The type of company to set up depends on your objectives and needs. It varies according to criteria such as the available capital, the potential degree of liability, the risks and the number of partners involved in the project. In Switzerland, the three most common forms of SMEs are the limited liability company (LLC), the company limited by shares (LTD) and the sole proprietorship. The LLC and LTD have the advantage of limiting the liability of the partners, who cannot, in principle, be sued personally for the company's debts. They do, however, require a higher capital base and higher incorporation costs. The sole proprietorship has the advantage of being simpler and less costly to set up, but the entrepreneur's liability is broader.

No, it is not required to be in Switzerland to set up a Swiss company. However, at least one managing director of a limited liability company, or one director of a company limited by shares, must be domiciled in Switzerland.

The creation of a limited liability company requires a share capital of CHF 20'000.-, which must be deposited with a bank. The founding partners can then incorporate the company in a deed, to be executed before a notary, in which they declare that they are creating the company and establish its articles of association. Once the company has been incorporated, it must be registered with the Trade Register.

The transfer of shares in a limited liability company requires a written contract, which must include a reference to the rights and obligations of the partners as set out in the articles of association of the company. Approval by the company's shareholders' meeting is also required. Once these requirements have been met, the transfer can be notified to the Trade Register.

The creation of a company limited by shares requires a share capital of CHF 100'000.-, which must be deposited with a bank. However, it is possible to deposit only CHF 50'000.-, with the remainder to be paid up at a later date. The founding shareholders can then incorporate the company in a deed, to be executed before a notary, in which they declare that they are creating the company and establish its articles of association. Once the company has been incorporated, it must be registered with the Trade Register.

The shares of a company limited by shares are, in principle, freely transferable, unless the law or the company's articles of association impose restrictions. This is particularly the case if the shares are not fully paid up. If no restrictions apply, the transfer is carried out in accordance with the rules applicable to the type of shares transferred. In the case of registered shares, the transfer is effected by means of a written contract containing a declaration of assignment, with, where appropriate, surrender of the share certificate and endorsement. In the case of bearer shares, the transfer may take place by contract, by delivery of the security, by assignment or in accordance with the rules applicable to intermediated securities.

To set up a sole proprietorship, you first need to determine the company name, which must include the name of the founder. Registration with the Trade Register is then possible, but is only compulsory with annual revenues of CHF 100'000.- or more, unless otherwise provided by law. In principle, entrepreneurs are self-employed and must therefore register with an OASI office. When the company employs staff, it is necessary to register with a pension fund (OP) and an accident insurance. Finally, registration with the Swiss Federal Tax Administration is required for companies subject to compulsory VAT.

In principle, an external auditor is required for limited liability companies and companies limited by shares. These companies are normally subject to either an ordinary or a limited audit by an external auditor, depending on their size, business volume or whether they are public companies. However, small companies may choose not to proceed to a limited audit, and therefore avoid the involvement of an external auditor, if they have an annual average of no more than ten full-time jobs. Sole proprietorships do not require an external auditor.