Apr 05, 2024
Along with company registration in Switzerland, we propose an alternative solution is the purchase of a shelf or ready-made company. A shelf company is a pre-established legal entity that is available for immediate acquisition. These companies are either newly incorporated with the intent of being sold or have ceased operations at some point after having engaged in various commercial activities. Because these companies are inactive and ready for sale, they are termed "shelf" companies. Our team of company formation specialists in Switzerland can provide comprehensive information on the costs and procedures for those who are aiming to buy shelf companies.
In this comprehensive guide, we'll delve into the concept of shelf companies, their benefits, various types, shelf company costs, and the best practices for purchasing them.
A shelf company is a pre-established, legally registered Swiss company that has been put on a "shelf" and left inactive. These companies are ready-made and can be purchased to bypass the lengthy and often complex process of a company formation in Switzerland. Typically, shelf companies have no prior business activity and are free of liabilities, making them an attractive option for entrepreneurs and investors looking to start operations quickly.
Apr 05, 2024
Overall, the combination of economic stability, political neutrality, business-friendly policies, access to talent, global connectivity, tax benefits, quality of life, and innovation makes Switzerland an appealing destination for starting company in Switzerland.
This table provides a clear comparison to help you decide between purchasing a Swiss shelf company and starting a new company in Switzerland, depending on your business needs and priorities.
Features | Swiss Shelf Company | New Swiss Company |
---|---|---|
Time to Establish | Immediate; the company is already formed | Several weeks to 2 months |
Operational Readiness | Can start operations immediately | Requires time for incorporation and setup |
Initial Capital Requirement | NO CAPITAL REQUIRED | Initial capital must be deposited: min 20’000 CHF for LLC, min. 100’000 CHF (with min. 50’000 before registration) CHF for the Joint Stock Company |
Credibility | May have established history and credibility | Starts with no business history |
Administrative Process | Simplified; most formalities already completed | Extensive paperwork and regulatory steps |
Costs | Higher upfront cost due to pre-formation | Potentially lower initial costs but higher in long run |
Regulatory Compliance | Already compliant with basic requirements | Must ensure compliance from scratch |
Business Relationships | Existing relationships might exist | Must build relationships from scratch |
Due Diligence | Must conduct thorough due diligence to ensure no hidden liabilities | Less risk if newly formed with a clear history |
Once you purchase a shelf company in Switzerland, the most important modifications can be made to align the company with your business needs.
These changes must be recorded in the Swiss Corporate Registry. Here is the list of the modifications the new owner can make:
1. Name: The company's trade name can be changed to reflect the new business identity.
2. Directors: New directors can be appointed to manage the company.
3. Legal Registered Address: The company's legal address can be updated to a new location.
4. Shareholders: The names of the shareholders can be changed to reflect the new ownership.
5. Articles of Association: Revisions to the company's Articles of Association can be made to accommodate new business objectives and structures.
6. Share Capital: The share capital of the company can be increased to meet the requirements of the new business activities. Both GmbH/Sarl (Limited Liability Company) and AG/SA (Public Limited Company /Corporation) entities must comply with specific share capital requirements under Swiss law.
7. Business Licenses: Depending on the nature of the business, a specific business license in Switzerland may need to be obtained.
8. The Shareholder Register and Ultimate Beneficial Owner List must be updated upon the transfer of ownership of a ready-made company in Switzerland. This update is mandatory to ensure compliance with regulations.
All changes must be officially submitted and recorded in the Swiss Corporate Registry to ensure compliance with Swiss regulations.
To find the perfect Swiss shelf company for sale for your needs, consider the following methods:
Forming a company in Switzerland or purchasing a Swiss shelf company can be a strategic move for businesses looking to establish a swift and credible presence in Switzerland.
Whether you need immediate operational capability, enhanced business credibility, or a simplified administrative process, there are numerous options available to suit your requirements.