Questions about company formation options
Questions about company formation options
When should I decide on the legal form?
The business model and financing should first be sufficiently concrete. Before binding transactions are entered into, however, it must be clear who the contracting party is and who bears liability. A subsequent change may cause additional costs.
When do I need external financing?
Liquidity requirements, tied-up capital and reserves must be planned realistically. Equity and loans involve different risks. An investor's experience is no substitute for a clear agreement on influence and exit.
Can I run a business from home?
This may be possible depending on the activity. The lease, use restrictions, permits and actual domicile must be considered. A post office box alone is not a substitute for a suitable business address.
Complex questions from practice
How does a planned financing round affect the choice or change of legal form?
Transferability of interests, governance and capital instruments are relevant. Investor preferences must be weighed against costs and liability. A conversion requires legal and tax planning.
A comparison of legal forms should also consider the anticipated financing route and future ownership structure. Conversion costs, transferability and participation rights belong in the planning process. An investor's preferred legal form is an important factor, but does not replace an assessment of liability, administration and tax consequences.
When can self-employed secondary work conflict with existing employment?
The duty of loyalty, competition, working time and rights to work results must be examined. Secondary employment is neither universally prohibited nor universally permitted. Document any necessary consent.
Review the employment contract, internal regulations and the actual overlap between the secondary activity and the employer's business. Working time, resources and results used may raise additional questions. Written coordination provides clarity where consent is required. General permission should not be understood as unlimited approval for every subsequent activity.
What legal issues arise with a virtual business domicile in Switzerland?
Accessibility, the domicile provider's consent and actual business activity are decisive. A postal address alone does not establish tax residence. Regulated activities may be subject to additional requirements.
Clarify whether the domicile is intended merely as a postal address or also as a place of actual business activity. The domicile agreement, accessibility and registration requirements should be consistent. Tax treatment and permit requirements must be assessed separately. An address alone does not provide a complete legal basis for all business transactions.
How can withdrawal from planned business contracts be secured if a permit is not granted?
Conditions and rights of withdrawal should be agreed before entering into lease, purchase or supply commitments. Costs already incurred are not automatically reimbursed. Clarify responsibility for the permit procedure.
Match the required permits to the commitments already planned. Different withdrawal and cost arrangements may be needed for leases, investments or supply contracts. A clear condition should specify what happens in the event of delay or refusal. This enables the business to decide which expenditure it knowingly assumes before a permit is granted.