Capital Deposit Account: Which Bank Should You Choose?

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.

Minimum capital requirements of a GmbH and AG

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.

What is a capital deposit account for setting up a GmbH or AG?

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.

How does the capital deposit work in practice?

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:

1. Carefully select the bank you wish to open the account with and go through the required account opening procedures. Depending on the bank, you may have to do this in-person or have the option to open the account online.
2. Submit your deposit declaration to the bank and receive a statement that the account has been blocked for you. Thereafter, transfer the specified amount into the account and receive proof of the amount of deposited capital from the bank.
3. Proceed with the incorporation process, during which you will have to present proof of the capital deposit to the notary.
4. The next step is entry in the commercial register. Once your application is accepted, you will be officially entered into the commercial register. This is a requirement for the incorporation of a GmbH and AG in Switzerland.
5. Thereafter, you can present proof of your entry into the commercial register to the bank where you have opened the capital deposit account. An extract from the commercial register which shows your company has been registered will suffice.
6. The bank then releases the funds, and they can be transferred to your company’s current account.
7. Once the funds have been transferred to your current account, the capital deposit account will be deleted. As such, the capital deposit account is always temporary in nature.

How much does a capital payment account cost?

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.

How do you select the right bank to open a capital deposit account?

Choosing the right bank for your capital deposit account is an important decision. Consider the following factors when making your choice:

1. Convenience

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.  

2. Cost

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.

3. Speed and availability

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.

4. Reliability

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.

5. Additional services and support

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.

6. Flexibility

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.

Five most popular banks for opening a capital deposit account in Switzerland

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:

1. UBS: UBS is one of the largest and most renowned banks in Switzerland, providing a range of financial services to businesses of all sizes.
2. Credit Suisse: Credit Suisse is another major bank in Switzerland, known for its global network and personalized business services. They provide tailored solutions for startups and established businesses alike.
3. Zürcher Kantonalbank (ZKB): ZKB is Switzerland’s largest cantonal bank and a good choice for local businesses. They provide a variety of business banking services and have a strong presence in the Zurich region.
4. PostFinance: PostFinance is a popular choice for startups and small businesses. They provide a range of business accounts and services with a user-friendly online platform.
5. Raiffeisen-Gruppe: Raiffeisen is a cooperative banking group with a strong presence in Switzerland. It consists of numerous local Raiffeisen banks, and is an ideal choice for businesses looking for personalized banking services.