Setting up a PLC in Switzerland: pros and cons

The public limited company (PLC) is one of the most important legal forms for companies that want to operate on the capital markets. It offers significant advantages in terms of raising capital and reputation, but also has higher requirements than other legal forms.

If the PLC is not the right choice for you, find out more about the LLC or the general partnership and sole proprietorship to find the right legal form for your business idea.

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Setting up a PLC: advantages

• Raising capital through shares: One of the greatest strengths of the PLC is the ability to raise capital by selling shares. This makes growth and access to new funding much easier.

• Separation of ownership and management: The shareholders of a PLC do not have to be actively involved in the management of the company. This allows for flexible company management by professional directors.

• Limitation of liability: Liability is limited to the capital contributed to the PLC. The private assets of the shareholders are protected from the claims of creditors.

Setting up a PLC: disadvantages

• High minimum capital requirement: A minimum capital of CHF 100'000 is required to set up a PLC, of which at least CHF 50'000 must be paid up. This is a significant hurdle for many founders.
  

• Complex administration and regulations: A PLC is subject to strict legal requirements and regulations, particularly with regard to accounting, disclosure requirements and the general assembly. The administrative costs are correspondingly high.

• Low flexibility: Compared to an LLC or a sole proprietorship, the PLC is less flexible because decision-making often takes place through several committees, which can slow down the decision-making process.

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Conclusion

The PLC is ideal for larger companies that want to raise capital and need complex structures. Despite the higher costs and requirements, it offers significant advantages, particularly in terms of liability and capital raising.

Start setting up your PLC now with Startups.ch – our team will guide you through the entire process.

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