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General Partnerships in Switzerland

A presentation brought to you by LawyersSwitzerland.com

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Types of Partnerships in Switzerland

• Investors interested in opening a company in Switzerland can set up two types of partnerships:

general partnership;

limited partnership.

• Swiss partnerships are considered legal entities and must be registered with the Companies Register if carrying out business activities.

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Requirements for Opening Partnerships in Switzerland

• Partnerships in Switzerland must be formed by the association of minimum two partners, who must be natural persons.

• Legal entities are not allowed to become a partner in a Swiss partnership.

• For complete guidance when opening a partnership in Switzerland, please contact our team of Swiss lawyers.

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What is a General Partnership in Switzerland?

• The partners of a general partnership in Switzerland will have unlimited liability for the company’s debts, including with the investors’ personal assets.

• The general partnership can enter into trading activities regulated by the commercial legislation applicable in Switzerland, but the taxation system differs from the one available for commercial entities.

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Registering a Swiss General Partnership

• The formation of a partnership in Switzerland consists in signing the articles of partnership.

• The general partnership’s trading name consists of the family name of at least one of the partners.

• The Swiss general partnership may also add the business activity to its corporate name.

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Taxation of a Swiss General Partnership >>

• The taxation of a general partnership in Switzerland is different than the one available for other legal entities.

• When incorporating a Swiss company as a general partnership, investors should know that there are no minimum share capital requirements.

• The general partnership will be taxed in Switzerland only if its annual turnover is above CHF 500,000.

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>> Taxation of a Swiss General Partnership

• A general partnership in Switzerland falls under specific tax regulations.

• The corporate income tax is not applicable for the company’s profits, because the partners are the ones liable to personal income tax for any gains.

• Our Swiss lawyers can provide more details on the taxation system available in Switzerland.

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Personal Income Tax in Switzerland

• Personal income tax in Switzerland is performed in a complex manner.

• Non-residents are also taxed here, based on the income deriving from activities carried out in Switzerland.

• Personal income tax is imposed at the following levels:

the federal level;

the cantonal level;

the municipal level.

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The Advantages of a Swiss General Partnership• If the general partnership does not

undertake any business activities, it is not required to register with the Swiss Companies Register.

• The Swiss company formation procedure is straight-forward and simple.

• Foreigners can enter into a partnership if they own a work permit in Switzerland.

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Swiss General Partnership – Legal Aspects

• The general partnership does not have a legal personality, but it can issue contracts and enter into legal conflicts with other entities.

• In case the company was registered with the Commercial Registry, the accounting documents have to be executed following the commercial bookkeeping rules.

• The business will need double entry accounts.

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Invest in Switzerland • Those who are interested in

investing in Switzerland should know that the main industries available here are the following:

machinery; precision instruments; watch industry; tourism; banking; insurance.

• Our law firm in Switzerland can offer legal assistance for the registration of any type of company, from sole traders to general partnerships. Feel free to contact us.

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Thank you for your attention!

• For more information please contact us at:

(+44)203-287 0408 (for international clients)

office@lawyersswitzerland.com

www.lawyersswitzerland.com