Swiss Branch VS GmbH
One of the questions we often receive from our clients who already conduct business in other jurisdictions is whether they should go for a Swiss GmbH or AG subsidiary or a Branch of a foreign company. We have made an easy-to-understand pro-con list for both types of companies. Below you can find our pro-con comparison of both company types:
| Branch of a foreign company | GmbH - Limited liability company | |
|---|---|---|
| PROS | - No share capital required - Profits can be easily transferred to the mother company - Lower registration fees - no notary visit required | - Risk limited to the company alone - Real Swiss standalone presence - Name can be chosen freely (with “GmbH” at the end) - Easier and cheaper banking solutions |
| CONS | - Risk not limited to the branch and any defaults affect the main company - Not a separate legal entity - Fixed name as “main company name, city of the main company, branch and the city of the city branch in Switzerland” - It can run commercial, economical and operational activities on their own as long as it conducts the same business nature as as the mother companies - Higher bank account opening and maintenance fees | - Minimum shahre capital required to be deposited is CHF 20’000 |
For both GmbH and Branch it is obligatory to have a registered address in Switzerland and a Swiss-resident director/branch manager as well as to submit in the annual report to the tax authorities. (read more about Swiss GmbH and Swiss branch)
If you are interested in setting up a company in Switzerland or have general questions about Swiss company formation, please do not hesitate to contact us email us by email mail@ftrust.ch or call us on + 41 (0)44 266-10-60 to book an appointment. We offer a completely free consultation to discuss your needs and find the best solution suited for your future business setup.