Revision Of The Law Of The Limited Liability Company
Mondaq Business Briefing › Switzerland Law Articles in English (2010)
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Revision Of The Law Of The Limited Liability Company
On the 16th December 2005, the Swiss Parliament adopted the new law of the limited liability company (LLC), which came into force during the second half of the year 2007. Companies founded under the aegis of the former text had to adapt to the new legislation.
Summary The revision aimed to give to the LLC the attributes of a real equity company but still with some personal elements. The current regulations allow the foundation of an LLC by a sole individual. The equity upper limit, previously set at 2 million Swiss Francs (CHF), has been abolished because it pointlessly used to slow down the growth of a company that needed substantial equity. The minimum required amount of the equity remains set at 20'000 CHF. The latter must always be paid up in full. In return, the joint and several liabilityof the general partners up to the whole equity has been paid up in full has been abolished. Unlike the previous law which held that a partner can only own one "quota"1 (aCO 774 II), the new one allows a distribution of the financial contribution from each partner in several quotas. The present l...See the full content of this document
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