Company law

business law

What are the types of companies available for entrepreneurs?

Entrepreneurs can choose from sole proprietorships, partnerships, LLCs, and corporations.

What is the main difference between partnerships and corporations?

Partnerships involve groups of individuals with mutual obligations, while corporations are separate legal entities.

What defines Swiss Company Law?

Swiss Company Law outlines various business entities defined under the Swiss Code of Obligations, including sole proprietorships, partnerships, LLCs, and corporations.

What are the different types of companies in Switzerland?

Sole Proprietorship, Simple Partnership, General Partnership, Limited Partnership, Corporation, LLC, and Cooperative.

What is a Sole Proprietorship in Switzerland?

It is the simplest business form, with no legal entity separate from the owner, who has full control and unlimited liability.

What is a General Partnership?

A voluntary association of two or more people who share profits and losses equally and have unlimited liability for business debts.

What is a Limited Partnership?

It includes general partners who manage the business with full liability and limited partners who invest capital and have limited liability.

What is a Limited Liability Company (LLC)?

An LLC combines the benefits of partnerships and corporations, where members have limited liability and the company can be either member

What defines a Corporation?

A distinct legal entity with limited liability for shareholders, managed by a board of directors and officers, and transferable shares for raising capital.

What is the key difference in liability between legal forms?

Sole proprietorships and partnerships involve unlimited liability, while LLCs and corporations offer limited liability to their owners.

How is management structured in different business forms?

Sole proprietorships are managed by the owner, partnerships by partners, and corporations by boards of directors and officers.

What is the formation and legal complexity between legal forms?

Sole proprietorships have minimal formation requirements, while corporations and LLCs have more complex formation processes.

How do corporations raise capital?

Corporations can issue shares or sell bonds to raise capital, whereas sole proprietorships and partnerships rely on owners' capital.

What is the key feature of a corporation's legal entity status?

A corporation is a separate legal entity, distinct from its shareholders, capable of suing, being sued, owning property, and entering contracts.

What is limited liability in a corporation?

Shareholders are not personally liable for the company's debts; they only lose the amount invested in the company.

What is perpetual existence in a corporation?

Corporations continue to exist even if the original owners leave or die, allowing the business to continue indefinitely.

How is ownership transferred in a corporation?

Ownership can typically be transferred easily by selling shares, though there may be restrictions on who they can be sold to.

How do corporations attract investment?

Corporations raise money by selling shares or bonds, helping them grow and expand.