The AG is very popular in Switzerland, but what are its advantages and disadvantages? This article explains so you can decide whether it suits you.
Advantages
The greatest advantage is exclusion of personal liability. As a shareholder, apart from liability actions for breaches of care, liability is limited to paid-in share capital, at least 100'000 CHF. Sole proprietors and general partners have unlimited personal liability for company debts.
Another major advantage is shareholder anonymity. Individual shareholder names are not visible in the commercial register. Following bearer-share reforms, however, the AG still knows them.
You are free to name an AG provided the name is not misleading or already used and includes AG.
If you sell your AG shares, the gain is tax-free.
Disadvantages
As an AG is a legal person subject to income tax, double taxation occurs: income and capital are taxed at company level, and income and wealth at shareholder level.
Formation is more complex and expensive than a sole proprietorship.
Another disadvantage is the relatively high minimum capital: 100'000 CHF, of which at least 50'000 CHF must already be available at formation.
Conclusion: The AG offers no personal liability and shareholder anonymity, but also double taxation and high minimum capital. We are happy to help determine whether it is ideal for your business.