The public limited company (PLC)

With a public limited company (PLC), personal liability can be excluded. It also enjoys a very good public reputation.

A public limited company is a company with its own legal personality, for whose liabilities only the company's assets are liable.

In Switzerland, a minimum capital of CHF 100,000 is required to form a public limited company (PLC).

At least CHF 50,000 of this must be paid in at the time of formation. The minimum capital serves as security for creditors and demonstrates the financial soundness of the company.

This capital can be raised in cash or in kind and is an important prerequisite for entry in the commercial register.

The PLC is a flexible legal form that can be used for a variety of business purposes. Whether trade, production, services, research or development - the PLC offers a structured and professional basis for almost any type of company.

The purpose of the company is defined in the articles of association and must be entered in the commercial register when the company is founded.

At least one shareholder and one Board of Directors are required to form an PLC in Switzerland.

At least one natural person resident in Switzerland must be a member of the Board of Directors. Shareholders can be natural persons or legal entities.

Due to the separation of ownership and management, the owners do not have to be actively involved in the day-to-day business, which allows for a professionalization of company management.

The PLC has many advantages. One of the biggest advantages is the limitation of liability: shareholders are only liable with their contribution and not with their private assets. This offers a high level of protection in the event of financial difficulties.

In addition, the PLC enjoys a high level of acceptance among banks, investors and business partners, which facilitates the procurement of capital and business relationships.

Further advantages are the easy transferability of shares and the possibility of raising capital through the sale of shares, which supports the growth of the company.

The disadvantages of the PLC include the higher formation costs compared to other legal forms and the higher administrative costs.

Formation requires a notarized articles of association, entry in the commercial register and a large number of administrative tasks. In addition, there is an obligation to keep double-entry accounts and prepare annual financial statements, which entails additional expense.

Another disadvantage is the publicity requirement, as the PLC is obliged to make certain information publicly accessible, which can limit the anonymity of the owners.

In summary, the formation of an PLC in Switzerland offers a solid and flexible corporate structure with numerous advantages, particularly in terms of limited liability and acceptance by business partners. However, it also requires a higher administrative and financial outlay, which should be carefully weighed up.