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Business Management
David Merz | Founding Partner
Zurich, December 24, 2023
Setting up a limited liability company (GmbH) or Stock Corporation (AG) in Switzerland comes with various legal and financial requirements. One of the most basic of these is the formation of a special capital deposit account in which to pay the minimum registered share capital of the company during the incorporation process. This article explores the intricacies of capital deposit accounts, how the deposit process works in practice, it’s associated costs, and most importantly, how to choose the right bank for opening a capital deposit account in Switzerland.
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Forming a legal corporate entity in Switzerland such as a GmbH or AG requires a minimum initial capital. For a GmbH, the statutory minimum capital required is CHF 20,000, all of which must be deposited at the outset (“paid up”). For an AG, the minimum is increased to CHF 100,000, but only 50% (CHF 50,000) is required to be initially paid up.
When setting up a GmbH or AG, one of the first steps is to open a capital deposit account. This is a special blocked bank account used to deposit the initial share capital or increase its share capital later. The funds in the capital deposit account remain inaccessible until the incorporation process is complete, and they thus serve as proof that the company has deposited the initial minimum capital required for incorporation.
Once the incorporation process is complete and the company has been entered into the commercial register, the funds in the capital deposit account become available and are transferred to the company’s current account. As such, the capital deposit account is a temporary pass-through account solely for the purpose of making capital contributions to the company.
Calculate the costs of your company incorporation here.
The process of depositing the initial capital in the capital deposit is quite straightforward. Once the minimum capital is determined, shareholders transfer the required funds to the capital deposit account which they have opened with a bank of their choice. The bank then “blocks” this capital, making it inaccessible for regular transactions.
The company founders provide evidence of the deposit to the notary during the incorporation process, confirming their financial commitment to the business and fulfilling the legal minimum capital requirements for incorporation.
The steps are as follows:
The costs associated with a capital deposit account vary significantly among banks. Some banks may offer these accounts as part of a package for company registration, while others may charge separate fees. Common charges include account setup fees, transaction fees, and maintenance fees.
Fees for setting up a capital deposit are typically either fixed in absolute terms or charged as a percentage of the capital deposit value, subject to certain minimum and maximum values. It’s crucial to carefully review the fee structure of each bank to ensure that you choose the most cost-effective option for your business.
Choosing the right bank for your capital deposit account is an important decision. Consider the following factors when making your choice:
Setting up a business is a time-consuming and challenging process. You should always be looking to save time and energy where possible, so it is a good idea to choose a bank that allows you to open and manage your capital deposit account entirely online. This usually involves going through an application and identification process through a video call and then signing online. Most banks will then provide you with your new account details within minutes.
Compare the fees associated with capital deposit accounts across different banks. Look not only at the initial setup costs but also consider transaction fees and any ongoing maintenance charges.
You want to establish your new company as efficiently as you can, and this depends on being able to quickly open a capital deposit account. Choose a bank that can process your capital deposit quickly and efficiently, minimizing delays in the registration process. The bank of choice should also be available at any time of the day to answer your questions or help with any issues you are facing.
Seek out banks with a solid reputation for reliability and security. A reliable bank is less likely to pose complications or create uncertainties in the management of your capital deposit account. Once your company has been entered into the commercial register, the capital from the blocked account is transferred to your current account. It can make things easier to open your capital deposit account and current account with the same bank. This means you need to do a thorough appraisal of the bank’s services, costs, and reliability to determine whether they can offer you the level of quality you need to help your business grow going forward.
Find a bank that goes above and beyond to offer its new corporate clients useful services in addition to the capital deposit account. Beneficial services for starting a new business may include business advisory services, international banking options, financial planning assistance, and loan offerings. Take these extra services into account when making your decision.
A bank that offers flexibility in terms of account management, fund transfers, and financial planning is crucial as your business grows and evolves. Voluntary closure of your company’s account should be possible at any time without additional charges or complex paperwork.
There are many reputable banks in Switzerland that offer capital deposit accounts for incorporating a business. It is always important to do your own research and finding a banking partner that aligns with your specific goals and vision. That said, some of the most well-known Swiss banks that offer this service include:
Nexova is the number one digital trustee partner for startups in Switzerland. We specialize in assisting new businesses with company registration and the related financial processes.
We offer a range of services designed to streamline your company registration process, including guidance on setting up a capital deposit account, legal compliance, and financial planning.
Nexova’s team of experts is ready to help you navigate the complexities of establishing a GmbH or AG in Switzerland. Whether you are a local entrepreneur or an international business looking to set up branch operations in Switzerland, our tailored solutions can save you time and ensure that your company registration process is as smooth and efficient as can be.
Contact us today to find out more about how we can help you fast track the registration of your startup and maximize your long-term success.
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