Switzerland is one of the world’s largest business centres in the world due to the policies conducted by the Swiss government that supports a competitive and global business environment. Therefore, it is not a surprise that many foreign investors are interested in investing in Switzerland. Most of them opt for setting up a company in Switzerland through different business entities, one of them being a limited partnership company.
If an investor wants to start a partnership business in Switzerland, they have two main options; they can set up a general partnership or a limited partnership. As opposed to a general partnership, in which the members’ liability is equally shared, in a limited partnership the partners will be liable for the company’s debts on a different level. One of the partners is required to have unlimited liability, while the other one will register as a limited partner.
Features of a Limited Partnership Company in Switzerland
- A Swiss limited partnership has to be registered by at least two partners, who can also be represented by a legal entity
- In Switzerland, a limited partnership does not have a minimum capital requirement
- This type of legal entity does not prescribe residency requirements, which means that the business form can be easily set up by foreigners
- There are fewer regulations and insurances for a limited partnership
How to Set Up a Limited Partnership Company in Switzerland?
The legal structure of a limited partnership is particularly suited for small private businesses. The limited partnership is a legal structure often chosen when a general partnership needs to extend the base of its financing. It is also ideal for the limited interest of creditors in the administrative management of the company. To start a limited partnership, one has to follow these few steps:
- The first step is to reserve the name for the company. Note that the company name should end with Limited Partnership and the name should not match with any other existing company name
- The next step is to register your business at the trade register and make a partnership agreement, although the latter is optional (but strongly recommended), governing both – the company’s shares and shares in profits
- Then, the partners have to draft an Articles of Association which includes the details of all the shareholders and their investment in the company
- Pay the minimum capital required for the company by opening a bank account. The Switzerland government through this step wants to make sure that you have enough money to start the company
- Next, the company name must be registered at the Commercial Register after providing all the necessary documents
- Once the authority goes through your application and the documents and if they meet the legal framework, then your company registration is approved
- After the approval, you are good to start your Limited Partnership Company in Switzerland
In terms of taxation, a limited partnership company follows a different taxation scheme than the one applicable to other types of commercial companies.
Documents Required to Set Up a Limited Partnership Company in Switzerland
- Company Name of your wish (ending with “GmbH”)
- Passport color scan copy (director(s), shareholder(s)
- Proof of residence (phone bill, electricity bill) not older than 3 months
- Bank reference letter or, 3-month bank statement
- Nature of business
- Business plan
- Details of the owner of the company – their names, address, and other relevant details
- A draft of the Articles of Association
We at Business Setup Worldwide help you start a business in Switzerland. Our services include company formation, registration, accounting and bookkeeping, corporate secretarial services, Visa and Taxation services. Our advisors in Switzerland will provide you with a simplified solution of starting a Swiss limited company and make the process simple and straight-forward. Contact us today to register your business in Switzerland.