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GLOSSARY TERM

Share Capital

Share capital in Switzerland: minimum thresholds, paid-in rules, and practical planning before incorporation.

Legal

What is Share Capital?

Share capital is the amount founders commit to establish a Swiss company. It forms part of the legal and financial base of the entity and influences ownership allocation and governance.

Key Features

  • GmbH minimum capital is generally CHF 20,000 (fully paid in)
  • AG nominal capital is generally CHF 100,000
  • At least CHF 50,000 is typically paid in for AG incorporation
  • Capital level affects credibility with banks, partners, and investors

Practical Planning Points

  1. Decide ownership split before drafting incorporation documents
  2. Confirm whether operating needs justify capital above legal minimums
  3. Align capital with expected payroll, licensing, and launch costs
  4. Document source of funds clearly for banking and compliance checks

Tax and Compliance Implications

Share capital impacts capital tax exposure and may influence investor and lender perception. Poor capital planning can create avoidable governance amendments shortly after formation.

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