A Limited Liability Company (LLC/SARL) is one of the most preferred business forms in Switzerland. It usually is used in cases where the founders only have access to a limited amount for the company capital.
LLC has the following advantages:
- Foreigners can own 100% of all the shares.
- The liabilities of shareholders are limited to their share contributions.
- LCC only requires one shareholder to incorporate.
This is a simple requirement - only one director, who can be the sole shareholder. At least one director of LCC must be a resident of Switzerland. Moreover, one shareholder has the right to have total control.
The main reasons for which LCC can be liquidated in Switzerland are presented below:
● LCC can be liquidated as per the provisions of the firm’s charter;
● through the resolution of the LCC shareholders, provided that the charter doesn’t consist of any legal basis related to the liquidation;
● through the decision of a Swiss court, when at least 10% of the LCC shareholders have expressed the intention to shut the company down for weighty reasons;
● the dissolution of LCC can also occur if it has incorporation errors;
● a Swiss company may be dissolved if it is engaged in illicit activities.
These reasons are applicable if LCC is included in voluntary liquidation. It should be noted, that regardless of business form, this type of liquidation is the most cost-effective variant when having to shut down the business in case there are no creditors.