Setting up a general partnership in Switzerland: costs and legal steps

A general partnership is a legal form that is established by at least two people who are jointly and personally liable for the company. This company form is suitable for small and medium-sized companies that want to be flexible but do not require complex structures.

If a general partnership is not suitable for your project, find out about the formation costs and steps for a limited liability company (LLC) or a public limited company (PLC).

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1. Costs of forming a general partnership

1.1. No minimum capital required

A major advantage of the general partnership is that no minimum capital is required. This makes it easier for founders to get started if they do not have large financial resources. However, it is important to note that, in return, the partners are liable without limitation with their private assets.

1.2. Entry in the commercial register

The fees for entry in the commercial register are between CHF 200 and 300.

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2. Running costs of a general partnership

2.1. Social security for the partners

The partners of a general partnership are obliged, as self-employed persons, to contribute to the old-age and survivors' insurance (AHV), disability insurance (IV) and income compensation (EO). The contributions amount to around 10% of net income.

2.2. Insurance for the general partnership

It is advisable for the partners to take out professional liability insurance to protect themselves against third-party claims. The premiums for such insurance depend on the industry and the risks.

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3. Legal steps for setting up a general partnership

3.1. Partnership agreement

Although a partnership agreement is not required by law, it is recommended that a written contract be drawn up between the partners. This contract should include provisions regarding the distribution of profits, responsibilities and the terms of withdrawal of the partners.

3.2. Entry in the commercial register

If the general partnership engages in commercial activities or generates a certain amount of revenue, it must be entered in the commercial register. The entry is made at the commercial registry office of the relevant canton and is publicly accessible.

3.3. Registering with the AHV

The partners must register with the AHV as self-employed persons. Registration is carried out at the relevant cantonal compensation office and is an important step in being recognized as self-employed.

3.4. Value added tax (VAT)

As with other legal forms, the general partnership is also obliged to register for VAT if its annual turnover exceeds CHF 100'000. Registration is done with the Federal Tax Administration (FTA).

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4. Tax obligations and completion of the formation

4.1. Tax obligations

The partners of a general partnership must pay tax on their profits as part of their personal income. There is no separate corporate taxation, as is the case with an LLC or an AG.

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4.2. Bookkeeping and annual accounts

If the annual turnover is less than CHF 500'000, simplified bookkeeping with income and expenses that includes the financial situation is sufficient. General partnerships that have generated a turnover of at least CHF 500'000 in the last financial year are required to use double-entry bookkeeping.

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4.3. Formation with Startups.ch

If you want to speed up the process of setting up your general partnership, Startups.ch offers comprehensive support in drawing up the articles of association, registering with the commercial register and providing legal advice.

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Conclusion

The general partnership is a flexible and cost-effective legal form that is ideal for small businesses and partnerships. However, since all partners have unlimited liability, you should make sure that you are aware of the risks and take appropriate precautions.

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Setting up made easy! Use the Startups.ch service to set up your general partnership quickly and securely.

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