What is a GmbH in Switzerland?
The Swiss “Gesellschaft mit beschränkter Haftung” or abbreviated “GmbH” (in English: “limited liability company” / “LLC”) is the second most preferred legal form of a Swiss company. Each company member participates in the nominal capital by making at least one capital contribution.
What is a company with limited liability?
A limited liability company (LLC) is a corporate structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
What is difference between AG and GmbH?
The difference between the AG and the GmbH is due to the stricter provisions of the German Stock Corporation Act. The framework for the formation of an AG is narrower and most of the processes and documents involved in its formation require notarisation.
What is the difference between GmbH and AG?
Is AG or GmbH better?
Considering all the legal requirements, a GmbH is more suitable for entrepreneurs or small businesses willing to expand their activity in Switzerland, while an AG has a more suitable structure for corporations.
Who is liable for debts in a limited company?
The company is a separate legal person from its shareholders and the directors. The company incurs debts in the course of its business and only the company is liable for those. In a company limited by shares, the shareholders’ obligation is to pay the company for the shares they have taken in it.
What does AG mean after a German company name?
Aktiengesellschaft
‘AG’ is an abbreviation for the German word Aktiengesellschaft, which literally translates to ‘stock corporation’ or ‘shares corporation’ in English. AG companies trade publicly on stock exchanges with the majority of companies trading on the DAX.