole proprietorship to a business structure able to accommodate for the increased business. This new structure would be a limited liability company. A limited liability company allows for the business to be separated from its founders, although the founders are still liable for financial and stability issues, with respect to their shares in the company.
To assist with any limited liability restructuring or questions, please contact our Swiss-based consultants.
In order to register the company's new structure, the old business will need to be de-registered from the Swiss Commercial Registry and the re-registered with all of the required new information and structure.
It's important that the entrepreneur, business owner or investor to understand all of the requirements when doing this, as well as support when drafting up new statutory documents for the new business structure. This includes the memorandum and the articles of association which dictate and highlight the founders of the business.
Anyone who requires assistance with this should feel free to contact our consultants to ensure all modifications are correct.